Taiwanese Companies in Multimodal Alliance - Global Trade Magazine
  January 9th, 2016 | Written by

Taiwanese Companies in Multimodal Alliance

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  • Purpose of the China Airlines/Yang Ming/ Chunghwa Post alliance is to provide delivery of ecommerce goods.
  • China Airlines/Yang Ming/ Chunghwa Post alliance was proposed by Taiwan transportation ministry.
  • China Airlines/Yang Ming/ Chunghwa Post alliance will shorten delivery times and lower logistics costs.

China Airlines, Yang Ming Marine Transport Corp., and the state-owned Chunghwa Post Co. have signed a memorandum of understanding to establish a strategic alliance on Tuesday, The China Post has reported.

The purpose of the alliance is to provide door-to-door delivery of goods to Taiwan ordered from abroad on ecommerce websites. “The move is aimed at creating a competitive edge for Taiwan on the global market, amid growing business opportunities in cross-border e-commerce,” according to the article.

The alliance was proposed by Taiwan’s Ministry of Transportation and Communications, with the goal of helping the three leading companies create synergies, said Chunghwa Post Chairman Philip Ong was quoted as saying.

China Airlines currently ranks as the world’s sixth largest air cargo carrier with 35 destinations around the globe, and Yang Ming Transport is the 13th largest shipping firm. Chunghwa Post operates more than 1,000 outlets in the country.

Hermann Yu, president of Yang Ming Transport, said the tripartite alliance would “help shorten delivery times for goods sent to Taiwan from overseas and lower logistics costs,” according to The China Post report.

The three partners are expected to launch an online platform for their e-commerce business in April 2016.