CHINA | Port of Hong Kong

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HONG KONG 11.8%


The airport of Hong Kong, third in the ranking of the world container ports, closed 2010 with the handling of 23,532,000 TEUs, 11, 8% more than last year.


Source: Chamber of Labour Pozzallo

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Hong Kong to pass laws to seize Iran-linked assets
19 January 2011
AFP

Hong Kong said Wednesday it was "striving" to pass legislation to comply with UN sanctions against Iran, after 20 shipping firms in the city were accused of being linked to Tehran's weapons buildup.

Last week, the US Treasury Department slapped sanctions on 24 shipping companies, including four in Britain's Isle of Man, accused of being fronts for Iranian businesses involved in Iran's missile programmes.

The firms are allegedly affiliated with the Islamic Republic of Iran Shipping Lines (IRISL), which has been slapped with international sanctions.

Hong Kong, a semi-autonomous Chinese territory, is awaiting Beijing's final approval to usher in the changes, but China has said it would support the sanctions passed by the UN Security Council in June last year.

At present, Hong Kong cannot seize assets belonging to the IRISL-linked shipping companies without first obtaining a court order.

"We are preparing the necessary subsidiary legislation to... give effect to new sanctions against Iran," Hong Kong's government said in a statement Wednesday, adding it was "striving to complete the work as soon as possible."

The government did not immediately provide details about when it had last sought a court-issued warrant to seize assets.

James To, head of Hong Kong's Legislative Council security panel, said the new laws would be passed in the "very near future".

"The process should be very quick", he told AFP.

"I can see no problem with it all, given that China is a member of the UN Security Council".

The US has stepped up its efforts to isolate Iran-linked commercial entities tied to its military development programmes since the Security Council imposed a fourth set of sanctions against Iran in June 2010.

Observers have said firms dodging sanctions or engaging in other illicit activity often look to Hong Kong for cover given the ease of registering a business in the city, which is also a major shipping hub.

In November, Hong Kong authorities detained a cargo ship linked to IRISL over an alleged loan default with a group of European banks.

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Maritime emissions raise concern
18 February 2011
SCMP

The maritime sector could see its contribution to Hong Kong's air pollution rise in percentage terms as noxious emissions from the power sector were cut, the environment chief said yesterday.

Edward Yau Tang-wah, secretary for the environment, said power stations accounted for more than 90 per cent of total sulphur dioxide emissions in Hong Kong last year.

But he said that over three years this would be cut by 66 per cent and fall by a further 50 per cent by 2015 as power producers switched to cleaner fuels such as natural gas and incorporated clean air technology at power plants.

Speaking at a Hong Kong Shipowners' Association lunch yesterday, Yau said the port and shipping industry currently contributed between 7 and 16 per cent to the pollutants mix of sulphur dioxide, nitrogen dioxide and heavy particulates.

These percentages were likely to increase as pollution levels from the power sector fell, he said.

Yau said as emissions from power stations were tackled, the maritime industry "will be emerging as a more important sector [as a pollution source] at least by percentage".

But while he welcomed a voluntary initiative by container shipping firms such as the Tung family- controlled Orient Overseas Container Line to switch to low-sulphur marine fuel while berthed at Kwai Chung, he gave no timetable for regulatory controls on ship emissions.

Around 15 container lines signed the Fair Winds Charter under which they agreed to switch to low sulphur fuel from January 1 in an effort to put pressure on the government to introduce legislation to limit sulphur dioxide emissions. The voluntary scheme, which is costing some of the lines US$1 million a year in extra fuel costs, will run to December 2012.

Outlining other initiatives, Yau said officials were looking to see if Euro 5 low sulphur diesel could be used in local vessels. There are also plans to incorporate shore-side power at the Kai Tak cruise terminal, which would allow cruise ships to plug in to the Hong Kong electricity network and turn off their engines while docked.

Yau also confirmed that the government was looking at subsiding trials of hybrid buses, as it was the government's long-term goal for a zero-emission bus fleet.

But former shipowners association chairman Peter Cremers called for "bold decisions" because "10 years seems a long time" to see improvements in the air quality. "Pollution is affecting the general business climate in Hong Kong," he said.

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Iran cargo ship, seized in Hong Kong, released

TEHRAN, Feb 26 (Reuters) - Iran has secured the release of a container ship seized by authorities in Hong Kong more than three months ago due to sanctions-related problems, the semi-official Fars news agency reported on Saturday.

Five vessels operated by the Islamic Republic of Iran Shipping Lines (IRISL) were impounded at ports around the world late last year as sanctions on Iran caused European banks to call in loans they had made to IRISL early.

Three ships held in Singapore were released in January. One is still impounded in Malta.

The chairman of the state-owned shipping line, Mohammad Hossein Dajmar, said the loan, from an unidentified German bank, would be repaid and the ship released after more than 100 days in Hong Kong.

"Measures taken for loan settlement with the European bank neutralised the international plot to stop Iran's national shipping line," Dajmar told Fars.

The shipping problems are one symptom of the sanctions which were tightened last year to make it more difficult for Iranian companies to access international banking services. The measures are aimed at forcing Tehran to curb its nuclear programme which many countries fear could be aimed at making weapons, something Tehran denies.

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Pacific Basin Shipping 2010 Net Profit Down 5.4%; Outlook Weak
1 March 2011

HONG KONG (Dow Jones)--Dry-bulk shipper Pacific Basin Shipping Ltd. (2343.HK) said it expects "a weaker 2011" following a lower-than-expected net profit the previous year, because freight rates will remain under pressure as capacity growth continues to outpace demand growth in the industry.

The company, which is the world's largest operator of modern handysize vessels, said Tuesday its net profit for the 12 months ended Dec. 31 was down 5.4% at US$104.3 million, compared with US$110.3 million in 2009, as impairment losses on investments and provisions for derivative instruments outweighed higher freight rates amid a recovery in global demand for raw materials.

The result was below the average US$118.1 million net profit forecast of 12 analysts polled earlier by Thomson Reuters.

