ENG-1994 — Page 338

PORT DEVELOPMENT

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be needed to ensure that the development dovetailed neatly into overall plans for developing the territory.

It became necessary to create the Port Development Board.

The board is not intended to act as a port authority. It was created in April 1990 to advise the government on all aspects of port development.

While in no way usurping the private sector's operation of container terminals, the board is responsible for planning strategic port needs, seeing that such plans are realised, listening to the views of industry, acting on those views where necessary, maintaining Hong Kong's competitiveness in the region, and co-ordinating government and private sector involvement in planning and development.

To do this, the board brings together key players from the private sector and the government to determine and promote recommended solutions to problems.

The board assesses development needs in the light of changing demand, port capacity, productivity and performance and competition from major regional ports.

It acts as a focal point for ideas and opinions expressed by port operators and anyone affected by port expansion.

One of the PDB's main tasks is to determine what port facilities will be needed in the future and to offer advice on the best means of ensuring that those facilities are in place on time.

Major Developments

While planning went ahead for Lantau Port during 1994, expansion continued at the present port at Kwai Chung. The four-berth Container Terminal Eight, on reclamation at Stonecutters Island, began receiving vessels at its second berth in January and at its third berth in June. The fourth berth, which was not scheduled for completion until February 1995, was opened to shipping in July.

The early completion of Container Terminal Eight enabled Hong Kong to handle the significant growth in throughput in 1994. At present rates of growth of demand, it is expected to be operating at full capacity some time during 1995.

Port development plans called for the first berth of Container Terminal Nine to come into operation by mid-1995. This terminal would be on Tsing Yi Island, adjacent to Kwai Chung. However, the lack of Chinese endorsement over the granting of the development rights to a consortium to build and operate the terminal has delayed the start of work on the new terminal by almost two years.

This delay is ultimately likely to result in port shipping and road traffic congestion. During the year, port operators and the government examined means of increasing the throughput of existing terminals to cope with the shortfall.

The delay in developing Terminal Nine highlights the need to expedite the planning of Terminals 10 and 11, to be built at the Lantau port. Detailed design work continues. However, the complex infrastructural work necessary for these terminals makes it unlikely that the first berth of Terminal 10 can be brought into operation before late 1997, at the earliest.

Advance works for terminal development at Lantau are expected to start in early 1995. They involve filling in part of Penny's Bay to give land access to the sites of Terminals 10 and 11.