26 flights a weekfrom Australia to Thailand - Asia Today · ... (Oman); (IRNA) - Islamic Republic...

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Lahore Chengdu Beijing Busan Fukuoka Hanoi Vientiane Hong Kong Kaohsiung Shanghai Seoul Osaka Nagoya Tokyo Chiang Mai Yangon Bangkok Colombo Phuket Penang Kuala Lumpur Jakarta Perth Denpasar Brisbane Sydney Melbourne Auckland Ho Chi Minh Phnom Penh Manila Singapore Hat Yai Delhi Kathmandu Kunming Karachi Mumbai Lahore Dubai Bahrain Abu Dhabi Muscat Chengdu Beijing Busan Fukuoka Kolkata Kolkata Guangzhou Guangzhou Hanoi Vientiane Hong Kong Kaohsiung Taipei Taipei Xiamen Xiamen Shanghai Seoul Osaka Nagoya Tokyo Chittagong Chittagong Luang Prabang Luang Prabang Chiang Mai Yangon Bangkok Colombo Bangalore Bangalore Chennai Chennai Phuket Penang Kuala Lumpur Jakarta Perth Denpasar Brisbane Sydney Melbourne Auckland Ho Chi Minh Phnom Penh Manila Singapore Hat Yai Delhi Kathmandu Kunming Jinghong Jinghong Dhaka Dhaka Karachi Mumbai Bandar Seri Begawan Bandar Seri Begawan Kuwait Kuwait Dubai Bahrain Abu Dhabi Muscat Contact your travel agent or call THAI on 1300 651 960 www.thaiairways.com.au Thai Airways International AFTA Member. Licence No.2TA000500 26 flights a week from Australia to Thailand THAI’s total route network now covers more destinations than ever before. 14 cities in Thailand, 11 cities in Europe, more countries in Asia than any other airline, the Indian subcontinent, the Middle East and North America, THAI has the world covered. We also fly direct from Australia to Thailand’s premier holiday destination, Phuket. THAI, smooth as silk. JHD1191/V5303

Transcript of 26 flights a weekfrom Australia to Thailand - Asia Today · ... (Oman); (IRNA) - Islamic Republic...

Lahore Chengdu

Beijing

BusanFukuoka

HanoiVientiane

Hong KongKaohsiung

Shanghai

Seoul

OsakaNagoya

Tokyo

Chiang MaiYangonBangkok

Colombo PhuketPenang

Kuala Lumpur

Jakarta

Perth

Denpasar

Brisbane

Sydney

MelbourneAuckland

Ho Chi MinhPhnom Penh

Manila

Singapore

Hat Yai

Delhi KathmanduKunmingKarachi

Mumbai

Lahore

DubaiBahrainAbu Dhabi Muscat

Chengdu

Beijing

BusanFukuoka

KolkataKolkata GuangzhouGuangzhou

HanoiVientiane

Hong KongKaohsiungTaipeiTaipeiXiamenXiamen

Shanghai

Seoul

OsakaNagoya

Tokyo

ChittagongChittagong LuangPrabangLuang

PrabangChiang Mai

YangonBangkok

ColomboBangaloreBangalore ChennaiChennai

PhuketPenang

Kuala Lumpur

Jakarta

Perth

Denpasar

Brisbane

Sydney

MelbourneAuckland

Ho Chi MinhPhnom Penh

Manila

Singapore

Hat Yai

Delhi KathmanduKunming JinghongJinghongDhakaDhakaKarachi

Mumbai

Bandar Seri BegawanBandar Seri Begawan

KuwaitKuwaitDubai

BahrainAbu Dhabi Muscat

Contact your travel agent or call THAIon 1300 651 960

www.thaiairways.com.au

Thai Airways International AFTA Member. Licence No.2TA000500

26 flights a week from Australia to ThailandTHAI’s total route network

now covers moredestinations than ever

before. 14 cities in Thailand,11 cities in Europe, more

countries in Asia than anyother airline, the Indian

subcontinent, the MiddleEast and North America,

THAI has the world covered.We also fly direct fromAustralia to Thailand’s

premier holidaydestination, Phuket.

THAI, smooth as silk.

JHD

11

91

/V5

30

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ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 200418

T E X T T E X T

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004

A S I A P U L S E THE INFORMATION HEARTBEAT OF ASIA

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JINDAL BUYS INDONESIA STEEL PLANTJAKARTA — Indian steel major Jindal Stainlesshas purchased a cold rolling plant in Indonesiafor US$32 million from PT Maspion StainlessSteel. Jindal plans to double plant capacity to100,000 tonnes with additional investment ofUS$12 million. PT Unilever Indonesia Tbk,meanwhile, has announced plans to expand itsbusiness and to invest US$500 million in devel-opment of its food, beverage and cosmeticsindustries in Indonesia over the next 10 years.

CHINA WINS BID FOR SSANGYONG MOTOR BEIJING — Shanghai Automotive IndustryCorp has been selected as the preferred bidderfor Ssangyong Motor Co, according to the SouthKorean carmaker’s creditors led by ChohungBank. SAIC, China’s largest carmaker, will buy acreditor-owned 48.9 per cent stake inSsangyong Motor once the deal is complete.

VIETNAM RICE FOR PHILIPPINESMANILA — Viet Nam Foodstuff Corporation 2(Vinafood 2) has won a contract to sell 37,500tonnes of rice to Filipino importers — it’s sec-ond bid-winner in two months. The companyhas agreed to sell a total of nearly 200,000tonnes of rice to the Philippines.

TAIWAN LIMITS AGRI MARKET OPENING TOCHINATAIPEI— An official of Taiwan’s Cabinet-levelCouncil of Agriculture has ruled out full openingof the domestic market to mainland Chineseagricultural and farm goods for the time being.He said such a move would damage Taiwan’sdomestic agricultural sector. Taiwan allowed 490items from the mainland before Taiwan joinedthe World Trade Organisation and has opened afurther 860 items following WTO entry.

KOOKMIN DISCUSSES ALLIANCE SEOUL — Kookmin Bank, South Korea’slargest lender, is negotiating with JP MorganChase & Co for a strategic alliance in assetmanagement. A Kookmin Bank official saidboth parties shared a view that South Korea’sasset management market has huge growthpotential. Kookmin is also looking for otherstrategic alliance partners in retail, corporateand private banking to compete withCitigroup, the official said.

ALCATEL SATELLITE FOR CHINABEIJING — Alcatel will design and produce anew-generation broadcasting satellite, knownas Chinasat 9, for the China SatelliteCommunications Corp (China Satcom), allow-ing China Satcom to become the first Chinesecompany to provide a satellite broadcastingservice in China. Some 280 million Chinesefarmers will have access to State-run TV pro-grammes when Chinasat 9 goes into operationin 2006.

BORAL BUYS INTO THAI QUARRYSYDNEY — Australian building products com-pany Boral Ltd is to acquire a stake in a Thaiquarry for AUD45 million. Boral will acquire theinterests of Hanson Plc, which has ready-mixedconcrete and quarry operations in Thailand.

NICKEL VENTURE IN CHINASYDNEY — WMC Resources Ltd, Australia’sbiggest nickel producer, is to jointly search fornickel in China with China’s largest nickel pro-ducer, Jinchuan Group Ltd. The two companieswill form a strategic alliance to explore for nick-el suphides and associated metals in Jinchuan’shome province of Gansu in central China andelsewhere, on a 50-50 cost-sharing basis.

SOUTH KOREA WIDENS FTA TALKSSEOUL — South Korea will soon enter jointstudies on bilateral free trade agreements withNorway, Switzerland, Iceland and Canada,according to the new Trade Minister, KimHyun-chong. The United States has also pro-posed FTA negotiations with South Korea, hesaid, but these would depend on the ability ofSouth Korea to cope with further agriculturalmarket liberalisation. Kim refused to elaborateon a timetable.

AIRBUS AIMS AT CHINA MARKETBEIJING — Airbus believes China will requirean additional 1,500 large aircraft in the next 20years to become the world’s largest market afterthe United States — and Airbus is aiming at aminimum 50 per cent share of the market.Airbus has promised to increase its annual pur-chase value of aircraft parts from China toUS$120 million by 2007.

INDIA TO STEP UP STEEL OUTPUT NEW DELHI — The Steel Authority of India hasannounced a Rs200 billion (US$5.4 billion)long-term plan to increase hot metal productionfrom the present 13 million tonnes per annumto about 20 MTPA by 2012. A “Corporate Plan2012” has been split into two stages — up to2006-07 and 2011-12 — and all investments infour steel plants at Bhilai, Durgapur, Rourkelaand Bokaro will depend on market conditions,Authority Chairman, V S Jain, told reporters.Immediate priority schemes, to be completed

by 2006-07, are expected to cost around Rs43billion, he said.

PRECISION ENGINEERING FOR HCMCTOKYO — Japan’s Nidec Corporation hasagreed to invest US$200 million in a precisionengineering factory in Ho Chi Minh City. Fullyforeign-owned, the factory will recruit 10,000workers and is expected to go into productionin August 2005.

KOREAN BANKS POST RECORD PROFITSSEOUL — South Korean banks posted recordearnings in the first half of 2004 due to a surgein interest income. In a preliminary tally, Korea’sFinancial Supervisory Service estimated that 19domestic banks achieved combined net profit of3.58 trillion won (US$3.07 billion) in theJanuary-June period, up from 2.85 trillion won ayear ago and the largest half-year result yet.

MAHINDRA TO ENTER SOUTH AFRICANEW DELHI — Indian auto major Mahindraand Mahindra is to enter the South African mar-ket with ‘competitively-priced’ vehicles — theScorpio sports utility and the Bolero pick-up.

SOUTH KOREA’S DAUM ACQUIRES LYCOSSEOUL — Daum Communications Corp, SouthKorea’s largest Internet portal, has acquiredLycos Inc from Spain’s Terra Networks for 111.1billion won (US$95.2 million). The acquisitionof Lycos, which Daum claims is the seventhmost-visited website in the United States, willgive the Korean portal a gateway to theAmerican Internet search market, company offi-cials said. The agreement calls for Daum to takeover a 100 per cent stake in Lycos, which is list-ed on the US Nasdaq.

SINGPU CHEMICALS EXPANDS IN CHINASINGAPORE — As part of its drive to becomea leading producer and seller of chemical rawmaterials in China, Singapore’s SingpuChemicals has announced a US$216 millioninvestment boost for its operations in JiangsuProvince. The funds will be used over a three-year period, with projects centring on the pro-duction of VCM (Vinyl Chloride Monomer),doubling its chlor-alkali production capacity,and expanding the firm’s co-generation plantfrom 60 MW to 120 MW.

SAN MIGUEL BUYS INTO BERRIMELBOURNE — Berri Ltd, Australia’s leadingjuicemaker, has agreed to sell a 50 per centstake to Filipino beverages giant San MiguelCorp. San Miguel said it valued Berri at AUD236million, but did not reveal the price of its stake.Berri CEO Alison Watkins said San Miguel’sinvestment will help Berri develop key Asianmarkets such as Thailand, Vietnam, Indonesiaand China.

T R A D E O U T L O O K BILATERAL TRADE AGREEMENTS

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004 19

AUSTRALIA and Malaysia haveagreed to begin a scoping study to

look at a possible Free Trade Agreement.Australia’s Trade Minister, Mark Vaile, said

the study would begin in the next fewmonths. His Malaysian counterpart, RafidahAziz, said it would take Malaysia about sixmonths to complete.

