ENG-1998 — Page 332

INFRASTRUCTURE PROJECTS

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in the coming few years will be closely monitored before it is decided when to build the new port.

This new port will be built on a series of artificial islands stretching south-east from north Lantau and as with the existing container port, all the new terminals will be built and operated by private enterprise.

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The new port is vital, not only for Hong Kong, but for southern China the fastest industrialising areas in the world. Some 74 per cent of cargo passing through Hong Kong is entrepôt trade with the mainland of China. Despite the upgrading of the Mainland's port facilities, Hong Kong given its current size and annual throughput is likely to remain the region's hub port well into the next century.

Hong Kong Port and Maritime Board

The Hong Kong Port and Maritime Board (PMB), formerly known as the Port Development Board, is a non-statutory body with members appointed by the Chief Executive.

Hong Kong is the one of the very few major international ports in the world without a port authority where port facilities are fully privately owned and operated. Mushrooming growth in trade in the 1980s made it clear that a long-term port development strategy was needed and that huge future port projects would need careful co-ordination. With this in mind, the Port Development Board was formed in April 1990 to advise the government on all aspects of port planning and development.

The board assesses port development needs in the light of changing demand, port capacity, productivity, performance and competition both locally and regionally. It recommends strategies for planning new port facilities and brings together government and private sector involvement in the formulation of advice on their development.

Other than the port, Hong Kong has a very successful shipping industry with many well known and experienced shipowners, ship management companies and companies providing ship finance, insurance, and so on. To build on this strength and promote synergy between the port, shipping and shipping-related industries, the government is committed to providing a better business environment, through simplifying procedures and reduction of costs to facilitate the operation of the shipping industry in Hong Kong. To this end, the Port Development Board was reorganised and renamed the Hong Kong Port and Maritime Board on June 1, 1998, to take on the new task of promoting the Hong Kong shipping industry and developing Hong Kong into an international shipping centre.

During the year, the government undertook a series of initiatives to promote the Hong Kong shipping industry. These include a lowering of ship registration fees, simplification of ship surveying procedures, conclusion of double taxation/reciprocal exemption of shipping taxation with Mainland China and overseas countries to reduce the tax liabilities of Hong Kong shipping companies, and overseas promotion to attract more overseas shipping and related businesses to set up operation in Hong Kong. The government will continue to work with the PMB to provide more incentives to attract more shipping business.