XN000022-1983-12-12 — Page 2

MONDAY, DECEMBER 12, 1983

CONTAINER PORT TO BE VASTLY EXPANDED

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A LONG-TERM THREE-PHASE EXPANSION PROGRAMME FOR THE KWAI CHUNG CONTAINER PORT HAS BEEN DESIGNED TO ENSURE HONG KONG'S PROMINENT POSITION IN THE INTERNATIONAL CONTAINER TRADE.

THIS WAS SAID TODAY (MONDAY) BY THE SECRETARY FOR ECONOMIC SERVICES, MR PIERS JACOBS, AT A PRESS CONFERENCE ON THE EXPANSION PROJECT.

+SPEEDY DELIVERY OF GOODS IS ONE KEY ELEMENT IN THE SUCCESS OF INTERNATIONAL TRADE. SO, IT IS ESSENTIAL THAT OUR CONTAINER PORT GROWS TO MEET THE DEMANDS MADE UPON IT, MR JACOBS SAID.

THE GOVERNMENT HAS THUS BEEN NEGOTIATING WITH TWO CONTAINER TERMINAL OPERATORS, HONG KONG INTERNATIONAL LTD (HIT) AND SEALAND ORIENT LTD, TO EXPAND THE KWAI CHUNG PORT TO MEET THE NEEDS THROUGH THE REST OF THIS DECADE AND THE NEXT, HE SAID.

UNDER THE FIRST PHASE, SOME 25.5 HECTARES OF SEABED IN THE KWAI CHUNG CREEK WILL BE RECLAIMED WITHIN THE NEXT THREE YEARS, INCREASING THE PORT'S WORKING CAPACITY FROM ITS PRESENT 1.4 MILLION TWENTY-FOOT EQUIVALENT UNITS (TEUS) BY 57 PER CENT TO 2.2 MILLION TEU'S BY 1986, HE SAID.

MR JACOBS POINTED OUT THAT THE PROJECT IS THE FIRST LARGE- SCALE EXPANSION OF THE PORT SINCE THE MID-1970S.

HONG KONG IS THE THIRD LARGEST CONTAINER PORT IN THE WORLD AFTER NEW YORK AND ROTTERDAM, NOT ONLY HANDLING ITS OWN GROWING EXTERNAL TRADE BUT ALSO SERVING AS THE LARGEST CONTAINER TRANSHIPMENT CENTRE IN THE ASIA-PACIFIC REGION, HE SAID.

LAST YEAR, HONG KONG HANDLED A TOTAL THROUGHPUT OF SOME 1.7 MILLION TEUS OF CONTAINER CARGO, 89 PER CENT OF THEM THROUGH THE KWAI CHUNG CONTAINER PORT AND THE REST ACCOMMODATED ELSEWHERE IN THE PORT OF HONG KONG.

MORE THAN 40 PER CENT OF HONG KONG'S EXPORTS AND IMPORTS ARE SHIPPED BY CONTAINER, WHILE SOME 30 PER CENT OF ITS CONTAINER CARGO REPRESENT TRANSHIPMENT GOODS.

UNDER THE FIRST PHASE, THE TWO COMPANIES WILL BE RESPONSIBLE FOR FORMING AND RECLAIMING THE LAND, WITH HIT ACQUIRING AN ADDITIONAL AREA OF 11.7 HECTARES FOR INTEGRATION WITH TERMINAL 4 AND SEALAND AN ADDITIONAL 3.7 HECTARES FOR INTEGRATION WITH TERMINAL 3,

MR JACOBS POINTED OUT.

THE REMAINING 10.1 HECTARES WILL BE HANDED BACK TO THE GOVERNMENT, WITH PART OF IT TO BE USED FOR A NEW AND BETTER CONTAINER PORT ROAD AND PART TO BE RESERVED FOR FUTURE DEVELOPMENT,

HE ADDED.

THE GOVERNMENT WILL BE SPENDING $104 MILLION ON THE DEVELOPMENT OF THE ROAD AND RELATED INFRASTRUCTURAL FACILITIES IN THE AREA, HE SAID.

/MR JACOBS