Rafidah said more than 60 per cent ofMalaysian products already attract zero tariffand 95 per cent of tariff lines are at five percent and below. The exceptions are productssuch as vehicles, wines, alcohol and tobacco.The study will look at products and sectorsand the cost to the (Malaysian) Governmentif it does not collect duty on these products.She says tariff on cars is not a problem,because, by January 1 2005, Malaysia will beon par with the rest of ASEAN.

“So if we were to have an FTA, it has to bevery specific. We will just look at some con-straints that do not allow free flow of thetrade,” she said.

Vaile said Australia will take a broaderview in its scoping study. It seeks to enhancethe two-way economic relationship and toprovide a better environment for investment.“We need to look at new areas we can openup where there are opportunities for us towork together in third country markets,”Vaile said. “Last year, we identified, the abil-ity to harmonise what we do in terms of safe

food production in Australia, and withMalaysia’s strengths as a certifier of halalfood production, we’ve agreed to expandthat across a variety of products — not justfood — to get halal certification.”

Even without a Free Trade Agreement,said Rafidah, the Australia-Malaysia JointTrade Committee, which met in Melbournein July, could provide an important platformfor co-operation to broaden trade betweenthe two countries. It was agreed during the11th JTC meeting that the Ministers approvea new programme which will be “very rele-vant to market opening”.

For Malaysia’s part, Rafidah said: “Wewould like to learn how the industrialbuilding system is being undertaken inAustralia. We want to know how the mod-ular co-ordination is being undertakenand (understand) the rules and regula-tions. Once we have standardisation of theusage of building materials and compo-

nents and parts for buildings, there wouldbe a lot more imports of such buildingmaterials from Australia.”

Rafidah said officials would also look atagribusiness and agricultural products,mainly in the area of phytosanitary (quar-antine) regulations pertaining to exports “sothat when we learn about this, we can sellmore of such products to Australia and viceversa —and once we have mutual recogni-tion arrangements between our two coun-tries, then the two parties can trade,because we accept each others’ testing,each others’ regulation and certifications”.

Rafidah said this would be a very big stepforward. “We have moved away from justhalal food into construction, agribusinessand fruit. We are talking about legal servicesand a range of other services we haveagreed to collaborate in.”

She said: “In terms of halal food pro-grammes, for example, we have agreed thatwe should expand the scope of that certifi-cation and work together to ensure that wealso go into other halal products, such ascosmetics and pharmaceuticals. Malaysia isin a position to do the certification.

“And, of course, Australia, with its expert-ise in pharmaceuticals, biotechnology and soon, can collaborate (with Malaysia) to set upjoint ventures that can be given certificationof halal on their products.”

Australia, Malaysia moving towards FTA

Mark Vaile, Rafidah Aziz: A ‘scoping’ study is under way.

HK set for talks on Phase 2 of CEPAHONG KONG: The HKSARGovernment hopes to be able to

start negotiations on what is known as PhaseTwo of the Closer Economic PartnershipArrangement (CEPA) with China soon.

Raymond Young, Hong Kong’s DeputySecretary of Commerce, Industry andTechnology, says: “They (the Chinese) want-ed to have some time off.”

Phase Two of the talks will seek, amongother things, further liberalisation for HongKong’s services sector. Hong Kong hopes toachieve mutual recognition for professionalqualifications and an entry threshold for dif-ferent sectors to enable Hong Kong profes-sionals to fully participate in China’s hugeemerging services market.

Young says Beijing has completed anagreement with Macau, based on the HongKong-China CEPA, and has started to workon a proposed China-ASEAN Free TradeAgreement. Although this agreement is notexpected to come into effect until 2010,Young says Beijing and ASEAN hope to beable to achieve “early harvests”.

Implementation of CEPA from Januarythis year has been widely credited as givingHong Kong’s economy a major boost. Butexactly how it has benefitted China’s

Special Administration Region,Young says, the HKSARGovernment is unable to quantifyat this stage. In September, an eco-nomic analysis will begin in anattempt to measure the economicspin-off — for example, the num-ber of new jobs created and thevolume of Hong Kong productsentering China with zero tariff.

Young says the value of CEPAlies in prising open China’s servic-es sector. Despite its undertakingsto the World Trade Organisation(WTO) to liberalise trade, there are still bar-riers to the China market.

“CEPA is beneficial to Hong Kong’s eco-nomic growth and services sector becausewe have been able to gain better access toChina — ahead of the general opening toChina’s other trading partners,” Young says.Services now make up 85 per cent of HongKong’s GDP.

Services are lagging in China, andthrough CEPA, China hopes to be able toattract Hong Kong professionals to theMainland to train Chinese workers. Eversince signing of the Agreement lastSeptember, various provinces and munici-

palities have held job fairs inHong Kong to recruit HongKong professionals. Shanghaiand Guangzhou are amongthe two most aggressive inseeking to appoint HongKong professionals.

Hong Kong has negotiatedfor access in 18 services sectors— including advertising, man-agement consulting, construc-tion and real estate, banking,securities and insurance,accounting, legal, retail, whole-

sale and medical services and logistics.Young says foreign service providers, includ-ing those from Australia, should considerincorporating a business in Hong Kong toaccess the Chinese market under CEPA. “AnyAustralian company can be a Hong Kong-based service provider and able to takeadvantage of the agreement,” he says.

Foreign service providers who have a com-pany incorporated in Hong Kong are regard-ed as a Hong Kong service provider. This sta-tus, however, will not be granted to compa-nies which operate a “post box address”.Foreign companies are required to operate in

Continued page 20

Raymond Young: Further liberalisation

of services?

T R A D E O U T L O O K OPENING CHINA’S SERVICES MARKET

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 200420

Hong Kong continuouslyfor three years and, at thetime of applying for aHong Kong serviceprovider licence, half oftheir employees must tobe Hong Kong residents.

Among the concessionsthat Hong Kong hasgained for its services sec-tor is a lowering of theentry level for its banks into the Mainlandmarket. While foreign banks are able to setup branches in China, they are required tohave US$20 billion in total assets before theirapplication to open a branch will be consid-ered by Chinese authorities. The barrier istoo high for mid-sized banks.

Under CEPA, Young says, medium-sizedbanks have the opportunity to enter theChina market with a capital base of just US$6billion. He says there are probably eightHong Kong banks, including Dah Sing, Wing

Hang and Wing Lung,which are now eligible toapply to open a branchnetwork in the Mainland.Five of the eight bankshave already applied for alicence to open a branch.Hong Kong officialsexpect Hong Kong banksto open 20 new branchesin the Mainland over the

next three years. By the same token, Youngsays Australian institutions like MacquarieBank could open branches in China as longas they have a company incorporated inHong Kong under Hong Kong’s CompaniesOrdinance. He notes that a French luxurygoods company has set up in Hong Kongspecifically hoping to enter the Chinese retailmarket under CEPA.

Young says Hong Kong hopes that CEPAwill attract certain manufacturing — high-end products, and products which require a

high level of technology or intellectual prop-erty — back to Hong Kong. He sees HongKong increasing production of brandedgoods, pointing out that in clothing, forexample, the “Made in Hong Kong” label hasa certain premium value in the China market.Sought-after labels include Bossini,Giordano, Baleno and Esprit.

Another area is watchmaking. Hong Kongis currently the world’s largest exporter ofclocks and watches (by volume), although,in terms of value, it comes behindSwitzerland, the premier watchmakingnation. But Hong Kong manufacturers relyon imported parts and components for theirproducts. Hong Kong hopes that tariffarrangements under CEPA will attract somemanufacturers to base their production inHong Kong. He says a number of OEM pro-ducers are planning to relocate back toHong Kong. Watches and parts are among273 items which are exempt from duty inChina, under CEPA. This compares withcurrent tariff of 14 to 23 per cent on import-ed watches and clocks.

Hong Kong is seeking to attract pharma-ceuticals and high-value food production toHong Kong. Young says Australian foodprocessors should look at the possibility ofdoing part of their manufacturing in HongKong for export into China. As an example,ingredients for ice cream can come fromAustralia, but if the major process of mixingand freezing is done in Hong Kong, thefinal product enters the Chinese market as aHong Kong-made product at a reduced tar-iff rate. “It is the next best thing to openinga factory in China,” says Young.

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From page 19

From the pages of ASIA TODAY INTERNATIONAL

AUGUST 1984: China invests HK$30 million ina new Hong Kong department store to sell mainlyforeign-made goods. The race is on to supply theSingapore pork market — worth about AUD160million a year; India moots the concept ofAustralian firms entering joint ventures to contractfor international projects.

AUGUST 1989: Hong Kong prepares for aslowing of its economy following the TiananmenSquare events of June 4; Indonesia issues a seriesof deregulation measures to strengthen prospectsfor its economy; Thailand prepares to introduce avalue-added tax from January 1989.

AUGUST 1994: Trade experts warn that Asia islikely to use dumping as a key weapon to slowdown imports following a series of agreements inthe Uruguay Round of world trade talks; TheEconomist Intelligence Unit says investors shouldsort fantasy from reality when looking atShanghai’s Pudong New Area; The pace of devel-opment in China’s retail sector is such that themain cities are becoming difficult for newcomers.

AUGUST 1999: A proposal to build a US$1.2billion Application Specific Integrated Chip (ASIC)plant dubbed Silicon Harbour in Hong Kongthrows up challenges for both the US and HK gov-ernments; An investment binge in the mid-1980swhich led to excess manufacturing capacity in Asiais seen as the root cause of more friction betweenthe US and its trading partners.

MILESTONES

❝ Among concessionsHong Kong has gainedfor its services sector isa lowering of the entrylevel for its banks intothe Mainland market❞

T R A D E O U T L O O K HOW NEW RULES IMPACT SHIPPING

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004 21

SINGAPORE: The InternationalShip and Port Facility Security

(ISPS) Code came into force in July.Simultaneously, the United States stepped upits own maritime security measures.

The ISPS Code establishes world standardsfor ship and port security. It will harmonisemaritime security procedures around theworld, and mandate specific improvements.

The ISPS Code, a set of new maritime reg-ulations negotiated under the auspices of theInternational Maritime Organisation, isdesigned to help detect and deter threats tointernational security. It contains require-ments for governments, port authorities andshipping companies.

From July 1, ships or shipments arrivingfrom ports that do not fulfil the ISPS require-ments could face sanctions, including denialof entry to other international ports.

The US, itself in full compliance with therequirements of the new code, says thisinternational effort will establish one worldstandard for ship and port security. It willhelp create a culture of security at portsaround the world, and mandate specificimprovements.

The US Homeland Security Secretary, TomRidge, said 95 per cent of all internationaloverseas trade moves through Americanports “We will now be ableto rely on our internationalpartner,” he said. “Shippingis a global industry; terror-ism is a global problem; andour collective securityrequires a global solution.”

Ridge said the appropri-ate authorities in each coun-try would be better able tosecure physical infrastruc-ture at their ports and toverify the identity of — andthe potential risk posed by — a particularforeign vessel before it calls at a port.

The US Coast Guard has reviewed thou-sands of security plans from shipowners andterminal operators. These plans include sev-eral new security measures which came intoeffect on July 1 — some of these are visible,

others remain invisible, Ridge said. “Youmight notice increased identification checks,additional screenings, more canine teams,and higher fences. Behind the scenes, facil-ities might install surveillance cameras,establish restricted areas, provide additionaltraining, and increase or improve securitypersonnel and patrols.”

Among the US measures is theContainer Security Initiative [CSI]. Already,US Customs has placed CBP [Customs andBorder Protection] inspectors at 19 foreignseaports from Vancouver to Rotterdam toSingapore. These officers work alongsidetheir foreign counterparts to target andscreen containers aboard cargo shipsheaded for the United States.

