TNAG-0272-FCO40-308-Scheme-for-development-of-container-terminal-at-Hong-Kong-1970 — Page 82

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prepared to invest in the development of terminal facilities

on the same basis as has been adopted elsewhere in the world -

i.e. the public authorities develop the quay wall and a 100-

foot width of apron and the private developer then completes

the terminal facilities. This roughly divides the development

cost 40:60 between the public authorities and the developer

which is roughly in the same proportions as the cost of

forming, as against developing and equipping of the terminal,

as set out in paragraph 2 above. In so far as the construction

of Stage I is concerned, for example, this would mean that

Government's share of the cost involved would be in the region

of $50 million.

15.

In the light of the keen interest expressed by

several shipping lines in the development of container-

terminal facilities, it is proposed that the two berths at

Kwai Chung involved in Stage I of the scheme as set out in

the Engineering Report should be put out to tender, the

conditions requiring the tenderer to quote a premium that he

would be prepared to pay at the outset in addition to an

annual rental set by Government (each subject to a stated

minimum), for the exclusive use of the berth and back-up

This approach would serve two purposes:-

area.

(a)

(b)

it would test the genuine intentions of the

shipping lines; and

it would provide Government with some of the

required capital to finance the construction

of the quay walls and complete the reclamation.

Information received from the shipping lines suggests that

to service the large, specialised container-ships now coming

into operation it is essential to maintain a very rigid

control of the movement of containers in the marshalling

/yard