Modern Terminal's managing director Erik Bogh Christensen says he is confident MTL will not only be a major player in Hong Kong but in the PRD as well

Hong Kong cruised to a cargo record last year, shifting 22 million containers with Kwai Chung Port absorbing over 30 per cent of market share in southern China's Pearl River Delta (PRD). To maintain competitive edge, Hong Kong's major port operator, Modern Terminals (MTL), is spending HK$1.2 billion (US$153 million) to upgrade facilities, boosting handling capacity by as much as 25 per cent.

 

MTL's managing director Erik Bogh Christensen said the upgrade is in line with the government-commissioned Hong Kong Port Master Plan 2020, which is to improve existing operations at Kwai Chung Port before constructing additional terminals.

 

"Logistics is one of the four main pillars of the Hong Kong economy. Hong Kong has 22 million TEUs now. The Government Master Plan indicates there will be 40 million TEUs by 2020 so we need to look at cargo development in the PRD and decide what kind of facilities are needed to support such growth," explained Mr Christensen.

 

He said that MTL is determined to grow in line with the Master Plan. "The Master Plan indicates there'll be a doubling of volumes in the next 15-20 years so we have made massive investments to invest in new or upgrade existing facilities, some of which are 30 years old."

 

Master Plan to support cargo development

 

The MTL upgrade will increase productivity - largely measured by how many boxes a quayside crane moves per hour - as well as prepare some of its wharves to serve the future generation of giant container ships, some of which measure 12,000 TEUs. "We need to upgrade our facilities to the same high standards as the new CT9 to accommodate the newest vessels. We're purchasing cranes which can reach 22 boxes wide across a ship's deck. The quay deck is being strengthened to accommodate heavier cranes and higher berthing loads," said Mr Christensen.

 

The PRD, he said, is undergoing dramatic economic development. "MTL is investing massively across the border. We're moving with our customers. One port is not adequate to service their needs. We need four or five big ports in that area. I'm confident MTL will not only be a major player in Hong Kong but in terminals in Shenzhen as well."

 

Mr Christensen is certain that Hong Kong terminals would not slash prices in view of competition. "MTL entered the container business through pricing and we're established because of pricing. Today, terminal tariffs in Hong Kong are competitive with Shenzhen terminals so there is no need for Hong Kong to adjust tariffs to meet competition that has happened already. MTL is in a good spot in Hong Kong right now."

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