Pacific Basin Chief Executive Klaus Nyborg told reporters that despite an improvement in global demand, the company expects a weaker dry-bulk shipping market in 2011, as excessive new vessel deliveries in the industry will pressure freight rates.

The company expects global dry-bulk shipping capacity to rise 15% to 18% in 2011, which would likely weigh on recovery in the dry-bulk shipping sector, said Nyborg.

As of Feb. 17, the shipping operator's core handysize fleet had contracts secured for 47% of the total revenue days in 2011, or the number of days its ships are in service, at about US$13,340 a day. The average revenue for its handysize fleet was US$16,750 a day in 2010.

Handysize vessels, which have a capacity of less than 40,000 deadweight tons each, are the smallest of the four categories of dry-bulk ships. Such ships can navigate shallow waters such as rivers

Nyborg said the company plans to reduce its capital spending for new vessels this year by around 68% to US$159 million from around US$500 million a year earlier, as a large portion of the company's new ship deliveries will begin in 2012, reducing the capital expenditure for the company in the near term.

He added the company doesn't have any plan to boost capacity by purchasing more ships.

In 2010, the company's revenue rose 33% to US$1.27 billion from US$950.5 million. It recommended a final dividend of 16.5 HK cents, up from 15 HK cents a year earlier.

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Shipping company seeks opportunities in market weakness
7 March 2011
South China Morning Post

Surging new ship deliveries and fewer cargoes are exerting downward pressure on freight rates, and with the dry bulk cargo market left in the doldrums as a result, now might not be thought of as the best time to consider fleet expansion.

But with a war chest of around US$1 billion to spend on ship acquisitions, Pacific Basin Shipping's Klaus Nyborg believes adversity could bring opportunity for the group.

The chief executive of one of Hong Kong's largest shipowners, Nyborg says owners who ordered vessels in the last two or three years at relatively high prices may not have the same cash reserves to weather the present poorer market conditions.

"They don't have the same cash balances as they did in 2008-2009, which followed six or seven years of high earnings," Nyborg said.

As a result they could be forced to sell their vessels at a discount while the ships are still under construction at shipyards. Or they could forfeit their initial deposits, allowing shipyards to deliver to cashed-up owners willing to take delivery 12-24 months ahead of the normal length of time between placing an order for a ship and delivery.

"We'll see more opportunities this year," Nyborg predicted.

With a fleet of 113 "handysize" and "handymax" dry cargo ships (ranging between 25,000 and 64,999 deadweight tonnes or DWT, a measure of total carrying capacity), Pacific Basin Shipping is already the world's largest operator of modern handysize tonnage. These ships provide the backbone of the firm's fleet, which includes post-panamax bulk carriers, tugs, barges and roll-on/roll-off truck and trailer vessels.

While there is no official definition in terms of exact tonnages, handysize typically refers to a dry bulk vessel of about 15,000 to 35,000 DWT. Handymax bulkers are typically 35,000 to 58,000 DWT and a panamax cargo ship would typically be 65,000 to 80,000 tonnes DWT.

Pacific Basin also has 22 dry cargo vessels on order, including six 35,000 DWT handysize bulk carriers to be built by mainland yard Jiangmen Nanyang Ship Engineering at a total cost of US$153 million; and four 58,100 DWT handymax ships from Tsuneishi Group (Zhoushan) Shipbuilding at US$131.4 million.

Altogether Pacific Basin has capital commitments totalling US$411 million for these and other ships already on order. This compares with US$703 million in cash, future operating cash flows, and new borrowings, along with around US$300 million in bank borrowings that have yet to be fully drawn down. And unlike other dry bulk companies, Pacific Basin has seen no charterers walk away from existing ship lease agreements.

"We are well positioned with no counterparty defaults, a very robust business model and one of the strongest balance sheets. This has set us up for significant expansion in 2012 (when the new vessels are delivered) and corresponds with the excessive order book [of new vessels] tapering off," Nyborg said.

Nyborg thought owners of older, less fuel efficient handysize ships, would be more likely to scrap tonnage as their operating costs were now equal to or higher than charter rates of around US$10,000-US$13,500 per day.

[EricIsHim]

Li’s Hutchison Port Said to Raise $5.4 Billion in Singapore IPO
By Fox Hu - Mar 10, 2011 9:50 PM ET

Li Ka-shing’s Hutchison Port Holdings Trust expects to raise $5.4 billion in Southeast Asia’s biggest initial public offering, according to three people with knowledge of the transaction.

The company, which manages Chinese port assets for billionaire Li’s Hutchison Whampoa Ltd., plans to sell about 5.4 billion units in a trust at $1.01 each, after offering them at 99 cents to $1.03, said the people, who declined to be identified before an announcement.

Hutchison Port’s sale will likely surpass the $4 billion raised in Singapore Telecommunications Ltd. (ST)’s 1993 IPO, previously the city-state’s largest, and Petronas Chemicals Group Bhd. (PCHEM)’s $4.1 billion initial offering in November in Malaysia. Asian companies are struggling to raise the maximum amount sought in IPOs after stocks in the region fell this year.

The units were initially offered at 91 cents to $1.08 each before the price range was narrowed. DBS Group Holdings Ltd. (DBS), Deutsche Bank AG (DBK) and Goldman Sachs Group Inc. (GS) are managing the sale. Hutchison Whampoa spokeswoman Laura Cheung wasn’t immediately available to comment.

Investors are cooling on Asian equities as unrest in the Middle East pushes oil prices higher and accelerating inflation from China to India prompts central banks to boost borrowing costs. The MSCI Asia Pacific Index has slipped 2 percent this year after gaining 14 percent in 2010.

Cornerstone Holders

China Hongqiao Group Ltd., the country’s largest privately owned aluminum producer, in January scrapped a plan to raise as much as $2.2 billion from a Hong Kong IPO, citing “deterioration in market conditions,” according to a Jan. 31 filing to the city’s stock exchange. China Kingstone Mining Holdings Ltd. will sell stock in Hong Kong at the low end of a price range, according to a term sheet for the deal.

