ENG-2003 — Page 318

TRANSPORT

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Competition among the container terminals and among alternative modes of container handling motivates the operators to heighten efficiency and improve their quality of service. The continuing investment in upgrading equipment and systems in the existing terminals at Kwai Chung over the past few years has enabled the port to enhance its productivity.

The container port is vital, not only for Hong Kong, but also for southern China one of the fastest industrialising areas in the world. Some 78 per cent of container traffic handled by Hong Kong is related to southern China. The port of Hong Kong, therefore, is likely to remain as the Asia-Pacific region's hub port.

Strategic Planning

To ensure that the port facilities in Hong Kong meet the demands and there is timely provision of sufficient facilities to handle the port's cargo growth following China's accession to the World Trade Organisation, a 'Study on Hong Kong Port - Master Plan 2020' has commenced with the objective of formulating a competitive strategy and master plan for port development in the next 20 years and beyond. The study focuses on strengthening the competitiveness of Hong Kong as a leading port in the region, the role of port operation in the development of transportation and logistics services in Hong Kong, and the preferred location of major container port and related infrastructure. The study is scheduled for completion in early 2004.

Hong Kong Port Development Council and Hong Kong Maritime Industry Council

The Hong Kong Port Development Council (PDC) and the Hong Kong Maritime Industry Council (MIC), two separate non-statutory bodies, were established in June to replace the Hong Kong Port and Maritime Board following the recommendation of the 'Study to Strengthen Hong Kong's Role as an International Maritime Centre'. Chaired by the Secretary for Economic Development and Labour, both the PDC and MIC are dedicated, high-level advisory bodies for key players from the private sector and the Government to discuss and coordinate matters in developing and promoting the port and maritime industries.

In Hong Kong, all port facilities are financed, developed, owned and operated by the private sector, a practice which few major international ports in the world adopt. The Government's role is to undertake long-term strategic planning for port facilities and to provide the necessary supporting infrastructure, such as by building roads and dredging access channels to the terminals.

The PDC advises the Government on the port development strategy and port facility planning to meet future demands. It also assists the Government in promoting Hong Kong as a regional hub port and a leading container port in the world.

A Port Development Advisory Group was formed in September, under the PDC, to assist the council in examining port cargo forecasts and assessing port development needs in the light of changing demand, port capacity, productivity, performance and competition both locally and regionally.

Hong Kong has a successful shipping industry with many well-known and experienced shipping-related companies. There are some 900 shipping-related companies operating in Hong Kong, providing a wide range of maritime services from ship owning/management, ship registration, financing, insurance and ship broking to maritime arbitration, survey, repairs, and ship replenishment.