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Following is the speech by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, at Hutchison Port Holdings Trust Hongkong 200 Million TEU Celebration Cocktail at JW Marriott Hotel Hong Kong today (October 16):
Gerry (Yim), distinguished guests, ladies and gentlemen,
Today, I am much honoured to be invited to join the Hutchison Port Holdings Trust (HPH Trust) Hongkong 200 Million TEU Celebration Cocktail, and to witness this most memorable moment of HPH Trust with all of you.
For decades, Hong Kong has been a major hub port in the region. For the past 10 years (2005-2014), the average annual throughput at the Hong Kong Port was some 23 million TEUs. This is indeed a highly impressive performance having regard to the physical size of the Kwai Tsing Container Terminals. The Port has been a vital and inseparable infrastructure of our economy, which, together with port-related sectors, directly contributed 1.1 per cent to Hong Kong's GDP and provides 88,000 jobs in 2013. It also supports the development of the trading and logistics sector, one of the four economic pillars of Hong Kong.
All these achievements are not incidental. Undoubtedly, we are blessed with the endowment of a strategic geographical location and a natural deep-water harbour. But more importantly, the efforts made by different parties operating the Hong Kong Port must be recognised. Hutchison International Terminals is a major operator of Hong Kong's container terminals. Today, HPH Trust is celebrating its milestone achievement of handling the 200 millionth TEU. I hereby extend my heartfelt congratulations to HPH Trust for its achievement and its contribution to Hong Kong's port industry.
Despite the impressive performance of the Hong Kong Port, maintaining the Port's competitiveness is no easy business. Externally, Hong Kong is facing challenges and uncertainties arising from the prevailing unfavourable environment of international trade, strong competition from neighbouring ports, notably those in South China (e.g. Shenzhen and Nansha) as well as Singapore, and changes in shipping trends towards bigger container vessels. Internally, there are challenges in terms of land supply and labour costs.
Enhancing the capacity and capability of the container port is a subject high on our agenda. The Transport and Housing Bureau has just completed a consultation in mid-August on the proposals for enhancing the use of port back-up land in Kwai Tsing which aims at, among others, optimising the use of the 100 hectares of land in the port area to improve the capacity and efficiency of the container terminals and the Hong Kong Port as a whole. The proposals received general support from the industry and other respondents. As a next step, the Government will proceed with the recommended measures in phases, with Phase One being the integration of specific adjacent land sites into the container terminals so as to provide more yard space and barge berths to support port operations and to meet future forecast growth.
Moreover, the dredging of the Kwai Tsing Container Basin and its approach channel which commenced in 2013 is due to be completed early next year. By then, the new generation of ultra-large container ships will be able to call at our port at all tides. This will further strengthen our position as a regional hub port in Asia.
The Hong Kong Port is only part of Hong Kong's maritime infrastructure. The Government is spearheading wider efforts to strengthen and consolidate Hong Kong's cluster of maritime services, ranging from ship owning, ship agency and management, ship broking, ship finance, marine insurance, maritime legal and arbitration services, so as to enhance Hong Kong's position as an international maritime centre and a regional hub for Mainland and international business.
In strengthening our competitiveness, we should also recognise the potential from strong domestic demand of emerging markets in the region and the many new opportunities to be brought about by the national "Belt and Road" initiative, which makes the prospect of our port industry very positive in the long term. The "Belt and Road" initiative aims to improve the infrastructural connectivity of the countries along the corridors to promote international trade and to facilitate the flow of cargo and people. With some 80 per cent of global merchandise trade being transported by sea, its launch is bound to boost demand for international shipping and port services. The Hong Kong Port no doubt will have an important role to play in the development of the Initiative.
With the joint efforts of the Government and the shipping, port and logistics industries, there is every reason to believe that the Hong Kong Port, including the container terminals, could reach new heights not only to support the growth of our economy, but also to seize the opportunities arising from the "Belt and Road" initiative.
I wish you all an enjoyable evening! Thank you.
Ends/Friday, October 16, 2015
Issued at HKT 20:23
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