Taipei  - Taiwan on Monday launched the new Taipei Port, hoping to develop it into an Asia-Pacific transshipment hub and a main shipping link between Taiwan and China.

President Ma Ying-jeou presided over the launch ceremony, which sits at the mouth of the Tamsui River facing the Taiwan Strait.

"The launch of the Taipei Port is vital for Taiwan's becoming a transshipment hub ... and that is why I, shortly after my inauguration [on May 20, 2008], approved opening air, sea and tourism links with China," he said.

Transport Minister Mao Chih-kuo said the port will boost Taiwan's competitiveness because its sea and land area is five times that of Keelung Harbour - the only port in northern Taiwan - and is only 24 kilometres from Taipei international airport.

The Taipei Port occupies 3,000 hectares of sea and land area with seven container wharfs that are 16 metres deep.

Two wharfs began operation on February 18 and two more will start operating in January 2010.

When all seven wharfs are operating by 2014, the port will handle 4 million TEUs (20-foot-equivalent units) annually, and save Taiwan firms the time and cost of transporting containers by road from northern Taiwan to the Kaohsiung Harbour in southern Taiwan to be shipped overseas.

Taiwan used to be a major shipping transshipment hub before China opened up to the world in the 1980s.

In recent years, Taiwan's competitiveness has slumped due to the expansion of ports and the launch of new ports in neighbouring countries, especially China, and due to Taiwan's six-decade ban on sea links with China. (dpa)