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The Status and Warehouse Rates of Air Cargo Entrepot

According to Subparagraph 16 of Article 2, Civil Aviation Act, air cargo entrepots as used here refer to enterprises that receive compensation for providing customs clearance and warehousing space, facilities and services to handle import, export or transfer cargo into and out of airport-bonded areas. According to Paragraph 1 of Article 3, Regulations Governing Air Cargo Entrepots, the business scope of an entrepot includes the following items:

  1. 1. assembling and disassembling, building up and breaking down, and loading and unloading of air cargo, containers and pallets,
  2. 2.operating importing and exporting entrepots, and .
  3. 3.providing services ancillary for customs clearance.

In addition, in compliance with Paragraph 2 of Article 3, an entrepot is also allowed to conduct the following business:

  1. 1. maintain and repair air cargo containers and pallets, and
  2. 2. business related to warehousing and logistics.

At present, TACT, EGAC, Farglory Free Trade Zone Co., Central Taiwan Science Park Logistics Co., UPS (self-use entrepot) and FedEx (self-use entrepot) have established entrepots according to Civil Aviation Act and Regulations Governing Air Cargo Entrepots. UPS and FedEx are foreign civil air transport enterprises that self-handle the entrepot business for the cargo carried by their own aircraft. A brief introduction to these entrepots is given as follows:

Taiwan Air Cargo Terminal Co. (TACT)

Both Taoyuan international airport phase I air cargo terminal and Kaohsiung international airport air cargo terminal are originally operated by Taipei Air Cargo Terminal, a division of Civil Aeronautics Administration. The phase I air cargo terminal of Taoyuan international airport (land area 146,425m2) began operation on 26 February 1979, while the air cargo terminal of Kaohsiung international airport (land area 16,813m2) started in September 1971. These two air cargo terminals have been privatized since 16 January 2000 and all facilities were handed over to Taiwan Air Cargo Terminal Co. (TACT) for continuing operations.

The capital of TACT amounts to TWD 2.5 billion, which comprises of investments from China Airlines (majority), Far Eastern Air Transport Corp., UPS, Everter Co., Taoyuan International Airport Services Co., Taiwan Airport Services Co. and several air freight forwarders. TACT owns permission to operate for 20 years which may extend to 30 years after gaining CAA’s consent.

The total volume of air freight handled by TACT in 2006 was 680 thousand tons. Taking over the warehouses, facilities, and personnel from Taipei Air Cargo Terminal, TACT has been endeavoring to develop an efficient air freight warehousing business. In addition, TACT is currently planning to reconstruct and expand the warehousing buildings and facilities which will substantially promote its capacity and the level of service for the next decade.

Evergreen Air Cargo Services Corporation (EGAC)

Evergreen Air Cargo Services Corporation was established in 2000. Its cash capital was TWD 0.8 million and then gradually increased to TWD 1.2 billion. EGAC is set up by a consortium led by Eva Airways Corporation with other members including Singapore Airlines, Far Glory Air Cargo Terminal Co., Ltd., UNI Air and several air forwarders. In 2000, EGAC was granted permission by CAA to build (within the period of three years) and operate phase II air cargo terminal of Taoyuan International Airport for 30 years.

Taking over a land (area 44,748 m2) of Taoyuan Airport on 1 April 2000, EGAC completed phase II air cargo terminal in July 2002. It provides warehouses and customs clearance facilities including import entrepot, export entrepot and express handling unit (2,793m2). More than 400 parking spaces for trucks and cars are also provided.

The volume of air freight warehousing business was 120 thousand tons in 2002 and 424 thousand tons in 2006, more than 48% of which is transfer cargo.

Farglory Free Trade Zone Co.

CAA made an announcement to invite tenders in 2002 and then Farglory Free Trade Zone Co. finally won the bid and signed contract with CAA for establishing and operating Taoyuan Air Cargo Park, which lies beside of Taoyuan International Airport. Farglory develops the park to five functional areas, including two air cargo terminals, a forwarders building, a value-added industrial park, an international logistics center, and a business operation center.

The land area of the general cargo terminal, forwarders building and adjacent parking space accounts for about 13.0 hectares, and the and area of the perishable and express cargo terminal and its surrounding parking space is about 2.2 hectares. These two terminals completed in 2005 and added another 500 thousand tons warehousing capacity to Taoyuan Airport. In addition, Farglory will expand the warehousing capacity up to 1.2 million tons by 2018.

UPS Self-use Entrepot

UPS is the first integrator setting up its transshipment center in Taoyuan International Airport. UPS signed MOU with CAA on 3 March 1996 and following a formal agreement on 16 June 1996 to set up a self-use entrepot to handle express cargo below 70kg carried by its own aircraft. The entrepot (area 5,456m2), which is located in the building that was spared by the former Taipei Air Cargo Terminal, started operation on 10 October 1996.

The entrepot has expanded gradually to a land area of 6,871m2.

Central Taiwan Science Park Logistics Co. (CTSPL)

Central Taiwan Science Park Logistics Co., CTSPL was introduced into Song Shan International Airport as air cargo terminal in 2010. The land area of the cargo terminal and its adjacent parking space is 4,596 m2. CTSPL provides warehouses and customs clearance facilities including import entrepot, export entrepot and express handling unit. The annual warehousing capacity is 20,000 tons.

Last updated: 2023/09/26 15:37