XN000022-1996-09-19 — Page 6

5.

Mr Tsang hoped that construction work could start on the CT9 project by the end of the year.

"Resolution of the matter has been complex. The successful conclusion is the culmination of a great deal of hard work by all parties concerned, by both sides of the Joint Liaison Group and by the direct parties to the grant," Mr Tsang said.

The agreement provides for ACT to exchange its share in the CT9 development for the two existing berths in CT8 owned by Modern Terminals Ltd (MTL) and for CT9 itself to be shared between MTL and Hong Kong International Terminals Ltd (HIT).

Additional adjacent feeder berthing would be provided for both MTL and HIT: This would facilitate shipping access and direct delivery of cargo to the terminals by feeder vessels instead of by lorries through the increasingly congested roads.

The southern feeder berth will be within the existing CT9 area; the northern feeder berth will occupy part of the cargo handling area planned at the seafront north of CT9. This is in accordance with provisions in the gazetted town plan.

The arrangement also provides for the implementation of suitable measures to address environmental matters. These include the early construction of an off-site screen building which is to be in place before the northern berths become operational.

Mr Tsang said detailed arrangements would now be worked out and the Government would seek early agreement of the Land Commission on the provision of land required for CT9 development.

End