Sessional_Paper_1924 — Page 171

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Policy, Control, Management and Administration.

In my opinion a properly-constituted Advisory Port Authority, Board, or Impartial Tribunal is the first need. It will be observed in Section I of this report that the Economic Resources Committee in 1920 also advised the constitution of Port Authorities.

To enable the Government to appraise intelligently the needs of the Port, the Board should study and observe traffic and port conditions and advise and make recommenda- tions as to whether the results of these studies indicate the desirability of greater channel accommodation by deepening the fairways; the provision of berthage, increased storage space, road and railway transport facilities, bunkering, ship-repair and dry-docking facili- ties, cheaper handling facilities; change in the disposition of buoys, lights, &c.; modi- fication of the tariffs or advice in any matters which concern the efficient working of the Port.

Whilst I have obtained much information to enable me to prepare this report, the various Schemes of Development are recommended with some reserve as the information available is insufficient from which to deduce with any degree of accuracy the nature and extent of actual requirements. In the light of further information the various schemes may require to be modified in detail.

So far the development of the Port has been left to private enterprize and adequate accommodation has not been made for shipping. Without the provision of the most economic handling and storage facilities possible, the present developments together with the advantages of the security pertaining to British Adminstration, the Colony's banking facilities and its excellent harbour are unlikely to be sufficient inducement for the pro- ducer to send forward his traffic so that Hongkong may deal with the trade its strategic position should secure.

Private companies, however, can not be expected to meet the cost of development works which are necessary to secure true efficiency and economy in the handling of car- goes as the return on the capital cost is subject to trade being handled over the works constructed. In this respect it may be mentioned that the Port derives little benefit from the large transhipment business at Hongkong on through Bills of Lading. Nevertheless private enterprise should be encouraged rather than abandoned. All obstacles such as any marine and pier rights or other domination of the water front in the way of creating modern accommodation for shipping should be removed if unable to be co-ordinated in the general plan of developments. Port facilities are in the service not only of the Colony but of South China and indeed of the many ports with which commerce is inter- changed. The control of the Port itself and of port facilities as well as of all other mat- ters relating to the waterways, construction of quay accommodation, supervision of all port works under construction, and the general maintenance, amelioration and extension of the accommodation for the exploitation of the waters of the Colony should therefore be retained in the hands of the Government.

Since the shipping or godown companies themselves cannot be expected to initiate necessary reforms, Government should put into operation such works as are recommended and such extensions as with the advice of the Advisory Authority it is considered will best serve the interests of the Port. The construction of the quays, harbour roads and the carrying out of all necessary dredging should be undertaken by Government which would lease the steamer berths to private operators on long term leases. The junk basins, being as necessary an adjunct to transport as roads and railways and at the same time providing shelter for small craft during typhoon weather should not be a charge on the lessee of the steamer berth. Private enterprise, however, should be required to provide the shed, cargo handling and all other facilities. In regard to the granting of exclusive and particularly long term leases for the use of the piers and wharves, it would seen well to observe some degree of caution. The recent experience in America has been that such leases may result in less efficient use of the facilities than is desirable for the best interests of the Port. A lessee, for example, may keep his wharf idle rather than permit its use by an actual or potential competitor or he may make such high charges as to drive business away from the port. This actually happened in New York during the Great War. If leases are made, they should preferably be in the form of first call on the berth, Government reserving to itself the right when the berth is vacant to assign to it vessels other than those belonging to the lessee or in which he may hold a direct or indirect interest.