Companies have sold $2.8 billion of IPO shares in the Asia-Pacific region this year, compared with $18.5 billion in the first quarter of 2010, data compiled by Bloomberg show.

Hutchison Port Holdings Trust will own assets including container terminals in Hong Kong and neighboring Guangdong province. Hutchison will manage the trust and retain a 25 percent stake, according to a Jan. 18 statement.

Cornerstone investors led by Capital Research & Management Co. and Paulson & Co. will invest $1.62 billion in the IPO, according to the prospectus filed with the Monetary Authority of Singapore.

Capital Research will invest $634 million in the offering, according to the term sheet. Paulson & Co., managed by John Paulson, will buy a $350 million stake and Lone Pine Capital LCC will invest $186 million, it said. Jenkin Hui and family, Singapore’s state investment company Temasek Holdings Pte, Cathay Life Insurance Co. and Metropolitan Financial Services Ltd. will each invest $100 million, and Ally Holding Ltd. will buy a $50 million stake.

http://www.bloomberg.com/news/2011-0...apore-ipo.html

[EricIsHim]

THE ASSOCIATED PRESS March 14, 2011, 1:23PM ET

Seaspan 4Q profit rises on items, new ships

NEW YORK

Seaspan Corp., which operates container shipping in Hong Kong, said Monday its profit climbed 90 percent in the fourth quarter as it expanded its fleet of vessels and one-time items boosted its income.

The company said it expects to raise its dividend by 50 percent this year. That would increase its quarterly dividend to 18.75 cents, or 75 cents per year.

In addition, it said it will invest $100 million in a new venture being formed by The Carlyle Group, Tiger Group Investments Ltd., and Dennis R. Washington. The venture will invest as much as $900 million in container ship assets. It will invest mostly in newly built ships strategic to China and surrounding countries.

Seaspan said CEO Gerry Wang will have a senior leadership role with the investment venture. The company also extended its employment agreement with Wang, saying he will remain CEO through Jan. 1, 2013. After that he will remain with the company as co-chairman.

Its shares rose 20 cents to $15.61 in midday trading Monday

Seaspan reported its net income grew to $141 million, or $1.60 per share, after paying preferred dividends from $74.7 million, or 78 cents per share, a year ago. Excluding items like changes in the fair value of financial instruments and interest expenses, it said its earnings amounted to 31 cents per share.

Revenue rose 50 percent to $117.9 million from $78.6 million.

Analysts expected earnings of 32 cents per share on revenue of $117.3 million, according to estimates compiled by FactSet.

The company said it accepted delivery of 13 vessels in 2010, increasing its fleet to 55 at the end of the year. Two of the vessels were delivered during the fourth quarter. Seaspan said it received two additional vessels in January.

In 2010, the company lost $86.3 million, or $1.70 per share, after preferred dividends in contrast to net income of $145.3 million, or $1.75 per share, in 2009. Revenue rose 43 percent, to $407.2 million from $285.6 million.

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Smugglers take $32m hit
The Standard
Tuesday, March 15, 2011





About 29,000 computer hard-disk drives are among goods worth HK$32 million seized by customs officers in their latest operation against smuggling by sea.

The other items include 10.8 tonnes of electrolytic nickel and 10 million integrated circuits, customs special task force divisional commander Chan Tsz-tat said yesterday.

The unmanifested goods were hidden in a container carrying so- called "polyethylene balls." It was one of several containers carried by a river trade vessel leaving for Shunde, Guangdong.

The vessel was stopped and searched by officers off Black Point, Tuen Mun, at about 8pm on Saturday.

Chan said officers knew the lot number of the container involved had been altered before it was loaded onto the vessel.

The discovery resulted from a weeklong probe following an intelligence report.

The captain and a crew member were detained for questioning, but later released after an initial investigation found they were not involved.

Chan said the investigation is continuing.

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Queen Mary pushed to a far-from-royal berth out of town
20 March 2011
SCMP

It was bad enough that it was raining when the Queen Mary 2 arrived in Hong Kong yesterday from Shanghai, but things only got worse as it could not be found a berth in the harbour and had to dock out at Junk Bay in Sai Kung instead.

The world's largest transatlantic ocean liner was only staying here for one night and travels to Nha Trang in Vietnam today. For the 2,500 passengers and 1,250 crew on board, it was a far from ideal way of visiting the city. Built in 2003 by Chantiers de l'Atlantique, the Queen Mary 2 is the longest, widest and tallest passenger liner ever built.

Its captain, Commodore Bernard Warner, revealed that the ship had been offered a berth for up to 12 hours at the Kowloon container terminal, but that was not long enough because the ship was staying in Hong Kong for 24 hours.

"It's not perfect but there's just no berth available to us this year at the container terminals and we're too big to be using the Ocean Terminal. We tried all we could to get the berth but we weren't offered one in the end," Warner said.

"We're managing with it as best as we can, but it would have been great to have been in the city. Not just for us but so as the people of Hong Kong could see the ship too. It's the biggest ocean liner in the world - 345 metres long and over 150,000 gross tonnes - and is quite a sight."

Warner hoped that the new passenger terminal in Kowloon, which is due to be built by 2013, would make a big difference, but for now they would have to make do.

"It's not the best experience that our guests can have. The fact that it's raining makes it doubly worse," Warner said. "The guests are definitely surprised that we can't get a berth in Hong Kong - in fact that would be an understatement - but we have to make the best of it."

Warner first came to Hong Kong in 1966 and has been on the Queen Mary since 2005.

On the previous occasions the ship has visited Hong Kong it has had an appropriate berth in town.

While in Hong Kong the ship is being handled by the Wallem ship agency, and its operations manager, Kam-foo Chan, explained there was little that could be done.

"There were no berths available. It's a surprise but there was nothing that could be done about it. The container berths are very, very busy at the moment so nothing could be organised. It's very unfortunate. This has never happened before," he said.

The Queen Mary 2 cost £460 million (HK$5.8 billion) to build and its facilities include 15 restaurants and bars, five swimming pools, a casino, a ballroom, a theatre, and the first planetarium at sea. There are also kennels on board and a nursery.

