MONDAY, DECEMBER 13, 1982
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75-YEAR LAND GRANT FOR CHINA MERCHANTS CO.
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THE GOVERNMENT HAS DECIDED TO GRANT BY PRIVATE TREATY FOR 75 YEARS AN AREA OF ABOUT 13 100 SQUARE METRES IN KENNEDY TOWN TO THE CHINA MERCHANTS STEAM NAVIGATION COMPANY LIMITED (CMSN) FOR THE CONSTRUCTION OF A CARGO HANDLING PIER AND GODOWN.
THE SITE COMPRISES 7 020 SQUARE METRES OF SEABED FOR THE CONSTRUCTION OF THE PIER AND AN AREA OF ABOUT 6 100 SQUARE METRES TO PROVIDE GODOWN FACILITIES.
ANNOUNCING THIS TODAY, A GOVERNMENT SPOKESMAN SAID THAT THE COMPANY, WHICH BEGAN OPERATING AT WESTERN IN 1900, HAD TO GIVE UP ITS PIER AT WESTERN LAST YEAR TO MAKE WAY FOR RECLAMATION WORK.
HE POINTED OUT THAT TRADE BETWEEN HONG KONG AND CHINA HAD INCREASED RAPIDLY OVER THE PAST FEW YEARS.
LAST YEAR, HONG KONG IMPORTED OVER 8.7 MILLION TONNES OF GOODS FROM CHINA, REPRESENTING SLIGHTLY OVER 30 PER CENT OF THE TOTAL IMPORTS.
+ABOUT 80 PER CENT OF IMPORTS FROM CHINA ARRIVES BY SEA AND IN 1981 ABOUT ONE THIRD OF THIS WAS HANDLED BY CMSN, WHICH IS THE LARGEST SINGLE CARRIER OF HONG KONG'S IMPORTS FROM CHINA, THE SPOKESMAN SAID.
+CMSN HANDLED SOME 2.7 MILLION TONNES OF CARGO LAST YEAR AND ITS ACTIVITIES ARE EXPECTED TO INCREASE BY ABOUT 10 PER CENT EACH YEAR.+
HE ADDED THAT CARGO HANDLING AND STORAGE FACILITIES AVAILABLE AT PRESENT TO CMSN WERE INADEQUATE. AS A RESULT, SOME OF THE GOODS HAD TO BE HANDLED AT THE WESTERN PUBLIC CARGO WORKING AREA.
THEREFORE, HE SAID, THE PRIVATE TREATY GRANT WOULD NOT ONLY PROVIDE CMSN WITH ADEQUATE CARGO HANDLING AND GODOWN FACILITIES FOR A RAPIDLY EXPANDING TRADE BUT WOULD ALSO REDUCE THE PRESSURE ON THE WESTERN PUBLIC CARGO WORKING AREA AND RELIEVE LORRY CONGESTION IN THE VICINITY.
UNDER THE CONDITIONS OF GRANT, CMSN HAS TO COMPLETE THE PROPOSED $33-MILLION DEVELOPMENT WITHIN 48 MONTHS.
THE $30-MILLION PREMIUM, WHICH IS THE FULL MARKET VALUE ON THE BASIS OF ACTUAL DEVELOPMENT PROPOSED, WILL BE PAID IN ONE LUMP SUM.
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