The US has begun full enforcement of aregulation concerning electronic sea-cargonotification intended to combat terroristthreats. Shippers are required to electronical-ly file in advance information on cargo toenable US customs to identify and eliminatepotential terrorist threats before a US-boundship leaves a foreign port.

Although requirements for electronicnotification of cargo information tookeffect on March 4, US Customs has beenapplying “a progressive enforcement strat-egy” to violations. Enforcement for bulkcarriers and break-bulk carriers (including

passenger vessels) began on April 2, withdenial of preliminary entry, issuance ofpenalties at each arrival port and denial ofunloading to vessels in violation. However,passenger vessels will be allowed to dis-embark passengers. Warnings have beenissued to offending carriers. But effectiveJuly 6, there are no exceptions or waiversto the regulatory requirement to automatecargo notification.

US Customs said, that with almost ninemillion sea containers arriving in the USeach year, automation and the use ofstate-of-the-art technology allows CBP toquickly and efficiently risk-target cargo forpotential terrorist threats. As well, thethird phase of the Bioterrorism Act (BTA)has been triggered. US Customs and theFood and Drug Administration (FDA)require prior notice of all food for humansand animals imported or offered forimport into the US. Failure to provideprior notice will result in the merchandisebeing refused entry. Under the BTA, foodproducts shipped by truck are required tofile notice two hours prior; the rules spec-ify four hours for rail and air, and eighthours for sea. Phase III implementationwill hold goods which have not givenprior notification at the port of entry or ata FDA-registered secure facility.

The ISPS Code: Creating a security cultureSINCE July 6, there havebeen no exceptions to arule requiring advanceelectronic notification ofcargo carried on all ves-sels visiting the UnitedStates as shipping secu-rity is tightened world-wide. Indonesia and theStraits of Malacca remainareas of concern . . .

Indonesia still a concernFrom TOM MCCAWLEYASIA TODAY INTERNATIONAL Correspondent

report similar circumstances in other majorports across the country. Police investigationshave revealed that major piracy syndicatesoperate from nearby warehouses. Privately,even many officials admit that enforcementof the ISPS, as with the enforcement of cus-toms regulations and intellectual propertyrights in Indonesia, is likely to remain lax.

At the very least, Indonesia is keen toappear compliant in the international effort tocombat terrorism and heighten security afterthe terrorist attacks of September 11, 2001.

On July 20, 17 warships from Indonesia,Malaysia, and Singapore, sailing in formation,passed through the Malacca Straits in a showof force aimed at intimidating potentialpirates or terrorists. A third of all reportedpiracy attacks in the world took place inIndonesian waters last year, according to theInternational Maritime Bureau.

Recent experience in Indonesia raisesquestions about the application of the ISPSCode. Indonesia, with its 17,000 islands,stretches the distance from London to Cairo.Due to special treaties signed in the 1960s,Indonesia is also the world’s largest maritimeState, with special exploitation and economicrights into the Java sea, extending far beyondthe normal maritime boundaries in effect inmost countries.

The impact of the Asian financial crisis haslimited Indonesia’s ability to secure its waters.

JAKARTA: Indonesia, the world’slargest archipelago and maritime

state, is a chokepoint in international securityof the seas. Indonesia has signed theInternational Maritime Bureau InternationalShipping and Port Security Code (ISPS). Butin waters racked by rampant sea piracy, weakpolicing, and a potential threat of maritimeterrorism, many shipowners question the

meaning of internationalconventions.

On July 1, CholikKirom, Vice Chairman ofIndonesia’s ISPS team,told reporters the ISPSCode would beenforced from that date.The Code, he said,would apply to shipsabove 500 deadweighttons. Ships carryingexports would have to

leave from certified harbours. So far, Indonesia has only officially certified

61 harbours — less than half of its interna-tional ports. Yet a casual visit to the dock-yards of Indonesia’s largest harbour, thesprawling port of Tanjung Priok in Jakarta,shows little has changed. Local newspapers

Continued page 22

❝ Customs and the FDArequire prior notice ofall food for humans andanimals imported oroffered for import intothe United States❞

T E X T T E X T TEXT TEXT TEXT TEXT

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 200422

Security forces, including many of the navy’s115 ships, have been busy ferrying troops toquell regional unrest in provinces such as theMoluccus. Unrest broke out after the fall oflong-ruling President Suharto in May 1998.The Government had to spend $US65 billionbailing out Indonesia’s banks in 1998-99, andis struggling to meet interest payments. Evenbefore that crisis, Indonesia spent less thanfive per cent of GDP on military spending, farless than its regional neighbours.

International ships passing throughIndonesian waters would do well to read theweekly internet reports of the Kuala Lumpur-based International Piracy Reporting Center,an agency of the International MaritimeBureau. The IPRC is still seeking an explana-tion from the Indonesian Navy about anattack off the coast of Indonesia’s eastern-most province of Papua, in which anIndonesian patrol boat allegedly intercepteda Malaysian-flagged cargo ship on a March 17voyage to China. The ship’s crew reportedbeing beaten by Indonesian Naval officials,who demanded a US$5,000 ransom for theirrelease. Until now, the Navy has not respond-ed to the allegations.

SINGAPORE — Southeast Asia’srival container transhipment hub

ports, Singapore and Malaysia’s TanjungPelapas, are finding this year that there ismore than enough cake for both.

They are enjoying very strong growth.Container throughput increased in the firstsix months to June of 2004 by 15.1 per centfor Singapore to 9.9 million twenty-footequivalent units (TEU) and by 25 per cent forTanjung Pelapas to 2.01 million TEU.

This points to both Asia’s economic recov-ery after the SARS’ influenza scare last yearand the establishment of an equilibriumbetween the two competing ports.

“Now that Tanjung Pelapas has got to thissize, it will not fade away, it will share in thegrowth,” says a Kuala Lumpur-based region-al manager for a major foreign logisticsgroup. Tanjung Pelapas (PTP) is a jointMalaysian government and private sectorventure at the tip of Johor on the bottom ofthe Malay peninsular, facing Singapore. Ithas challenged Singapore’s status as theregion’s premier hub port in the space of afew years — established in 1999, PTPachieved two million TEUper year throughput fasterthan any other new con-tainer port in the world.

From 0.4 million TEUthroughput in 2000, PTPjumped to 2 million TEUin 2001, 2.7 million TEU in2002, and 3.5 million TEU in 2003 (this com-pares with the combined total 2.3 millionTEU of the main Australian ports ofMelbourne and Sydney).

Driving PTP’s growth is its success in woo-ing two major container shipping lines,Maersk Sealand of Denmark and EvergreenMarine of Taiwan, from Singapore to PTP in2001 and 2002. Analysts say Maersk’s busi-ness has been the critical factor in PTP’sdevelopment. It brings economies of scalethrough greater throughput and expansionof shipping connections to other ports. Theshift was the biggest single move in the his-tory of the port industry in Southeast Asia.

Maersk was attracted to PTP by the lure ofa 30 per cent equity interest in the port andthe opportunity to run its own terminal, bothof which were denied by Singapore’s PSACorporation, formerly the Port of SingaporeAuthority. The PSA Corporation is fully-owned by the Government investment com-pany, Temasek Holdings.

This move was important to Maerskbecause port operations are far more prof-itable than container shipping. The low prof-it margin of container shipping is forcingshipping companies to increasingly look atparticipation in port operations.

PTP also boasts lower fees and tariffs for

shipping and warehousing services thanSingapore, which is the world’s second-largest container port after Hong Kong.Singapore argues its greater efficiency, rapidturnarounds and greater number of shippingservices to a wider number of ports.

PTP has the advantage of plenty of landand can expand readily. It now has a capac-ity of six million TEU. Singapore may also beable to expand, but at high cost.Consequently, the PSA is diversifying byexpanding its port operations and invest-ments abroad. To June 2004, PSA’s overseasoperations handled 6.2 million TEU, 26.5 percent growth on the same period in 2003.

Singapore was dented by the shift ofMaersk and Evergreen to PTP. Throughputfell from 16.9 million TEU in 2000 to 15.5million TEU in 2001. But growth returned in2002 with an increase to 16.8 million TEUand in 2003 to 18.1 million TEU.

Singapore’s throughput growth this year isalso benefitting from the island city-state’sown economic recovery. About 20 per centof port throughput is Singapore’s own tradeas distinct from transhipment cargoes.Singapore’s growth for 2004 is expected bythe Monetary Authority of Singapore to bebetween 5.5 per cent and 7.5 per cent after

just 1.1 per cent in 2003. PTP’s throughput is 90

per cent transhipment.The bulk of peninsularMalaysia’s own seabornecontainer trade is throughPort Klang on the eastcoast near the greater

Kuala Lumpur region, Malaysia’s mosturbanised and industrialised area, andPenang on the north-east coast.

Elsewhere in Southeast Asia there areother aspiring hub ports. Transport econo-mists say that, as container vessels get ever-larger, hub ports become ever more impor-tant as a means of concentrating import andexport container flows from a large numberof feeder ports. Alone, these feeder ports donot have large enough flows to justify visitsby the very large container vessels.

In Thailand, the deepwater port of LaemChabang, established in 1991 on the easternshore of the upper Gulf of Thailand, 130 kmsoutheast of Bangkok, because of congestionat the Port of Bangkok, is being promoted asa transhipment centre. In April 2003,Singapore’s PSA Corporation invested in ter-minal operations at Laem Chabang.

Another contender is Brunei. The tinypetroleum-rich Sultanate on the north coastof Borneo island is pursuing development ofits Muara port terminal, now operated by PSACorporation, as part of a wider programme todiversify its economy away from narrowreliance on oil and liquefied natural gasexport. The Brunei Economic DevelopmentBoard wants to tender for partners in the firstquarter of 2005.

T R A D E O U T L O O K RECOVERY LIFTS CARGO OUTPUT

From page 21

Navy security raisedin Malacca Straits

SINGAPORE — Increasing attentionis being paid to the threat of terror-

ist attacks on shipping in the Malacca andSingapore Straits, one of the world’s mostimportant trade arteries.

In July, Indonesia, Malaysia and Singaporemoved to increase security by co-ordinatingtheir navy patrols. Patrol boats from the threecountries will be able to enter one another’swaters when pursuing suspects.

Some fear that oil tankers and liquefied nat-ural gas carriers could be targets for terroristswho could hijack them as floating bombs.The joint navy measure follows a UnitedStates proposal earlier this year to station asmall American force in the Malacca Strait todeter terrorists and pirates. Indonesia andMalaysia rejected the idea as infringing ontheir sovereignty. Singapore supported theAmericans.

Piracy continues to be a problem, withattacks increasing from 15 to 27 in the first sixmonths of 2004 in the Malacca and SingaporeStraits, according to the International MaritimeBureau. Twenty (of the 27) attacks took placein the Malacca Straits, the highest in 14 years.

The IMB says especially dangerous watersare in the northern Malacca Straits near Aceh,in Indonesia’s northern Sumatra. Here theIndonesian army is waging an ongoing cam-paign against Acehenese separatists. InFebruary, four crew members of an oil tankerwere shot dead by pirates in the Malacca Straitoff the coast of Aceh after the ship’s ownerfailed to pay a ransom. Last year, 50,000 shipspassed through the Malacca Straits, carryinghalf of the world’s oil supply and a third ofglobal trade.

Room for Tanjung PelapasFrom ANDREW SYMONASIA TODAY INTERNATIONAL Correspondent

❝ Tanjung Pelapas willnot fade away, it willshare in the growth❞

L O G I S T I C S

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004 23

HONG KONG: Two smaller contain-er terminals located in the western

part of Shenzhen port in South China areexpanding capacity to cope with ever-grow-ing cargo volumes.

