Hong Kong Seaport Alliance’s commitments accepted by Competition Commission

The Hong Kong Seaport Alliance’s (HKSPA) commitments, which include a cap on gateway cargo handling charges, have been accepted by the Competition Commission following an investigation into whether the alliance contravenes competition law.

Last year, the alliance was launched, comprising of Modern Terminals Limited (MTL), Hongkong International Terminals Limited (HIT), COSCO-HIT Terminals Limited (CHT) and Asia Container Terminals Limited (ACT), which jointly operate and manage 23 berths across eight terminals at Kwai Tsing port in Hong Kong.

The Commission had been concerned that the alliance could result in price rises or decreases in service levels in the gateway market, as well as withholding overflow services from DP World, the only terminal operator at Kwai Tsing that is not part of the alliance.