XN000022-1994-10-26 — Page 68

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WEDNESDAY, OCTOBER 26, 1994

SECONDLY WE CANNOT AFFORD ΤΟ ABANDON THE SOUND ECONOMIC PRINCIPLES WHICH LED TO THE DECISION TO OFFER THE DEVELOPMENT OF CT9 TO TWO CONSORTIA EACH OF WHICH INCLUDES ONE OR MORE OF THE WORLD'S LEADING CONTAINER TERMINAL OPERATORS. OUR AIM, IN TAKING THAT DECISION, WAS TO ENSURE THAT :

THE DEVELOPMENT COULD PROCEED QUICKLY INVOLVEMENT OF DEVELOPERS OF RECENT TERMINALS;

HENCE THE

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HENCE THE

THAT THE TERMINALS COULD BE OPERATED EFFICIENTLY INVOLVEMENT OF THE WORLD'S LEADING OPERATORS; AND THAT

WE COULD INTRODUCE COMPETITION NEW PLAYERS.

HENCE THE INTRODUCTION OF

IT IS WITH THESE AIMS IN VIEW THAT WE HAVE REACHED FULL AGREEMENT WITH BOTH CONSORTIA.

SOME HAVE ASKED: WHY NOT RETENDER CT9? RETENDERING WOULD RULE OUT OUR INTENTION TO INTRODUCE GREATER COMPETITIVENESS IN CONTAINER TERMINAL OPERATIONS IN HONG KONG. INDEED, NOW THAT WE HAVE REACHED FULL AGREEMENT WITH THE TWO CONSORTIA, ANY CHANGE IN THE RULES OF THE GAME WOULD RUN COUNTER TO WHAT WE HAVE BEEN TRYING TO ACHIEVE IN HONG KONG IN TERMS OF OFFERING A LEVEL PLAYING FIELD, OF ENHANCING BUSINESS CONFIDENCE, AND SO ON. AND DON'T FORGET: OF THE 8 EXISTING TERMINALS, HALF WERE AWARDED ON THE SAME BASIS AS CT9 INDEED, TWO HAVE BEEN AWARDED ON THIS BASIS SINCE THE SIGNING OF THE JOINT DECLARATION AND THE ESTABLISHMENT OF THE SINO-BRITISH LAND COMMISSION. SO THE NEGOTIATED PRIVATE TREATY GRANT METHOD IS WELL USED AND WELL TESTED.

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I WOULD LIKE TO ASSURE MEMBERS, HOWEVER, THAT ALTHOUGH CT9 MAY BE HANGING FIRE, WE ARE NOT JUST SITTING BACK. WE ARE ADDRESSING VIGOROUSLY WAYS OF IMPROVING EFFICIENCY IN EXISTING PORT OPERATIONS BOTH AT THE TERMINALS AND IN MID-STREAM AND WE ARE MOVING FORWARD WITH PLANNING FOR THE FIRST CONTAINER BERTHS ON LANTAU TO ENSURE

THAT THEY OPEN AS SOON AS PHYSICALLY POSSIBLE. A DEDICATED TEAM WILL SHORTLY BE ESTABLISHED WITHIN THE WORKS BRANCH TO OVERSEE THE PLANNING AND ENGINEERING ASPECTS OF THE LANTAU PORT.

THE

MR STEVEN POON HAS CALLED ON US TO EXPAND THE AMBIT OF THE PORT DEVELOPMENT BOARD AND SUGGESTED THAT THE BOARD SHOULD STUDY HOW PORT DEVELOPMENT IN HONG KONG AND SOUTHERN CHINA COULD COMPLEMENT EACH OTHER.

BOARD ACTUALLY CARRIES OUT THESE STUDIES ON A REGULAR BASIS AND I AM SATISFIED THAT THE BOARD'S ALREADY WIDE TERMS OF REFERENCE ENABLE IT TO COVER THIS ASPECT ADEQUATELY, IN PRACTICE, THE BOARD TAKES A KEEN INTEREST IN DEVELOPMENTS IN SOUTHERN CHINA. IT ALSO CONDUCTS CAREFUL ASSESSMENT OF THE CONTRIBUTION OF NEIGHBOURING PORTS TO MEETING OVERALL DEMAND. I WILL MAKE SURE THAT MR POON IS SENT FULL DETAILS OF THE BOARD'S RECENT WORK IN THIS AREA.

/TURNING TO