260024 C.S. 84
For discussion
on 13th January 1970
RESTRICTED
MEMORANDUM FOR EXECUTIVE COUNCIL
CONTAINERISATION
XCR(70)22
Copy No.. of 27,
A
B
On 5th August 1969 Honourable Members, after considering memorandum XCC(69)36, a copy of which is attached at Annex A, advised and the Governor ordered that, subject to the acceptance by the Finance Committee of the financial implications,
2
(a)
(b)
the development of Stage I of the container-terminal scheme at Kwai Chung as recommended in the Engineering Report prepared by the Public Works Department be implemented; and
the method of implementation be as outlined in paragraphs 14 and 15 of the memorandum.
As a result of further discussions with the shipping lines who are planning to introduce container-ship services to the Far East within the next 2 years and who intend to include a call at Hong Kong in these services if facilities are available, it has now become clear that some modifications are necessary to the approach set out in paragraph 15 of the paper at Annex A. For example, the companies requiring exclusive control of berths have indicated that they would be prepared to invest some part of the capital required for the construction of container facilities and one of the operators has applied for a lease of seabed so that he could proceed with the overall development of facilities.
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A total of 12 shipping companies or groups of companies have now indicated their intentions of employing containerships on the Far East routes which affect Hong Kong. Their plans and requirements, as far as these are known, are summarised in the table at Annex B. The desire by some interests for complete control of a terminal is based on the scale and nature of their planned operations and because methods of operation vary and sometimes are mutually incompatible. Other interests could be catered for on a common user basis but to do so satisfactorily might require one or more berths to be operated independently of the major carriers.
4
The discussions with the shipping interests with proposals for introducing container ships have made it clear that, since most of the major shipping interests operating on the European and American trades will, within the next three years, have replaced most of their fleets with container vessels, it is most important for Hong Kong trade that specialised container facilities should be made available in the Colony as soon as practicable. It is, however, difficult as yet to assess precisely, from the attitudes displayed by the various shipping interests, how the needs of Hong Kong's trade can best be met. It is therefore suggested that no firm decision can or should be made at this stage on the method of disposal of the berths and back-up areas until a firmer indication of the intentions of the shipping interests, and how this may reflect on Hong Kong's trade, has been obtained.
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