It is also one of the few ships afloat today to have remnants of a class system on board, most prominently seen in her dining options.

After Vietnam the Queen Mary 2 will sail to Bangkok, Singapore, India and Dubai.

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Maersk Line to cut stops in HK, divert to Nansha

HONG KONG, March 25 (Reuters) - Maersk Line, the world's largest container-shipping company and a unit of Danish A.P. Moller-Maersk AS , will cut the number of ship calls at Hong Kong by about a quarter from April, one of the biggest changes for the world's third-busiest port in years.

Maersk Line confirmed a newspaper report that it would cut the number of ships calling at Hong Kong but said there would be an estimated drop of about 25 percent, rather than the one-third reduction reported by the South China Morning Post on Friday.

"Maersk Line anticipates a drop from 30 weekly calls to 22-23 weekly calls at Hong Kong," Maersk China managing director Jens Eskelund told Reuters by email.

The business would be transferred to Guangzhou South China Oceangate Container Terminal, partly owned by Maersk affiliate APM Terminals, in the southern Chinese port of Nansha, the newspaper said.

But Eskelund said only half of that drop was attributable to the Nansha move and half attributable to rationalisation of the company's Hong Kong coverage.

"The transfer of some services to Nansha to serve our customers in the West Pearl River Delta is having a somewhat less dramatic impact than one would think after reading below," he said.

Maersk intended to create a third major gateway at Nansha to augment its South China gateways at Yantian and Hong Kong, the newspaper quoted Soren Karas, head of South China for Maersk Line, as saying.

All the vessels calling at Hong Kong are handled by Wharf Holdings Ltd unit Modern Terminals, whose berths at Container Terminal 9 are almost a dedicated Maersk Line facility.

"We share the view with Maersk of the strategic importance of South China and we have a long-term and successful working history with Maersk in Hong Kong and Shenzhen's Da Chan Bay and this will continue," said Modern Terminals spokeswoman Joel Cheung.

She did not comment further on the change.

Hong Kong's container port has seen more cargoes in China's Pearl River Delta shift to Shenzhen and Guangzhou ports, which are closer to manufacturing bases and have cheaper handling costs.

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Vessel meets safety standards of Hong Kong
Friday, April 8, 2011
Government Press Release

Screening for radioactivity on board an ocean-going cargo vessel in a designated anchorage adjacent to the southern boundary of Hong Kong waters this morning (April 8) confirmed that the vessel met the safety standards of Hong Kong.

A free pratique has been issued for the vessel, MOL PRESENCE, to berth in Hong Kong.

Conducted by staff from Port Health Office (PHO) of the Department of Health, the screening was an extra step of caution to ensure that the container vessel was indeed safe for berthing at our container terminal for cargo unloading.

A Government spokesman said, "Updated information re-submitted by the shipping company yesterday for application of a free pratique to enter Hong Kong showed that all radioactivity readings measured were below Hong Kong's intervention level for surface decontamination.

"This followed the submission of an earlier set of information on April 4 which contained data suggestive of exceedances of radioactivity levels at some locations, though not above levels expected to pose risk to Hong Kong's public health."

Thus, to be prudent, due inspection including radiation screening of the vessel, the crew and containers had been conducted before the free pratique was issued by PHO earlier today.

The vessel will proceed to berth alongside Kwai Chung Container Terminal for cargo unloading.

Customs and Excise Department will conduct radioactivity scanning of the cargoes according to established procedure.

MOL PRESENCE underwent decontamination and subsequent radioactivity reassessment in Kobe, Japan after it was found to have radiation contamination by Xiamen port authority in late March.

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Statistics on vessels, port cargo and containers for fourth quarter of 2010
Tuesday, March 8, 2011
Government Press Release

The Census and Statistics Department (C&SD) today (March 8) released statistics on vessels, port cargo and containers for the fourth quarter of 2010.

In the fourth quarter of 2010, total port cargo throughput increased by 8% over a year earlier to 70.0 million tonnes. Within this total, both inward and outward port cargo rose by 8% to 39.8 million tonnes and 30.1 million tonnes respectively.

For 2010 as a whole, total port cargo throughput increased by 10% over a year earlier to 267.8 million tonnes. Within this total, inward and outward port cargo rose by 11% and 10% to 154.3 million tonnes and 113.6 million tonnes respectively.

On a seasonally adjusted quarter-to-quarter comparison, total port cargo throughput increased by 3% in the fourth quarter of 2010. Within this total, inward and outward port cargo went up by 2% and 6% respectively. The seasonally adjusted series enables more meaningful shorter-term comparison to be made for discerning possible variations in trends.

Port cargo

Within port cargo, seaborne cargo increased by 11% over a year earlier to 47.0 million tonnes, while river cargo also rose by 3% to 23.0 million tonnes in the fourth quarter of 2010.

Within inward port cargo, imports and inward transhipment increased by 3% and 14% in the fourth quarter of 2010 over a year earlier to 20.9 million tonnes and 18.9 million tonnes respectively. For outward port cargo, exports (including domestic exports and re-exports) and outward transhipment increased by 12% and 7% over a year earlier to 10.9 million tonnes and 19.2 million tonnes respectively.

Within port cargo, seaborne and river cargo increased by 13% and 5% in 2010 over 2009 to 182.0 million tonnes and 85.8 million tonnes respectively.

Within inward port cargo, imports and inward transhipment increased by 5% and 18% in 2010 over 2009 to 79.7 million tonnes and 74.5 million tonnes respectively. For outward port cargo, exports and outward transhipment increased by 1% and 15% to 38.9 million tonnes and 74.6 million tonnes respectively.

The detailed port cargo statistics are summarised in Table 1.

The main countries/territories of loading for inward port cargo and countries/territories of discharge for outward port cargo are shown in Table 2 and Table 3 respectively.

