The Hong Kong port surpassed its 2002 provisional estimates, handling a world-record throughput of 19 million 20-foot equivalent units in 2002, the Secretary for Economic Development & Labour said.

Speaking at the opening of the Terminal Operations Conference 2003 Asia, Stephen Ip said the figure was higher than 18.6 million TEUs his bureau had been quoting over the past couple of months. It represents a 6.6% increase over 2001 throughput - and confirms Hong Kong's position as the world's busiest container port for nine of the past 10 years.

He credited Hong Kong's unique public and private-sector model for the achievement.

"We leave the private sector to finance, develop and operate the terminal facilities while we in Government concentrate on providing the back-up infrastructure needed to service the port, as well as strategic planning for port development. This has allowed our terminal operators to extract maximum efficiency from their operations, which enables such huge volumes to be processed," Mr Ip said.

By the middle of this year the first of six berths at the new Container Terminal Nine will come on line, he said. When finished by 2005, the container terminals' total handling capacity will exceed 15 million TEUs a year.

"Coupled with continuous efficiency improvements, we will be able to cope with forecast cargo throughput of about 30 million TEUs by the end of this decade," he said.

Container Security Initiatives

The US's Container Security Initiatives (CSI), and the 24-hour advance cargo information rule implemented by the US Customs have also had a profound impact on the global supply chain, Mr Ip said.

Hong Kong signed a Declaration of Principle to join the CSI last September. Since then, the two countries' Customs have been working closely together to finalise the implementation of the CSI Pilot Scheme in Hong Kong.

The 24-hour advance clearance rule for inbound US containers has also added extra demands. It pushes forward the documentation process, it has affected the just-in-time management of the entire supply chain, he said.

"The impact in Hong Kong has been significant because we have around 2,000 small and medium sized freight-forwarding companies that are used to finalising paper documentation after shipments have left for the US," he said.

"But it is a mandatory requirement for trade with the US and our supply chain stakeholders have proved once again to be remarkably pragmatic and professional in meeting these new requirements.

"Our freight forwarders are coping quite well with this major change, and I expect that they will actually emerge more efficient and competitive as a result of this new business environment."

Closer ties with the Pearl River Delta

Mr Ip also described Hong Kong's plans for closer integration with the Pearl River Delta and smoothing the flow of people, goods, cargo and information between the two places.

Hong Kong and the Mainland are studying plans to link Hong Kong to Macau and the Delta region via a new bridge.

Other projects underway include new road and rail links to the Mainland through Shenzhen, improved Customs & Immigration facilities and streamlined procedures at boundary control points, and the 24-hour processing of passengers at the Lok Ma Chau crossing.

"To further sharpen our competitive edge in the logistics sector, we will develop a Digital Trade & Transportation Network System. This will be an open and neutral e-platform to facilitate information flows within the trade and logistics industry," Mr Ip said.

Other plans include a Value Added Logistics Park - halfway between the airport and the container port - for the private sector to develop.

"These initiatives will enhance our integrated logistics capabilities, and reinforce our status as the preferred international logistics hub in Asia," he said.