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Interview | Is the container terminal dying? Yi Zhiming refers to exaggeration: Hong Kong has a reputation as a "chasing port"

2021-05-03T05:13:35.471Z


When Chief Executive Carrie Lam Cheng Yuet-ngor attended a question in the Legislative Council a few days ago, New Democrat Party Chairman Ip Liu Shuyi pointed out that the supply of container terminals in Hong Kong exceeds demand and the competitiveness is not as good as that of mainland ports.


Political situation

Author: Zheng Baosheng

2021-04-30 07:00

Last update date: 2021-04-30 07:00

When Chief Executive Carrie Lam Cheng Yuet-ngor attended a question in the Legislative Council a few days ago, the New Democrat Party Chairman Ip Lau Su-yee pointed out that the supply of container terminals in Hong Kong exceeds demand and the competitiveness is not as good as that of mainland ports. She even described it as "suffering" and advocated reducing terminal space to build houses.

Lam Cheng responded that the issue was sensitive, but agreed to deal with it sooner or later. Because the Greater Bay Area plan still supports Hong Kong as a shipping center, it would not be a good thing for Hong Kong if the freight industry has been weakening.

Hong Kong, once the world’s busiest cargo terminal, has been declining in recent years. It is an indisputable fact that mainland terminals are vying for business. However, if described as "living and dying", Yi Zhiming in the shipping and transportation industry bluntly said it was "exaggerated" and pointed out that Under the influence of the COVID-19 pandemic and the competition at the docks in the Greater Bay Area, Hong Kong still handles more than 18 million containers each year, and its performance is definitely not bad.

Liberal Party Member of the Air Transport Sector Yi Zhiming.

(Profile picture)

Hong Kong handles 18 million containers per year Yi Zhiming: performance is not bad

According to the Hong Kong Maritime and Port Bureau, the handling capacity of container terminals in Hong Kong has gradually decreased from 24.384 million containers in 2011 to 17.969 million in 2020.

However, when Yi Zhiming was interviewed by "Hong Kong 01", he emphasized that the performance of container terminals was not bad. "Look at Rotterdam, the largest port in Europe. They handle more than 7 million units per year. By comparison, Hong Kong's performance is not bad."

However, in recent years, the Mainland has vigorously expanded its terminals. Take the Greater Bay Area as an example. Now Shenzhen has large-scale terminals to the east and west. The supply of berths has increased and the pressure on Hong Kong is also greater than before. The government reflects that it hopes that Hong Kong can be separated from the Greater Bay Area.

Shipping companies choose Hong Kong for re-exports because they are fancy Hong Kong's advantages

However, Yi Zhiming pointed out that one thing that is often overlooked by the outside world is that Hong Kong can still handle 18 million containers per year, which is the natural choice of shipping companies, and shipping companies choose Hong Kong because of its advantages.

"Hong Kong's container terminals are now mainly used as re-export ports, accounting for more than 60% to 70%. They are engaged in the re-export business between China and Hong Kong and even Asia." Yi Zhiming said that the shipping company has the right to choose which re-export port to use. They value the advantages of Hong Kong: "The Hong Kong Liner Association hopes that Hong Kong will maintain the status quo and continue to be an entrepot because of its superior geographical location and high efficiency." He mentioned that there is a saying in the industry that Hong Kong is described as a "catch up port." ), because of the high efficiency of the Hong Kong port, if there is a delay in the boat journey and the progress needs to be recovered, the region will naturally come to Hong Kong if it chooses an entrepot port.

Yi Zhiming said that Hong Kong’s fast customs clearance and a mature financial system will allow the goods to receive bank payment settlement documents as soon as they board the ship, facilitating the operation of shipping companies. The Mainland is catching up in this regard, but Hong Kong still has a comparative advantage.

Relocation of container terminals involves large reclamation materials

In recent years, the outside world has put forward many suggestions. Think tanks are looking at the Kwai Chung Container Terminal land in order to find land and build houses. Yi Zhiming turned out to be not completely opposed: "If you asked me 20 years ago, I support it because Kwai Chung is a downtown area, but today is the situation today. It’s very complicated. You see that there will be a lot of opposition to Lantau’s reclamation tomorrow. If large-scale reclamation is to be carried out in other places to relocate the pier, there will definitely be strong opposition."

Super Cargo Ships Rise in Wharf Collaboration to Reduce Costs and Increase Efficiency

In the external plan to relocate the terminal, in addition to relocating the entire terminal, some people also advocated "dismantling" the terminal to different areas, such as the southern part of Tsing Yi, Tuen Mun, etc. However, Yi Zhiming does not advocate this approach: "The current super freighter It is much larger than the old one. A ship can carry 20,000 containers. It is of course good for the shipping company to reduce fuel costs. However, to deal with these large ships, the terminal must increase investment to cooperate, including berths, cranes, etc. These are huge numbers."

Yi Zhiming said that in order to avoid repeated investment, operators have negotiated and cooperated in recent years to make up for each other's berths that can be "buried" in real time, increasing the supply rate of berths so that cargo ships can bury their shores in real time. "Wait for berths to ask for money, and Hong Kong can be flexible. To provide berths and the shipping company completes the work and leaves, it means saving money for them and attracting them to use it. However, if the different places are separated, the terminal operators cannot cooperate, which is contrary to the current practice of strengthening the use of resources."

Government research to attract shipowners to Hong Kong can bring surrounding industries

In fact, the Central Fourteenth Five-Year Plan also supports Hong Kong’s provision of shipping industry status and supports the development of high-end and high value-added businesses, such as ship management, insurance, and leasing. Yi Zhiming absolutely agrees with this direction, saying that the two Hong Kong governments have launched aircraft respectively. Lease tax relief, ship leasing tax relief, and marine insurance tax relief are all helpful to the development of high-end shipping.

He mentioned that the Maritime and Port Bureau has set up a group to study measures to attract shipowners and ship management companies to Hong Kong to provide shipping services. If they can succeed, these companies will bring supporting industries such as law, insurance, and litigation. Yi Zhiming hopes that Implement it as soon as possible, and the government can continue to provide policy support.

Ye Liu points out that the container terminal is "suffering" and advocating building a house. Carrie Lam: The problem is sensitive but has to be resolved sooner

The United Hong Kong Fund research pointed out that there is insufficient land for logistics in Hong Kong and advocates the relocation of the Kwai Tsing Container Terminal

Scholars and parliamentarians advocate relocating the container terminal to Guishan Island to release more land

01News

Container Terminal Shipping Industry Yi Zhiming

Source: hk1

All news articles on 2021-05-03

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