Comparing the fourth quarter of 2010 with the fourth quarter of 2009, increases were registered in the tonnage of inward port cargo loaded in most main countries/territories of loading, with the four most significant increases recorded for Malaysia (+36%), Japan (+31%), Korea (+23%) and Vietnam (+23%). Over the same period, increases were registered in the tonnage of outward port cargo discharged in most main countries/territories of discharge, with the three most significant increases recorded for Indonesia (+68%), Malaysia (+65%) and Korea (+33%).

Comparing 2010 with 2009, increases were registered in the tonnage of inward port cargo loaded in most main countries/territories of loading, with the three most significant increases recorded for Japan (+29%), the mainland of China (+24%) and Malaysia (+21%). Over the same period, increases were registered in the tonnage of outward port cargo discharged in most main countries/territories of discharge, with the three most significant increases recorded for Indonesia (+58%), Malaysia (+55%) and Korea (+43%).

The principal commodities for inward and outward port cargo are shown in Table 4 and Table 5.

Comparing the fourth quarter of 2010 with the fourth quarter of 2009, double-digit increases were recorded in inward port cargo of "bricks, ceramic tile and refractory construction materials" (+24%), "machinery" (+16%), "iron and steel" (+12%) and "stone, sand and gravel; metalliferous ores and metal scrap; and pulp and waste paper" (+10%). As for outward port cargo, double-digit increases were recorded for "bricks, ceramic tile and refractory construction materials" (+23%), "machinery" (+16%), "live animals chiefly for food and edible animal products" (+12%) and "iron and steel" (+11%).

Comparing 2010 with 2009, double-digit increases were recorded in inward port cargo of "bricks, ceramic tile and refractory construction materials" (+38%), "machinery" (+30%) and "iron and steel" (+25%). As for outward port cargo, double-digit increases were recorded for "bricks, ceramic tile and refractory construction materials" (+29%), "live animals chiefly for food and edible animal products" (+29%), "machinery" (+27%) and "iron and steel" (+24%).

Containers

In the fourth quarter of 2010, the port of Hong Kong handled 6.1 million TEUs of containers, representing an increase of 9% over a year earlier. Within this total, laden containers increased by 10% to 5.1 million TEUs, while empty containers also rose by 3% to 0.9 million TEUs. Among laden containers, inward containers increased by 13% to 2.5 million TEUs, while outward containers also rose by 8% to 2.6 million TEUs.

In 2010, the port of Hong Kong handled 23.7 million TEUs of containers, representing an increase of 13% over 2009. Within this total, laden containers went up by 13% to 20.0 million TEUs, while empty containers also increased by 12% to 3.7 million TEUs. Among laden containers, inward containers increased by 14% to 9.9 million TEUs, while outward containers also rose by 12% to 10.1 million TEUs.

On a seasonally adjusted quarter-to-quarter comparison, laden container throughput increased by 3% in the fourth quarter of 2010. Within this total, inward and outward laden containers increased by 4% and 2% respectively.

Seaborne laden containers increased by 15% in the fourth quarter of 2010 over a year earlier to 3.8 million TEUs, while river laden containers decreased by 1% to 1.4 million TEUs.

Within inward laden containers, imports and inward transhipment increased by 7% and 16% in the fourth quarter of 2010 over a year earlier to 0.9 million TEUs and 1.7 million TEUs respectively. For outward laden containers, exports and outward transhipment increased by 7% and 8% to 0.9 million TEUs and 1.7 million TEUs respectively.

In 2010, seaborne and river laden containers increased by 15% and 7% over 2009 to 14.6 million TEUs and 5.4 million TEUs respectively.

Within inward laden containers, imports and inward transhipment increased by 8% and 18% in 2010 over 2009 to 3.4 million TEUs and 6.5 million TEUs respectively. For outward laden containers, exports and outward transhipment increased by 7% and 14% to 3.4 million TEUs and 6.7 million TEUs respectively.

The detailed container statistics are summarised in Table 6.

Port cargo and laden container statistics are compiled from a sample of consignments listed in the cargo manifests supplied by shipping companies and agents to the C&SD.

Vessel arrivals

In the fourth quarter of 2010, the number of ocean vessel arrivals decreased by 1% over a year earlier to 8 420, with the total capacity increasing by 13% to 105.7 million net registered tons. Over the same period, the number of river vessel arrivals increased by 4% over a year earlier to 45 830, with the total capacity increasing by 12% to 28.0 million net registered tons.

In 2010, the number of ocean vessel arrivals decreased by 2% over 2009 to 32 650, with the total capacity increasing by 6% to 401.8 million net registered tons. Over the same period, the number of river vessel arrivals increased by 4% over a year earlier to 179 170, with the total capacity increasing by 12% to 109.0 million net registered tons.

The statistics on vessel arrivals in Hong Kong are given in Table 7.

Vessel statistics are compiled by the Marine Department primarily from general declarations submitted by ship masters and authorised shipping agents. Pleasure vessels and fishing vessels plying exclusively within the river trade limits are excluded.

Tables : http://gia.info.gov.hk/general/20110...0140_76217.pdf

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Orient Overseas: To Buy Four Vessels For US$544 Mln
9 May 2011

HONG KONG (Dow Jones)--Container shipper Orient Overseas (International) Ltd. (0316.HK) said Monday it agreed to buy four more container vessels from Samsung Heavy Industries Co. (010140.SE) for US$544 million.

The purchase came after the container shipper in March ordered six container vessels from the Korean shipbuilder for US$816 million.

Orient Overseas, which is controlled by the family of former Hong Kong Chief Executive Tung Chee-hwa, said in a statement four of its wholly owned units will buy the four vessels for US$136 million each.

The vessels, with a capacity of approximately 13,000 twenty-foot equivalent units each, are scheduled to be delivered between 2013 and 2014, it said.

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Hong Kong shipping delegation to visit Republic of Korea
29 May 2011

HONG KONG, May 29 (Xinhua) -- Secretary for Transport and Housing of the Hong Kong Special Administrative Region government Eva Cheng will lead a shipping delegation to the Republic of Korea on Monday to promote Hong Kong as an international maritime center and a premier hub port, the city's government said Sunday in a statement.

