TNAG-0272-FCO40-308-Scheme-for-development-of-container-terminal-at-Hong-Kong-1970 — Page 34

'OYAMA LINES

C"ama Shipping Co., Ltd.

27th, July 1970

b) Because of the above-mentioned situation, the Ministry of Trans- portation of Japan chiefly depends on the other independent operators or the subsidiaries of the said major companies as substitute for the said major companies for ever-increasing trade and the freighter services in Southeast Asia. This division of the territories between the two groups is offi- cially confirmed by the new policy established by the Ministry of Transportation about one and a half year ago. This funda- mental policy of Japanese Government will not be altered in near future. Therefore the container wharf has to be secured by Oyama Shipping Co., Ltd., the biggest company among the above other independent operators.

2. Purpose of Kowloon Container Ware-House Co., Ltd. in submitting tender.

Hongkong is the second biggest importer for Japan after U.S. and Japan is certainly expected to become the second or the third biggest importer for Hongkong in a few years. To ensure the smooth trade on a vast scale between Hongkong and Japan in near future, it is absolutely necessary to secure the container wharf.

b) Oyama Shipping Co., Ltd., one of the initiators of Kowloon Con-

tainer Ware-House Co., Ltd., has been constantly securing the largest share in Japan/Hongkong service for past five years, and its loading share at present is nearly 40% of all loading cargoes for Hongkong. Moreover since last year Oyama Shipping Co., Ltd. has been repeatedly requested by the Ministry of Transportation to take responsibility in container business in Japan/Southeast Asia services.

c) Oyama Shipping Co., Ltd. now loads and discharges approximately seventy thousand (70,000) tons of cargo monthly in Hongkong. This corresponds approximately to 40% of the required final capacity of discharging cargoes of the container terminal to be constructed. The quantities of our cargoes may surpass the loo% capacity of planned container wharf after five years, when the new container terminal will be completed, and it is. proved by our cargo reports of past ten years that Hongkong/ Japan new service will be increased and also Hongkong/Japan trade volume will become twice. Even the container cargoes to be carried by us are estimated to be 85,400 pcs. in 8 x 8 x 20 feet container at a minimum at that time, and the maximum number may be 109,600 pcs. (Reference is made to the Table 3 attached to the submitted document (VI)) Thus the full ope- ration and serviceability of the container wharf is fully guaranteed. Under these circumstances we need the special wharf for the container by all means. Oyama Shipping Co., Ltd. has already started the container business in Hongkong in cooperation with Nippon Internaional Container Services Co., Ltd. (Subsidiary of Japan Lease International Corporation and one of the initiators of Kowloon Container Ware-House Co., Ltd.) and we are expecting to deliver 360 pcs. per month (4,320 pcs. per year) at the end of this year. (Reference is made to the Table 2 attached to the submitted document (VI))