Slash THC, ease trucking to generate 92 million TEU, Hong Kong told

HONG Kong container volume could hit 92 million TEU a year by 2030 if mainland truckers were given ready access, and the port dropped its unreasonably high terminal handling charges, according to a report commissioned by the Hong Kong Government.

"But the Hong Kong Government does not feel the time is appropriate to liberalise trucking," the study's chief author Jonathan Beard told the Hong Kong Shipping Gazette.

It is understood that liberalisation would risk labour strife among Hong Kong truckers who oppose threats to their market protected by the current licensing regime.

"Hong Kong's problems remain the same as those faced for the past 10 years: high road-haulage tariffs [and] high terminal handling charges," said the report by GHK (Hong Kong).

While trucking costs have fallen 40 per cent in six years, they remain higher than Hong Kong's rivals, and in most countries, according to Lloyd's List's account of the report.

An FEU moving from the west side of the Pearl to the US west coast costs US$277 more through Hong Kong than it does through Shenzhen. From western side of Pearl, it costs $332 more, the report said.

This was attributed to low truck use, costs of moving empties and using costly Hong Kong hauliers when cheaper mainlanders are available. "Inefficiencies from wasteful movement of empties, which add to the cost of cross-boundary trucking, have yet to be addressed," said Dr Beard.

The GHK report said increased container volumes would necessitated new operational berths from 2015 to 2018 and the dredging Kwai Chung terminal approaches to 16.5 metres.

Dr Beard also foresees a much expanded barge service from the Pearl to the ships at container terminals both in Hong Kong and Shenzhen, which would grow as Hong Kong trucking rates become increasingly less competitive.

London-based GHK was the consultancy that did the HK$9 million (US$1.2 million) Harbour Master Plan study released in 2004. The new study, said Dr Beard, was "much smaller". He declined to divulge the cost of the new study.