Institute of Transportation, MOTC

The purpose of this paper is to highlight the function of port hinterland and explore the key successful criteria of port hinterland development on the Free Trade Zone based on Key factor analysis and Fuzzy AHP approaches.

The finding can be illustrated as: (1) port hinterland holds a critical role of complementing the area between the ship-cargo handling area and the local port city area; (2) current logistics functions of FTZ need to extend to multi-function parks containing international trade and exhibition areas, technological R&D development park, venture business park, assembling and processing park, and
a waterfront leisure park based on cluster perspective; (3) the key successful factors of FTZ’s port hinterland in Taiwan are integration of customs and port logistic information, efficiency of port operation, exemption and deduction of customs duty and value-added tax for cargo, political stability, economic market scale, soundness of the investment system and incentive measures, exemption or
deduction of corporate tax and local taxes, direct-shipping across the Taiwan Strait, convenience of the custom clearance process and a one-stop administrative service window, labor cost, transportation and distribution cost,
efficiency of an intermodal transport network, land cost, sufficiency of port hinterland for logistics functions, frequency of sailing route and adequacy of port logistics facilities.