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Under the new system, an existing operator will be given the legal title of a berthing space through the tendering system. He will no longer be required to spend any costs to hire idle barges or to pay a subletting fee for the use of a berth.
Another advantage with a secure tenure of a berth is an operator can plan well ahead his business and does not have to worry about the availability of a berth.
Mr Tang stressed that the whole purpose of introducing the reform was not to generate additional money for the public purse but to remove the undesirable practices common in the PCWAS and to increase productivity.
"The operators themselves will be the ones benefited when productivity is improved," he added.
"Moreover, in a tendering exercise it is not the Government but the bidders who set the price."
Mr Tang described as groundless the claims that existing operators would be driven out of business and that they and their employees would lose their jobs as a result.
"Only existing operators are allowed to bid in the restricted tender to ensure none of them will be driven out of business because of the new measure," Mr Tang stressed.
Another built-in feature to protect the interests of current operators is that eligible bidders in the restricted tender are allowed to bid the same numbers of berths as they are currently occupying.
"This additional safeguard will give all existing operators a fair chance to take part in the allocation exercise through tender and also ensure that no single operator will be able to dominate a large number of berthing spaces," Mr Tang said.
End
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