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Following is a question by the Hon Choy So-yuk and a reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (May 21)(Translation):
Question:
With regard to the co-ordination and co-operation between Hong Kong and the ports along the Pearl River Delta, will the Government inform this Council whether:
(a) it has assessed the competition posed to the port of Hong Kong by the Nansha Port developed by the Guangzhou Municipal Government; if it has, of the details of the assessment; and whether it has explored with the Guangzhou Municipal Government how to co-operate in this respect;
(b) it has examined the competition posed to the port of Hong Kong by the development of the Yantian Port in Shenzhen, and whether any co-ordination efforts have been made regarding the co-operation between the ports of the two cities; and
(c) it has conducted a comprehensive study of how Hong Kong and the ports along the Pearl River Delta develop and co-operate with one other; if it has, of the details of the study; if not, the reasons for that and how it deals with matters relating to the development of and co-operation among the ports concerned?
Reply:
Madam President,
The Expert Group on Port and Logistics Development under the HKSAR/Mainland Conference on Co-ordination of Major Infrastructure Projects (Co-ordination Conference) has exchanged views on the coordination of development and planning strategies for ports and logistics facilities in Hong Kong and the Pearl River Delta (PRD) region. It has also explored ways to enhance co-operation in the investment, construction and operation of port and logistics facilities, as well as co-ordination of policies and measures to expedite port and logistics development in the region. The objectives are to promote complementary strengths and mutual benefits so as to enhance the future development of both PRD and Hong Kong.
My response to the three parts of the questions raised by Hon Choy So-yuk is as follows -
(a) The Nansha port is a relatively new development area of Guangzhou. In the country's 10th Five-Year Plan, four berths for vessels of 50,000 tons will be built in the Nansha new port area, thereby increasing the handling capacity by 1.4 million TEUs. The construction of the first berth is scheduled for completion in the second half of next year. Although the handling capacity of Nansha port is substantially lower than that of Hong Kong, it is located at a strategic point in the PRD region.
In mid-2001, we and the Guangdong People's Municipal Government agreed on a number of co-operation items at the 4th Meeting of the Hong Kong/Guangdong Co-operation Joint Conference (Joint Conference), including the signing of a Letter of Intent for economic development in Nansha. It was agreed that an Expert Group on Nansha Development should be set up to discuss the overall strategy and specific proposals for enhancing co-operation in the development of Nansha. Possible areas of co-operation included the development of high-tech industries, transportation and logistics as well as exchange of and training for professional personnel. The Logistics and Transportation Working Group of the Expert Group held its first meeting in late 2001 and agreed on the need to enhance communication and cooperation in logistics planning and development. Since the establishment of the Expert Group on Port and Logistics Development under the Co-ordination Conference in April 2002, it has become the forum for pursuing co-operation in this area.
(b) With a handling capacity closer to that of Hong Kong, the Shenzhen port progressed from the world's 17th busiest port five years ago to the 6th in 2002. The Yantian port is the major facility in the Shenzhen port which has developed rapidly in recent years. Last year, of the 7.6 million TEUs handled by the Shenzhen port, Yantian accounted for 56% (i.e. 4.28 million TEUs). This year, Shenzhen port's throughput is set to reach 9 million TEUs. The third phase of Yantian Port Development consists of four container berths, which will come into operation in phases from the end of this year until 2005. They will increase Yantian's total handling capacity by 2 million TEUs to 6 million TEUs.
On whether Yantian poses any competition to the Hong Kong port, I would like to point out that since China's accession to the World Trade Organisation, South China's exports remain strong.
Last year, Hong Kong and Guangdong Province together handled 32.4 million TEUs. The growth in cargo volume benefited both Hong Kong and PRD ports. Although Hong Kong continues to lead in terms of overall strength, state of development and customs efficiency, we must work hard to further enhance the competitiveness of our port.
To this end, the Port and Maritime Board and the Logistics Development Council are actively discussing ways to eliminate bottlenecks in the supply chain in an effective and timely manner. Much has also been done to enhance the efficiency of boundary crossings and reduce transportation cost. At the end of last year, the three land boundary crossing points handled nearly 27,000 vehicular passages everyday, representing a 6% growth compared with the previous year. With a 33% efficiency enhancement, the handling capacity per lane per hour increased from 90 vehicular passages to 120.
Following the extension of operating hours at Lok Ma Chau/Huanggang and the provision of more 24-hour lanes, goods vehicle passages across the boundary between 10:00 pm and 7:00 am has grown by 169% from some 800 in November 2001 to nearly 2,300 now.
(c) Last year, about 78% of the containers we handled were imports to and exports from the Guangdong Province. Cross-boundary cooperation on port and logistics development is therefore of paramount importance. We are committed to enhancing co-ordination with the Mainland and promoting complementary development and prosperity in accordance with the "One Country, Two Systems" and the principle of "complementing strengths, mutual cooperation and reciprocal benefits". In doing so, we will also maintain Hong Kong's status as an international shipping centre and logistic hub and continue to respect market forces.
In Hong Kong, the construction of Container Terminal 9 (CT9) is underway, with the first berth due for completion and commissioning in the coming month or so. Upon full commissioning in 2005, the 6-berth CT9 will increase our planned handling capacity by 2.6 million TEUs.
In the meantime, we have embarked on a study entitled "Hong Kong Port - Master Plan 2020" on the long-term development strategy for the port of Hong Kong. Apart from examining the trend and the major factors affecting cargo growth, cargo sources and cargo routes of our hinterland, the study will also evaluate any diversion effect caused by the development of ports in Guangdong. The study will update the port cargo forecast published by the Government in 2001. It will also propose a competitive and sustainable strategy as well as a master plan for Hong Kong's port development, including the feasibility of constructing Container Terminal 10, over a 20-year planning period. The study will be completed by the end of this year.
Ends/Wednesday, May 21, 2003
Issued at HKT 15:28
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