| Market Research A to Z | Company Profiles A to Z | Register | Contact Us |
| +44 (0) 203 086 8600 Call us on |
Taiwan Freight Transport Report Q4 2009
Market |
Logistics |
Report Type |
Market Research |
Country |
Taiwan |
Published |
26 August 2009 |
Number of Pages |
59 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Taiwan’s High Speed Rail Corp (HSR) was in July seeking to refinance its existing loans of TWD390bn (US$11.9bn) by the end of 2009
Taiwan’s High Speed Rail Corp (HSR) was in July seeking to refinance its existing loans of TWD390bn (US$11.9bn) by the end of 2009, reported Reuters. The deal would replace two loans and a convertible bond. Ju Hsu, HSR’s director-general has stated that the company aims to benefit from the current lower interest rates by refinancing, thus achieving huge savings in the interest amount. The company has blamed the high-interest payments for its continuous losses. With interest rates plummeting globally to encourage credit offtake, refinancing of old high-cost loans for present low-cost loans should certainly help the company contain its losses due to interest obligations on debts.
In BMI’s latest Taiwan Freight Transport Report, we predict that despite a sharp recession this year, cross-Straits traffic will be an important factor contributing to medium term freight transport traffic growth, which should average 1.1% over the 2009-2013 period. The rush of business towards the mainland affects all freight transport modes. The move is something of a mixed blessing for air freight, as we think Taiwan will, on the whole, lose business to China’s emerging airport hubs. We thus forecast Taiwan air freight growth at a low 1.7% over the next five years. In the field of shipping, competitive pressures exist, and while we are predicting that because of the recession sea freight carried will grow by 1.2% per annum over the next five years we are optimistic about the longer term. In our view, Taiwanbased shipping lines are somewhat ahead of the game, having established themselves as global players.
Road freight traffic on the island will achieve average growth of 1.0%. In this area, Taiwan resembles a developed economy where traffic growth tends to trail, rather than lead, GDP expansion. We are also predicting rail cargo growth at around 1.0% per annum.
The report gives Taiwan a composite score of 50.2 (out of a potential maximum of 100) in its Freight Ratings Index. The country’s strengths are quite evenly distributed across long-term economic and political risk, infrastructure growth, and the regulatory environment. Areas for potential improvement include the competitive environment, freight growth, and the transport intensity index – a measure of the current and future dynamism of foreign trade.
In view of the current global downturn and the competitive challenge from the mainland, we project low to moderate growth for Taiwan’s freight transport industry. The total value of transport and communications GDP should rise to US$33.8bn in nominal terms by 2013, representing 7.2% of Taiwan’s GDP.
Last Viewed
Taiwan Freight Transport Report Q4 2009New Zealand Agribusiness Report Q4 2009
Cooper Industries, Ltd. - SWOT Analysis
Savory Snacks in Eastern Europe to 2013
Rottneros AB - Financial Analysis Review
Become an Affiliate
Do you manage an industry specific website or blog? Are you looking to monetise your web traffic further? Are you a B2B website?
Why not offer your visitors industry specific strategic market reports and company profiles? Our Affiliate Program enables you to provide quality content on your website and to earn money from passing on visitors to our website. If a sale is made from your visitor, you earn commission (a fixed percentage of the price of a product).
Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.
