Business leaders voice their concerns

Dialogues shed light on how business interests may be affected by the bridge project

by Doris Leung

An exchange of comments by Hong Kong's business leaders followed closely upon Gordon Wu's revived bridge proposal.

John Meredith, Group Managing Director of Hutchison Port Holdings, says that Hutchison does not object to building the bridge. However, it will object to any government subsidy for the project. Instead of a link across Lingdingyang, he suggests setting up a rail link with the Mainland. Midstream transport to Kwai Chung container terminal has not reached full capacity, according to Mr. Meredith. He says that trucking to Kwai Chung is expensive because of the hold up at the border, not because of terminal handling charges.

Gordon Wu, chairman of Hopewell Holdings Ltd. and the Hong Kong Port and Marine Board, says that he is neither seeking government subsidy nor proposing to build a new container terminal himself. He says that Hopewell’s revenues from its Pearl River Delta (PRD) expressways may be affected by the bridge. According to Mr. Wu, he wants to enhance Hong Kong's competitiveness as the logistics hub of the PRD and help prevent it from being marginalized.

Canning Fok, Managing Director of Hutchison Whampoa Ltd., emphasizes that the bridge should not hurt existing container terminal operators, and there should not be any land subsidy for new terminals.

Hutchison’s concerns are understandable. Besides having a large stake in Hong Kong’s container terminals, the group also owns a 48% stake in Shenzhen's Yantian container ports (See Map) and has shares in several other ports in Shanghai and other Mainland cities. Competition from a proposed new terminal in northern Lantau Island will detract from its business in Yantian and in its other facilities in Hong Kong.(See businesses) The group says that there is no need for new terminals in Hong Kong until 2016.

However, Mr. Wu is not alone in supporting the bridge.

Fung Kok Lun, Managing Director of Li & Fung Ltd., says that as new ports in west PRD increases competition in the area, Hong Kong should avoid being marginalize. The bridge will help reinforce Hong Kong's role as the logistics centre for the region.

His view is shared by his brother Victor Fung Kok King, Chairman of Li & Fung and the Airport Authority. Victor Fung says that land transport is more efficient than sea transport, and it is illogical not to take advantage of the beautiful Tsing Ma bridge and the Chep Lap Kok airport. He has submitted his own bridge proposal.

Stanley Ho, Chairman of Shun Tak Group and Managing Director of Sociedade de Turismo e Diversoes de Macao, S.A.R.L., supports the bridge but says that he has not yet decided whether or not to invest.

Li Ka Shing, chairman of Hutchison and Cheung Kong (Holdings), supports what has been said by other directors of his group. However, he also says that the bridge is unlikely to affect Hutchison's earnings because the company has been expanding rapidly outside Hong Kong and has a very good growth rate.