CONFIDENTIAL
BRIEF FOR THE GOVERNOR'S VISIT TO CHINA
Container Terminals
Sea Communications
Capacity
The five container terminals at Kwai Chung have
a present capacity to handle 1,644,000 twenty-foot containers a year (T.E.U.s or Twenty-foot Equivalent Units). This capacity can be somewhat increased with improved handling techniques and equipment. In 1978 they handled 1,226,000 T.E.U.S. The saturation point is unlikely to be reached until after 1981. The critical factor is the availability of land for back-up facilities (stuffing and de-stuffing, storage, repair, etc.) and to the extent that more land can be made available (this is being examined) then the terminals' capacity can be further increased.
2.
The Director of Marine has identified four
possible sites for the next generation of container terminals (Chai Wan, Junk Bay, and two sites on North East Lantau), and the LDPC will be shortly deciding which, if any, should be reserved for this purpose. However, since it would cost more than $300 million to construct a single 1,000 foot berth with back-up facilities, the financing of new ventures would present problems.
Use of the terminals by China
3.
Chinese cargoes account for less than 5% of total goods handled. There is no sign yet of any
*
significant growth in the traffic.
CONFIDENTIAL
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