An analysis of capacity and service level of the container terminals of Hong Kong

The Port of Hong Kong (HKP) was once the busiest container port in the world, but surpassed by Shanghai and Singapore in the past decade, due to the loss of South China cargo to two other South China ports. The greater inland transport cost and high container handling charges of HKP have been well discussed and thought to be the major disadvantages of HKP, but in recent years the insufficiency of barge berths becomes another issue, as more than half of South China cargo uses barge as the inland transport mode to Hong Kong. In this paper, a simulation model for Kwan Chung Container Terminals of Hong Kong was developed. The interaction between berthing capacity and service level was examined. The findings show that the service level (in terms of vessel waiting time) for barges has been deteriorating in recent years, and will deteriorate significantly if the demand ever increases in the future. The service level for ocean vessels will deteriorate significantly if the demand reaches 20 million TEUs, although this demand level could hardly be realized with bad service level. Finally, the necessity of a new container berths, an issue for more than a decade, is discussed.