Taiwan Government to provide $17.57bn in aid for shipping sector

17 November 2016 (Last Updated November 17th, 2016 18:30)

Taiwan’s ministry of transportation and communications is set provide TWD$560bn ($17.57bn) in aid for the country’s struggling shipping industry.

Taiwan’s ministry of transportation and communications is set provide TWD$560bn ($17.57bn) in aid for the country’s struggling shipping industry.

The Ministry has already submitted its plan to China’s Central Government, Executive Yuan, for final approval.

Once approved, the fund will be used to support the local shipping industry, which has been suffering a global slowdown.

"The incident shows us that the government has to provide support to the industry before the damage becomes uncontrollable."

Taiwan transportation and communications deputy minister Wang Kwo-tsai was quoted by the Taipei Times as saying: “The bankruptcy of [South Korean firm] Hanjin Shipping in August has caused many of its ships, as well as the goods they carried, to be detained by port authorities around the world.

“We see how people had to figure out ways to salvage their goods stranded at sea.

“The incident shows us that the government has to provide support to the industry before the damage becomes uncontrollable.”

Kwo-tsai also noted that the country’s financial institutions can provide a credit line of up to TWD$500bn ($15.69bn) to improve the overall economy.

Additionally, Taiwan’s National Development Council has provided TWD$60bn ($1.8bn) in mid to long-term loans, which will mainly be used to fund ailing shipping firms.

The country is heavily dependent upon shipping firms to transport bulk goods, which is also the key to Taiwan’s economic development.

The Government is expecting the shipping industry to come back to normalcy within a period of two years, reported Maritime Herald.