Alliance Needed To Boost HK Port's Status: Expert

An academic specialising in logistics on Friday welcomed the setting up of an alliance between four container port operators, saying it is a global trend and is needed to boost sagging business at the Hong Kong port.

Dr Wong Wai-hung was speaking after the Competition Commission launched an investigation into the alliance formed this week by Hutchison and Wharf-controlled port operators, amid growing concerns over its impact on competition. The Hong Kong Seaport Alliance effectively controls 23 of the 24 berths at the Kwai Tsing container terminals.

Wong, from the Hang Seng University, said the alliance between the operators would help boost Hong Kong's competitiveness in the maritime logistics industry in the region.

She said Hong Kong's ranking in the maritime logistics area has been falling over the past few years as ports nearby attracted more business.

Wong said that previously the main operation of the Hong Kong port was to unload cargo off ships and transport it by land to various destinations.

But now the activities are gearing more towards transshipment, meaning shifting goods from vessel to vessel. For this, a pact between operators is needed and this will also help reduce the cost by sharing the facilities, said Wong.

She also told RTHK's Janice Wong that such pacts have been made in places like the mainland, Japan and the Netherlands.