Third Quarter port cargo down 4%

Hong Kong’s total port cargo throughput in the third quarter fell 4% year-on-year to 64.4 million metric tons, according to the Census and Statistics Department.  

Within this total, inward and outward port cargo dropped 2% and 7% to 36.3 million metric tons and 28.1 million metric tons respectively.

In the first nine months of the year, total port cargo throughput fell 10%, compared to a year earlier, to 178.3 million metric tons.  Within this total, inward and outward port cargo fell 8% and 12% to 102.4 million metric tons and 75.9 million metric tons respectively.

On a seasonally adjusted quarter-to-quarter comparison, total port cargo throughput grew 5% in the third quarter of 2009.  Within this total, inward and outward port cargo rose 4% and 6% respectively.  The seasonally adjusted series enables more meaningful shorter-term comparison to be made for discerning possible variations in trends.

In the third quarter of 2009, the port of Hong Kong handled 5.6 million TEUs of containers, representing a 16% decrease year-on-year.  Within this total, laden containers dropped 13% to 4.8 million TEUs, while empty containers fell 28% to 0.8 million TEUs.  Among laden containers, inward containers decreased by 13% to 2.3 million TEUs, while outward containers dropped by 13% to 2.5 million TEUs.

In the first nine months of 2009, the port of Hong Kong handled 15.5 million TEUs of containers, representing a 17% decrease year-on-year.

In the third quarter of 2009, the number of ocean vessel arrivals fell 1% compared to a year earlier to 8,780, with the total capacity up 1% to 94.3 million net registered tons.  Over the same period, the number of river vessel arrivals decreased by 4% to 43,920, with the total capacity increasing by 1% to 24.9 million net registered tons. In the first nine months of 2009, the number of ocean vessel arrivals decreased by 10% over a year earlier to 24,620, with the total capacity decreasing by 2% to 283.8 million net registered tons.  

IBM opens Cloud Computing Laboratory

On December 10, IBM opened a new Hong Kong Cloud Computing Laboratory to support LotusLive cloud services. This marks the company’s 10th cloud computing lab and the first lab of any major information technology (IT) vendor in Hong Kong. The new center serves as a world-class development facility for Web 2.0, cloud mail and collaboration for businesses of all sizes around the globe.

The center is also key to IBM’s development efforts worldwide for public cloud collaboration services, supporting the growth of cloud collaboration by governments and companies.

IBM is also developing hybrid solutions that feature the benefits of both on-premise and public cloud collaboration. Many businesses indicate a preference for some type of mixed environment where employees can operate in either mode, depending on their circumstances or location.

In order to accomplish this, IBM has established a cloud computing team in Hong Kong dedicated to identifying and driving best practices for its cloud messaging business in critical areas such as security, privacy and stability. Drawing on emerging market expertise, this unit represents a major expansion of IBM’s Web-based mail and collaboration capabilities.

The laboratory builds on the e-mail technology and expertise of Outblaze, a Hong Kong-based company whose messaging assets were acquired by IBM earlier this year and incorporated into the Lotus brand of collaboration services. As part of the IBM China Development Laboratory (CDL), IBM’s largest with more than 5,000 developers to date, the new laboratory will be able to draw upon the resources and expertise of CDL and IBM’s world-leading global research and development organization for its growth and development.

Competition policy group publishes report

Hong Kong’s Competition Policy Advisory Group (COMPAG) published its 2008-2009 Annual Report.

A Hong Kong Special Administrative Region Government spokesman said the report reviews complaints received by COMPAG during the year and outlines the follow-up actions taken. It also includes an update on the progress of the preparation of the Competition Bill, which is the major ongoing initiative advocated by COMPAG.

The spokesman said that COMPAG would continue its efforts in promoting its guidelines on competition while the Competition Bill was being prepared.

COMPAG was established in December 1997 under the chairmanship of the Financial Secretary to coordinate the government’s efforts in promoting competition, to review competition issues that have substantial policy or systemic implications and to direct bureaus and departments on such matters.

The report is available online at the COMPAG Web site [www.compag.gov.hk].

Airport Authority announces interim results

The unaudited interim financial results for the six months ended September 30, 2009 for the Airport Authority Hong Kong showed that revenue and profit attributable to equity shareholders dropped 4.7% and 3.8% respectively over the same period in 2008 to US$553.33 million and US$167.56 million.

