SKYLINE Technologies -- News Update (22 March 2006 )

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1. Drainage improvement works contract in Sheung Wan signed
Hong Kong Government, 22 March 2006

The Drainage Services Department today (March 22) awarded a $33 million contract to Kum Shing Construction Company Limited to intercept and divert the upland stormwater flows away from low-lying areas in Sheung Wan.

The works comprise the construction of about 530 metres of stormwater drains ranging from 900 millimetres to 1,500 millimetres in diameter, along Lok Ku Road and Queen's Road Central. Meanwhile, 130 metres of single cell drainage box culvert measuring 2.25 metres wide and 1.25 metres high along Gilman's Bazaar will also be constructed.

To minimise disruption and disturbance to the public, about 280 metres of drains will be constructed by trenchless method.

Speaking after the contract-signing ceremony, Assistant Director of Drainage Services (Projects and Development), Mr Tsui Wai, said the construction of drains by trenchless method would minimise the extent of road excavation, hence the disturbance to the community.

"This is the first contract of the project. The works will start this month. Upon completion in mid-2008, the flooding risk in low-lying area in Sheung Wan will be reduced," Mr Tsui said.

2. LCQ13: Arrangements for the re-entry of the construction sites by the Housing Authority
Hong Kong Government, 22 March 2006

Following is a question by the Ir Dr Hon Raymond Ho and a written reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (March 22):

Question:

In view of the serious slippage in the contractor's works, the Housing Authority ("HA") took re-entry action in the middle of last month regarding the construction sites of three public rental housing ("PRH") projects, including Fanling Area 36 Phase 1 and Phase 2. In this connection, will the Government inform this Council whether it knows:

(a) given that the re-entry of the construction sites in Fanling will delay the anticipated completion dates of the relevant construction projects by 11 to 18 months, the arrangements to be made by HA for the households affected by redevelopment programmes and waiting to be rehoused in the relevant PRH flats; and

(b) whether HA will, in the light of the above delay, formulate any measures to strengthen the monitoring of its contractors' progress of work?

Reply:

Madam President,

Due to the contractor's failure to deliver according to contract, the three public housing construction projects at Fanling Area 36 Phases 1 and 2 and Shek Pai Wan Estate Phase 2 have been seriously delayed. On February 17, the Housing Authority re-entered upon these sites. As Shek Pai Wan Estate Phase 2 is the reception estate for the Wong Chuk Hang Estate redevelopment project, the slippage will affect the rehousing of tenants.

My reply to the two-part question is as follows:

(a) A total of 1 460 households in Wong Chuk Hang Estate who will be rehoused to Shek Pai Wan Estate Phase 2 are affected by the slippage. Immediately after the re-entry operation, the Housing Department has taken the initiative to invite them to consider alternative rehousing arrangements if they do not wish to wait for Shek Pai Wan Estate Phase 2. Possible options include some 270 uncommitted flats in Shek Pai Wan Estate Phase 1 or vacant flats in other existing public housing estates. To date, about 160 households have opted for Shek Pai Wan Estate Phase 1. Flats are being allocated to them. Meanwhile, for tenants who wish to stay put, the Housing Department will ensure good hygiene and security in Wong Chuk Hang Estate so as to maintain a satisfactory living environment until all tenants are rehoused.

(b) Strengthening project management and site supervision is one of the major improvement measures under the Quality Housing Initiatives Reform launched by the Housing Authority in 2000. All public housing construction projects are supervised by professional architects and engineers at every stage from commencement of works to the maintenance period after completion. There are also resident site staff at the construction sites to closely monitor the day-to-day site activities, thus enabling the Housing Department to identify promptly any problems arising during construction, as well as ensuring that the construction works are progressing on schedule and meet the quality requirements and specifications stipulated in the contracts.

The three public housing projects mentioned above had initially been progressing on course until early 2005 when signs of sluggish progress and under-performance started to emerge, which were detected by our site supervision staff immediately. The contractor was promptly asked to improve. At first the contractor made some efforts to catch up and deliver. In July 2005 the slippage in all the three sites became serious. The Housing Department took enforcement action under the contracts by issuing warning letters to the contractor. The Department also worked closely with the contractor to find practicable solutions to the problems. When it became apparent that the contractor was unable to fulfil his contractual obligations, the Housing Department, having regard to the public interest, re-entered upon the three construction sites pursuant to the provisions of the contracts dealing with such breaches. The Housing Authority's rigorous site monitoring system has indeed facilitated prompt identification of the site problems and allowed us to deal with these problems at the earliest possible opportunity within the contractual framework.