The four-berth Shekou ContainerTerminals (SCT) is adding five berths underits HK$4 billion (US$513 million) Phase IIIdevelopment, and Chiwan ContainerTerminal (CCT), which operates five berths,is building four more.

SCT General Manager Cheyenne Yu toldASIA TODAY INTERNATIONAL that dredgingfor three berths has begun and Berth Five isexpected to become operational in the firstquarter of 2005. Berths Six, Seven and Eightwill follow in 2006 and 2007 and Berth Ninein 2008. “If business remains strong, we willspeed up the process,’’ Yu says.

At CCT, Berth Six will become operationalin the first quarter of next year. Berths sevenand eight will come onstream in 2005 andBerth Seven in 2006.

At Yantian International ContainerTerminals (YICT), located in easternShenzhen, eight berths are operational andthe last of the four berths built under PhaseIII will become operational by the end of thisyear, according to General Manager KennethTse.

Erik Bogh Christensen, General Manager ofModern Terminals (MTL) of Hong Kong,which has minority stakes in SCT and CCT,said that with cargo volumes growing bythree million TEUs a year in South China,western Shenzhen terminals will run out ofspace by 2008. That’s when the first berth ofa new terminal MTL is preparing to build atnearby Dachan Bay is expected to becomeoperational. MTL will take 65 per cent equityin Phase I of the project, with the Shenzhenmunicipal authorities taking 35 per cent.

Christensen said Beijing’s approval for thefive-berth Phase I, with handling capacity of2.5 million TEUs, is likely to be received bythe end of this year, but site planning andpreliminary dredging work have alreadystarted. The terminal, to be developed in four

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South China portsriding the wave . . .From K.K. CHADHAASIA TODAY INTERNATIONAL Correspondent

❝ Much of Shenzhen’sgrowth is coming at theexpense of Kwai Chung— it costs manufacturersin the Pearl River DeltaUS$200 per TEU more to ship through Hong Kong❞

Continued page 24

L O G I S T I C S CHINA DRIVES INFRASTRUCTURE GROWTH

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 200424

phases, will have 10-12 berths with handlingcapacity of six to eight million TEUs by 2020.

Throughput at Shenzhen, China’s second-largest container port behind Shanghai andthe world’s No 4, rose 31.6 per cent to 6.05million TEUs in the first half of this year, indi-cating the full year figure will top 13 millionTEUs, with volumes usually higher in the sec-ond half because of Christmas shipments.

Much of Shenzhen’s growth is coming atthe expense of Hong Kong’s Kwai Chungcontainer port because it costs manufacturersin China’s Pearl River DeltaUS$200 more per TEU — mainlyin trucking and waiting time at theborder — to ship through HongKong than Shenzhen. That meansconsignees saved about US$1.2billion in the first half-year aloneby choosing to ship their goodsthrough Shenzhen terminals,which are closer to their factories.

Container Terminal 9 (CT9) atKwai Chung will be fully opera-tional by the end of the year,some 10 months behind schedule,increasing the port’s annual han-dling capacity by 3.5 million TEUs to 17.5 mil-lion TEUs.

Four of the six berths are operating, thefifth will be handed over to ModernTerminals (MTL) this month (August) and thelast to Hongkong International Terminals(HIT) in November.

But the extra capacity has come at a timewhen throughput growth at Kwai Chung hasslowed down to single digits. It was up only1.5 per cent to 12.07 million TEUs last yearand increased 5.7 per cent to 6.2 millionTEUs in the first six months of this year.

through the rest of the year remains to beseen. He has not experienced a decline inexports from Australia to China mainlybecause the new service is a circular routethat takes in Japan and Taiwan. If there wasany immediate impact, it is more likely to befelt by lines operating a direct service. Lineshas, however, noticed that cargo going up toChina is “more patchy”.

Until the real impact of the cooling inChina’s heated economy is felt, most opera-tors are continuing to see a dramatic increase

in the capacity of shipments des-tined for China. For ANL, its shipsare at 90 to 100 per cent of capac-ity utilisation. Three years ago,utilisation was 70 to 90 per cent.

Lines says: “There is no spacecapacity in the market when itcomes to chartered ships. TheChinese snap up all vessels withcapacity upwards of 2,000 teus assoon as they are on the market.”

He says the cost of operatingships has risen sharply because ofhigher fuel costs — up 30 to 40per cent — and higher costs for

containers. “Containers are mainly manufac-tured in China and the Chinese can’t seem toget enough steel to make them.” Lines esti-mates the cost of each container has risen by25 per cent. But despite the higher costs fac-ing operators, Lines says customers are resist-ing higher charges. He considers the presentcharges “poverty rates”. Some importers arefighting higher charges through theAustralian Competition and ConsumerCommission (ACCC).

The container line business remains highlycompetitive, especially in northbound routesout of Australia. Lines says some shippinglines drop their charges to fill vessels onnorthbound journeys. In the past, somechose to ship empty containers back to Asia,where demand for containers is alwaysstrong in both inbound and outbound trade.

With the Australian economy continuingto grow, he expects conditions for shippingcompanies to remain favourable. “TheAustralian economy is still going very well.People are still consuming. We’ve got taxcuts coming through, irrespective of whichparty comes into power (in the next elec-tion),” he says.

MANILA: FedEx Express hasextended the lease for its Asia

Pacific hub in Subic Bay, Philippines, forthree additional years to 2010, with anoption to extend. FedEx has also signed anoption which will permit FedEx to use landat Diosdado Macapagal International Airport,formerly known as Clark Air Force Base, forfuture expansion.

FedEx has maintained its Asia Pacific hubat Subic Bay since 1995. The Subic Bay facil-ity is the largest air express hub in theregion, and represents one of the company’smost important investments.

FedEx is also considering expansionopportunities in China. In December 2003, itsigned a framework agreement with theGuangzhou Airport Authority to exploreopportunities for growth. “Exceptionalresults in China indicate that our currentoperations at Subic Bay may not be able tosupport our projected growth,” says RhickeJennings, Managing Director of FedEx inAustralia, New Zealand and Pacific Islands.

From page 23

ANL’s John Lines:Fuel, container

costs rising.

ANL adds six vesselsto North Asia route

ANL CONTAINER LINE (ANL) andtwo consortium partners now run

six new vessels on a 42-day Australia-NorthAsia route in a new weekly service launchedin May. John Lines, ANL Chief Executive, saysthe service was launched to meet the strongdemand for capacity on the North Asiantrade. In particular, he says demand fromChina had outstripped supply.

Since the new service came into operation,the vessels have been carrying full capacity.The voyage begins and ends at Yokohamawith six vessels on the route. ANL providesthree and consortium members three, eachwith capacity of 2,500 teu.

ANL and ACE group members — ChinaShipping Container Lines Ltd and OrientOverseas Container Line Ltd — operate thejoint ANL/ACE North Asia Service. The portsof call are Japan (Yokohama and Osaka),South Korea (Pusan), China (Qingdao,Shanghai, Xiamen), Hong Kong, Taiwan(Kaohsiung) and Australia (Melbourne,Sydney and Brisbane.

However, with the Chinese economy slow-ing, Lines says whether the vessels stay full

New Hong Kong hubfor DHL Express

HONG KONG: DHL this month(August) opened its new Central

Asia Hub, a dedicated and purpose-built airexpress cargo facility at Hong KongInternational Airport. The US$100 millionfacility is the largest of its kind in the regionand forms an important step forward inDHL’s long-term regional growth strategy.

John Mullen, CEO DHL Express — AsiaPacific, said Intra-Asia Pacific cargo volumesnow account for close to 50 per cent of DHLExpress revenues in the region.

In recent years, DHL’s investments in theregion have totalled more than US$1.1 bil-lion, with a focus on the building of dedicat-ed infrastructure, enhancements of existinghubs and gateways, technology, and contin-uous expansion of DHL’s dedicated AirNetwork. In addition to the new Central AsiaHub, DHL operates five hubs in Bangkok,Seoul, Singapore, Sydney and Tokyo.

■ DHL has launched China Domestic tobecome the first international expressprovider to introduce a domestic expressservice in China. The new express door-to-door delivery services, targetted at parcelsand freight items offering shorter deliveryand pickup times. DHL also plans to intensi-fy express logistics activities — the third-partymanagement of spare parts inventory forcompanies — in China. The express logisticsmarket is forecast to be one of the fastestgrowth areas for DHL.

North China service■ COSCO/FIVE STAR has introduced a

new weekly North China service fromSydney/Melbourne/Brisbane to Dalian,Qingdao, Shanghai and Ningbo.

Fracht expanding■ LOGISTICS and distribution services

provider Fracht Australia has relocated itsSydney headquarters to a new AUD4.5 mil-lion freight-handling complex in Botany.Fracht, which specialises in difficult andtime/temperature-sensitive cargo, now has itsown premises in Sydney Adelaide and Perthwith leased facilities in Melbourne andBrisbane. www.fracht.com.au

FedEx extends itsSubic Bay lease

COPYRIGHT ©: All material appearing in ASIA TODAY INTER-NATIONAL is copyright and remains the property of thepublisher, East Asia News and Features (Australia) Pty. Limited.Reproduction in whole or in part in any form is not permitted with-out written permission of the publisher.

T E X T T E X T TEXT TEXT TEXT TEXT

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004 25

THE FOLLOWING Directory liststrade offices and the services they

offer plus contacts in Australia/Asia for airfreight, air express, customs, forwarding,mailing and shipping . . .

AUSTRALIA: Austrade (Australian TradeCommission) - Level 25 Aon Tower, 201 Kent Street,Sydney. GPO Box 5301, Sydney NSW 2001. Web:www.austrade.gov.au Contact: Advisory Services 1328 78. SERVICES OFFERED: Austrade is the FederalGovernment agency that helps Australian companieswin overseas business for their products and services byreducing the time, cost and risk involved in selecting,entering and developing international markets. Its mis-sion is to help more Australians succeed in export andinternational business. Austrade provides a wide rangeof export services to Australian companies, as well as tointernational buyers and investors, through more than100 offices around the world.

BANGLADESH: Bangladesh High Commission,21 Culgoa Circuit, O’Malley, ACT 2606, tel (61 2) 6290-0511, 6290-0522, 6290-0533, fax (61 2) 6290-0544, (612) 6290-0566, email [email protected] url:http//users.cyberone.com.au/bdefhact.Contact: Md. Restadul Islam, Commercial Counsellor.SERVICES OFFERED: Trade and investment-relatedinformation and assistance.

BRUNEI DARUSSALAM: High Commission ofBrunei Darussalam, 10 Beale Crescent, Deakin ACT2600, tel(61 2) 6285-4500, fax (61 2) 6285-4545, [email protected] SERVICES OFFERED:Provides contacts within Brunei as well as general tradeand investment-related information. Issues visas.

CHINA: Economic & Commercial Office,Consulate General of the People’s Republic ofChina (in Sydney), 68 George Street, Redfern NSW2016, tel ( 61 2) 9698-7788, fax (61 2) 9698-7373, [email protected] web www.chinatradeon-line.org Contact: Gao Yusheng, Consul. SERVICESOFFERED: Promote trade and economic co-operationbetween China and Australia, with a focus on helpingAustralian companies wishing to source from China, pro-viding information, business advice and matching toAustralian and Chinese companies intending to estab-lish business in each other’s country.

HONG KONG: Hong Kong Trade DevelopmentCouncil, Level 3, Hong Kong House, 80 Druitt Street,Sydney NSW 2000, tel (61 2) 9261-8911, fax (61 2) 9261-8966, email [email protected] Contact: MsMandy Ng, OIC Australia/New Zealand. SERVICESOFFERED: An extensive trade promotion programme ingoods and services, providing business information andbusiness matching, premier trade portal attdctrade.com, buying missions and trade fairs.

