Taoyuan Industry Big Future Trend Summit Forum

In recent years, major airports around the world have been actively developing to enhance their competitiveness. Taiwan’s neighboring airports are also actively investing resources in expanding software and hardware facilities and improving service quality to increase the airport’s capacity for passenger and logistics services. In this fierce international air transport market, Taoyuan International Airport must master its own SWOT (strengths, weaknesses, opportunities and threats) to expand Taoyuan Airport’s economic advantages, create a larger air transport market, and drive the industrial development of Taoyuan City.

Based on this, the Economic Development Bureau of Taoyuan City Government held the "Taoyuan Industry Big Future Trend Summit Forum-Creating New Opportunities for Taoyuan to Achieve a Smart Airport" on October 20, inviting domestic and foreign companies in air transportation and airport operations, logistics management, supply chain management, and production. Experts and scholars of medical technology and information communication technology shared and discussed the development trend of Taoyuan's industry centered on Taoyuan Aviation City, making Taoyuan a leader in Taiwan's industrial development. Just as Taoyuan Mayor Zheng Wencan said at the opening: "In the Aviation City project, creating an airport economy is an important issue, which will bring about the development of animal logistics and the effect of industrial upgrading, and the future will also move towards the next generation of industries."

The industrial development of Taoyuan City occupies an important position and considerable output value in Taiwan's economic development. Just like, Mayor Zheng mentioned: "Taoyuan’s industrial output value is the highest in Taiwan for 12 consecutive years. The output value is twice that of Hsinchu. Taoyuan has a strong manufacturing base, such as automobiles, optoelectronics, biotechnology, chemicals, solar energy, optoelectronics and other industries. A complete industrial settlement is formed in Taoyuan. Taoyuan is also the logistics base of Taiwan. Air logistics accounts for 95% of Taiwan. Coupled with the "dual port effect" adjacent to Taipei Port, there are 1671 registered logistics companies in Taoyuan, an industry in Taoyuan City. The foundation is sufficient to support the aviation city plan. At the same time, "Taoyuan is also the largest wind power generation base. The airport economy will bring about logistics base effects and industrial production effects."

Based on these strong economic conditions and in line with future international industry development trends, Taoyuan City’s future industrial development plan is just like the Mayor Zheng said: "In the Aviation City project, Taoyuan will move towards the next generation of industries, including Logistics, biotechnology, cloud, solar photovoltaic, new energy, etc., in the future aviation city plan, there are 150 hectares of free trade zone and 500 hectares of production area. It is expected that the logistics industry will reach 2500, making it the largest logistics base in Taiwan. "

With the solid economic foundation, overall industrial future planning and implementation plan, Taoyuan has a great opportunity to become an international production and logistics base, as well as a cross-strait e-commerce logistics base. To achieve these visions and goals, it is not only necessary to enhance the international competitive advantage of Taoyuan Aviation City, but also to strategically alliance with neighboring airports. As the Deputy Director of Airport Operations of the Hong Kong Airport Authority said in his speech, the neighboring airport branch plans to increase connectivity Sex. Mr. Fei Hongjun, general manager of Taoyuan International Airport Co., Ltd., also mentioned in the [Innovative Business Opportunities of Hub Airports] Forum: "Smart airports are not reachable by a single airport, but require clusters." That is, to be close. The airport is integrated into an airport service supply chain. General Manager Fei believes that in the airport service supply chain, "logistics is the strength of Taoyuan International Airport."

The author participated in the [People and Logistics Flow in the Era of Smart Airports] forum. The host was Mr. You Wenxiang, Chairman of Taiwan Global Operations Development Association. The interviewers also included Ms. Peng Lizhen, CEO of Toplogis., and Ubisoft International Co., Ltd. Mr. Bi Zhongwei, general manager of Taiwan branch. In the introduction, Chairman Yu expressed his views on the theme of the forum. He believes that the improvement of the flow of people and logistics management efficiency "needs sensory equipment, including logistics operation technology, successful connection of information, etc., all need to rely on the cloud and big data. End-to-end analysis to solve what's happening on the front-end.” And, “The smooth and fast connection and communication between the Internet and the Internet, and the Internet between things to solve things, can be regarded as a smart airport.” Chairman Yu also Mentioned: In terms of logistics: "Transportation, warehousing, linkages between airports and free economic trade zones, customs clearance, and information sharing platforms are all key elements of smart logistics. With Taoyuan’s regional advantages, supplemented by the development of industrial clusters’ output value, Smart airports can provide a foundation for business model enhancement."

In the cross-talk forum, CEO Peng explained on 4PL’s point of view: “The cloud platform is a sharing economy model. Through cloud computing technology, it helps customers plan the way of delivery of goods. At the same time, it also helps customers solve after-sales service problems. Be able to know the cargo status and progress, and proactively report the cargo status to international customers.” CEO Peng also pays attention to the development of e-commerce, suggesting that “Taoyuan should incorporate e-commerce logistics into the future development, because e-commerce is highly profitable and the logistics industry is required. The Asia-Pacific e-commerce consumption power accounts for 44% of the world, so Taiwan’s logistics industry has great opportunity.” At the same time, she also suggested: “Logistics is not competitive without IT. Singapore incorporates logistics information and communications into national infrastructure projects. This type of construction is only effective if the government does it."

General Manager Bi explained the importance of air cargo tracking and timeliness, "UPS has 16 million pieces of cargo every day, and these cargoes can be tracked at any time on the Internet." Cargo tracking requires information system integration, and logistics operators must pay attention to information and the development of communication technology, because "information flow is very important, the logistics industry has exceeded the scope of transporting goods in the past, and the future development is unpredictable." In addition, he also put forward a suggestion: "Many industries in Taiwan are relocated overseas. How Taoyuan International Airport increase the attraction to be a transit airports is a big issue.” In terms of logistics costs and customer service, General Manager Bi believes: “Customers are becoming more and more concerned about transportation costs. As the customer’s supply chain becomes more developed, customers need a one-stop shopping service that can meet various needs at the same time to enhance their competitiveness." At present, big data-related technologies are developing rapidly. He also provided UPS experience for participants to refer to. "Big data can calculate the performance and effectiveness of different departments to help identify problems."

In the cross forum, the author also put forward his views from the academic perspective, "Taoyuan has more than 1,600 logistics companies, and Mayor Zheng mentioned that the aviation city project aims at 2,500. Amsterdam is the gateway between the Netherlands and Europe, with only There are 150 logistics companies, so when we set our target at 2500, we believe that the competitive advantage of Taoyuan Aviation City’s logistics services can be greatly improved.” At the same time, “from Singapore’s experience, Singapore’s pragmatic approach to logistics policies is a lesson for Taiwan." Generally speaking, logistics cooperates with the development of the industry, but I believe that in some cases, logistics can also drive the development of the industry. Take Singapore’s biotechnology industry as an example. “It’s logistics drives business flows. First, a logistics environment suitable for the development of biotechnology will be set, which will attract the world’s top ten biotechnology R&D centers to set up their Asian headquarters in Singapore. Taiwan used to ignoring the to develop supporting industries, the logistics industry really needs to be taken seriously."

In the current business environment, it is not the competition between enterprises, but the supply chains. The same applies to the planning and operation of smart airports. It is not the competition between the airport and the airport, but the competition between supply chains and airport service. Therefore, Taoyuan International Airport must strengthen its partnership with neighboring airports, and it should be able to play a key role in the airport service supply chain in the future.

Author: Dr. Chen Muzhen, in-service professor of the Institute of Transportation and Master of Transportation and Logistics, Jiaotong University