Passenger and cargo traffic at Hong Kong International Airport (HKIA) were negatively affected by the global economic downturn that began in the second half of 2008, and as a result dropped 6.4% and 11.5% respectively from a year earlier to 23 million passengers and 1.68 million metric tons of cargo during the period under review. Aircraft movements also declined 8.5% to 138,600.

In recent months the market has shown signs of stabilization and recovery, particularly in air cargo, which suffered the most during the economic downturn. Chief Executive Officer of the Airport Authority Stanley Hui said, “In October, cargo volume recorded the first growth in 14 months, and November figures thus far continue to indicate a strong rebound in demand for cargo services. Our airline partners are also responding to the early signs of recovery by reinstating capacity or routes that have been cut or suspended since the global financial tsunami arrived last year.”

Since April, three passenger and 11 freighter airlines have joined HKIA or resumed their services, adding 18 passenger and 30 all-cargo flights per week. Currently, around 90 airlines are operating from HKIA, linking the airport to around 150 destinations worldwide, including some 40 cities in mainland China.

“Although the force and pace of the recovery are hard to predict, we are confident in the long-term prospects of HKIA as we are well positioned to capitalize on the tremendous growth opportunities arising from mainland China’s robust economy and the increasing economic integration between Hong Kong and the Mainland, in particular, the Pearl River Delta (PRD). The Airport Authority remains committed to maintaining HKIA’s status as an international and regional aviation center,” Mr. Hui said.

To assist airlines and other operators that have been adversely affected by the global economic downturn, the Airport Authority offered a relief package of US$57.69 million in April 2009. By the end of September 2009, a US$15.38 million reduction in landing and parking charges had been provided to airlines. In addition, about US$16.66 million worth of interest-free payment deferral for office and lounge rents was arranged for business partners.

A new ferry route between HKIA and Nansha Port was launched in July, increasing the number of PRD ports with ferry services to HKIA to seven (including Macau). Ferry trips served by SkyPier at HKIA now amount to 560 a week. In September, the 340-square-meter Precious Metals Depository, which provides secure storage and physical settlement services to the bullion trade, officially entered into service.

By the end of 2009, two major facilities—the North Satellite Concourse and the permanent SkyPier—will be soft-opened. The Airport Authority is also working on a study on developing the midfield area to provide additional aircraft stands, related apron facilities and a new passenger concourse to accommodate increases in aviation demand when runway capacity is gradually increased to 68 aircraft movements per hour by 2015. In addition, the Hong Kong International Airport Master Plan 2030, a strategic development plan for the long-term growth of the airport, is well under way.

Airport Authority extends charge reductions

On December 3, the Board of the Airport Authority (AA) announced that it will extend the current 10% reduction in landing and parking charges at Hong Kong International Airport (HKIA) for three months to March 31, 2010. This amounts to additional savings of up to US$7.17 million, and will give airlines further relief against possible uncertainty on their paths to recovery.

The 10% reduction in the landing and parking charges, which was originally due to expire at the end of 2009, is part of a US$57.69 million relief package launched by the AA in April 2009 to assist aviation business partners whose business has been adversely affected by the global economic downturn.

Apart from the 10% reduction in the landing and parking charges, the relief package also offers an interest-free payment deferral for premises rented at HKIA for up to one year until the end of March 2010.

Air traffic figures up in November

The combined Cathay Pacific and Dragonair traffic figures for November show passenger volume, cargo and mail tonnage rising compared to the same month in 2008. By November 2008, traffic had already been significantly impacted by the economic downturn.

Both airlines carried a total of 2,007,773 passengers in November, up 1.5% year-on-year. The month’s load factor was 82%, up 6.3 percentage points, while capacity for the month, measured in available seat kilometers (ASKs), was down by 5.9%. Year to date, the number of passengers carried fell 3.3% compared to a capacity decline of 4.7%.

The two airlines carried a total of 141,799 metric tons of cargo and mail last month, up 7.6% year-on-year, while the cargo and mail load factor rose by 12.3 percentage points to 76.8%. Capacity for the month, measured in available cargo/mail tonne kilometers, was down 12.9%. Year to date, tonnage dropped 9.5% against a 13.9%. capacity reduction.