With that, China and Taiwan yesterday launched the first direct air, shipping and postal links across the once-troubled Taiwan Strait, nearly six decades after the two sides separated in 1949.

Lion dances, streamers, women in cheongsams and leaders in dark coats marked the milestone at sea and air ports across China and Taiwan.

Dubbed the 'three links', the direct connections ended the tedious and costly practice of routing passengers, goods and mail via a third place, usually Hong Kong or Macau. The breakthroughs were made possible by the inking of landmark deals between China and Taiwan last month.

'Today is another day to remember in the history of cross-strait ties,' said Mr Wang Yi, head of China's top policy-making body on Taiwan, at a send-off event at Tianjin Port.

Over at Taiwan's Kaohsiung Port, President Ma Ying-jeou presided over the sailing of the first vessel from Taiwan to China in nearly 60 years.

Mr Ma described the three links as 'a structural change' in relations between the former foes. 'From now on, dialogue will replace opposition.'

The direct links are the latest and most concrete results of Mr Ma's policy of engagement with China since he took office in May and are expected to spur the island's economy.

Taiwan expects ocean shippers to save NT$1.2 billion (S$53 million) and air passengers to save NT$3 billion annually. Trade between both sides was worth US$130.2 billion (S$192.3 billion) last year.

Yesterday, some 16 return flights criss-crossed the skies and at least 10 ships from both sides set sail directly across the 160km Taiwan Strait.

Up to 108 return passenger flights will be allowed to ply daily between both sides each week, linking up to eight Taiwanese and 21 Chinese cities. Sixty cargo flights a month are also permitted.

Direct flights from Taipei to Shanghai, for example, cutflight time by an hour. Ocean shippers can save up to four days travel time with direct shipping routes. And with mail sent directly across the Strait, delivery time will fall to seven days from 10.

The new links have raised talk of reviving Taiwan's bid to become a transport and logistics hub for the Asia-Pacific. But analysts say a lot remains to be done if Taiwan were to rival the likes of Hong Kong, Singapore or Shanghai.

Mr Tan Boon Beng, chief executive officer of logistics company Toll (Taiwan) noted that facilities at the Taoyuan International Airport will need to be upgraded to compete against other airports.

Others pointed out that the direct links may not translate to immediate gains, given the global economic downturn.

Singapore said yesterday it 'warmly welcomes' the launch of the direct links between China and Taiwan. 'This positive development will be good for regional stability,' said the Ministry of Foreign Affairs.

hoaili@sph.com.sg