Container handling facilities are a key part of the infrastructure in the logistics sector, one of the four pillar industries of Hong Kong. The nine container terminals at Kwai Chung-Tsing Yi area have 24 berths with a total handling capacity of over 18 million TEUs per year.

Competition between the container terminals and alternative modes of container handling motivates the operators to improve their efficiency and quality of service. The investment in upgrading equipment and systems in the terminals at Kwai Chung-Tsing Yi 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 81 per cent of container traffic handled by Hong Kong is related to southern China.

Strategic Planning

To ensure that port facilities in Hong Kong meet demands and provide sufficient facilities as they are needed to handle the port's cargo growth following China's accession to the World Trade Organisation, the Government completed the 'Study on Hong Kong Port — Master Plan 2020' at the end of 2004. The study recommended a package of immediate and long-term initiatives to enhance the competitiveness of the port. The Government, following the study's recommendations, commissioned consultants to update the port cargo forecast to work out the optimal timing for the construction of Container Terminal 10 and conduct an ecology study on Northwest Lantau to assess its environmental suitability for the development of container terminals. These two studies are expected to be completed in late 2006 and early 2007 respectively.