Land use of container port is up to government, says Victor Li

Themis Qi

Hong Kong's ranking among global container terminals continues to fall, says Victor Li Tzar-kuoi, chairman of CK Hutchison, a port operator.

And on the land use of Kwai Tsing Container Terminal, Li said it is the government that should decide on the issue.

Amid the rise of terminals in the region, including Singapore and Shanghai, the city - the world's No 1 container port 20 years ago - was for the first time estimated to fall out of the top 10 at 11th place last year, according to shipping research institute Alphaliner's analysis.

Hong Kong's container port is also expected to be threatened by escalating geopolitical tensions between the United States and China and in the Middle East.

Last year, Hong Kong United Dockyards under CK Hutchison applied to transform some sites covering about 19.9 hectares to build about 15,000 homes in Tsing Yi, alongside a yacht club and other facilities.

However, Li is confident in its overall port business due to its global portfolio and expansion into emerging markets, including Egypt and Saudi Arabia.

Li added CK Hutchison is benefiting from its diversified businesses, such as retailer AS Watson, whose 16,800 stores all over the world can be supplementary for some mature markets.

Due to the northbound trend of Hongkongers, CK's local retail sector is facing a challenge, said Li, but it has taken measures to stimulate domestic consumption.

Li, who also chairs CK Asset, admitted that the demand for new commercial buildings is low but he is confident in Cheung Kong Centre II. The tower is said to have recorded an occupancy rate of only 10 percent as of March.

For residential homes, Li believes demand will still support the local market in the long run despite developers' low-pricing strategy, but added it is not easy to have double-digit returns yearly from the sector amid high interest rates and development costs.

In terms of increasing shareholder returns, Li said there are many ways besides increasing dividends, and CK Asset has repurchased shares and acquired two new projects for long-term development.

themis.qi@singtaonewscorp.com