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The Government today (December 1) released findings of the Study on the Strategic Development Plan for Hong Kong Port (HKP) 2030 (HKP2030) and the Preliminary Feasibility Study for Container Terminal 10 (CT10) at Southwest Tsing Yi (PFS). The findings reveal that container throughput in Hong Kong will continue to see growth in the coming years, but in order to cope with a projected future increase in throughput up to 2030, it is necessary to enhance the handling capacity of the existing container terminals and related infrastructural facilities.
A spokesman for the Transport and Housing Bureau said that the HKP2030 proposes a series of enhancement measures. These include upgrading Stonecutters Island Public Cargo Working Area to a modern container handling facility for ocean-going or river trade vessels, thereby improving operational efficiency; enabling the River Trade Terminal, which can accommodate ocean-going vessels, to become a terminal for both ocean-going and river trade vessels; providing additional barge berths at the Kwai Tsing Container Terminals (KTCT) to relieve congestion caused by the increase of river cargo throughput; and making better use of land and other facilities around the terminals to enhance operational efficiency and accommodate future growth in transhipment.
The spokesman pointed out that the HKP2030 forecasts that the total container throughput of HKP would have average annual growth of 1.5 per cent up to 2030, with total container throughput estimated to reach 31.5 million 20-foot equivalent units. The growth in international transhipment would be the main driver.
The HKP2030 notes that in 2001-2011 the throughput at the KTCT grew faster than the total HKP throughput. This was attributed to the fact that cross-boundary transport has shifted from trucking to river transport; the size of ocean going vessels has increased; and international transhipment throughput, which was mainly concentrated at the KTCT, has surged. As a result, facilities at the KCKT have been facing greater demand than other port facilities. The HK2030 study proposes that the Administration adopt appropriate measures to enhance the handling capacity of the terminals so as to sustain the competitiveness of the HKP. The HKP2030 anticipates that the above measures should be sufficient to enhance the handling capacity of existing container terminals to cope with future growth. Hence, planning for CT10 before 2030 is not recommended.
Although the preliminary findings of the PFS show that the development of CT10 at Southwest Tsing Yi is technically feasible, the outcome of the analysis of HKP2030 shows that the project is not viable financially or economically, largely because the latest forecast of throughput growth of HKP is at a slower rate than what was previously forecast. Moreover, about 75 per cent of HKP's throughput forecast comes from transhipment, which has comparatively smaller economic benefits than import/export shipments. The development of CT10 requires a capital cost estimate of $60.9 billion (in 2011 prices). It is expected that the economic and financial returns could not fully recover the investment costs within the 50-year evaluation period.
The HKP2030 recommends that the port cargo forecast be reviewed in about five years' time to monitor the development of the Hong Kong port sector and to ensure timely provision of port facilities and port-related infrastructure.
The spokesman said, "At today's joint meeting of the Hong Kong Port Development Council and the Hong Kong Maritime Industry Council, members were briefed on the study findings by the consultants. The industry generally agreed with the consultants' proposals and has requested the Administration to implement the enhancement measures as soon as possible to provide more port backup land and berthing facilities to relieve congestion at the KTCT."
The Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, who is also the Chairman of both councils, reiterated at the joint meeting that the Government would continue to work closely with the trade and follow up on the various enhancement measures for improving the port facilities in a pragmatic and progressive manner with a view to upgrading the KTCT and related infrastructural facilities nearby to meet the increasing throughput demand up to 2030.
Professor Cheung pointed out that HKP, contributing 1.3 per cent to Hong Kong's GDP and providing 88,000 jobs, was an important element in Hong Kong's maritime cluster. The Administration will collaborate with the relevant stakeholders to implement feasible measures to ease the pressure faced by HKP, and to enhance the operational capability and efficiency of terminals so as to maintain Hong Kong's competitiveness as a global transhipment hub. In addition, the Administration will continue to work with the Hong Kong Port Development Council, the Hong Kong Maritime Industry Council and the Hong Kong Logistics Development Council to step up efforts in promoting to an overseas audience Hong Kong's strengths in maritime and logistics services. The Administration will also take forward manpower training schemes to bolster Hong Kong's position as an international maritime centre and regional logistics hub.
The Administration is reviewing the allocation and management of port backup land in the vicinity of the KTCT currently leased under short-term tenancies. The review will explore how to better utilise the land to support the efficient operation of the container terminals and the port as a whole. Proposals will be set out in a document for industry consultation in due course.
To enhance the land utilisation around the KTCT, the Administration commissioned in June this year a consultancy study on a site in Kwai Chung, currently used for port backup purposes, to explore the feasibility of developing the site into a multi-storey car park principally for use by container trucks and medium/heavy goods vehicles, with the aim of freeing up sites currently used as open-air car parks for port backup uses to provide better support to port operations. The study is expected to be completed by around mid-2015.
The executive summaries of the PFS and HKP2030 are now available on the websites of the Hong Kong Port Development Council and the Hong Kong Maritime Industry Council (www.pdc.gov.hk and www.mic.gov.hk).
Ends/Monday, December 1, 2014
Issued at HKT 17:31
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