The delegation comprises members of the Hong Kong Maritime Industry Council and the Hong Kong Port Development Council, industry leaders and the transport constituency's legislative councilor Miriam Lau.

Cheng will call on the Ministry of Land, Transport and Maritime Affairs of the Republic of Korea, as well as four leading Korean shipping companies -- SK Shipping, STX Pan Ocean, Hyundai Merchant Marine and Hanjin Shipping. The four companies together own or operate about 800 container vessels, bulk carriers and tankers.

The Hong Kong delegation will attend a seminar entitled " Maritime Hong Kong -- Experts with Worldwide Connections" and an industry luncheon to be held in Seoul on May 31. Delegation members will speak about Hong Kong's strengths in different areas of the maritime industry, and Cheng will deliver a keynote speech at the luncheon.

The delegation will also visit the South Korean Maritime Institute, South Korean Shipbuilders' Association, South Korea Maritime University and South Korea's busiest container port Busan Port.

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Speech by STH at a shipping community luncheon in Korea
Tuesday, May 31, 2011
Government Press Release

The following is the speech by the Secretary for Transport and Housing, Ms Eva Cheng, at a luncheon after a seminar entitled "Maritime Hong Kong - Experts with Worldwide Connections" for the shipping community in Seoul, Korea, today (May 31):

Distinguished Guests, Ladies and Gentlemen,

Good afternoon. I am honoured to have this opportunity to speak to the leaders of the Korean maritime and related industries. First let me thank you all for coming to the seminar this morning. I hope that the presentations on what Hong Kong can offer have showcased how Hong Kong can be your close partner in the maritime world and help your businesses expand.

Over the years, Hong Kong and Korea have been active partners in trade. In 2010, bilateral trade grew year on year by 28%, amounting to over US$21 billion. Over 180 Korean firms base their regional headquarters and offices in Hong Kong. Korean brand names have infiltrated every part of Hong Kong life. Samsung and LG are popular choices when we shop for electronic appliances ranging from LED TVs and mobile phones to tablets. Korea is a popular holiday destination for Hong Kong people. And Korean TV drama series, films and pop songs have won extremely faithful following in Hong Kong. Out of popular demand, some of our channels show Korean drama series during prime time and all your famous actors and actresses now speak fluent Cantonese on TV!

The Hong Kong and Korean maritime sectors have also developed a close, although not necessarily high profile, relationship. A considerable number of vessels owned by Hong Kong shipowners were Korean made. Each day, there are on average six sailings of container vessels between Hong Kong and Korea. Indeed, both Hong Kong and Korea are considered among the strongest maritime players in Asia. You are the third largest maritime nation in terms of merchant shipping capacity in Asia. You have since 2003 become the world's top shipbuilder and are the home of seven of the top 10 shipbuilders. Hanjin Shipping is amongst the global top 10 container carriers and Busan Port is the world's fifth busiest container port. These are truly remarkable achievements. Hong Kong also plays an important role in the international shipping scene. Hong Kong shipowners control about 9% of the world's merchant fleet. Our shipping register is now the world's fourth largest in terms of gross tonnage of vessels registered. The Hong Kong Port ranked third in terms of container throughput in 2010.

In addition to a quick rebound after the financial tsunami in 2008, Korean trade is expected to further expand in tandem with the global economic recovery as well as the increasing demand amongst Asian economies. Your maritime industry is therefore bound for continuous growth and expansion. I believe that Hong Kong is well positioned to be your partner in taking advantage of new opportunities ahead. It is therefore high time our maritime sectors thought about expanding their partnerships to a new dimension.

I am saying this with confidence. As a world-class services hub, our full range of first-rate professionals has been serving the needs of maritime industry players and their overseas counterparts for decades. Enhancing Hong Kong's competitiveness as a premier international maritime centre always ranks high on the Hong Kong Government's agenda. This positioning is strongly supported by the Central People's Government (CPG) of the People's Republic of China. In its "Outline of the Twelfth Five-Year Plan for the National Economic and Social Development" newly released in March 2011 to map out the national development strategy for the period of 2011 to 2015, the CPG pledges its unequivocal support for Hong Kong to consolidate and enhance our position as an international shipping centre.

What Hong Kong Can Offer

Strategically located on the Far East trade routes, Hong Kong has over the years established itself as a renowned maritime centre and trading hub. Our "Big Market, Small Government" philosophy and entrepreneurial attitude have created a transparent, fair and friendly environment for businesses. We have been ranked the world's freest economy for 17 consecutive years by the Heritage Foundation. We, together with the US, were just ranked the most competitive economy by the International Institute for Management Development for the first time. The Basic Law, our mini constitution, has preserved the conditions for our success. Our rule of law is underpinned by an independent judiciary, a clean government, free flow of capital and information, and a freely convertible currency. Our low and simple tax regime - profits tax at 16.5% on Hong Kong-sourced income only - and our status as a financial hub and free port continue to make Hong Kong the best place for business, including the maritime industry. More importantly, we treat all enterprises, local or foreign, equal and there are no strings attached to any investment made.

Hardware-wise, our natural deep-sea port provides home to our container port, which is one of the busiest worldwide and recorded a throughput of 23.7 million twenty-foot equivalent units in 2010. The Hong Kong Port is served by some 400 sailings per week reaching 480 destinations worldwide. Last year, there were over 210 000 vessel arrivals, of which about 57% were cargo vessels. The round-the-clock operation of the 24 berths at our nine container terminals is one of the most efficient worldwide and is well complemented by auxiliary facilities with deep marine frontage. In anticipation of future growth in cargo volume, we are conducting a preliminary feasibility study on developing a 10th container terminal near the existing ones. We are also undertaking a project to dredge our Kwai Tsing container basin so that we can accommodate the new generation of ultra-large container ships at all tides.

On the service side, our strong cluster of shipowners has anchored a myriad of maritime and related services in Hong Kong. Today, there are about 700 shipping-related companies calling our city home. A comprehensive range of high quality services in ship management, ship broking, marine insurance, legal services, arbitration, ship finance, ship surveying to ship registration are provided without geographical or time zone limits. Most of these areas have been covered by our speakers this morning.

