TNAG-0272-FCO40-308-Scheme-for-development-of-container-terminal-at-Hong-Kong-1970 — Page 68

2600224 C.S. 84

C

XCR(70)22

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2

5

Planning for the development of the container terminal at Kwai Chung has been proceeding in accordance with the August decision and draft documents have now been prepared calling for tenders to be submitted on one or other of the following two bases:

(a)

(b)

the sale of Crown foreshore and seabed for a possible four berths at Kwai Chung, as illustrated at Annex C, with the premium being payable by instalments over 20 years and at the usual NT Crown rent. No reserve price would be stated;

the sale of the berths either separately or together after the sea wall and apron have been constructed and the area filled to formed levels by Government. Again, no reserve price would be stated and the premium would be payable (in this case) over 3 years (ie. the construction period) and the Crown rent would be payable at a rate of $100,000 an acre a year. (It is possible that this arrangement may yet be varied to achieve the same financial effect by providing for 50% of the premium to be payable over 3 years and the remainder by equal instalments over the balance of the lease, with the usual NT Crown rent and with a reserve price included in the tender documents.)

The advice of the Container Committee, and other interested parties is now being sought on these draft tender documents in order to ascertain whether they are consistent with the practical requirements of the shipping companies. In addition, the Port Committee has been kept fully informed of the latest position with regard to the proposed development of the container terminal at Kwai Chung.

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After the tender documents have been finalised and tenders received, an assessment of the position would then be made having regard to the following factors:

(a)

(b)

(c)

how the tenders could best be awarded to meet the need of Hong Kong's trade for satisfactory container shipping facilities and, in particular, to ensure that no one shipping interest would be in a position to establish what would virtually be a monopolistic hold over the operation of the terminal facilities;

the time which will be required to get container facilities into operation;

whether, in respect of any tender involving the construction by Government of the sea wall, apron area and reclamation, the premium offered by the tenderer would cover the estimated cost of the capital expenditure being incurred by Govern- ment.

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