Container handling facilities are a key part of the infrastructure in the logistics sector, one of the four pillar industries of Hong Kong. Matching the supply of port facilities with demand will ensure and facilitate economic growth for the community. The latest container terminal, the 6-berth Container Terminal 9 on Tsing Yi Island opposite the eight terminals at Kwai Chung, was completed in the year. This brings the total berths at Kwai Chung to 24, with a total handling capacity of over 18 million TEUs per year. The expansion of the Kwai Chung container terminals helps maintain Hong Kong's role as the premier port for southern China well into the 21st century.

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 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 76 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 hub port in the Asia-Pacific region.

Strategic Planning

To ensure that port facilities in Hong Kong meet demands and that there is timely provision of sufficient facilities to handle the port's cargo growth following China's accession to the World Trade Organisation, the Government completed a 'Study on Hong Kong Port — Master Plan 2020' at the end of the year. The study formulated a competitive and sustainable strategy and master plan for Hong Kong's port development over a 20-year time frame.

To ensure Hong Kong port's future success, the study recommended a package of immediate and long-term initiatives, including the Super-Connectivity Initiative, the Power Port Initiative and the Port Rationalisation Initiative. The findings and recommendations of the study have been presented to the Legislative Council Panel on Economic Services and the Town Planning Board. A three-month public consultation was launched at the end of the year to collect public views before the Government works out an implementation programme for the initiatives.