+
11 -
the arrangements which have traditionally been adopted for
the development of port facilities in Hong Kong it would
appear that container terminal operations geared to the
large container-ships may preclude a multi-user approach.
Moreover, shipping lines operating large container-ships,
in view of the enormous capital expenditure involved in
the construction of these ships, have stated they would
require not only exclusive use but also actual control
of the terminal facilities so as to ensure that the
containers are handled in such a way as to ensure the
minimum of delay to the vessel when once it is alongside.
However, in view of the limited number of berths that
would be available, it is thought advisable that the
possibility of a consortium of private interests developing
and operating the terminal facility should be explored, even
though it may not fully meet the requirements of the carriers.
Development with Public Funds: In Hong Kong,
13.
B
it has in general always been Government's policy to leave
capital investment in port facilities to private enterprise.
Exceptions to this in recent years have been the Ocean Terminal
and the provision of public cargo working areas over which 70%
of cargo moves. If, as now appears likely, shipping lines
are willing to invest a considerable sum in the development
of container facilities, it would therefore seem that this
would be a more appropriate procedure to adopt than for the
development of these facilities to be paid for from public
funds. Furthermore, as Honourable Members will be aware.
the commitments on public funds in the early 1970's are very
heavy. Any arrangement which can avoid the full burden of
developing container facilities falling on public funds is
therefore highly desirable.
740
9
C - Development by Government and Private Interests:
Several container-ship operators have declared themselves
/prepared