#7631

from Paul Zimmerman:

Note analyst news below and impact on Lantau debate:

1. HK lost control over the Tonggu Channel – Shenzhen will dredge the
longer route (400mill more) outside HK waters. (Bye bye dolphins)

2. Shenzhen will move villages to create room for port expansion.

Relevant impact for Lantau:

3. Capacity constraint in container handling in the PRD has been moved
out by a decade or more – removing the need for urgency with CT10.


(b) Regarding Shenzhen, this is the latest according to the press.
Shenzhen is about to embark on an expansion of its Yantian container
port that shipping

industry specialists say will increase its efficiency. Plans call for
three

villages adjacent to the Yantian terminal to be relocated to make way
for an international logistics center with gross floor area of 300,000
square meters (30 hectares), according to an official of the Yantian
district government.

According to the press, additionally the Shenzhen municipal government
has also begun dredging in December a western route which falls just
outside the HK jurisdiction to allow deep sea water vessels direct
access to Shenzhen. For HW, they have a stake in Yantian port in
Shenzhen anyway. A key reason for HW expanding to China was that Hong
Kong was always expected to face competition from the mainland ports. We
expect China ports to become increasingly important for HW vs Hong Kong
ports.

Post edited by: Martin, at: 2005/03/25 11:49