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Touchy issues 'holding up' port cost report

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The release of a comprehensive government study which is critical of the high port charges in Hong Kong is being delayed so some of its more contentious findings can be amended, according to Marine Department sources.

The comparative study, compiled by the department's Port Operations Committee, finds the terminal charges at Kwai Chung 'among the most expensive in the world', according to the executive summary released to committee members earlier this month.

While the high cost of shipping cargo through the SAR is well documented, the study is thought to have broken down the costs of moving cargo through Kwai Chung, revealing for the first time that 99 per cent of overall expenses incurred by the lines are terminal-related charges.

Only a minute portion of the estimated HK$2,200 cost of moving a 20-foot box through Hong Kong is attributable to harbour dues, pilotage, towage and ancillary costs.

The lines then pass that cost on to the shipper, or consignee, via a terminal handling charge which they claim is a cost recovery mechanism.

While the study makes six recommendations, none suggest formulating a strategy to deal with costs.

'Some of the points are very contentious and were not approved by the [committee] board, so there will be some amendments,' a Marine Department source said.

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