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LOWTAX OFFSHORE

HONG KONG: SHIP MANAGEMENT AND MARITIME OPERATIONS


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BACK TO HONG KONG INFORMATION: BUSINESS, TAXATION AND OFFSHORE

In this Section:

- HONG KONG OFFSHORE BUSINESS SECTORS
- HONG KONG BANKING AND FINANCIAL SERVICES
- HONG KONG VENTURE CAPITAL SECTOR
- HONG KONG INVESTMENT FUND MANAGEMENT
- HONG KONG FINANCIAL HOLDING AND INVESTMENT ACTIVITIES
- HONG KONG HEADQUARTERS COMPANIES
- HONG KONG BOOKING CENTRE COMPANIES

- HONG KONG PROFESSIONAL SERVICES
- HONG KONG INSURANCE
-
HONG KONG THE SECURITIES MARKET


Ship Management and Maritime Operations

Endowed with a deep-water, silt-free natural harbour strategically located along a major sea route and with the Chinese mainland providing a huge cargo base, Hong Kong has become a sea transport hub in Asia.

Advanced port facilities and efficient port services are complemented by excellent trade, financial and other services which underpin Hong Kong's status as the 10th largest trading entity in the world. The port handles 80% of Hong Kong's total external cargo volume. The shipping sector employs more than 25,000 people, and generates more than US$5bn in revenues annually.

Hong Kong is the world's busiest container port, and strong expansion of the southern China cargo base is expected to provide long-term growth of port traffic in Hong Kong, despite some diversion of ocean-going transhipment cargo and the competition from new ports in southern China.

Hong Kong's port facilities are financed, built, owned and operated by private firms. It is the only major port not run by a port authority.

Hong Kong is a major ship owning and management centre. As at September 2007, there were 1,009 ships (35 million gross registered tons) on the Hong Kong Shipping Register. In terms of tonnage, Hong Kong shipowners control more than 34 million tonnes (6%) of the merchant ships in the world, ranking 6th after Greece, Japan, Norway, the US and China. According to the Hong Kong Shipowners' Association, the total tonnage of ships owned or managed by its members is more than 60 million deadweight tonnes.

An increasing number of countries are seeking to privatise their port operation and/or develop new ports to be run on a commercial basis. An exportable sea transport service from Hong Kong is thus the development and management of ports in the Chinese mainland and the wider region. Hong Kong port operators are already active in this field. For example, Hutchison Port Holdings Group now owns, manages and operates container terminals in the Chinese mainland, the UK, Netherlands, Panama, Bahamas, Indonesia, Myanmar etc. It is the biggest independent port operator in the world, handling around 10% of the global container traffic.

In order to strengthen Hong Kong's position as an international shipping centre,the government has reduced merchant shipping registration fees and annual tonnage charges by 50%. Other improvements include simplifying the ship survey requirements, computerising ship registration procedures, negotiating double-tax agreements with major trading partners and reducing the tax burden on Hong Kong shipping companies. These measures not only aim at building up Hong Kong's register tonnage, but also to attract shipping companies to set up operations in Hong Kong to manage their ships. After 28 January 2000, Hong Kong-registered ships paid lower dues when they call at mainland ports.

Total port cargo throughput in the third quarter 2007, recorded virtually no change over a year earlier, at 61.7 million tonnes, the Census & Statistics Department announced. Within this total, inward port cargo fell 1% to 34.9 million tonnes, while outward port cargo rose 1% to 26.7 million tonnes. The port handled 6.2 million containers in the third quarter, a rise of 2% over a year earlier. .

The tendering exercise for Hong Kong's Kai Tak cruise terminal project started in the fourth quarter of 2007, the Tourism Commission has said, adding that it has proposed development parameters for the project.

According to a Commission document submitted to the Legislative Council on August 9, bidders must have at least three years' immediate experience in operating a cruise terminal with a minimum annual throughput of 200,000 homeport passengers. They will be required to propose a design that can provide flexible services to different cruise operators.

The terminal's first berth is slated to open in February 2012. The successful bidder will be required to provide a bond of 5% of the estimated construction cost of the facilities to the Government, as a financial disincentive against any delays.

The second berth should be commissioned within three years upon a demand letter being issued by the Director of Lands. The target date is beyond 2015.

The successful bidder can also commission the second berth earlier to handle smaller cruise vessels, subject to Government approval, which would take into account various implications such as traffic conditions and marine safety.

The successful bidder will be given the flexibility to complete the commercial area in phases by 2020, and it will be required to build a landscaped deck on the roof of the cruise terminal building to allow the public to enjoy the waterfront.

 

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BACK TO HONG KONG INFORMATION: BUSINESS, TAXATION AND OFFSHORE

 

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