ENG-2007 — Page 302

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point of all maritime trading activities in the region. On an average day there are around 100 ocean-going vessels working in the port; nearly 520 river trade vessels entering or leaving the port; and many river ferries and local craft working in, or passing through, the harbour. Ship turnaround performance is among the best in the world: container ships at terminals are routinely turned around in less than 10 hours.

Port Development

Container handling facilities are a key part of the infrastructure of the logistics sector, one of the four pillar industries of Hong Kong. The nine container terminals at Kwai Chung-Tsing Yi area have 24 berths with a total handling capacity of over 19 million TEUS per year.

Competition between the container terminals and alternative modes of container handling motivates the operators to improve their efficiency and quality of service. The investment in upgrading equipment and systems in the terminals at Kwai Chung-Tsing Yi over the past few years has enabled the port to enhance its productivity, as well as to handle the world's largest container ships.

The container port is vital, not only for Hong Kong, but also for southern China - one of the fastest industrialising areas in the world. Over 70 per cent of container traffic handled by Hong Kong is related to southern China.

Strategic Planning

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The Government completed in 2004, a report entitled 'Study on Hong Kong Port Master Plan 2020' to make sure sufficient port facilities are available in Hong Kong to handle the port's cargo growth following China's accession to the World Trade Organisation. The master plan recommended a package of immediate and long-term initiatives to increase the port's competitiveness. Following its recommendations, the Government has been updating the port cargo forecasts to work out the optimal timing for constructing a new container terminal. In the meantime, it has completed an ecology study on a site on Northwest Lantau to assess its environmental suitability for building a container terminal there. The studies' finding will form the basis for the Government to formulate the optimal port expansion option.

Hong Kong Port Development Council

In Hong Kong, all container terminal facilities are financed, developed, owned and operated by the private sector. The Government's role is to undertake long-term strategic planning for port facilities and to provide the necessary supporting infrastructure, such as roads and channels to the terminals.

The Hong Kong Port Development Council (PDC), chaired by the Secretary for Transport and Housing, is a high-level advisory body comprising the industry's key players in the private sector and the Government. The PDC advises the Government on port development strategies 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.