We do some market research of Taiwan's construction industry

1. 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

2. 2

3. Outline
• Introduction of Taiwan
• Two Major Construction Firm
• Infrastructure Status
• Construction climate in past three years and
future
• Construction Budget & GDP
• SWOT Analysis
3

4. Geography
• East Asia
• West Pacific Ocean
• Total area: 35980 sq-km
• Peak: 3952m
• Climate: tropical &
marine
• Natural hazards:
earthquakes & typhoons
4

5. 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
5

6. 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
6

7. • 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
7

8. Taipei Subway Map
8

9. • The World Games in Kaohsiung 2009
• Open design
• Eco-friendly
Construction Firm I - Fu Tsu Construction
9

10. 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
10

11. 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
11

12. • 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
12

13. 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
13

14. • 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
14

15. 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
15

16. Before
After
Infrastructure Status
16

17. 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
17

18. Infrastructure Status: Hsueh-shan Tunnel
18

19. 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
19

20. 2008 – 2010 Construction Climate
0%
15%
30%
45%
60%
2008 2009 2010
46% 48% 31%
Annual capital productivity for the construction
industry
20

21. 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
21

22. Construction Budget & GDP
22

23. Taiwan GDP Growth Rate
23

24. Construction Budget & GDP of Taiwan in $B
2010 2011 2012 2013
GDP – Current Prices 430.18 466.42 466.05 469.29
Construction Budget 168 173 136.2 126.6
Percentage 39.05% 37.09% 29.22% 26.98%
Construction Budget & GDP
24

25. SWOT
25