Kaohsiung Port Terminal 121 Secures Investment: Building a Non-Ferrous Metal Hub to Strengthen Asia-Pacific Logistics

The Kaohsiung Branch of Taiwan International Ports Corporation has announced a successful outcome in the investment solicitation for the backland area of Kaohsiung Port’s Terminal 121. Following a public bidding and selection process, Kao Chun Stevedoring Co., Ltd. has been awarded the status of preferred investor and has completed the signing of the agreement. The company will proceed with phased investments to construct international logistics warehouse facilities, leveraging Kaohsiung Port’s free port zone and international metal trading platform advantages to establish a non-ferrous metal transshipment center, further enhancing the port’s logistics and transshipment competitiveness in the Asia-Pacific region.

The Kaohsiung Branch explained that Terminal 121 was originally part of the Fourth Container Center but has since been transformed into a multi-functional terminal. With a water depth of 13.5 meters, it can accommodate large vessels. The port authority has reserved approximately 1.5 hectares of backland area for public cargo handling and vehicle access, while the remaining 8.3 hectares are designated for commercial development, making it one of the few large-scale development sites available in Kaohsiung Port.

Kao Chun Stevedoring, the company securing development rights, has long operated in Kaohsiung’s free port zone, specializing in warehousing and transshipment of non-ferrous metals, pulp, and steel coils. The company maintains operational bases in the Zhong Island Commercial Port Zone, Nanxing Free Trade Port Zone, and the Fourth Container Center, demonstrating comprehensive port logistics capabilities.

Since 2013, Kaohsiung Port has served as a delivery point for the London Metal Exchange (LME), the world’s largest base metals trading platform, attracting several internationally certified warehousing firms and gradually evolving into a key logistics hub for non-ferrous metals. With this new development at Terminal 121, Kao Chun will integrate its existing three warehouses at Terminal 122 and align with the Chicago Mercantile Exchange Group (CME Group)’s COMEX operations in Kaohsiung. Three warehouse facilities within the port received COMEX aluminum delivery certification in February this year, paving the way for Kaohsiung Port to connect both LME and COMEX—the two major global metal futures trading systems—thereby strengthening its global metal logistics network.

The introduction of these two major international metal futures platforms is expected to enhance the efficiency of storage, transshipment, and dispatch of metal commodities at Kaohsiung Port. This not only reinforces the port’s status as a regional transshipment hub in the Asia-Pacific but also provides Taiwan’s domestic metal industry with improved logistics and risk hedging options, reducing operational costs and risks for enterprises.

Moreover, the continuous expansion of base metal warehousing and transshipment operations will stimulate growth in port-related industries such as transportation, stevedoring, customs clearance, and cargo tallying. This development is projected to generate new employment opportunities and inject fresh momentum into Kaohsiung Port’s long-term growth.