Copyright 2002, Traffic World Magazine
The first steps have been taken to build a logistics complex in Taiwan for aerospace industry parts and components that will serve customers throughout the Asia-Pacific region. The Industrial Development Bureau of Taiwan's Ministry of Economic Affairs signed a memorandum of understanding with 3PL Ryder System Inc., pledging mutual cooperation on the project. "We are now developing a model and a marketing plan to attract co-development partners," said Ryder spokesman David Bruce.
The project includes the Asian Aerospace Maintenance, Repair and Overhaul Center, and an Aerospace Logistics Support Center complex that will function as a receiving, storage and shipment center for the maintenance facility. The logistics facility will distribute parts and components throughout the Asia-Pacific region. "This will be the first logistics center specialized in the aerospace field within the Asia-Pacific region," said Dr. David R.C. Chu, director of the IDB's Committee for Aviation & Space Industry Development.
The project reflects the "global logistics center" policy of the Taiwanese government, said Chu. According to the IDB, in recent years over 20,000 Taiwanese companies have made investments in mainland China and Southeast Asian countries. These companies rely heavily on Taiwan for a range of resources such as industrial machinery, components and technical expertise. "As a result, Taiwan has played a pivotal role in the global network of manufacturing and supply chains," said the IDC.
However, the agency wants to bridge the development gap that still exists between Taiwan and other advanced industrialized countries. It estimated that by 2006 Taiwan's gross domestic product will reach $410 billion, up from its 2000 value of $271.3 billion. The average annual production value per employee is expected to jump from $110,000 to $172,000 in the same period.
The IDC has mapped out a development strategy that calls for expanded output, a sustainable development strategy, global-scale management and regional economic development. Additionally "Taiwan should be transformed into a 'Science and Technology Island' focusing on high-tech and high value-added industries, and play the role of an Asia-Pacific regional manufacturing and (research and development) center," stated the IDC.
No specific time frame for the aerospace complex has been set yet but once the country enters into collaborations of this kind, "they can move pretty quickly," said Bruce. The focus now is on attracting the interest of aerospace manufacturers, the development of vendor-managed industry programs, and ensuring "that the right government incentives" are in place, he said.