Saturday, 18 September 1999

Initiatives to Promote HK's Shipping and Maritime Industry

The Hong Kong Special Administrative Region has taken a number of initiatives to promote Hong Kong as an international shipping center as well as a place to register ships, said the Secretary for Economic Services, Mr Stephen Ip.

Mr Ip, along with members of the Hong Kong Port and Maritime Board (PMB), are in New York to promote Hong Kong as an international shipping center and as a place to register ships. During his two-day visit to New York (September 16 and 17), Mr Ip met executives from the shipping and maritime industry in New York, senior officials from the Port Authority of New York and New Jersey as well as the local media.

Mr Ip said Hong Kong has cut registration fees and streamlined its ship survey requirements to encourage ships to join the Hong Kong Register. Measures have also been taken to simplify ship inspection procedures, and there has been discussion with overseas jurisdictions on reciprocal tax exemptions for shipping companies with a view to reducing the overseas tax burden of Hong Kong shipping companies and improving their international competitiveness.

The shipping register was re-engineered in April this year and the result was a reduction in cost to shipowners to register ships with the Hong Kong Shipping Register. For example, fees for first-time registration of a vessel was reduced by 85 per cent to a flat rate of HK$15,000 (US$1,930). The annual tonnage fee was cut by 45 per cent and capped at HK$100,000 (US$12,820) and the charge for registration of mortgage is now set at a flat rate of HK$440 (US$56), a reduction of 96 per cent from the maximum fees charged previously.

In the six months since the re-engineering exercise, there has been a growth of between 700,000 and 800,000 gross registered tonnes (GRT) of ships registered in Hong Kong. Since Hong Kong's reunification with China, the total tonnage of ships registered in Hong Kong has increased from 5.3 million GRT to the current 7.0 million GRT.

Mr Ip also cited Hong Kong's excellent telecommunications, finance, insurance and legal services as well as its simple and low tax regime as factors, which are attractive to shipping companies to register in Hong Kong.

Mr Ip said Hong Kong is going ahead with the construction of Container Terminal 9 (CT9) which will see an addition of 2.6 million TEU (20-foot equivalent unit) to the port's total handling capacity. The first berth is expected to be ready in 2002 and the sixth and last berth to be completed in 2004.

The delegation, comprising Chairman of the PMB Shipping Committee, Mr Frank Tsao; Chairman of the PMB Shipping Register Subcommittee, Mr Liang Ming-hang; Member of the Hong Kong Legislative Council and member of PMB, Mrs Miriam Lau; the Director of Marine, Mr Tsui Shung-yiu; and the PMB Deputy Secretary, Mr Roger Tupper, will leave for Europe tomorrow (September 18, New York time).