Taiwanese container line Yang Ming is forming a new joint venture to deepen ties with its domestic and overseas partners and target emerging markets.
The memorandum of understanding (MoU) aims to extend the scope of cooperation with shipowners TS Lines, of Hong Kong, and Taiwan Navigation, plus Taiwan International Ports Corp (TIPC), Tungya Transportation & Terminal and the country's postal service Chungwha Post.
The signing was witnessed by Ho Chen, Taiwan's minister of transportation and communications.
"In light of the rapid growth of the emerging markets in the Association of Southeast Asian Nations (ASEAN) and South Asian countries, ASEAN has recently become Taiwan's second-largest export market and second-largest investment destination," Yang Ming said.
"To penetrate the region's market, the MoU is expected to set a framework of creating a mutually beneficial cooperation platform between the six companies and seize overseas investment opportunities by using their respective expertise, exchanging experiences and sharing resources for the supply chain integration in shipping and logistics."
Partnerships already in force
Yang Ming has already partnered with TIPC through the setting up of a container freight station in Surabaya, Indonesia.
It will now seek to "optimise its cost structure, strengthen competitiveness and expand global business," it added.
The venture will be located in Singapore and is expected to start operations by the end of 2018.
A preparation committee has been formed to implement the deal.
Taiwanese politicians have previously urged Yang Ming to merge with TIPC.
The state has a 45% holding in the container line.
Taiwan Navigation has previously announced it has a 2% stake in Yang Ming after buying its shares in recent months.
