Growing exports mean that Hong Kong must consider the need for a new port facility, Chief Executive Tung Chee-hwa said yesterday (Jun 10).

But the feasibility study for Container Terminal 10 (CT 10) will consider port facilities of the whole Pan-Pearl River Delta (PPRD).

Tung also expressed optimism that the PPRD regional economic co-operation will bring tremendous benefits to Hong Kong.

Speaking at a media briefing session over the PPRD regional co-operation issue, Tung noted that exports in both Hong Kong and the Pearl River Delta region have soared rapidly over the past few years.

He said, "The demand (for container termimal's operation and cargo-handling services) is in excess of supply.

"If the exports remain in a strong surge in the coming years, the capacity of the existing container terminal facilities in both Hong Kong and Shenzhen cannot meet the demand," he said.

As such, the government earlier proposed constructing CT 10 to meet the demand for port facilities.

Tung said yesterday that Hong Kong will be engaged in liaison and co-ordination with the central and Guangdong provincial governments over the proposed construction of the new port facility.

He said the government hopes to make a decision on whether to build the new terminal or not within this year.

Currently, the government has commissioned a consultant to conduct a feasibility study on the proposed CT 10.

The government has been examining three potential sites - Tsing Yi, Tuen Mun and northwest Lantau - for the new terminal.

The study is due to be announced soon.

Tung also admitted there will be competition and co-operation in certain areas in the process of the PPRD regional economic integration.

But he said such competition and wastage of duplicated resources spent in the same investment area can be avoided through liaison among PPRD regions.

Meanwhile, Tung announced that the first meeting among secretary-ranking officials of the nine provinces and two Special Administration Regions (SARs) - Hong Kong and Macao - in the PPRD regions will be held next month.

The meeting is being held following a co-operation framework agreement signed at the PPRD Regional Co-operation and Development Forum held last week.

While Chief Secretary for Administration Donald Tsang will be responsible for overall high-level co-ordination work, Secretary for Constitutional Affairs Stephen Lam will serve as Hong Kong's temporary representative in the meeting, he said.

Tung stressed that "9+2" regional co-operation will be beneficial to the overall economic transition in Hong Kong, but it is hard to tell when the actual benefits can be seen in society.

But he expected there will be concrete measures to be seen in the development of railways, super-highways and port facilities soon.

"The development of railways, highways and port facilities are the top priorities for Hong Kong and they are like our blood arteries," he said.

The chief executive stressed that Hong Kong has the competitive edge in financial, professional consultancy service and logistic sectors, which are irreplaceable in the PPRD regions.

"The PPRD regional co-operation will provide more new business opportunities and give impetus for development in those industries," he said.

Editor: Donald