INDIA: Consulate-General of India, Level 27, 25Bligh Street, Sydney NSW 2000, tel (61 2) 9223-9500, fax(61 2) 9223-9246, email [email protected] webwww.indianconsulatesydney.org Contact: Mr MGanapathi, Consul-General. SERVICES OFFERED:Visa, passport and consular. Assistance for companiesand importers wishing to source from India or invest inventures/joint venture collaborations in India.

INDONESIA: Consulate General of theRepublic of Indonesia, 236-238 Maroubra Road,Maroubra NSW 2035, tel (61 2) 9344-9933, fax (61 2)9349-6854, web www.indonsyd.org.au Contact: SofiaSudarma. SERVICES OFFERED: Information ontrade, investment, government regulations.

JAPAN: Japan External Trade Organisation(JETRO) (for NSW, QLD, NT, ACT, Pacific Islands),

TRADE OFFICES

Level 19, Gateway, 1 Macquarie Place, Sydney NSW2000, tel (61 2) 9241-1181, fax (61 2) 9251-7631, web:www.jetro.org.au Contact: Brindley Buultjens, [email protected] or Mark Elles, [email protected]; (for VIC, SA, WA, TAS), Level 21,101 Collins Street, Melbourne VIC 3000, tel (61 3)9654-4949, fax (61 3) 9654-2962. Contact: TaniaSacco, email [email protected] SERVICESOFFERED: Assistance to companies wishing toinvest in or export to, import from Japan; informationon Japanese market, specific products, trade fairs anddistribution systems; support for missions to and fromJapan; study programmes for investors; exhibition andbusiness facilities in Japan.

KOREA: Korea Trade Centre, Suite 1901, Level19, 363 George Street, Sydney, NSW 2000, tel (61 2)9299-1790, fax (61 2) 9299-1792, email:[email protected] web: www.kotra.or.kr Contact: MsLucy Seo, Marketing Manager. SERVICESOFFERED: Branch Office of KOTRA (Korea TradeInvestment Promotion Agency) offering trade andinvestment advice. Advice on trade imports from Koreato Australia and FDI into Korea from Australia.

LAOS: Embassy of the Lao People’sDemocratic Republic, 1 Dalman Crescent,O’Malley ACT 2606, tel (61 2) 6286-4595, fax (61 2)6290-1910. Contact: Bouapheng Chaleunphone.

MALAYSIA: MATRADE (Malaysia ExternalTrade Development Corporation), Level 4, 16Spring Street, Sydney NSW 2000, tel (61 2) 9252-2270,fax (61 2) 9252-2285, email [email protected] Contact: Mr Abu BakarKoyakutty, Trade Commissioner. SERVICESOFFERED: Promotional agency for Malaysian prod-ucts and services. Linking importers from Australia,New Zealand and the South Pacific with Malaysianexporters of various products and services. Can pro-vide assistance and advice regarding business andindustry visits to Malaysia to source products and serv-ices, importing logistics, and information abouttradeshows in Malaysia. Coordinate Malaysian pres-ence at tradeshows in Australia, New Zealand and theSouth Pacific. For your nearest MATRADE agency outof Oceania, [email protected]://www.matrade.gov.my

MALAYSIA: Malaysian IndustrialDevelopment Authority, Level 3, 16 Spring Street,Sydney NSW 2000, tel (61 2) 9251-1933, fax (61 2)9251-4333, email [email protected]: Mr Amirudin Abdul Aziz, Director.

MYANMAR (BURMA): Embassy of the Unionof Myanmar, 22 Arkana Street, Yarralumla ACT 2600,tel (61 2) 6273-3811, fax (61 2) 6273-4357. Contact:Secretary. SERVICES OFFERED: General informa-tion and visas.

PAKISTAN: Consulate-General of Pakistan,Suite 2, Level 9, 36 Carrington Street, Sydney NSW2000, tel (61 2) 9299-3066, fax (61 2) 9299-7319, [email protected] Contact: Mr EjezAhmad, Consul-General. SERVICES OFFERED:Promotion of trade between Pakistan and Australia,fostering investment in Pakistan, assistance in estab-lishing business in Pakistan and Consular Services.

PHILIPPINES: Philippine Trade andInvestment Centre, Level 1, 27-33 Wentworth Ave,Sydney NSW 2000, tel (61 2) 9283-7300, fax (61 2)9283-8011, email: [email protected] Contact:Zafrullah G Masahud, Consul (Commercial). SER-VICES OFFERED: Assisting Australian buyers ofPhilippine products and Australian investors to thePhilippines.

SINGAPORE: International Enterprise

Singapore (IE Singapore), Level 9, 32 MartinPlace, Sydney, NSW 2000, tel (61 2) 9223-5357, fax(61 2) 9233-5227. SERVICES OFFERED: The IESingapore portal help Singapore-based enterprisesexpand and venture abroad while promotingSingapore as the global destination for foreign enter-prises looking for opportunities in the Asia-Pacific. Visitwww.iesingapore.com

SRI LANKA: Consulate General of Sri Lanka,Level 11, 48 Hunter Street, Sydney NSW 2000, tel (612) 9223-8729, 9223-8742, 9221-7077, fax (61 2) 9223-8750, email [email protected] webwww.slcgsyd.com Contact: Mr WasanthaSenanayake, Consul (Commercial). SERVICESOFFERED: Promoting trade and investment betweenSri Lanka and Australia, providing economic and busi-ness information and free business contacts - busi-ness missions and tourist promotion.

TAIWAN: Taipei Trade Centre, Suite 2, Level 5,56 Pitt Street, Sydney NSW 2000, tel (61 2) 9247-0111,fax (61 2) 9247-0311, email [email protected]: Ms Melody Lin, Director. SERVICESOFFERED: Trade promotion.

THAILAND: Thai Trade Centre, 1st Floor, 75 PittStreet, Sydney NSW 2000, tel (61 2) 9241-1075, fax (612) 9251-5981, email [email protected]: Mr Suphat Saquandeekul, Director. SER-VICES OFFERED: Promotion of Thai products.

VIETNAM: Vietnam Trade Office in Australia,115 Commonwealth Street, Surry Hills, Sydney, NSW2010, tel (61 2) 9211-6664, fax (61 2) 9211-6653, [email protected] Contact: Mr Nguyen HuuChi, Commercial Counsellor, Chief of the Office. SER-VICES OFFERED: Trade and investment advice.

AIR CHINA - Contact in Australia: Chen DaoMin, Executive General Manager, South Pacific andAustralia, tel (61 2) 9232-7277, fax (61 2) 9232-7465.Also in Burma (Yangon), China (Beijing,Guangzhou, Shanghai), Indonesia (Jakarta), Japan(Nagoya, Tokyo), Korea (Seoul), Singapore,Thailand (Bangkok).

ASIANA AIRLINES - Contact in Australia:Phillip Kim, Cargo Manager, tel (61 2) 8338-1697, fax(61 2) 8338-1698, www.flyasiana.com Also in China(Beijing, Guangzhou, Shanghai, Shenzhen), HongKong, Japan, Philippines (Manila), Singapore,Thailand (Bangkok), Vietnam (Ho Chi Minh City)

CATHAY PACIFIC - Contact in Australia:Michael Courtney, Cargo Manager Aust/NZ, tel (61 2)9931-5618, fax (61 2) 9223-1970. www.cathaypacific-cargo.com Also in Hong Kong, India (Mumbai),Japan (Tokyo), Korea (Seoul), Philippines(Manila), Singapore, Taiwan (Taipei), Thailand(Bangkok).

CHINA AIRLINES - Contact in Australia:Nathan Karam, Cargo Manager NSW, tel (61 2) 8374-2631, fax (61 2) 9669-3564, www.china-airlines.comAlso in Hong Kong, India (Delhi), Indonesia(Jakarta), Japan (Fukuoka, Nagoya, Tokyo),Malaysia (Kuala Lumpur, Penang), Philippines(Manila), Taiwan (Taipei), Thailand (Bangkok),Singapore, Sri Lanka (Columbo), Taiwan(Kaohsiung), Vietnam (Ho Chi Minh City).

CHINA EASTERN AIRLINES - Contact inAustralia: Alex Fang, tel (61 2)9313-5795, fax (61 2)9669-2267. Also in Hong Kong, Japan (FukuokaNagasaki, Nagoya, Osaka, Tokyo), Korea (Seoul),Singapore, Thailand (Bangkok), Indonesia(Jakarta).

AIR FREIGHT

T R A D E S E R V I C E S 2004 CONTACT DIRECTORY

Continued page 26

2004 CONTACT DIRECTORY

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 200426

EMIRATES SKYCARGO - Head Office: Dubai - tel (9714) 295-1127/203-3436, email [email protected] in Australia: Melbourne - Glenn Baxter,Cargo Manager Australia & New Zealand, tel (61 3)9330-4419, fax (61 2) 9338-4214. Sydney - GregJohnson, tel (61 2) 9313-4310, Perth - James Williams,tel (61 8) 9479-2160. Brisbane - Anne Gillham, tel (617) 3307-9999. New Zealand: Auckland - Rohan DeSilva, tel (64 9) 256-8308. Also in Singapore, HongKong, Malaysia, Thailand, Philippines, Jakarta,Taiwan, Korea, Colombo, Pakistan, India.

EVA AIRWAYS - Contact in Australia: Greg Smith,Sales Manager, Cargo Office Sydney, tel (61 2) 9313-5200, fax (61 2) 9313-5212. Also in Cambodia (PhnomPenh), Hong Kong, Indonesia (Jakarta, Surabaya,Denpasar), Japan (Fukuoka, Osaka, Tokyo), Macau,Malaysia (Kuala Lumpur), Philippines (Manila),Singapore, Taiwan (Taipei), Thailand (Bangkok),Vietnam (Ho Chi Minh City).

GARUDA AIRWAYS - Contact in Australia:Joseph Haddad, Cargo Services Manager, tel (61 2)9334-9982, fax (61 2) 9334-9988, email [email protected] Also in China (Beijing), Hong Kong,Indonesia, Japan (Tokyo), Korea (Seoul), Malaysia(Kuala Lumpur), Pakistan (Karachi), Philippines(Manila), Singapore, Thailand (Bangkok), Taiwan(Taipei), Vietnam (Ho Chi Minh City).

JAPAN AIRLINES - (Carina International Pty Ltd,General Sales and Ground Handling Agent) - Contact inAustralia: Ms Kerrie Sandilands, Sales Manager, tel (612) 9669-1455, fax (61 2) 9669-5870, email [email protected] Also in China (Beijing), Hong Kong,India (New Delhi), Indonesia (Jakarta), Japan (Tokyo),Korea (Seoul), Malaysia (Kuala Lumpur), Philippines(Manila), Singapore, Thailand (Bangkok), Vietnam(Hanoi, Ho Chi Minh City).

KOREAN AIR - Contact in Australia: Sydney,Gary Jones, Cargo Manager, tel (61 2) 9313-4729, fax(61 2) 9313-5289, email [email protected] webhttp://cargo.koreanair.com Brisbane, Mick Huston,Cargo Sales, tel (61 7) 3860-5222, fax (61 7) 3860-5205,email [email protected] Also in China (Beijing,Shanghai, Qingdao, Shenyang, Wuhan, Xiamen, Sanya,Kunming, Jinan, Tianjin), Hong Kong, India(Bombay), Indonesia (Jakarta), Japan (Tokyo, Osaka,Fukuoka, Sapporo, Aomori, Akita, Nagoya, Niigata,Okayama, Nagasaki, Oita, Kagoshima), Korea (Seoul,Pusan, Cheju), Malaysia (Kuala Lumpur, Penang),Micronesia (Guam, Saipan), Philippines (Manila),Singapore, Taiwan (Taipei), Thailand (Bangkok),Vietnam (Ho Chi Minh City).

