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Glut of unused containers as trade slumps

Anita Lam

Kai Tak eyed for shippers' empties

Officials are seeking a site to house the hundreds of thousands of unused shipping containers expected to flood Hong Kong in the next few months as the global financial crisis slows China's exports.

The former airport site at Kai Tak is one option, the Transport and Housing Bureau yesterday told shipowners and operators of container depots. But a Development Bureau spokesman said it had reservations about that and would seek other sites.

There was no time to lose, the Hong Kong Container Depot and Repairer Association said. The city's 17 big storage depots were full to their 160,000 capacity and cargo business was still falling fast.

The world's major trading nations have all reported drops in imports and exports in the past few months.

Container handling volume at Hong Kong's port fell 23 per cent year on year in December, to 1.03 million 20ft-equivalent units (teu). The number of empty containers handled rose 12.8 per cent.

Mainland imports in January fell 43.1 per cent, and exports 17.5 per cent, by value. Hong Kong's exports fell 11.4 per cent year on year - the most since the September 11, 2001 attacks. Guangdong expects zero growth in exports this year.

Germany, the world's biggest exporter, reported its biggest drop in output in 22 years yesterday, contributing to a record fall in euro zone gross domestic product.

Association chairman Mark Chan Wai-chung said: 'We thought Kai Tak would be our quick solution, because we cannot hold up much longer ... There are thousands of empty boxes coming in every day.'

The number of empty containers his members was storing has risen tenfold since September. Without more storage space, ship owners will send containers elsewhere.

'Truck drivers have already seen a drop in business amid the downturn in sea cargo transport. If even the empty containers are gone, the drivers will have nothing to deliver and they are going to lose their jobs,' he said.

A senior shipping industry source said major shipowners had also asked the government for space to house empty containers.

Miriam Lau Kin-yee, of the Liberal Party, who is helping the groups liaise with the government, said the matter needed addressing urgently.

The Development Bureau spokesman said Secretary for Development Carrie Lam Cheng Yuet-ngor met stakeholders early last week.

A source familiar with the situation said although land at Kai Tak was available on short-term lease, storing containers on such a valuable harbourfront site would be inappropriate. It would increase heavy-vehicle traffic in an area close to homes in Kowloon City.

Even if a suitable site is found to store containers, it could take months before it can be used because the operators would have to go through a bidding process and the government would need to seek the opinion of the district council concerned.

Building up

The number of containers being shipped empty is rising

In December, the volume, in teu, in Hong Kong rose 12.8 per cent to: 217,000

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