Hong Kong’s CT10 could be unviable

According to reports in the South China Morning Post, a consultancy report to be published next month, questions the viability of the new terminal, saying that the Hong Kong government should make better use of the 100,000 ha of land at the Kwai Chung Container Terminal in Tsing Yi in the short-term.

CT10 was first proposed when business was growing annually at around 5%.  That growth is now expected to drop to between 1% and 3% from 2020 and doubts are being voiced on whether the project would be able to attract private investors.

“It usually takes 10% to 12% in financial returns to justify a private investment,” said a source close to the report, adding, “Even for a government project, we are talking about an economical return of some 4%.  I am not sure if CT10 would satisfy either of these.”