MALAYSIA AIRLINES - Contact in Australia:Heng Fock Ooi, Regional Manager Australasia (Cargo),tel (61 3) 9310-3596, fax (61 3) 9310-3405. Offices inSydney, Melbourne, Adelaide, Brisbane, Perth,Bangladesh (Dhaka), Burma (Yangon), Cambodia(Phnom Penh), China (Beijing, Guangzhou, Shanghai,Xiamen), Hong Kong, India (Delhi, Bombay, Madras,Bangalore, Hyderabad), Indonesia (Jakarta,Denpasar, Surabaya, Medan), Japan (Tokyo, Osaka,Nagoya), Korea (Seoul), Malaysia, Pakistan(Karachi), Philippines (Manila, Cebu), Singapore,Taiwan (Taipei, Kaoshiung), Thailand (Bangkok,Phuket), Vietnam (Hanoi, Ho Chi Minh City).

PHILIPPINE AIRLINES - Contact in Australia:Roger Goodfellow, Sydney Airport Cargo Manager, tel(61 2) 8339-0888, fax (61 2) 8339-0899. Also in China

From page 24

Continued page 26

T E X T T E X T TEXT TEXT TEXT TEXT

27

(Shanghai, Xiamen), Hong Kong, Korea (Seoul,Pusan), Japan, Philippines, Singapore, Taiwan(Taipei), Thailand (Bangkok), Vietnam.

QANTAS FREIGHT - Contact in Australia:Garry Mangelsdorf, Regional Freight ManagerAustralasia, tel (61 2) 9691-1104, fax (61 2) 9691-1072. Contact in Asia: Harold Pang, RegionalFreight Manager, Asia, tel (65) 6542-7200, fax (65)6549-3039. Also in Hong Kong, India (Mumbai),Indonesia (Denpasar, Jakarta), Japan (Nagoya,Tokyo), Philippines (Manila), Singapore, Taiwan(Taipei), Thailand (Bangkok).

SINGAPORE AIRLINES CARGO - Contact inAustralia: Tan Chong Beng, Vice President SouthWest Pacific, tel (61 2) 9313-3808, (61 2) 9317-3561,email [email protected] Also in Bangladesh (Dhaka),Brunei (Bandar Seri Begawan), China (Beijing,Guangzhou, Shanghai, Nanjing, Xiamen), HongKong, India (Calcutta, Delhi, Bangalore, Chennai,Mumbai, Ahmedabad), Indonesia (Denpasar,Jakarta, Surabaya), Japan (Fukuoka, Hiroshima,Nagoya, Osaka, Tokyo), Korea (Seoul), Macau,Malaysia (Kuala Lumpur, Penang), Philippines(Manila), Singapore, Sri Lanka (Colombo), Taiwan(Kaohsiung, Taipei), Thailand (Bangkok), Vietnam(Hanoi, Ho Chi Minh City).

SRILANKAN AIRLINES - Contact in Australia:Greg Toms, General Manager-Cargo, c/- WorldAviation Systems Cargo, tel (61 2) 8374-, fax (61 2)9669-3564. Also in Bangladesh (Dhaka), HongKong, Japan (Nagoya, Osaka, Tokyo), India(Bombay, Madras. New Delhi), Indonesia(Bali/Denpasar, Jakarta), Malaysia (Kuala Lumpur),Pakistan (Karachi), Philippines (Manila), Taiwan(Taipei), Thailand (Bangkok), Singapore, Sri Lanka(Columbo).

THAI AIRWAYS INTERNATIONAL - Contact inAustralia: Tony Mulherin, Cargo Manager, Australia,tel (61 2) 8337-6300, fax (61 2) 9667-2367. Also inBangladesh (Dhaka), Brunei (Bandar SeriBagawan), China (Beijing, Guangzhou, Kunming,Shanghai), Cambodia (Phnom Penh), Hong Kong,India (Calcutta, Dehli), Indonesia (Denpasar,Jakarta), Japan (Fukuoka, Nagoya, Osaka, Tokyo),Korea (Seoul, Pusan), Laos (Vientiane), Malaysia(Kuala Lumpur, Penang), Myanmar (Yangon), Nepal(Kathmandu), Pakistan (Karachi, Lahore),Philippines (Manila), Singapore, Sri Lanka(Colombo), Taiwan (Taipei, Kaohsiung), Thailand(Bangkok), Vietnam (Da Nang, Hanoi, Ho Chi MinhCity).

VIETNAM AIRLINES CORPORATION www.viet-namairlines.vn - Contact in Australia: Site 3, Room1236, Sydney International Terminal, Mascot 2020,Attn: Cargo Manager Australia, tel (61 2) 9693-5888,fax (61 2) 9693-5599. Also in Cambodia (PhnomPenh), China (Beijing, Guangzhou), Hong Kong,Japan (Osaka, Tokyo), Korea (Seoul), Laos(Vientiane), Malaysia (Kuala Lumpur), Philippines(Manila), Singapore, Taiwan (Taipei), Thailand(Bangkok).

www.dhl.com.au

DHL WORLDWIDE - Contact in Australia: PaulBellette, Marketing Manager, Oceania, tel (61 2) 9317-8300, fax (61 2) 9317-3820. DHL is the global marketleader of the international express and logistics industry,specialising in providing innovative and customised solu-tions from a single source. DHL offers expertise in express,air and ocean freight, overland transport and logistics solu-tions, combined worldwide and an indepth understandingof local markets. DHL is 100% owned by Deutsche PostWorld Net.

FEDEX EXPRESS: For customer service telephonenumbers in your country, visit www.fedex.com FedExAsiaOne Network offers overnight delivery of docu-ments, packages and freight between Asia’s major tradingcentres, including Bangkok, Beijing, Cebu, Ho ChiMinh City, Hong Kong, Jakarta, Kaohsiung,Kuala Lumpur, Manila, Osaka, Penang, Seoul,Shanghai, Shenzhen, Singapore, Subic Bay,Sydney, Taipei and Tokyo.

www.tnt.com.au

TNT EXPRESS - Contact in Australia: Ross Gluer,General Manager, Sales & Marketing - InternationalDivision, tel (61 2) 8304-8717, fax (61 2) 8304-8722. Also inAmerican Samoa, Bangladesh, Brunei, China,Cook Islands, East Timor, Fiji, Guam, Hong Kong,India, Indonesia, Kiribati, Laos, Malaysia,Micronesia Islands, Myanmar, Nauru, NewCaledonia, Norfolk Island, Papua New Guinea,Philippines, Singapore, Solomon Islands, SouthKorea, Sri Lanka, Taiwan, Thailand, Tonga,Tuvalu, Vanuatu, Vietnam, Western Samoa. TNTExpress is the world’s leading business to businessexpress delivery company. The company delivers 3.6 mil-lion parcels, documents and pieces of freight a week toover 200 countries using its network of 878 depots, hubsand sortation centres. TNT Express operates more than20,000 road vehicles and 43 aircraft and has the biggestdoor to door air and road express delivery infrastructure inEurope.

AUSTRALIAN CUSTOMS SERVICE - Contact inAustralia: Nic Arthur, Director International, tel (61 2) 6275-6828, fax (61 2) 6275-6819. Also in Japan (Tokyo)(inquiries via Australian Embassy, tel (81 3) 5232-4078, fax(81 3) 5232-4040. Contact: Murray Edwards. InThailand (via Australian Embassy, tel (66 2) 287-2680,fax (66 2) 287-2680). Contact: Mark Bush.

ALLFREIGHT INTERNATIONAL - Contact inAustralia: NSW, Dom Altobelli, tel (61 2) 9310-1133, fax(61 2) 9310-2454, VIC, Lindsay Jacgung, tel (61 3) 9338-7622, fax (61 3) 9338-9313, Also in Hong Kong (NankaiInternational), Indonesia (Multitrans), India (TKMTransport Manager Services), Philippines (M.O.F Inc.),Singapore (Transpeed Cargo).

ASEAN CARGO SERVICES - Contact in Australia:Paul Pomroy, Managing Director, tel (61 2) 9666-6818, fax

FORWARDING

CUSTOMS

AIR EXPRESS (61 2) 9666-6838, www.asean.com.au Specialist to andfrom Asia and Europe. Also in Bangladesh, China,Hong Kong, India, Indonesia, Japan, Korea,Malaysia, Pakistan, Philippines, Singapore, SriLanka, Taiwan, Thailand, Vietnam.

EXEL www.exel.com - South Pacific RegionalOffice Sydney, tel (61 2) 9930-5555, fax (61 2) 9930-5500. Also in Adelaide, Brisbane, Melbourne,Perth, Darwin. In Asia, Bangladesh, Cambodia,China, Hong Kong, India, Japan, Korea, Macau,Malaysia, Myanmar, Nepal, Pakistan, Philippines,Singapore, Sri Lanka, Taiwan, Thailand,Vietnam.

FRACHT Australia Pty Ltd (International FreightForwarding and Logistics) www.fracht.com.au -Contact in Australia: Peter Pluess, tel (61 2) 8336-8100, fax (61 2) 8336-8111, email [email protected] Also in Bangladesh (Dhaka), Brunei,Cambodia (Phnom Penh), China (Shanghai), HongKong, India (Bombay), Indonesia (Jakarta), Japan(Tokyo), Korea (Seoul), Laos, Malaysia (Kuala Lumpur),Myanmar (Yangon), Pakistan (Sialkot), Philippines(Manila), Singapore, Sri Lanka (Colombo), Taiwan(Taipei), Thailand (Bangkok), Vietnam (Ho Chi MinhCity). Also in Kuwait, Egypt (Cairo), Iraq and UnitedArab Emirates (Dubai).

www.anl.com.au

ANL CONTAINER LINE - Contact in Australia:John Lines, Chief Executive, tel (61 3) 9257-0555, fax(61 3) 9257-0619. Also in Bangladesh (Chittagong),Brunei (Muara), China (Ningbo, Shanghai, Dalian,Shenzhen, Tianjin, Qingdao, Xiamen, Guangzhou,Huangpu), Hong Kong, Indonesia (Jakarta,Surabaya, Smerang, Belawan), India (BangaloreChennai, Mumbai, Calcutta, Cochin), Iran (BandaAbbas, Tehran), Japan (Hakata, Nagoya, Osaka,Tokyo, Yokahama, Yokkaichi, Mojo, Kobe), Korea(Busan, Seoul), Malaysia (Kuala Lumpur, Pasir,Gudang, Penang, East Malaysia), Myanmar(Yangon), Noumea, Pakistan (Karachi), Papua NewGuinea (Port Moresby, Lae), Philippines (Manila),Singapore, Sri Lanka (Columbo), Taiwan(Kaosiung, Keelung, Taichung), Thailand (Bangkok,Laem Chabang), Vietnam (Ho Chi Minh City,Haiphong).

www.cosco.com

COSCO/FIVE STAR - Contact in Australia: JennyProctor, Lisa Brown, tel (61 2) 9373-5888, fax (61 2)9299-7988. Also in China (Shanghai), Singapore,Japan (Kobe, Osaka, Tokyo, Yokahama), Hong Kong,Korea (Busan, Seoul).

MEDITERRANEAN SHIPPING COMPANY SA -Contact in Australia: Bill Rizzi, State Manager-NSW,tel (61 2) 8270-4000, fax (61 2) 8270-4040. Also inChina (Chiwan, Shanghai, Xingang), Hong Kong,Indonesia (Jakarta, Surabaya), Japan (Nagoya,Osaka, Yokahama), Korea (Busan), Singapore,Taiwan (Kaohsiung), Thailand (Bangkok).

