Group #12- Lee, Hung-Yueh (Eugene) Liu, Cheng-Hung (Darren) Pan, Hsiao-Tieh (Blair) Sivanzire, Patrick Muhindo

The Construction Industry in Taiwan

Nov. 28, 2012

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TAIWAN

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Outline

• Introduction of Taiwan• Two Major Construction Firm• Infrastructure Status• Construction climate in past three

years and future• Construction Budget & GDP• SWOT Analysis

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Geography

• East Asia• West Pacific Ocean• Total area: 35980

sq-km• Peak: 3952m• Climate: tropical &

marine• Natural hazards:

earthquakes & typhoons

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People and Society

• Capital: Taipei• Population:

23,234,936• Official language:

Mandarin Chinese• Religion: mixture of

Buddhism and Taoism 93%, Christian 4.5%, other 2.5%

• Government type: multiparty democracy

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Construction Firm I - Fu Tsu Construction

• Founded in 1949• Capital: $74.5 million• Project type:

skyscraper, shopping mall, hospital, hotel, public facility

• Main projects:- Taipei Mass Rapid Transit System (MRT)- Main Stadium of The World Games 2009

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• Taipei MRT System- 10 lines- 102 stations- 112.8 km in operation

• 5 stations along Tamsui Line (red line)

• Landmark

Construction Firm I - Fu Tsu Construction

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Taipei Subway Map

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• The World Games in Kaohsiung 2009• Open design• Eco-friendly

Construction Firm I - Fu Tsu Construction

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Construction Firm II - Continental Engineering Corp

• Founded in Sichuan, China in 1945 and moved to Taiwan in 1949.

• Capital: $150 million• Property type: Infrastructure, public, and

public works.• Main projects– Taiwan High Speed Rail – Taoyuan International Airport– MRT

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Project I : Taiwan High Speed Rail

• Total length : 214 miles• Total cost : USD 18 billion• Operating speed : 186 mph• 8 stations

Construction Firm II - Continental Engineering Corp

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• In 1994, Taiwan passed a law regarding use of private finance in infrastructure projects, which also applied to the state-run THSR project

• THSR project delivered as a build-operate-transfer (BOT) scheme in 1996

Construction Firm II - Continental Engineering Corp

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Project II : Taoyuan International Airport MRT

• The planned route starts from Terminal II of Taoyuan International Airport and extends eastward to Taipei City

• 24 stations• The route will be 31.71 miles• 7 underground, 15 elevated stations,

and two maintenance depots

Construction Firm II - Continental Engineering Corp

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• The total budget for the project is $31.6 billion

• Expected to serve over 143,000 passengers per day

• Maximum operational speed: 62 mph

Construction Firm II - Continental Engineering Corp

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Case 1: Taiwan Taoyuan International Airport

• Objective: mitigate passenger’s capacity overloading.

• Terminal 1 is also currently undergoing a USD 57.4 million renovation consisting of an exterior and interior.

• Increase Terminal 1's capacity from 12 to 15 million passengers per year when completed.

• The renovation will take place during late hours to avoid congestion during peak hours

Infrastructure Status

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Before

After

Infrastructure Status

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Case 2: Hsueh-shan Tunnel• Objective: Stimulate and grow the local

economy• Tunnel construction began in 1991 and

took 15 years to complete • Total cost: USD 2.83 billion• The total length is 8.042 mile• The fifth longest road tunnel in the world

Infrastructure Status

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Infrastructure Status: Hsueh-shan Tunnel

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Case 3: Post-disaster reconstruction and damage prevention

• Objective: Improve the facilities and strengthen the disaster prevention

• In 2009 Typhoon Morakot brought the highest rainfall ever recorded in the history of Taiwan, causing severe damages to water resources facilities.

• The government has spent US$754 million to complete post-disaster recovery operations which involved land acquisition for dredging, reconstruction work of rivers and water resources reconstruction projects.

Infrastructure Status

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2008 – 2010 Construction Climate

2008 2009 20100%

15%

30%

45%

60%

46% 48% 31%

Annual capital productivity for the construction industry

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2017 Summer University Game

Demand of multi-use stadium, tennis center, athletics village Collaborate with the investor of the BOT project

Allowed Chinese funds to invest in

Taiwanese infrastructure

Helped to bridge any budget shortfalls

Helped to lift the Taiwan’s construction market

Future Construction Climate

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Construction Budget & GDP

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Taiwan GDP Growth Rate

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Construction Budget & GDP of Taiwan in $B

2010 2011 2012 2013

GDP – Current Prices

430.1

8 466.42

466.0

5

469.2

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Construction Budget 168 173 136.2 126.6

Percentage

39.05

%

37.09

%

29.22

%

26.98

%

Construction Budget & GDP

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SWOT