HK port operators back Maersk on threat from competition ordinance
Time：2015-06-25
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"It is understood that vessel sharing agreements are a global practice. The shipping circle`s request for the Hong Kong Government is to clearly spell out the process of assessing such behaviour," said HKCTOA chairwoman Jessie Chung.
This statement came after Maersk`s north Asia CEO Tim Smith said Maersk would have to move to Shenzhen because its activities would be illegal under the competition ordinance, as would most other carriers` activities, which also include vessel sharing agreements.
"Shipping lines can easily move the transshipment business from Hong Kong to other terminals across the border," said Ms Chung, noting that 70 per cent of Hong Kong`s throughput is cargo in transit.
"The loss of such a business will not only put at risk our city`s reputation as an international port, but also the 93,500 direct and indirect jobs provided by the port," she said, reported Newark`s Journal of Commerce.
Ms Chung wants the government to clarify whether vessel sharing agreements used by the liner alliances will be outlawed when the city`s competition law is implemented next year.
The Competition Commission expects to complete its final preparations for the Competition Ordinance soon with the full implementation date still to be determined by the government, but widely expected to be January 1.