XN000022-1996-01-11 — Page 19

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Early rationalisation of CT ownership important: FS

The Financial Secretary, Mr Donald Tsang, today (Thursday) reiterated the importance of an early and successful conclusion of the discussions between the consortia regarding the rationalisation of the ownership of container terminals I to 9.

Speaking at a luncheon of the Hong Kong Ship Owners Association, Mr Tsang said this would not only be in the consortia's own longer term commercial interests but also in the interests of the strength of Hong Kong's port and the greater prosperity of Hong Kong.

He said significant progress had been achieved in that the British and Chinese Foreign Ministers had supported openly the discussions taking place between the parties concerned with the object of achieving more effective, rapid and competitive development of Hong Kong's container port.

He urged the consortia to work harder now.

On the part of the Government, Mr Tsang said it was committed to providing infrastructure and road communications to the port.

"For it is only by continuing the very successful partnership between the Government and the private sector that Hong Kong can sail confidently into the future as one of the leading maritime centres, not only in the region, but in the world," he emphasised.

Last year, Hong Kong's port had handled some 12.6 million twenty-foot- equivalent units or TEUS, retaining its position as the world's busiest container port. The Port Development Board forecasts that by the year 2011 there will be a demand on the port to handle 32 million TEUS a year.

"To meet this demand we must build a new port on Lantau with twice the capacity of the present container port at Kwai Chung," Mr Tsang said.

"Just to meet the demand in the next four years we will need to complete Container Terminals 9, 10 and much of Terminal 11 by the end of the year 2000."

Meanwhile, existing operators have, by investing heavily in new equipment and improved working methods, increased their productivity by as much as two million TEUS a year. They are confident in further increasing their output.