The SAR government is studying measures to reduce trucking fees and container-handling charges to boost the competitiveness of Hong Kong's ports.

Raymond Fan, deputy secretary for economic development and labour, revealed this after attending a seminar on business and economic policy organized by South China Morning Post and University of Hong Kong.

One of the options is to relax the restriction of the "four up, four down" rule that requires a driver to use the same container, truck and trailer for each round trip between Hong Kong and the mainland, he said.

The rule, originally made to deter the smuggling of containers, trailers and trucks to the mainland, limits a truck to making about 1.2 trips a day on average.

"At present, we are in discussion with the concerned authorities in Guangdong Province to study whether the existing regulations can be relaxed.

"We are studying the relaxation of the rules of 'four up, four down' and 'one truck, one driver' so that the high trucking fees can be reduced," Fan said.

The "one truck, one driver' rule limits a truck to one designated driver.

The government will also enhance transparency in the setting of terminal handling charges, Fan said; and discuss with concerned parties, including shippers and terminal operators, on how the charges should be adjusted, he said.

Fan's remarks follow widespread concern that cheaper port and logistics facilities in nearby Shenzhen would erode Hong Kong's market share.

A government-commissioned report, Hong Kong Master Plan 2020, last week pointed out that high trucking and port fees would compromise local ports' competitiveness as international shippers are attracted to shift their businesses to Shenzhen.

Earlier, a private-funded report, compiled by McKinsey & Co, claimed that high trucking costs are responsible for about two-thirds of the US$300-per-container cost difference between Hong Kong and Shenzhen ports.

For the long term, Fan called for the integration of Hong Kong and ports in the Pearl River Delta.

"As Hong Kong is an export-oriented economy with no manufacturing, what we need is to consolidate our leading status in South China. We need to build on our own strengths and work together as a whole to attain a win-win situation," he said.

With increased co-operation in the Pan-Pearl River Delta region, Hong Kong will be able to benefit from the size of the hinterland, he said.

At the same seminar, Rufin Mak, vice-president of CSX World Terminals, called on the government to improve the local transport network to bolster Hong Kong's port business.

Mak suggested that transportation and highway networks around the Kwai Chung container terminal be improved to enhance efficiency.

Hong Kong ports' aggregate volumes reached 18.38 million TEUs (20-foot equivalent units) in the first 10 months, up 10.9 per cent year on year.

Editor: Olivia