CURRENT PERFORMANCE INDICATORS

Hong Kong is one of the world's busiest and most efficient ports. In 1995,

• The port handled 12.6 million TEU (20-foot equivalent units) of cargo and ranked first in container throughput, followed by Singapore (11.8 million TEU) .

• Container throughput increased by some 14%. In the past eight years, throughput has tripled and is likely to triple again by the year 2011.

• Maritime transport services accounted for 1.9% of Hong Kong's Gross Domestic Product and employed 1% of the local workforce.

• A total of 41?00 ocean-going ships arrived in Hong Kong. There were also 108?00 river trade cargo vessel calls and 64?00 river trade passenger arrivals during the year.

• There were some 200 shipping lines serving the port.

• The shipping register grew from 8 million gross registered tonnage (GRT) to 8.8 million GRT during the year. The fleet comprised 582 vessels by the end of the year.

THE GOVERNMENT'S COMMITMENT

The Government's objectives are to ensure :

• that Hong Kong's port and its associated maritime service facilities continue to meet the increasing demand of customers in terms of capacity, quality and costs; and

• that the administration of the shipping register continues to meet the highest international standards of marine safety and service excellence.

We remain committed to the early development of Container Terminal 9. Meanwhile, we are working closely with terminal operators to enhance the productivity of the existing terminals.

POLICY DIRECTIONS

We propose to :

• meet the need for cargo handling facilities by the end of this century by pressing ahead with the construction of Container Terminals 9, 10 and 11;

• enlarge the catchment area for Hong Kong's container port to cover inland China by encouraging the Kowloon-Canton Railway Corporation to expand its freight handling capacity, including the development of the western freight line;

• enhance facilities for the operation of river trade by awarding to the private sector the right to develop and operate a River Trade Terminal at Tuen Mun. The exercise was closed recently and we will shortly decide on the successful tenderer;

• step up the promotion of Hong Kong's shipping register to potential customers and attract more operators to use the facilities of the port; and

• improve safety standards in the port by providing a legislative framework prescribing navigational safety and construction standards as well as crew qualification.

The private sector has achieved remarkable success in providing efficient port and shipping services at competitive prices. This has enabled Hong Kong to expand its trading economy.

The private sector makes its vital contribution by :

• continuing to invest in technology and research to enhance the efficiency of the port and shipping industries; and

• supporting maritime services training in Hong Kong so as to upgrade the quality of crew and hence the overall standards of services.

LONG TERM ISSUES

The Government shares the commitment of the maritime services industry to reinforcing Hong Kong's status as a leading container port and shipping centre both in Asia and internationally. To achieve this target, the quality and capacity of port and shipping related facilities must continue to meet the demands of international customers. The initiatives of service providers are the key to achieving excellent service standards and maintaining Hong Kong's competitiveness.

Despite the development of new ports in Southern China and the greatly enhanced productivity of the existing terminals, demand projections still call for private sector investment in constructing additional terminals in Hong Kong. The detailed design for Container Terminals 10 and 11 has been finalised, and feasibility studies will be conducted on Container Terminals 12 and 13 to cater for the long term needs of the industry in the next century.

The Government retains a supervisory role and accepts the responsibility for promoting competition within the industry and maintaining a sound, transparent and stable policy and legislative framework in which the maritime services industry can continue to thrive.

Secretary for Economic Services

March 1996