Separately, I have earlier mentioned that the Hong Kong Shipping Register is currently the world's fourth largest. Apart from having an impressive gross tonnage, it also has an excellent reputation as a register that maintains a high quality. As at mid-May, the Hong Kong fleet consisted of 1 800 ships with a total gross registered tonnage of some 60 million. Hong Kong-flagged ships have a very low detention rate, just 1.64% in 2010 under the Tokyo Memorandum of Understanding on Port State Control, against a world average of 5.48%. To help reduce the operating cost of ships flying the Hong Kong flag, all carriage income from Hong Kong uplift and proceeding to outside Hong Kong is exempt from Hong Kong profits tax.

I hope that my delegates and I have successfully taken the opportunity to introduce to you the wide range of quality maritime services in Hong Kong that are at your service and why you should partner with us. I will not go into the details of the individual service areas again suffice to highlight the following aspects: Hong Kong has the legal framework and professional network for arbitrations to be conducted in accordance with international standards. Most of the banks which are active in ship financing have a presence in Hong Kong. We are also home to most of the leading insurers and P&I clubs. According to the International Union of Marine Insurance, marine insurance premiums handled in Hong Kong totalled US$323 million in 2009, which is among the highest in Asian economies. And Hong Kong is one of the regional bases for conducting sale and purchase broking of ships with non-Hong Kong based shipowners in other Asian countries.

Closing Remarks

With the depth and breadth of our maritime services and our ever improving connectivity, you can rest assured that whether you want to raise capital in Hong Kong for your ships, or find an agency there to manage your ships, or set up shop there to extend your global reach, you will be working with the best-performing teams and enjoying the most efficient transport network for goods and personnel alike. The delegation with me today comprises the movers and shakers of the Hong Kong maritime sector and they are close partners of the HKSAR Government. Why would these busy people, leaders of their own right in the maritime field, take time off their busy schedule and join the Hong Kong Government on this delegation? I would have hoped it is my personal charm but I do have the good sense to know that's not the reason. They are here to give personal testimony as users and providers of our world class maritime service. I hope that you will get to know them and learn about Hong Kong, their businesses and what Hong Kong can offer. May today's friendly networking be the beginning of rewarding partnerships that make a difference in your smooth sailing in the maritime world.

Thank you.

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Statistics on vessels, port cargo and containers for first quarter of 2011
Government Press Release
Thursday, June 9, 2011

The Census and Statistics Department (C&SD) today (June 9) released statistics on vessels, port cargo and containers for the first quarter of 2011.

In the first quarter of 2011, total port cargo throughput recorded virtually no change over a year earlier at 62.7 million tonnes. Within this total, both inward and outward port cargo recorded virtually no change at 35.9 million tonnes and 26.8 million tonnes respectively.

On a seasonally adjusted quarter-to-quarter comparison, total port cargo throughput decreased by 4% in the first quarter of 2011. Within this total, inward and outward port cargo decreased by 5% and 2% respectively. The seasonally adjusted series enables more meaningful shorter-term comparison to be made for discerning possible variations in trends.

Port cargo

Within port cargo, seaborne cargo increased by 3% over a year earlier to 43.2 million tonnes, while river cargo decreased by 6% to 19.5 million tonnes in the first quarter of 2011.

Within inward port cargo, imports decreased by 2% in the first quarter of 2011 over a year earlier to 18.3 million tonnes, while inward transhipment increased by 1% to 17.6 million tonnes. For outward port cargo, exports (including domestic exports and re-exports) decreased by 3% over a year earlier to 9.2 million tonnes, while outward transhipment increased by 2% to 17.6 million tonnes.

The detailed port cargo statistics are summarised in Table 1 (http://gia.info.gov.hk/general/20110...0181_80017.pdf).

The main countries/territories of loading for inward port cargo and countries/territories of discharge for outward port cargo are shown in Table 2 and Table 3 respectively.

Comparing the first quarter of 2011 with the first quarter of 2010, double-digit increases were recorded in the tonnage of inward port cargo loaded in Indonesia (+17%), Korea (+15%), Vietnam (+15%) and Malaysia (+12%). On the other hand, double-digit decreases were recorded in the tonnage of inward port cargo loaded in the United States of America (-16%) and Singapore (-15%). Over the same period, double-digit increases were recorded in the tonnage of outward port cargo discharged in Indonesia (+62%), the Philippines (+16%), Malaysia (+15%) and Vietnam (+11%). On the other hand, a double-digit decrease was recorded in the tonnage of outward port cargo discharged in the United States of America (-17%).

The principal commodities for inward and outward port cargo are shown in Table 4 and Table 5.

Comparing the first quarter of 2011 with the first quarter of 2010, a double-digit decrease was recorded in inward port cargo of "stone, sand and gravel; metalliferous ores and metal scrap; and pulp and waste paper" (-11%). As for outward port cargo, a double-digit increase was recorded for "live animals chiefly for food and edible animal products" (+54%).

Containers

In the first quarter of 2011, the port of Hong Kong handled 5.5 million TEUs of containers, representing an increase of 1% over a year earlier. Within this total, laden containers recorded virtually no change at 4.6 million TEUs, while empty containers rose by 5% to 0.9 million TEUs. Among laden containers, both inward and outward containers recorded virtually no change at 2.3 million TEUs.

On a seasonally adjusted quarter-to-quarter comparison, laden container throughput decreased by 2% in the first quarter of 2011. Within this total, inward and outward laden containers decreased by 4% and 1% respectively.

Seaborne laden containers recorded virtually no change at 3.3 million TEUs in the first quarter of 2011 over a year earlier, while river laden containers decreased by 1% to 1.2 million TEUs.

Within inward laden containers, imports decreased by 6% to 0.7 million TEUs in the first quarter of 2011 over a year earlier, while inward transhipment increased by 3% to 1.6 million TEUs. For outward laden containers, exports decreased by 4% to 0.7 million TEUs, while outward transhipment increased by 2% to 1.5 million TEUs.

