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Following is a question by the Hon Mrs Regina Ip and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, at the Legislative Council meeting today (June 10):
Question:
According to several items of statistical information, eight of the world's top 10 ports with the highest container throughput are in Asia, which are Singapore, Shanghai, Hong Kong, Shenzhen, Busan, Guangzhou, Ningbo-Zhoushan and Qingdao, in descending order of throughput ranking. The consolidated container throughput of Shanghai and that of the Pearl River Delta (PRD) (i.e. Shenzhen and Guangzhou) soared by 148% and 142% respectively in 2008 as compared to those in 2003, while that of Hong Kong rose by 20% only. There have been comments that with the rapid growth of the mainland economy in recent years, the demand for inbound and outbound freight services is enormous, but Hong Kong has failed to seize the opportunity to acquire a bigger market share. In addition, the State Council has recently approved the plan to develop Shanghai as an international shipping centre. Hence Hong Kong's position as a maritime and logistics centre is facing increasingly tough challenges. In this connection, will the Government inform this Council:
(a) how Hong Kong will compete with the other container ports in the PRD region;
(b) whether it will inject resources to construct a logistics park to consolidate Hong Kong's position as an ideal import and export centre for critical parts (such as high-tech proprietary products); and
(c) given that the container port industries of Hong Kong's neighbouring regions are booming, whether the Government has, in the light of the latest assessment, changed its position that it is necessary to build Container Terminal No. 10, and when the Government will make a decision, in order not to delay or affect the development of southwest Tsing Yi?
Reply:
President,
(a) The Hong Kong and Pearl River Delta (PRD) ports serve the same cargo hinterland. Having regard to the Outline of the Plan for the Reform and Development of the Pearl River Delta (2008-2020), we will endeavour to push ahead with the co-ordination in port development between the two places, such that a clear division of work and positioning will benefit both and wasteful duplication of resources could be avoided. Yet amid co-ordination between Hong Kong and the PRD ports, there is also competition.
Despite the proliferation of port facilities in the PRD, some of the PRD cargoes still choose to route through Hong Kong due to our comprehensive and frequent liner shipping schedules, free port status, efficient customs procedures, and convenience in intermodal transport system. In the course of maintaining our competitive advantages in these aspects, we will strengthen the competitiveness of Hong Kong Port (HKP) by ensuring that the necessary port and related facilities would be provided in a timely manner. These include feasibility study for the development of Container Terminal 10 (CT10) at Southwest Tsing Yi, and taking forward the project in dredging the Kwai Tsing Container Basin and its approach to cater for the next generation of container ships. We will also strive to lower the cost for the movement of cargoes between Hong Kong and the PRD.
(b) Mainland is posing keen competition to us with its certain competitive advantages, for example, in cost. Moreover, as a result of the global financial crisis, there has been a significant drop in the trading and freight activities worldwide. Our logistics sector, like their counterparts in other economies and other industries, are operating in a very difficult business environment.
In the face of the challenges, Hong Kong should expand its cargo hinterland and sharpen its competitive advantages in providing tailor-made logistics services and solutions to complicated tasks. On the hardware, for example, the construction of the strategically important Hong Kong-Zhuhai-Macao Bridge would soon commence. We shall also work closely with the Mainland authority on the macro level to achieve better division of work, reasonable layout and complementarities in port and airport development.
In view of the uncertain global economic situation, the Government has to take into account Hong Kong's and the global economic trend and outlook in deciding on the way forward for the Lantau Logistics Park, including the scale and timing of the proposed development. This is to make sure that public resources are used in a cost-effective way in the development of the logistics sector. In parallel, we would continue to make available more land for both long-term and short-term logistics use as far as possible. We shall also continue to work closely with the sector to promote e-logistics and to provide professional training courses to the industry to enhance the efficiency and competitiveness of our services.
(c) The Study on Hong Kong Port Cargo Forecasts 2005/2006, which was released last year, has taken into account the supply of port facilities in South China. It projects that the total container throughput of HKP would continue to have modest and steady growth. It also expects that Hong Kong will need the first new container berth by 2015 at the earliest. As advance works would have to be undertaken for developing a new container terminal and it would take time to comply with the statutory requirements, we have expedited the study on the feasibility of developing CT10 at Southwest Tsing Yi.
The relevant preliminary feasibility study and environmental impact assessment commenced in March 2009 and are scheduled for completion in early 2011. The Administration will conduct consultation on the development programme and site selection based on the findings and recommendations of the study. As the development of a new container terminal requires long lead time, in the course of the study, the Administration will in parallel monitor the changes in Hong Kong cargo throughput, with a view to working out the optimal timing for providing the new berths.
Ends/Wednesday, June 10, 2009
Issued at HKT 14:39
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