The Hong Kong Competition Commission has accepted proposed commitments by the Hong Kong Seaport Alliance to ensure fair competition.
These commitments aim to address the Commission’s concerns arising from its investigation into whether the Alliance has harmed competition in Hong Kong.
The commitments include Cap Gateway cargo handling charges; maintaining service levels for Gateway cargo; capping “Other CP [Counterparty] Charges”, maintaining overflow arrangements with Goodman DP World Hong Kong Limited; and avoiding cross-directorships with Chiwan and Shekou ports.
The Alliance parties have added in the commitments an explicit reference to the plans and mechanisms they adopted to ensure customers receive a fair share of the efficiencies anticipated by the Alliance.
The commitments are effective from 30 October, and last for up to eight years, with the exception of the commitments on service levels (for gate access to their terminals in Kwai Tsing and turnaround time for external trucks) and MTL’s cross- directorships, which would last for the duration of the Alliance.
Compliance with the commitments will be monitored throughout by an independent monitoring trustee on behalf of the Commission.
The Alliance is a contractual joint venture between Hongkong International Terminals Limited, Modern Terminals Limited, COSCO-HIT Terminals (Hong Kong) Limited, and Asia Container Terminals Limited. Pursuant to the Alliance, the parties jointly operate and manage their 23 berths across eight terminals at Kwai Tsing port in Hong Kong, through operational, commercial and financial coordination.
