Taipei - Taiwan said on Monday that it hopes to approve an application by Star Cruises to launch a Taiwan-China cruise service, while the cruise company denied speculation it will quit Taiwan.
"We are still negotiating with Star Cruises and hope to approve its application without violating the Taipei-Beijing sea links agreement," Yin Cheng-peng, an official at the Transport Ministry, which is in charge of sea transport, told the Central News Agency (CNA).
"Under the agreement, only Taiwanese and Chinese ships, or Taiwan and China-invested ships which are registered in Hong Kong or abroad, can carry passengers and cargo across the Taiwan Strait," he said.
"Foreign ships are allowed to sail across the Taiwan Strait, but cannot carry passengers or cargo from Taiwan or China," he noted.
Star Cruises waited for years for Taiwan to drop its six-decade ban on sea links with China so it can launch a Taiwan-China route.
Taiwan dropped the ban in December. But when Star Cruises filed an application to open cruise service between Taiwan and China's Xianmen Port, it was rejected because of the requirements of the sea links agreement.
On Sunday, CNA quoted an unnamed ministry official saying that Star Cruises threatened to withdraw from Taiwan.
If Star Cruises leaves Taiwan, it would mean the loss of 80 dockings at the Keelung Harbour annually, dealing a heavy blow to Taiwan's tourism industry, CNA warned.
CNA reported the Transport Ministry asked Star Cruises to make some changes to its Taiwan-China itinerary, but did not say what the changes are.
Early this month, Star Cruises dismissed 70 percent of its Taiwan staff. It is not clear if the layoff was related to Taiwan's rejection of the cruise company's application.
On Monday, Star Cruise - the world's third-largest cruise line and the leading Asia-Pacific cruise line, - denied plans to quit service to Taiwan.
In an email to Deutsche Presse-Agentur dpa, the company denied reports about the cancellation in various media and said company officials had not been interviewed for any of the reports.
According to the company, it enjoys a "positive, harmonious relationship with Taiwan officials. The application approval for direct Taiwan-mainland sea links is in progress."
The statement said the company remains optimistic about its application.
Headquartered in Hong Kong, Star Cruises currently offers separate service to Taiwan and China destinations. It entered the Taiwan market in 1998, offering cruises between Taiwan and Japan and offshore voyages from Keelung Port in northern Taiwan between June and November each year.
In 2008, Star Cruises carried 110 000 passengers on these Taiwan voyages. Four Star Cruises ships also brought Hong Kong and foreign passengers to Taiwan in 2008.
Taiwan and China split at the end of the Chinese civil war in 1949. Since then, Taiwan has banned direct sea, air and trade links with China.
Because of the bans, many foreign cruise companies have dropped Taiwan from their international routes, dealing a heavy blow to Taiwan's tourism and economy. - Sapa-dpa