'Port Alliance May Leave Shippers Without Choice'

Shippers have called for more details about an alliance formed by four container port operators in Hong Kong, saying their move may leave customers at a disadvantage.

Executive director of the Hong Kong Shippers' Council, Sunny Ho, said the alliance needs to spell out exactly how the operators are going to work together.

"We only have a press statement, informing the industry and the public, that they will form an alliance. But we want to know about the details," said Ho. "We are seeing the limitations in terms of market size, in terms of choice."

The Competition Commission on Thursday said it had launched an investigation into the alliance formed this week by Hutchison and Wharf-controlled port operators.

The Hong Kong Seaport Alliance effectively controls 23 of the 24 berths at the Kwai Tsing container terminals.

Ho said there are benefits as well negative effects with such alliances.

"With 95 percent of the market share, it [will] essentially leave the clients, no choice at all. Shipping lines will be unable to negotiate or to find a new terminal operator to provide them services," he said.

Terminal operators can also avoid competition in areas like product differentiation, service levels and even pricing, said Ho.

But he told RTHK's Janice Wong that the sharing of assets and facilities are becoming common in the sector.