3. LCQ8: Development of the new cruise terminal
Hong Kong Government, 22 March 2006

ollowing is the question by the Hon Ronny TONG and a written reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (March 22):

Question

According to the findings of a research, people vacationing on mega cruise ships are on a rise and cruise travelling has become a world trend. It is expected that the number of cruise travellers will increase up to 100% in the next 15 years. Also, cities may lose over half of their market share in cruise industry in the next 10 years if their ports and terminals cannot accommodate mega cruise ships. In this connection, will the Government inform this Council:

(a)of the number and trend of visitors visiting Hong Kong by cruise ships over the past three years, and the authorities' measures to increase the number of such visitors;

(b)of the current utilization rate of the cruise terminal in Hong Kong, when the terminal is expected to reach its maximum uptake, and whether there are any corresponding measures to cope with such situation; and

(c)whether it has conducted an overall and comprehensive assessment on the supporting hardware in Hong Kong for developing cruise industry, in order to maintain or even raise Hong Kong's competitiveness in this regard?

Reply

Madam President,

(a)According to the information provided by the Hong Kong Tourism Board (HKTB), the total cruise passenger throughput and the trend in the past three years are as follows –

At present, the Ocean Terminal is the only cruise terminal in Hong Kong. Whenever there are cruise ships arriving in Hong Kong which cannot berth at the Ocean Terminal or have conflicting schedules with the Ocean Terminal, we will assist them in making alternative berthing arrangements. To increase the number of cruise visitors to Hong Kong, the HKTB is co-organising joint promotion with cruise liners and their designated travel agents on fly-cruise visits to Hong Kong. The HKTB conducts presentations, seminars and mega events, etc. to update the cruise travel agents on Hong Kong’s new tourism facilities and activities from time to time. It also invites senior executives of major cruise liners to Hong Kong for familiarisation visits.

The HKTB also attends major international tourism trade shows, including the annual "Seatrade Cruise Shipping Convention" in Florida of the United States. This convention is a leading event of the world cruise industry gathering global buyers and suppliers of the cruise industry. In 2006, the HKTB will join forces with other destinations for the third consecutive year to market the Asian region to international cruise liners. To enhance cruise visitors' experience upon their arrival, the HKTB arranges special meet-and-greet service. For example, welcoming activities were arranged for the passengers of Nautica in January 2006.

(b) & (c)According to the “Study on Cruise Terminal Facilities Development in Hong Kong 2004” (the Study) commissioned by the Tourism Commission, a cruise terminal is normally not berthed with cruise ships every day. It often has weekly, monthly and seasonal peaks. Therefore, the general standard for measuring whether a cruise terminal has reached its maximum capacity is 75% of the annual maximum capacity of the cruise terminal.

Currently, the Ocean Terminal is operated by a private company. According to the information provided by that company, the annual average berth utilisation rate of the Ocean Terminal has increased from 71% in 2003 to 76% in 2005.

During recent peak seasons, cruise ships have had to make use of alternative berthing arrangements due to conflicting schedules at the Ocean Terminal. According to the requests for assistance received by the Government and the HKTB from the cruise liners or their designated travel agents, there have been at least 10 occasions since 1999 when cruise ships needed to make alternative berthing arrangements, such as berthing mid-stream and barging in the Hong Kong harbour. Besides, since the structural capacity of the Ocean Terminal can only accommodate cruise ships up to a maximum of 50,000 displacement tons, it cannot support the berthing of some mega cruise ships. Due to this reason, arrangements were made four times in 2005 for such mega cruise ships to berth at the Kwai Chung Container Terminal. We know that similar arrangement has to be made for another four mega cruise ships in the near future.

In view of the international trend to build mega cruise ships, it is clear that without a new cruise terminal, cruise liners will have to continue to rely on the above berthing facilities at the container terminal or berthing mid-stream in the Hong Kong harbour, if they still wish to include Hong Kong in their itineraries, or they may skip Hong Kong altogether. According to the Study, international cruise liners are considering stepping up their operations in Asia, which is considered to be a major cruise market. It is estimated that the demand for berthing facilities is expected to grow. The Study also points out that Hong Kong will require an additional berth as soon as possible to satisfy the market need, and one to two more berths beyond 2015 to sustain its development as a regional cruise hub.

In view of the above, the Government will expedite the development of new cruise terminal facilities. On the one hand, we will accelerate the timetable of Kai Tak Planning Review as far as possible. On the other, we invited interested parties to submit Expressions of Interest (EOI) at the end of last year, in order to ascertain whether there are suitable and feasible locations other than Kai Tak for development of new cruise terminal facilities before 2011. We received six suggestions. The Government’s inter-departmental working group is carefully examining the six suggestions, based on the criteria set out in the EOI’s Invitation Document. The Government will inform the Legislative Council and the public of the result of the EOI exercise and the progress of the development of new cruise terminal facilities after completion of the EOI evaluation. If any of the suggestions can meet the requirements of the Government, we will follow the normal procedures and put the site out for competitive bidding after public consultation. If no suggestion can meet our requirements, the Government will proceed at full speed with the development of the new cruise terminal at Kai Tak.