Yang Ming seeks closer ties with Cosco

Taiwan's Yang Ming is planning to approach the mainland's China Ocean Shipping (Group) Co (Cosco) for closer ties following the signing of an agreement between Beijing and Taipei to restore direct shipping links across the Taiwan Strait.

Yang Ming and Cosco are already operating joint services and capacity sharing under the CKYH Alliance, which includes besides Cosco and Yang Ming, Japan's "K'' Line and South Korea's Hanjin Shipping. "We want to double the number of our operating offices on the mainland in the next few years from 20 now and our target is to double consolidate revenue in five years," said Yang Ming chairman Frank Lu. Yang Ming Marine had consolidated sales of $4.07 bn last year. Direct shipping across the strait has been banned since the end of the civil war in 1949. Ships carrying goods between the mainland and the island now must now detour via Japan's Ishigaki Island. Negotiators for the two sides have agreed to Taiwan opening 11 ports for direct cross-strait service and the mainland 63 ports. Companies plying the cross-strait routes would be exempted from business and income tax and allowed to open liaison offices on the other side, according to the agreement. Lu said Yang Ming and Cosco would share berths on both sides of the strait and in the long run they do not rule out the possibility of joint investment in port facilities. All ships registered in Taiwan, China and Hong Kong will be eligible to operate direct cross-strait services, according to the newly signed agreements.
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