Challenges faced by Hong Kong as a maritime and logistics centre
Challenges faced by Hong Kong as a maritime and logistics centre
Challenges faced by Hong Kong as a maritime and logistics centre
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LCQ9:<strong>Challenges</strong><strong>faced</strong><strong>by</strong><strong>Hong</strong><strong>Kong</strong><strong>as</strong>a<strong>maritime</strong><strong>and</strong><strong>logistics</strong><br />
<strong>centre</strong><br />
******************************************************<br />
Following is a question <strong>by</strong> the Hon Mrs Regina Ip <strong>and</strong> a<br />
written reply <strong>by</strong> the Secretary for Transport <strong>and</strong> Housing, Ms<br />
Eva Cheng, at the Legislative Council meeting today (June 10):<br />
Question:<br />
According to several items of statistical information,<br />
eight of the world's top 10 ports with the highest container<br />
throughput are in Asia, which are Singapore, Shanghai, <strong>Hong</strong><br />
<strong>Kong</strong>, Shenzhen, Busan, Guangzhou, Ningbo-Zhoushan <strong>and</strong><br />
Qingdao, in descending order of throughput ranking. The<br />
consolidated container throughput of Shanghai <strong>and</strong> that of the<br />
Pearl River Delta (PRD) (i.e. Shenzhen <strong>and</strong> Guangzhou) soared<br />
<strong>by</strong> 148% <strong>and</strong> 142% respectively in 2008 <strong>as</strong> compared to those<br />
in 2003, while that of <strong>Hong</strong> <strong>Kong</strong> rose <strong>by</strong> 20% only. There have<br />
been comments that with the rapid growth of the mainl<strong>and</strong><br />
economy in recent years, the dem<strong>and</strong> for inbound <strong>and</strong> outbound<br />
freightservicesisenormous,but<strong>Hong</strong><strong>Kong</strong>h<strong>as</strong>failed toseize<br />
the opportunity to acquire abigger market share. In addition,<br />
the State Council h<strong>as</strong> recently approved the plan to develop<br />
Shanghai <strong>as</strong> an international shipping <strong>centre</strong>. Hence <strong>Hong</strong><br />
<strong>Kong</strong>'s position <strong>as</strong> a <strong>maritime</strong> <strong>and</strong> <strong>logistics</strong> <strong>centre</strong> is facing<br />
incre<strong>as</strong>ingly tough challenges. In this connection, will the<br />
Government inform this Council:<br />
(a) how <strong>Hong</strong> <strong>Kong</strong> will compete with the other container ports<br />
in the PRD region;<br />
(b) whetheritwillinjectresourcestoconstructa<strong>logistics</strong><br />
park to consolidate <strong>Hong</strong> <strong>Kong</strong>'s position <strong>as</strong> an ideal import<br />
<strong>and</strong> export <strong>centre</strong> for critical parts (such <strong>as</strong> high-tech<br />
proprietary products); <strong>and</strong><br />
(c) given that the container port industries of <strong>Hong</strong> <strong>Kong</strong>'s
neighbouring regions are booming, whether the Government h<strong>as</strong>,<br />
in the light of the latest <strong>as</strong>sessment, changed its position<br />
that it is necessary to build Container Terminal No. 10, <strong>and</strong><br />
when the Government will make adecision, in order not to delay<br />
or affect the development of southwest Tsing Yi<br />
Reply:<br />
President,<br />
(a) The <strong>Hong</strong> <strong>Kong</strong> <strong>and</strong> Pearl River Delta (PRD) ports serve<br />
the same cargo hinterl<strong>and</strong>. Having regard to the Outline of<br />
the Plan for the Reform <strong>and</strong> Development of the Pearl River<br />
Delta (2008-2020), we will endeavour to push ahead with the<br />
co-ordinationinportdevelopmentbetweenthetwoplaces,such<br />
that a clear division of work <strong>and</strong> positioning will benefit<br />
both <strong>and</strong> w<strong>as</strong>teful duplication of resources could be avoided.<br />
Yet amid co-ordination between <strong>Hong</strong> <strong>Kong</strong> <strong>and</strong> the PRD ports,<br />
there is also competition.<br />
Despite the proliferation of port facilities in the PRD,<br />
some of the PRD cargoes still choose to route through <strong>Hong</strong><br />
<strong>Kong</strong> due to our comprehensive <strong>and</strong> frequent liner shipping<br />
schedules, free port status, efficient customs procedures,<br />
<strong>and</strong> convenience in intermodal transport system. In the course<br />
of maintaining our competitive advantages in these <strong>as</strong>pects,<br />
we will strengthen the competitiveness of <strong>Hong</strong> <strong>Kong</strong> Port (HKP)<br />
<strong>by</strong> ensuring that the necessary port <strong>and</strong> related facilities<br />
would be provided in a timely manner. These include<br />
fe<strong>as</strong>ibility study for the development of Container Terminal<br />
10(CT10)atSouthwestTsingYi,<strong>and</strong> takingforwardtheproject<br />
in dredging the Kwai Tsing Container B<strong>as</strong>in <strong>and</strong> its approach<br />
to cater for the next generation of container ships. We will<br />
also strive to lower the cost for the movement of cargoes<br />
between <strong>Hong</strong> <strong>Kong</strong> <strong>and</strong> the PRD.<br />
(b) Mainl<strong>and</strong> is posing keen competition to us with its<br />
certain competitive advantages, for example, in cost.
