ENG-1999 — Page 334

INFRASTRUCTURE PROJECTS

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the Mainland's port facilities, the port of Hong Kong - given its current size and annual throughput is likely to remain the region's hub port well into the 21st century.

Current Strategic Planning

Competition among the container terminals and from alternative modes of container handling drives the operators to improve efficiency and quality of service. The significant investment in upgrading equipment and systems in the eight existing terminals at Kwai Chung over the past few years, which is ongoing, enabled the port to handle the continuing growth in container throughput. One of the terminal operators handles over one million TEUS a year at its single-berth terminal at Kwai Chung. This is more than twice the world standard.

To meet the growing demand, Hong Kong is building a new container terminal, Container Terminal 9 (CT9), on Tsing Yi Island opposite the existing terminals. The terminal will occupy an area of 70 hectares, with six berths and a design capacity to handle 2.6 million TEUS a year. The first berth of CT9 will come into operation in 2002 and the whole terminal will be completed in 2004. The new terminal will increase Hong Kong's container terminal capacity to well over 14 million TEUS a year, which will be able to cope with the forecast growth in demand of the Hong Kong Port into the early 2000s.

To improve the efficiency of river trade operation, lower the cost of transporting containers between Hong Kong and the Pearl River Delta, and relieve congestion on the road system, the first dedicated River Trade Terminal (RTT) was built at Tuen Mun in the north-western New Territories. The whole terminal was completed in late 1999.

The completion of CT9 and the RTT will enable Hong Kong to maintain its role as the premier port for southern China well into the 21st century.

Tuen Mun is being considered as a potential site for future container terminals when required. There are also proposals for deep waterfront industries at Tseung Kwan O and Tuen Mun, and mid-stream sites at Tsing Yi. Continuous review of future port requirements is necessary to take into account changing trends in vessel size and trade pattern and flexibility is maintained to ensure that Hong Kong can meet these challenges.

Port Cargo Forecasts

According to the latest Port Cargo Forecasts, container throughput is expected to reach 33 million TEUS by 2016, representing an average growth rate of 4.6 per cent annually. Total cargo to be put through the port in 2016 would be around 398 million tonnes, growing by 4.7 per cent each year. It is also forecast that by 2006 some 68 million tonnes of freight will be carried by river, rising to some 89 million tonnes. in 2016.

The Port Cargo Forecasts are the basis of the Government's Port Development Plan and Programme.

The forecasts have taken into account trends in Hong Kong as well as projected growth of the world economy, the economy of the Mainland, particularly southern China, new port development in the region and the Mainland, and likely changes in the related shipping and cargo patterns.