SHIPPING

T R A D E S E R V I C E S 2004 CONTACT DIRECTORY

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004

From page 25

P U B L I C A T I O N S MEMORIES OF SIX PRESIDENTS

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004

IN ALL LIKELIHOOD, SusiloBambang Yudhoyono will emerge

victor in the 2004 Presidential election inIndonesia, beating his rival — MegawatiSoekarnoputri.

Yudhoyono, or SBY as he is known, willchallenge Megawati in the final Presidentialrun-off in September. At time of writing, hewas polling 68 per cent against Megawati’s23 per cent. If he should become the sixthPresident of Indonesia, SBY will likely be thefirst Indonesian President not intimatelyknown to Roeslan Abdulgani, an iconic fig-ure in Indonesia and abroad.

It could be a sign of the times — the endof an era for Indonesia. SBY will become thefirst elected President in Indonesia — sig-nalling yet another stage in the political evo-lution of this vast archipelago.

Roeslan is arguably a living historian ofpost-Colonial Indonesia. A recently-pub-lished book, A Fading Dream, written byhis second daughter, Retnowati Abdulgani-Knapp, chronicles the life of a man andpolitician and the nation whose destinyRoeslan helped shape. In the journey, hegive his views on Indonesia’s first fivePresidents — Soekarno, Soeharto, BJHabibie, Gus Dur and Megawati — all ofwhom he knows intimately. He has known

Megawati since she was a child.Roeslan was a trusted aide toPresident Soekarno.

Roeslan, regarded as a keyplayer in the “Old Order”(Soeharto rule), continued asadvisor in the New Order(Soeharto) and is now an advisorto PDIP in what is commonlyreferred to as “No Order”(Megawati).

He has watched the transfer ofpower from one President to thenext and the impact of their individual poli-cies on the development of his belovedcountry. He notes the irony of how bothSoekarno and Soeharto — strongmen intheir own rights — were brought down bystudent power.

Of all Indonesians, perhaps Roeslan hadthe best opportunity to observe Soeharto,the longest-ruling President so unceremoni-ously replaced in 1998 by Habibie, whowas President for just 17 months — theshortest term on record. For 32 years,writes Abdulgani-Knapp, Roeslan watchedthe changes in Soeharto’s style in govern-ment, and saw many reasons to understandthat Soeharto’s downfall was inevitable. Ashe sees it, Soeharto’s weakness was his

inability to say “no” to his friendsand later his children, whobecame Corporate Indonesia.

Roeslan’s daughter writes thathe was “distraught” to see arepeat of the social disparity andsegregation of the “haves andhave-nots” during Soeharto’sreign. During his youth, the top ofthe pyramid was filled with Dutchcolonisers and the Indonesianswere relegated far away at thebottom — with the Chinese and

the elites forming “the wafer-thin middleclass”. Under Soeharto, a class of “super-haves” and “some-haves” emerged. Again,the masses were left behind. Roeslan wit-nessed the depth of the indignity endured bythe one-time-hero of the Indonesian peoplewhen he saw graffiti — Gantung Suharto,meaning Hang Suharto — in the aftermath ofthe Jakarta riots in May 1998.

Roeslan still believes in democracy, but hewonders whether Western democracy is theright system for Indonesia, because a rapidchangeover from totalitarianism to an excessof freedom can easily create anarchy.

■ A Fading Dream by RetnowatiAbdulgani-Knapp, published by TimesMedia Private Ltd, email [email protected]

Can Western democracy work in Indonesia?

THE IDEA OF a far northeast Asiangrowth region centred on the

Korean peninsular, the Russian Far East,northeastern China and Japan is a favouritetopic at international government and busi-ness meetings. Yet efforts to foster extensivecross-border trade and investment must sure-ly flounder — unless the political tensionssurrounding North Korea are resolved.

Branded as a rouge state by the current USadministration — possessing nuclearweapons, accused of sponsoring terrorismand brutalising its own people — NorthKorea exists in bitter isolation. Although thecommunist state is geographically in a keyposition bordering China, South Korea andRussia should there ever be a common eco-nomic region, its international pariah statusprevents North Korea from becoming part ofnormal international economic and politicalnetworks and relationships.

So how should North Korea bebrought in from the cold?Historian Gavan McCormack, aprofessor at the Research Schoolof Pacific and Asian Studies at theAustralian National University inCanberra, believes a gradualapproach, offering Pyongyangsome concessions in exchangefor disarmament, is the answer.The worst course to take is to tryto enforce change by issuing

demands and refusing negotiations.North Korea, McCormack writes in Target

North Korea, is a fearful porcupine bristlingmenace rather than an aggressive hunter. Itsnuclear and missile programmes are thedefensive response of a state that has existedfor more than 50 years since the end of theKorean War in unresolved confrontation withthe US and its allies. A peace treaty has neverbeen signed.

“North Korea’s military-centred and nuclearpreoccupations are dictated above all by theendless siege maintained by the UnitedStates,” McCormack writes. “Fearfully andobsessively watching every American move,and reacting for half a century to what it per-ceived as repeated threats of nuclear attack....(North Korea’s) leadership seems to haveconcluded that the country’s and the regime’ssecurity can only be assured by ironclad, internationally-backed guarantees against an

American attack; the more theBush administration dismissessuch a demand, the more likely itbecomes that North Koreans willbe pushed even further along thepath of nuclear proliferation.”

While critical of US policy,McCormack does not defend theNorth Korean regime. “NorthKorea seems to have committedalmost every crime in the book,from the manufacture and trading

of narcotics and missiles to counterfeiting,smuggling, abductions, spying and sabotage,while within its own borders it denies its peo-ple the most basic rights and freedoms, prac-tices severe punishments, including publicexecution, and confines dissidents to a net-work of gulag camp,” he writes.

But to just label North Korea as a terroriststate, he argues, is to ignore the burden ofNorth Korea’s past. What are needed are pre-scriptions to defuse danger now and in thefuture. What must be understood is that aparanoid Pyongyang believes the nuclearcard is the only one it has to play in dealingwith what it sees as a hostile US.

McCormack argues that North Korea’s vio-lation of a 1994 agreement with the US, Japanand South Korea not to pursue a nuclearweapons programme, which Pyongyangadmitted in October 2002, was in reaction toa bellicose US.

McCormack believes an embattled andimpoverished North Korea will accept theverifiable decommissioning of its nuclearreactors and removal of plutonium and ura-nium-related facilities in return for securityguarantees and an economic aid package.

■ Target North Korea — PushingNorth Korea to the Brink of NuclearCatastrophe, Gavan McCormack,Random House, 2004. Reviewed byAndrew Symon.

Bringing North Korea in from the cold

28

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004 29

THE SHANGRI-LA HOTELS ANDRESORTS group would like to

establish a presence in Europe as soon aspossible following the success of its first ven-ture outside Asia — the Shangri-La Dubai,which has shown 81 per cent occupancy inits first 12 months.

“A number of European hotel ownershave offered us management opportunities ,”says Peggy Angeles, Shangri-La VicePresident — Sales and Marketing.

“Europe traditionally has been more of aleisure market for our resorts — in Penang,Kuala Lumpur, Sabah and Bangkok — butwe would like to have city hotels in London,Frankfurt, Berlin and Paris. That is thedream network for me.”

Angeles says Shangri-La is looking at man-agement contracts rather than equity, whichis the easier way to go full speed on itsexpansion programme.

In the United States, the most logical choic-es would be San Francisco, New York andWashington. Shangri-La will open a proper-ty in Vancouver, Canada, in 2008.

Shangri-La is probably the fastest-expanding luxury hotel group in the worldtoday. It currently has 43 properties, themajority branded Shangri-La (with fiveTraders Hotels), and by 2008 there willbe a total of 69.

Shangri-La moved into Australia last yearwith a management agreement for the for-mer ANA Grand Hotel in Sydney, which willcomplete an AUD30 million refurbishment byyear-end. This month, it is re-branding the for-mer Radisson Hotel, Cairns as the Shangri-La, The Marina, Cairns following expendi-ture of AUD25 million to add 36Club rooms and upgrade all facili-ties. Melbourne is also onShangri-La’s wish list in Australia.

Angeles says Japan has beenthe biggest market for Cairns, butthere is a need to diversify intothe (local) Australian market andother international markets.Shangri-La has added meetingspace to the hotel and is encour-aged by a “very active” CairnsConvention Centre nearby.“Cairns needs to be marketed asa destination in its own right,rather than a stopover to the Great BarrierReef. Cairns/Sydney can also be marketedas a twin-city destination,”says Angeles,pointing out that Australian Airlines isabout to begin services between Sapporoand Cairns.

Elsewhere, Shangri-La will open twonew properties in China before the end of2004 — in Fuzhou and Changzhou. In2005, it will open new properties in NewDelhi, the Maldives and Muscat, com-plete extensions to the Shangri-LaPudong, Shanghai, and open hotels inFosham and Suzhou in China.

From 2006-08, 14 more properties, including11 in China, (the others are in Chiang Mai,Thailand, Qatar and Vancouver) will comeon-line. “China will be the strength,” saysAngeles, adding that Shangri-La is enjoying80-85 per cent occupancy for its existingChina properties. “The major market in Chinais the local (Chinese) business traveller,” shesays, “except for Beijing, Shenzhen andShanghai, where there is a more internation-al mix. Our Golden Circle Club is verystrong in China, where stays tend to be short-er.” Much of the business comes direct,though more is coming through hotel reser-vation centres which are like consortia — buttravellers buy a membership which gives

them perks. Looking to the future, Angelessays executive travel habits are changing, withthe lead time for bookings becoming ever-shorter — it is now as little as two weeks,even for convention bookings, and morebookings are coming through the internet.“Wotif is heavily used — they are becominga major player — but in Asia, the relationshipfactor is still very important in sales in gettingand keeping the business.” Angeles says hote-liers are also learning a lot from the airlines interms of yield management.

“Security, also, has become increasinglyimportant — who you fly with, where youstay, people look at security and we have alot of experience in this area,” says Angeles.

“Rather than being afraid, it is a matter ofbeing prepared, and we have extensive useof cameras, sniffer dogs and wands in all ofour properties in the Philippines andIndonesia. There are cameras everywhere,but it is a worthwhile investment.”

Of guest loyalty schemes, Angeles saysShangri-La is staying with its Golden Circlecard, which offers recognition rather than aredemption programme. “Recognition andservice bring guest loyalty,” she says.

HOW TRAVE L HAB I T S AR E CHANG ING

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After Dubai, Shangri-La looks to Europe

Chi Spa makes debutSHANGRI-LA has just launched itsnew CHI signature spa brand fol-

lowing a US$2 million investment at theShangri-La Bangkok, with a menu offeringmore than 35 specialised body, water, mas-sage and facial therapies.

A total of 22 CHI locations are planned, withthe second to open at Shangri-La’s Mactan

Island Resort at Cebu in thePhilippines later this year. TheMactan facility involved a US$3.8million investment.

Shangri-La expects most cus-tom for CHI to come from in-house guests, but may also drawclients from other hotels. Otherpriority locations for CHI spasare Shangri-La’s Fijian Resort,Yanuca; Shangri-La MaldivesResort & Spa, Villingili Island;Shangri-La’s Barr Al JissahResort & Spa, Muscat, Oman;Pudong Shangri-La, Shanghai;

Shangri-La’s Sunny Bay Resort, Sanya,China; Shangri-La Hotel & Spa, Haikou,China; Shangri-La Hotel, Chiang Mai,Thailand; Shangri-La Hotel, Beijing; andthe Shangri-La Hotel, Guilin, China.

