XN000022-1983-01-11 — Page 5

TUESDAY, JANUARY 11, 1983

TO ENSURE EFFICIENT OPERATION AND TO MONITOR EXPANSION NEEDS, THE GOVERNOR RECENTLY ORDERED THE ESTABLISHMENT OF A CONTAINER PORT EXECUTIVE COMMITTEE REPRESENTING SHIPPING INTERESTS, PORT USERS, GOVERNMENT DEPARTMENTS CONCERNED AND ANCILLARY INDUSTRIES.

AS DEVELOPMENT OF CONTAINER FACILITIES REQUIRES A FOUR-YEAR GESTATION PERIOD, ADVANCE PLANNING IS IMPORTANT, MR FRAWLEY SAID. HE RECALLED THAT WHEN THE KWAI CHUNG CONTAINER PORT PROJECT WAS FIRST PLANNED IN THE LATE 1960'S, CRITICS DISMISSED IT AS A +WHITE ELEPHANT+.

INDEED, THE KWAI CHUNG PORT GOT OFF THE GROUND IN 1972 ONLY TO ENJOY A SHORT-LIVED BOOM BEFORE GLOBAL RECESSION STRUCK IN 1974 AND 1975.

BUT THE ECONOMIC RECOVERY THAT FOLLOWED SPARKED OFF THE PHENOMENAL GROWTH OF HONG KONG AS A WORLD-CLASS CONTAINER PORT, MR FRAWLEY SAID.

MORE THAN 40 PER CENT OF HONG KONG'S EXPORTS AND IMPORTS ARE SHIPPED BY CONTAINER.

HONG KONG IS ALSO A MAJOR TRANSHIPMENT CENTRE LINKING INDUSTRIALISED COUNTRIES IN THE WEST TO VARIOUS ASIAN COUNTRIES OR TERRITORIES, INCLUDING CHINA, THE PHILIPPINES, TAIWAN, SINGAPORE AND THAILAND, MR FRAWLEY SAID.

CLOSE TO 30 PER CENT OF HONG KONG'S TOTAL VOLUME OF CONTAINER ISED CARGOES REPRESENTS TRANSHIPMENT GOODS FOR THESE COUNTRIES, HE SAID.

TODAY, THE AVERAGE TURNAROUND TIME AT KWAI CHUNG IS 15 HOURS, COMPARED WITH 2.6 DAYS FOR SHIPS USING CONVENTIONAL HANDLING.

INDIRECTLY, THE CONTAINER PORT HELPS IMPROVE HONG KONG'S EXPORT COMPETITIVENESS AND THE EXPORTER'S ABILITY TO DELIVER HIS GOODS ON TIME.

TO STAY AHEAD IN THIS FIELD, HONG KONG HAS THREE OTHER MAIN FACTORS GOING FOR IT, MR FRAWLEY EXPLAINED.

FIRST, REFLECTING THE FORESIGHT OF BOTH THE GOVERNMENT AND THE PRIVATE SECTOR, HONG KONG WAS THE FIRST OUTS IDE

EUROPE AND THE US TO HAVE CONTAINER FACILITIES IN THE 1960'S AND PURPOSE-BUILT CONTAINER TERMINALS IN THE EARLY 1970'S.

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THIS HEAD START PLUS ITS PROVEN EFFICIENT, COST-EFFECTIVE SERVICES HAVE PUT HONG KONG ON THE MAP OF INTERNATIONAL SHIPPING LINES AROUND THE WORLD, MR FRAWLEY SAID,

ALSO, OVER THE YEARS, THESE SHIPPING LINES USING KWAI CHUNG HAVE DEVELOPED LARGE NETWORKS OF SPECIALISED FEEDER SHIPS RUNNING BETWEEN HONG KONG AND OTHER PARTS OF ASIA WHERE CONTAINER FACILITIES ARE EITHER NON-EXISTENT, UNDER-DEVELOPED OF

INSUFFICIENT.

/+CONTAINERILED

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