UPDATE 1-Maersk to slash Taiwan port ops, focus on China

(Adds confirmation and executive comments)

TAIPEI/HONG KONG, July 9 (Reuters) - A.P. Moller-Maersk plans to slash about half its container handling capacity in Taiwan's Kaohsiung, Asia's No. 6 port, the latest blow to a harbour that has been losing ground steadily to South Korea and China.

The Kaohsiung Harbour Bureau confirmed on Wednesday a newspaper report that Maersk (MAERSKb.CO: Quote, Profile, Research), Kaohsiung's largest foreign operator, intends to give up berths 118 and 119, two of the four it operates in the harbour, when their leases expire in October.

The move by the operator of the world's largest container shipping fleet is expected to further hurt Kaohsiung's declining position as one of Asia's top ports.

The 143-year-old harbour has been losing ground to fast growing rivals across the Strait in China, with the global container shipping industry under pressure from a slowing world economy and rising fuel prices.

But the bureau hopes to convince Maersk to at least move some of its capacity to a berth adjacent to the two berths that will remain following Maersk's departure, arguing that will help the company cut costs.

"We are in talks to have them move to berth 75 and relocate the existing operator, South Korea's Hyundai, to 118 and 119," said Huang Kuo Ying, deputy director general of the Kaohsiung Harbour Bureau.

"The talks are scheduled to be concluded around August," Huang told Reuters in a telephone interview.

Maersk was not immediately available for comment.