Yang Ming May Merge with Port
Taiwanese container carrier Yang Ming Marine Transport Corp should merge with state-owned port company Taiwan International Port Corp. (TIPC), report local media quoting a member of Taiwan's parliament.
Legislator Chen Ou-po of the Democratic Progressive Party (DPP) proposed that Yang Ming, which is 33% government-owned, can merge with state-owned TIPC, Taipei Times reported.
Taiwan’s ministry of transportation and communications is working on the possibility of merging container carrier Yang Ming, island’s second largest containerline, and TIPC. The merger is mooted as part of reform measures aimed at helping the weak maritime sector.
The ministry’s transportation committee discussed about possible measures to salvage debt-ridden and partially state-owned Yang Ming, which has recorded a loss of TWD13bn ($408m) in the first three quarters of this year.
The state has a 33 percent stake in Yang Ming, so it might be difficult to merge it with the nation’s largest shipping firm, Evergreen Marine Corp, as one is a state-run company and the other is a privately owned firm.
A merger between Yang Ming and TIPC would be more viable, with the latter also being a state-run firm that operates seaports, Chen said.
TIPC was established in 2012 to take over the port operation and management functions of Kaohsiung, Keelung, Taichung and Hualien.