Welcome To Civil Aviation Administration, MOTC R.O.C.

I. Introduction

In the 21st century, Europe, North America, and the Asia-Pacific demonstrate rapid development in the world economy. It is estimated that economic growth in the Asia-Pacific region is highest among them. Taiwan benefits from its geographical position in the Asia-Pacific and has shown its strength in international trade and manufacturing. Taiwan has a chance to become the regional center of air cargo transportation in East Asia by making use of these advantages.

In order to achieve the goal of becoming an air cargo transfer center, the Executive Yuan decided to make use of related facilities of Taiwan Taoyuan (TTY) International Airport to develop an Air Cargo Park adjacent to the airport. Its aim is to attract international enterprises to station in Taiwan, and then to enhance the development of high value-added manufacturing industries and services. The Civil Aeronautics Administration (CAA) was appointed as an authority to work for land acquisition and construct related public works, and then private enterprises invested in constructing the Park. The development and the management efficiency in this cargo center can be enhanced through the Build-Operate-Transfer (BOT) scheme due to the efficiency of private enterprises.

The Air Cargo Park is located at the east side of the TTY International Airport, and is 45 hectares in area. There is an overpass that connects the TTY International Airport and the Park for the convenience of transporting cargo to and from the two sides. It is only 8 km from Sun Yat-Sen freeway to the Park. It also takes less than 20 minutes from Chin-Pu Station to Taipei City by high speed rail, which began operation in January, 2007. The highway and railway systems provide excellent access to the Park.

The Executive Yuan approved the plan of land expropriation on April 23, 1999. CAA conducted the relevant tasks of expropriation. In May, 2001, the land was successfully registered under the nation through the effort by CAA. Relevant public utilities were constructed through land clearing, including a 40-meter wide road, bridges, connecting an overpass to the aircraft apron and wastewater processing facilities. Meanwhile, the open tender of the BOT project was announced on May 16, 2002 and was awarded to the Far Glory Air Cargo Park Free Zone Co., Ltd. (Hereinafter referred as Far Glory) on May 30, 2003. The Far Glory was awarded a 50-year operating privilege on the construction and operation of the Air Cargo Park. 

Far Glory has planned and designed a detailed construction project for the infrastructures in Taoyuan Aviation Free Trade Zone ( FTZ ) upon signing the agreement with CAA. The ground breaking ceremony for the construction project of FTZ was held on March 4, 2004 and has started to operation on January 1, 2006. The process of the construction project is divided into three phases and estimated to be completed by the end of 2023. The first phase of the construction project including the port zone of Taoyuan Air Cargo Terminal, warehouse office building, the aircraft warehouse in logistics area, express warehouses and two plants (building A and B) of Value Added Zone, as well as the second phase project including logistics center, private warehouse of Kintetsu World Express and the air cargo entrepot have been started to function. The third phase is currently under construction. It is expected to complete five plants (building C, D, E, F and H) of Value Added Zone, expansion of logistics center and the new cold chain logistics warehouse.

II. Construction for Departure and Inhabitation In Taoyuan Aviation Park Free Trade Zone

According to Far Glory's plan, there are 3 areas in Taoyuan Air Aviation Free Trade Zone: Air Cargo Terminal, International Logistics Center and Value-Added Park.

1. Air Cargo Terminal: There are 2 buildings in this area the import/export-handling building and the storage building, making the customs clearance of cargo more efficient and supplying service to airlines and other companies.
2. International logistics center: it will provide international logistics value-added services, logistics distribution and courier services. This center is the only one within an international airport in the country. It supports logistics service for high-tech industry groups in northern Taiwan including the Science-based Park and Lin-Kou industrial area.
3. Value-Added Park: Production of value-added work here is mainly on the latter stages of product manufacturing, and can be divided into 2 parts: industrial involved processing and logistic simple processing. If the materials required for product value-adding by an enterprise in the port area are imported by air, the material will be unpacked and counted at the cargo terminal after unloading, and then moved into this zone to conduct related processing.

Currently, this park has installed digital network systems, including fiber optical trunks and radio (wireless). communications systems, and will set up park data center in the future. Besides, according to the related regulations, the employees who work in the zone will be identified by electrical ID card at entrance. Therefore, the functions of the Free Trade Zone are very different from others. The amount of employees will also be reduced through high-tech equipments.

As of the fourth quarter of 2023, there are 34 Free Trade Zone enterprises mover into the Value Added Zone (please see http://www.ftz.com.tw/port//). The leasing rate of Value Added Zone is 97.48%. The trade volume of 26,893 tons is 16.78% lower than the corresponding  period of 2022; however, the trade value of 1,340.3 billion is an increase of 5.78% over the same period of 2022.

III. Conclusion

The free trade zone policy encourages the industries to operate their headquarters and R&D function in Taiwan. It can reduce un-employment rate, and enhance the competitiveness in world market. The Taoyuan Aviation Free Trade Zone with its geographic advantage and multifunctional spaces, along with convenient international flight routes, will bring new opportunities to Taiwan.