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CAL, Yang Ming Marine, Chunghwa Post form strategic alliance

CAL, Yang Ming Marine, Chunghwa Post form strategic alliance

China Airlines (CAL), Taiwan's largest international carrier, signed a memorandum of understanding with Taiwan-based shipper Yang Ming Marine Transport Corp. and state-owned Chunghwa Post Co. on Tuesday to set up a strategic alliance.

Under the agreement, the three partners hope to integrate the air and marine shipping resources of CAL and Yang Ming with the postal services of Chunghwa Post to provide door-to-door delivery of goods shipped to Taiwan from abroad.

The alliance is mainly aimed at developing a cross-border e-commerce business platform to boost Taiwan's global competitive edge, according to the three companies.

At the MOU signing ceremony, Chunghwa Post Chairman Philip Wen-chyi Ong said the alliance was initiated by the Ministry of Transportation and Communications (MOTC) in the hope that cooperation between the three leading companies will help them all thrive, especially in cross border e-commerce.

According to the MOTC, CAL ranks as the world's sixth largest air cargo carrier with 35 destinations around the globe, Yang Ming Transport is the world's 13th largest shipping company, and Chunghwa Post has more than 1,000 outlets in Taiwan.

Vice Minister of Transportation Wu Meng-fen said he has faith that the strategic alliance will create synergies for the three partners.

Hermann Yu, president of Yang Ming Transport, said the alliance will shorten delivery times for goods sent to Taiwan from overseas, lowering logistics costs and helping the three penetrate the e-commerce business.

The three partners are in talks to set up a website as a platform for developing the joint e-commerce business, with the platform expected to be ready for a trial run by April 2016, Yu said.

Chunghwa Post currently rakes in NT$300 million (US$9.09 million) in revenue a year from its own e-commerce business, which has 300,000 members.

CAL has about 200,000 members in its frequent flyer program and posts annual sales of about NT$1.8 billion a year from e-commerce and duty-free businesses.

(By Wei Shu and Frances Huang)
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