Moreover, <strong>as</strong> a result of the global financial crisis, there<br />
h<strong>as</strong> been a significant drop in the trading <strong>and</strong> freight<br />
activities worldwide. Our <strong>logistics</strong> sector, like their<br />
counterparts in other economies <strong>and</strong> other industries, are<br />
operating in a very difficult business environment.<br />
In the face of the challenges, <strong>Hong</strong> <strong>Kong</strong> should exp<strong>and</strong><br />
its cargo hinterl<strong>and</strong> <strong>and</strong> sharpen its competitive advantages<br />
in providing tailor-made <strong>logistics</strong> services <strong>and</strong> solutions to<br />
complicated t<strong>as</strong>ks. On the hardware, for example, the<br />
construction of the strategically important <strong>Hong</strong><br />
<strong>Kong</strong>-Zhuhai-Macao Bridge would soon commence. We shall also<br />
work closely with the Mainl<strong>and</strong> authority on the macro level<br />
to achieve better division of work, re<strong>as</strong>onable layout <strong>and</strong><br />
complementarities in port <strong>and</strong> airport development.<br />
In view of the uncertain global economic situation, the<br />
Government h<strong>as</strong> to take into account <strong>Hong</strong> <strong>Kong</strong>'s <strong>and</strong> the global<br />
economic trend <strong>and</strong> outlook in deciding on the way forward for<br />
the Lantau Logistics Park, including the scale <strong>and</strong> timing of<br />
the proposed development. This is to make sure that public<br />
resources are used in a cost-effective way in the development<br />
of the <strong>logistics</strong> sector. In parallel, we would continue to<br />
make available more l<strong>and</strong> for both long-term <strong>and</strong> short-term<br />
<strong>logistics</strong> use <strong>as</strong> far <strong>as</strong> possible. We shall also continue to<br />
work closely with the sector to promote e-<strong>logistics</strong> <strong>and</strong> to<br />
provide professional training courses to the industry to<br />
enhance the efficiency <strong>and</strong> competitiveness of our services.<br />
(c) The Study on <strong>Hong</strong> <strong>Kong</strong> Port Cargo Forec<strong>as</strong>ts 2005/2006,<br />
whichw<strong>as</strong>rele<strong>as</strong>edl<strong>as</strong>tyear,h<strong>as</strong>takenintoaccountthesupply<br />
of port facilities in South China. It projects that the total<br />
container throughput of HKP would continue to have modest <strong>and</strong><br />
steady growth. It also expects that <strong>Hong</strong> <strong>Kong</strong> will need the<br />
first new container berth <strong>by</strong> 2015 at the earliest. As advance<br />
works would have to be undertaken for developing a new<br />
container terminal <strong>and</strong> it would take time to comply with the<br />
statutory requirements, we have expedited the study on the
fe<strong>as</strong>ibility of developing CT10 at Southwest Tsing Yi.<br />
The relevant preliminary fe<strong>as</strong>ibility study <strong>and</strong><br />
environmental impact <strong>as</strong>sessment commenced in March 2009 <strong>and</strong><br />
arescheduledforcompletioninearly2011.TheAdministration<br />
will conduct consultation on the development programme <strong>and</strong><br />
site selection b<strong>as</strong>ed on the findings <strong>and</strong> recommendations of<br />
the study. As the development of a new container terminal<br />
requires long lead time, in the course of the study, the<br />
Administration will in parallel monitor the changes in <strong>Hong</strong><br />
<strong>Kong</strong> cargo throughput, with a view to working out the optimal<br />
timing for providing the new berths.<br />
Ends/Wednesday, June 10, 2009