The detailed container statistics are summarised in Table 6.

Port cargo and laden container statistics are compiled from a sample of consignments listed in the cargo manifests supplied by shipping companies and agents to the C&SD.

Vessel arrivals

In the first quarter of 2011, the number of ocean vessel arrivals recorded virtually no change over a year earlier at 8 030, with the total capacity increasing by 10% to 102.2 million net registered tons. Over the same period, the number of river vessel arrivals also recorded virtually no change at 43 170, with the total capacity increasing by 2% to 26.0 million net registered tons.

The statistics on vessel arrivals in Hong Kong are given in Table 7.

Vessel statistics are compiled by the Marine Department primarily from general declarations submitted by ship masters and authorised shipping agents. Pleasure vessels and fishing vessels plying exclusively within the river trade limits are excluded.

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Pictorial exhibition introduces Hong Kong's shipbuilding and ship repair industry
Wednesday, July 13, 2011
Government Press Release



The buildings on the opposite side of the harbour in this photo taken in the 1890s are the Whampoa Dock in Hung Hom.



The first steamship built by the Taikoo Dockyard, S.S. Shansi, ready to launch in 1910.



Taikoo Dockyard in 1965.



A shipbuilding platform in Whampoa Dock in 1965.

Thanks to the favourable anchorage conditions of Hong Kong, the city quickly developed into a shipping hub in the mid-19th century, and the related shipbuilding and ship repair industry boomed as well. After decades of social and economic development, those dockyards, which had once sprung up along the coasts of Hong Kong Island and Kowloon, are now located at the western part of Victoria Harbour, where they continue to serve the city's shipping industry and economy.

People who are interested in revisiting the glorious history of major dockyards should not miss the exhibition "Dockyards of Hong Kong: Pictorial Exhibition on Hong Kong's Shipbuilding and Repair Industry", currently on show at the Hong Kong Museum of History until October 17.

Organised by the Hong Kong Museum of History, the exhibition features 80 valuable historical photographs and glass negatives, some of which were selected from the donation of the Hongkong United Dockyards Limited (HUD), and reviews the development of the dockyards as port facilities and that of the shipbuilding and ship repair industry in Hong Kong. These images span World War II and faithfully document the development of the Hongkong and Whampoa Dock Company, Taikoo Dockyard and Engineering Company, and HUD.

After having been totally dependent in the era of sailing ships on the seasonal monsoon winds, ocean trade was transformed by the advent of the steam engine - in particular by the later improvements in engine fuel efficiency that meant less coal needed to be consumed - and from the 1860s onwards the iron-hulled, propeller-driven steamship became the major player in ocean shipping. This development was accompanied by several other factors such as the opening up of the trading ports in China and the completion of the Suez Canal in 1869. The latter reduced the transit time between Hong Kong and Britain from over 110 days to about 30 days, and trade between Europe and Asia grew rapidly. All of this contributed to a rise in demand for repair services for ocean-going steamships.

A port providing berths for cargo liners must be close to the centre of commercial and trade activities. It must also offer deep water, shelter from strong winds and a firm seabed suitable for anchoring. In the mid-19th century, Hong Kong was the only port along the coast of Guangdong that met those criteria, and thanks to its favourable geographical location, it quickly developed into a shipping hub. Seeing the potential for lucrative profits in the shipping industry, British companies based in Hong Kong started to get involved in maritime transportation and related businesses, which included setting up dockyards to repair ships passing through Hong Kong. The Hongkong and Whampoa Dock Company was founded in 1863, while Taikoo Dockyard and Engineering Company was set up in 1902. The city's dockyard businesses were the most sophisticated in the China coast region and came to represent one of the most important investments that British merchants in Asia made in the shipping industry. However, by the mid-20th century competition was increasing in the region, so in 1972 the two dockyards merged to form HUD and relocated to new premises on Tsing Yi.

In addition, Yiu Lian Dockyards and Euroasia Shipyard opened for business in the early 1980s, also on Tsing Yi's western coast, to provide repair services for ocean-going vessels. The two companies were acquired by China Merchants Group Limited in 1997, and since then Hong Kong's shipbuilding and repair industries have been dominated by two major players.

The shipbuilding and repair industry of Hong Kong was once the city's most important heavy industry, employing a large workforce and supporting trade and transportation as well as marine rescue work. Today the industry continues to serve vessels passing through Hong Kong and helps our shipping sector to maintain its competitive edge.

The Hong Kong Museum of History is located at 100 Chatham Road South, Tsim Sha Tsui, Kowloon. It opens from 10am to 6pm on Mondays to Saturdays and from 10am to 7pm on Sundays and public holidays. It is closed on Tuesdays (except public holidays). Admission is free for this exhibition.

For details of the exhibition, please visit the Museum's website, hk.history.museum, or call 2724 9042.

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By kaiman1013 from a Hong Kong discussion forum :

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Customs seizes ivory tusks smuggled in by sea
Tuesday, August 30, 2011
Government Press Release


Customs officers yesterday (August 29) seized 794 pieces of African ivory tusk inside a container shipped to Hong Kong.

Customs officers yesterday (August 29) seized 794 pieces of African ivory tusks, weighing 1,898 kilogrammes, inside a container shipped to Hong Kong. The tusks were worth about $13 million.

Based on intelligence analysis, officers of the Ports and Maritime Command examined a container shipped to Hong Kong via Malaysia. The consignment was declared as non-ferrous products for factory use. Upon examination, Customs officers found the batch of ivory tusks concealed by stones. A 66-year-old man was arrested. Follow-up investigation is still going on.

Under the Import and Export Ordinance, any person found guilty of importing unmanifested cargoes is liable to a maximum fine of $2 million and imprisonment for seven years.

In addition, under the Protection of Endangered Species of Animals and Plants Ordinance, any person found guilty of trading endangered species for commercial purposes is liable to a maximum fine of $5 million and imprisonment for two years.