Subic Opens to Direct Korea, Taiwan Trade
Evergreen Marine has launched a new direct service between Subic in the Philippines and key ports in Korea and Taiwan.
Evergreen, Taiwan’s largest shipping company, is launching its Korea-Taiwan-Philippines (KTP) service, adding the ICTSI-operated Subic New Container Terminals 1 and 2 to its port rotation.
The inclusion of Subic in the rotation is expected to boost the growing markets in northern and central Luzon in the Philippines. Aside from exports and imports, the service also offers transshipment for overseas cargo.
The KTP weekly service follows the following port rotation: Incheon and Kwangyang, South Korea; Kaohsiung, Taiwan; Batangas, Manila, and Subic, Philippines; and back to Kaohsiung.
The first Evergreen vessel under the KTP service is scheduled to make its maiden call to Subic on 19 April.
The Philippines is capitalizing on Taiwan’s “Southbound Policy” which aims to strengthen trade and investment relationships between Taiwan and countries south. This paradigm shift opens the doors for the Philippines to capture businesses in Taiwan’s high-value manufacturing, innovation, logistics and transshipment, renewable energy, e-commerce and financing sectors.
Taiwan is the Philippines’ sixth biggest trading partner, facilitating around $7.85 billion worth of bilateral trade in 2015. Currently, the Subic Bay Freeport Zone hosts 52 Taiwanese companies with $500 million worth of investments and over 12,000 jobs generated.
Meanwhile, South Korea is the Philippines’ fifth largest trading partner in 2015. In 2014, bilateral trade between the two countries reached $13.4 billion, a number that is expected to reach $20 billion over the next five years. This projection has triggered the increase of Korean investments in the Philippines in the recent years, with construction, cosmetics and food companies looking to invest.