XN000022-1988-12-14 — Page 33

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WEDNESDAY, DECEMBER 14, 1988

PLANS FOR HUNG HOM FREIGHT YARD SHELVED

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THE EXECUTIVE COUNCIL HAS DECIDED THAT THE FREIGHT YARD EXPANSION PROJECT ON HUNG HOM RECLAMATION SHOULD NOT BE PURSUED.

A GOVERNMENT SPOKESMAN TODAY (WEDNESDAY) SAID THAT A GOVERNMENT CONSULTANT STUDY INDICATES THAT THE FREIGHT YARD PROJECT ON AN 18 HECTARE SITE WOULD NOT BE FINANCIALLY VIABLE AND THE ECONOMIC BENEFITS TO HONG KONG GENERATED BY THE PROJECT WOULD NOT BE ABLE TO OFFSET THE COST OF DEVELOPING THE FREIGHT YARD.

RAILWAY

IN AN EARLIER STUDY COMMISSIONED BY THE KOWLOON CANTON CORPORATION, CONSULTANTS ALSO CAST DOUBT ON THE FINANCIAL VIABILITY OF THE PROJECT.

ACCORDING TO GOVERNMENT CONSULTANTS' STUDY, WITH AN ESTIMATED COST OF LAND AND CONSTRUCTION AMOUNTING TO NEARLY $2.9 BILLION, THE OPERATION OF THE YARD COULD NOT BE FINANCIALLY VIABLE EVEN WITH 24-HOUR OPERATION OF THE FREIGHT HANDLING FACILITIES.

THE SPOKESMAN SAID THAT, BY NOT PROCEEDING WITH THE PROJECT, FREIGHT TRANSPORT TO AND FROM CHINA WILL PROBABLY MAKE GREATER USE SEA AND ROAD TRANSPORT THAN RAIL IN FUTURE.

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WITH THE CURRENT BUILDING PROGRAMME AND THOSE UNDER ACTIVE PLANNING, HONG KONG'S ROAD NETWORK WILL BE ABLE TO COPE WITH FREIGHT TRAFFIC UP TO THE YEAR 2001.

"FREIGHT TO AND FROM CHINA SHOULD NOT SUFFER ANY DISRUPTION BECAUSE OF THIS DECISION, HE SAID.

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ON THE ECONOMIC IMPLICATIONS OF NOT GOING AHEAD WITH THE FREIGHT YARD DEVELOPMENT, THE STUDY SHOWS THAT THE PROJECT WOULD NOT YIELD A NET ECONOMIC BENEFIT TO COMMUNITY.

"FROM THE POINT OF VIEW OF THE ECONOMY AS A WHOLE, LITTLE DIFFERENCE WHETHER THE FREIGHT IS CARRIED BY RAIL OR COMPETING MODES OF TRANSPORT, THE SPOKESMAN ADDED.

ACCORDING TO CONSULTANTS' ASSESSMENT IT IS COST EFFECTIVE FOR SEA AND ROAD TRANSPORT TO BE PROJECTED FREIGHT TRAFFIC WITH CHINA.

FEASIBLE

IT MAKES BY OTHER

AND MORE USED TO MEET THE

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