Hong Kong needs 10th container terminal

A Hong Kong government study forecasts that the territory will require a brand new container terminal by 2015, but also that handling costs must be capped to remain competitive with competing facilities at the neighbouring Chinese port of Shenzhen. Hong Kong is already losing market share to its rival, which is much closer to factories located in the Pearl River Delta, as well as being cheaper. Nevertheless, traffic projections suggest that box throughput at Hong Kong will rise from an estimated 23.4mTEUs in 2005 to 40.2mTEUs in 2020.

Difficulties in reaching the tsunami stricken areas can be overcome with the use of the multimodal facilities available in Johor which is close to Sumatra. The port says the multimodal synergy between Senai and PTP will enable effective redistribution of essential relief items by sea or air.

Therefore, by the first half of the next decade, a 10th three-berth container terminal will have to have been built to meet demand. This would generate an 18% return on investment, if built on Lantau Island which is near the new international airport. In terms of price competitiveness, Hong Kong is US$333 more expensive when handling a standard 20 foot container than Shenzhen, which also has a US$296 advantage in terms of 40 foot containers.

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