Peggy Angeles: A dream network

in Europe.

Air fares risingTHE latest American ExpressAirfare Index for Asia-Pacific

shows increases in Business and First Classfares on a number of routes, particularly thosefrom Australia, Indonesia and Malaysia.Some modest increases were also recorded

on routes from Hong Kong and Taiwan. Amex Vice President of Corporate Travel

Asia Pacific/Australia, Kyle Davis, says that,on the demand side, companies are expand-ing their sales and operations throughoutAsia-Pacific, and therefore consuming moreunits of business travel. “On the supply side,we see cases of certain airlines introducingflat bed seating, reducing actual seatingcapacity on key routes,” Davis said. “On thecost side, we see elevated fuel prices coupledwith fewer seats in business class creatingmargin pressure. These are three independentforces putting upward pressure on air fares.” .

■ FOUR SEASONS Hotels and Resorts,which has managed The Regent Jakarta formore than four years, has renamed the prop-erty Four Seasons Hotel Jakarta. FourSeasons has hotels and resorts in Bali(Jimbaran Bay and Sayan), the Maldives,Singapore, Bangkok, Chiang Mai, Tokyo,Shanghai and Sydney. Its first resort inMalaysia, in Langkawi, is scheduled to openearly 2005.

■ Chi spa suite at Shangri-La, Bangkok.

THE NEW Guangzhou BaiyunInternational Airport, 23 km

north of the existing city airport, opened inthe first week of August as China’s third-largest air gateway. The two-runway facilityhas been designed to take up to 80 millionpassengers and 2.5 million tons of cargoannually. An airport construction fee of50RMB for passengers on domestic flightsand 90RMB for passen-gers on internationalflights, including HongKong and Macau, wasintroduced from August1. This will be includedin ticket prices fromSeptember 1.

■ THE InternationalFinance Corporation,private sector arm ofthe World BankGroup, has signed aUS$7 million investment agreement to helpfinance restoration and expansion of theKabul Hotel in Afghanistan. IFC said theproject fitted with its strategy of investing inkey hotel projects in frontier countries to helpdevelop business infrastructure and, over thelonger term, tourism. The Kabul Hotel will betransformed into a five-star deluxe 180-roomfacility at a cost of US$28 million. It will beAfghanistan’s first international-standardhotel.

■ KOREAN AIR has launched three flightsweekly, non-stop on Airbus 330-200 aircraft,from the airline’s Incheon hub to StPetersburg. Korean already operates toMoscow and Vladisvostock.

■ ASIANA AIRLINES is offering a freestopover in Seoul for passengers on the daily777 Sydney-Seoul service connecting nextday to London, Frankfurt, Amsterdam,Zurich, Helsinki, Budapest or Tel Aviv.The offer also applies for passengers withnext-day connections to the Chinese cities ofBeijing, Shanghai, Harbin, Yantai andChangchun. Available from August 20 toOctober 31, the offer includes an overnightstay at the four-star Novotel AmbassadorToksan with dinner and breakfast, andreturn transfers, on a twin-share basis .

Burma Rail memories■ AN Australian now working as curator at

the Thailand-Burma Railway Centre atKanchanaburi is the driving force behindnew research being developed by the muse-um from the memories of Allied POWs andimpressed Asian labourers who survived theirJapanese captors in World War 2.

Former Queenslander Rod Beattie hasspent eight years searching abandoned sec-tions of the railway and meeting formerPOWs and members of their families. The

museum area tells the story of the infamousRailway — which ran 415 km from BanPong in Thailand to Thanbuyuzayat inBurma — in eight main galleries.

http://www.tbrcon-line.com

■ CARLSON HOTELSAsia Pacific has signedan agreement with FuWah InternationalGroup to manage twonew hotels in Beijing.Fu Wah will build thePark Plaza Wang-fujing Beijing, toopen in December2005, and The Regent

Beijing, to open in September 2006. Carlsonrecently signed an agreement to manage anew Regent hotel in Ningbo. It plans to openup to seven Regent hotels and 15 Park Plazahotels in China over the next 10 years.

■ QANTAS is to expand its European serv-ices from October 31 by introducing dailycode-share services with Air France to Parisvia Singapore, and increasing services toLondon from 21 to 27 weekly. Qantas pas-sengers from Australia to Paris will connectwith Air France in Singapore. Qantas plansthree new Perth-Singapore-London flightsweekly and three new Sydney-Hong Kong-London flights weekly from October 31.Qantas will also increase its non-stop servic-es between Melbourne and Los Angelesfrom seven to nine flights weekly — it willadd one flight from November 6 and the sec-ond from February 7 2005.

■ CHINA SOUTHERN has launched adirect Paris-Guangzhou service in code-share with Air France. Flights departGuangzhou four times weekly (Monday,Wednesday, Thursday, Saturday). PremiumBusiness Class passengers departing Pariswill have access to the Air France BusinessClass Lounge at Charles de Gaulle Airport.China Southern has opened a sales/market-ing office in Paris to service the route. ChinaSouthern Airlines has also launched a newGuangzhou-Beijing-Dubai service. The 777flight operates twice weekly.

■ VIRGIN ATLANTIC will begin daily serv-ices to Sydney from London via HongKong on December 8. The Airbus A340-600aircraft will depart Sydney at 4.15.pm, arriv-ing in Hong Kong at 10.05.pm and at LondonHeathrow at 4.50.am the following day. FromLondon, flights will depart at 21.30 arriving inHong Kong at 1750 the following day and inSydney at 0710 the following day.

■ RAMADA INTERNATIONAL Hotels& Resorts has opened a 105-room prop-erty in the scenic resort of Wuyishan inFujian Province. It is Ramada’s 12thproperty in China.

■ A NEW shinkansen link betweenYatsushiro City and Kagoshima has cuttraveling time between Fukuoka andKagoshima to two hours 10 minutes fromthree hours 40 minutes. The upgrade is thefirst installation of bullet trains in Kyushu.

■ KLM is to increase its flights fromShanghai and Beijing to Amsterdam fromthree to seven weekly in code-share withChina Southern.

■ ACCOR is acquiring a 28.9 per centequity interest in Club Mediteranee, includ-ing a 21.2 per cent holding by the AgnelliGroup (Exor/Ifil), to become the coreshareholder. The transaction is based on anacquisition price of 45 euros per share, for atotal of 252 million euros plus an earn-outclause, subject to approval by the monopo-lies and mergers commissions.

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 200430

I F C F I NANC ING D E LUXE HOT E L FOR KABU L

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TRAVEL • ACCOMMODATION • NATIONAL HOLIDAYS

SEPTEMBER: 2, Vietnam (National Day); 13, Indonesia (Ascensionof Prophet Muhammad/Isra Mi’raj Nabi Muhammad SAW); 20,Japan (Respect for the Age Day); 23, Japan (Autumnal EquinoxDay); 27-29, Korea (Korean Thanksgiving Day); 28, Taiwan (MoonFestival); 28, Sri Lanka (Binara Full Moon Poya Day); 29, HongKong (Day following Mid-Autumn Festival); 29, Macau (Day fol-lowing Mid-Autumn Festival).OCTOBER: 1-3, China (Chinese National Day); 1, Hong Kong(National Day); 1, Macau (National Day); 2,Macau (Day followingNational Day); 3, Korea (National Foundation Day); 10, Taiwan(National Day); 11, Japan (Health Sports Day); 22, Hong Kong(Chung Yeung Festival); 22, Macau (Festival of Ancestors); 23,Thailand (Chulalongkorn Day); 27, Sri Lanka (Vap Full Moon PoyaDay); 28, Myanmar (Full Moon Day of Thadingyut).NOVEMBER: 1, Philippines (All Saint’s Day); 2, Macau (All SoulsDay); 3, Japan (Culture Day); 9, Pakistan (Iqbal Day); 11, Malaysia(Deepavali); 11, Sri Lanka (Deepavali Festival Day); 11-13, Pakistan(Eid-ul-Fitr 1 Shawal): 14, Indonesia (Idul Fitri): 14, Malaysia (HariRaya Puasa); 14, Singapore (Hari Raya Puasa); 14, Sri Lanka (Id-Ul-Fitr/Ramazan Festival Day); 15-16, Indonesia (Idul FitriHoliday); 17-19, Indonesia (Government Holiday); 20-21, Macau(51st Macau Grand Prix); 23, Japan (Labour Thanksgiving Day);26, Sri Lanka (II Full Moon Poya Day); 26, Myanmar (Full MoonDay of Tazaungmone); 30 Philippines (Bonifacio Day).DECEMBER: 2, Laos (National Day); 5, Thailand (H M King’sBirthday); 6, Myanmar (National Day); 8, Macau (Feast ofImmaculate Conception); 10, Thailand (Constitution Day); 20,Macau (Macau Special Administrative Region Establishment Day);21, Macau (Winter Solstice); 23, Japan (Emperor’s Birthday); 24-25,Macau (Christmas Holidays); 25, Hong Kong (Christmas Day); 25,Indonesia (Christmas Day); 25, Korea (Christmas Day); 25,Malaysia (Christmas Day); 25, Myanmar (Christmas Day); 25,Pakistan (Quaid-e-Azam Day); 25, Philippines (Christmas Day);25, Singapore (Christmas Day); 25, Sri Lanka (Christmas Day); 26,Malaysia (Boxing Day); 26, Sri Lanka (Unduvap Full Moon PoyaDay); 27, Hong Kong (First weekday after Christmas Day); 30,Philippines (Rizal Day); 31, Thailand (Western New Year’s Eve).

TIMEZONES (taking Australian Eastern Standard Time asstandard) — Japan, Pyongyang, Seoul, minus one hour; China,Hong Kong, Kuala Lumpur, Manila, Singapore, Taipei minus twohours; Bangkok, Jakarta, Vietnam, minus three hours; Bangladesh,minus four hours; India minus four-and-half hours; Pakistan minusfive hours.(taking Greenwich Mean Time as standard) — Australia, plus10 hours (Australian Eastern Standard Time), plus 11 hours(Australian Eastern Summer Time); Japan, South Korea, NorthKorea, plus nine hours; China, Hong Kong, Malaysia, Philippines,Singapore, Taiwan, plus eight hours; Thailand, Indonesia,Vietnam, plus seven hours; Bangladesh, plus six hours; India, plusfive-and-a-half hours; Pakistan, plus five hours (from 1st Sunday inApril - 1st Saturday in October: plus 6 hours)

Holidays & Times

ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004 30

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■ INTERIOR of Baiyun International Airport.

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PUBLICATIONS

ASIA2005The ASIA TODAY INTERNATIONAL Yearbook

THE EVOLUTION of individual Asianeconomies is gathering momentum, driven bythe juggernaut export engine that is China.Rapidly emerging as governments repositiontheir economies is a ‘new’ Asia, offering newmarkets and new opportunities for bothinvestors and suppliers. The ‘new’ Asia will bethe focus of ASIA2005, the 21st ASIATODAY INTERNATIONAL Yearbook.

ASIA2005 offers a powerful vehicle throughwhich to promote products and services, andto present your corporate credentials to Asia. Itwill assess forward market opportunities andbusiness trends for 2005 into 2006, with spe-cial reports on currency movements, countryrisk, emerging trade and legal issues, andchanges to taxation and tariff laws.

Advertising bookings for ASIA2005 are opennow. For preferred space positions, call (61 2)9970-6477 or email [email protected]

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ASIA TODAY INTERNATIONAL AUGUST/SEPTEMBER 2004 31

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