XN000022-1984-12-09 — Page 5

SUNDAY, DECEMBER 9, 1984

CONTAINER PORT TO BE EXPANDED ****

THE KWAI CHUNG CONTAINER TERMINAL IS TO BE EXPANDED TO COPE WITH GROWING DEMAND FOR ADDITIONAL FACILITIES.

A GOVERNMENT SPOKESMAN SAID TODAY THE EXPANSION HAD TO BE CARRIED OUT AS SOON AS POSSIBLE BECAUSE THE CONTAINER PORT'S PRESENT LEVEL OF TRAFFIC ALREADY EXCEEDED THE DESIGNED OPERATIONAL CAPACITY.

IN VIEW OF THE IMPORTANCE AND NEED OF MAINTAINING HONG KONG'S FINANCIAL AND ECONOMIC WELL-BEING, THE GOVERNOR, ON THE ADVICE OF THE EXECUTIVE COUNCIL, HAS GRANTED A LEASE OF OVER 17 HECTARES OF FORESHORE AND SEABED TO THE SOUTH OF THE TERMINAL AS PART OF THE PROGRAMME TO EXPAND THE TERMINAL.

THE LESSEE WILL BE PERMITTED TO RECLAIM THE AREA AND CONSTRUCT AND USE A CONTAINER TERMINAL. THE LEASE WILL BE GRANTED UNDER THE FORESHORES AND SEABED ORDINANCE.

IN ADDITION, THE GOVERNOR, ALSO ON THE ADVICE OF THE EXECUTIVE COUNCIL, HAS APPROVED PLANS FOR THE RECLAMATION OF MORE THAN 15 HECTARES OF FORESHORE AND SEABED AT THE MOUTH OF LAI CHI KOK BAY.

THE ADDITIONAL LAND WILL BE MAINLY FOR TRADES RELATED TO THE CONTAINER INDUSTRY. IT WILL ALSO BE USED TO BUILD ACCESS ROADS AND DRAINAGE.

IT IS PROPOSED THAT RECLAMATION BE CARRIED OUT BY PUBLIC DUMPING UNDER THE PUBLIC RECLAMATIONS AND WORKS ORDINANCE.

THE GOVERNMENT SPOKESMAN SAID THAT IN THE PAST 20 MONTHS THERE HAD BEEN AN 8.5 PER CENT PER ANNUM INCREASE IN THE THROUGHPUT OF CONTAINERS AND THIS RATE OF GROWTH WAS LIKELY TO CONTINUE.

HE SAID THE CONSEQUENCES OF NOT PROVIDING ADDITIONAL RECLAIMED LAND FOR ADDITIONAL FACILITIES AT THE MOUTH OF LAI CHI KOK BAY WOULD MEAN THAT AN ALTERNATIVE LOCATION FOR EXPANSION WOULD HAVE TO BE FOUND.

**AT PRESENT THERE IS NO ALTERNATIVE SITE WHICH OFFERS THE NECESSARY INFRASTRUCTURE AND SATISFIES THE OPERATIONAL REQUIREMENTS OF CONTAINER SHIPS, AS WELL AS TERMINAL FACILITIES AND CARGO HANDLING, HE SAID.

+UNLESS THE PRESENT DEVELOPMENT PROGRAMME IS PURSUED, THE EFFICIENCY OF CONTAINER OPERATIONS AT KWA CHUNG WILL DETERIORATE.

+AS A DIRECT RESULT, THE COMPETITIVENESS OF HONG KONG'S EXPORTS WILL SUFFER PROPORTIONATELY DUE TO HIGHER FREIGHT RATES AND HANDLING COSTS.

/+THIS WOULD