For discussion on Task Force on Land Supply

6 March 2018 Paper No. 05/2018

TASK FORCE ON LAND SUPPLY

Alternative Use of the River Trade Terminal Site

PURPOSE

This paper provides Members with background information on the

site currently used by the River Trade Terminal (“RTT”) in Tuen Mun West to
facilitate discussion on any possible alternative use(s) of the site. It also
touches on an idea regarding reclamation in the Castle Peak Bay to the east of
the RTT along the same coastline.

BACKGROUND

2. To meet the rising need of river trade to and from the Pearl River
Delta (“PRD”) region in the late 1980s and improve the overall efficiency of
the Hong Kong Port (“HKP”), the RTT, a privately-run terminal on reclaimed
land dedicated for river cargo, came into operation in 1998. Granted to the
current land owner by way of public tender, the RTT site occupies an area of
65 hectares (ha), providing 49 berths along 3,000 metres of quay front. The
facility primarily handles and consolidates container and break-bulk cargo
from the PRD region prior to despatch to the Kwai Tsing Container Terminals
(“KTCTs”) and other port facilities in Hong Kong for onward shipment and
vice versa. Under the lease, only vessels regularly travelled within the PRD
region are allowed to berth at the RTT. Annex 1 shows the location of the
RTT site.

3. In recent years, the rapid development of port facilities and

significant increase in port capacity within the PRD region has led to keen
competition of port services. Cargo from PRD is increasingly consolidated at
inland water ports in PRD and transported to KTCTs direct with a view to
driving down the operation cost for shippers and carriers 1 . The cargo

1
Consolidation of cargo at the RTT before feeding to KTCTs entails extra handling cost and lead
time.
handling volume of RTT has been dwindling. The Study on the Strategic
Development Plan for Hong Kong Port 2030, commissioned by the Transport
and Housing Bureau and completed in 2014, recommended, amongst other
things, to allow the RTT to handle both ocean and river vessels so as to
improve the utilisation of the RTT and to provide additional ocean berth
capacity for HKP, thereby enhancing HKP’s role as a transhipment hub and its
competitiveness. We understand that the utilisation rate of the 49 berths of
the RTT was only 24% of its capacity in 2017.

DEVELOPMENT CONSIDERATIONS

4. The RTT is another example showing that as our city develops, the
original use of some sites may not be as much needed by society as before as
compared with other competing uses. This opens up the opportunity to
consider alternative use(s) for these sites that can better meet the prevailing
needs of the community. Key issues for consideration of this idea are set out
below.

Throughput of the RTT

5. According to the RTT operator, the container throughput of the RTT

in 2017 is about 969,000 twenty-foot equivalent units, which is equivalent to
4.7% of HKP’s total container throughput. At present, some of the RTT’s
laden container cargo will be shipped to the KTCTs for onward shipment. In
other words, such laden containers are handled twice (i.e. double handling) at
HKP. Discounting the throughput from double handling, the share of
throughput handled solely by the RTT in 2017 is roughly 3% of HKP’s total
container throughput. If the RTT site is to make way for other purposes, and
with completion of all necessary procedures for the relevant sites and subject
to upgrading of other HKP facilities, if required, there is a possibility that the
throughput of the RTT can be absorbed into the capacity of other HKP
facilities such as KTCTs, Public Cargo Working Areas (“PCWA”) and
midstream sites without giving rise to new land requirements.

Land Ownership

6. The RTT site was granted in 1996 at full market value premium to
the current land owner, and the existing lease term is up to 30 June 2047. If it
is considered that the function of the RTT is to be transferred to other terminals

–2–
or port facilities, we need to explore ways to secure a suitable arrangement to
enable the RTT site to be used alternatively.

Planning Context

7. Tuen Mun West where the RTT site is located is predominantly

industrial in character with focus on modern logistics, special industries and
industrial uses. The RTT site is zoned “Other Specified Uses” annotated
“River Trade Terminal” (“OU(RTT)”). To its immediate north is the Pillar
Point Sewage Treatment Works and across Lung Mun Road is Tuen Mun Area
46 with temporary government uses. To the east are the northern landfall and
toll plaza of the Tuen Mun-Chek Lap Kok Link (“TM-CLKL”), which is to be
completed by 2020 the earliest, as well as Tuen Mun Area 40 being mainly
occupied by industrial uses under short-term tenancies or private lots. The
on-going Planning and Engineering Study for Tuen Mun Areas 40 and 46 and
the Adjoining Areas (“TM Areas 40 and 46 Study”) has initially identified
modern logistics and green industries as the preferred long-term land use for
the potential development areas under the study.

8. To the west also on reclaimed land is the Special Industries Area in

Tuen Mun Area 38. Adjoining the RTT site on its west is a 32-ha site
currently used as a temporary public fill bank. Pending the decommissioning
of the public fill bank, part of the site (about 6.5 ha) will be used for logistics
development in the long term2. To the further west are EcoPark, Airport
Authority Hong Kong’s Permanent Aviation Fuel Facility, a steel mill, a
cement plant and Castle Peak Power Station (“CPPS”).

9. Annex 2 shows the developments surrounding the RTT site.

Possible Alternative Use(s)

Industrial and Brownfield-related Operations

10. In view of the existing and planned industrial uses in Tuen Mun
West, a logical option is to continue to use the RTT site for industrial purpose.
Not only is this compatible with surrounding land uses, there is also the
practical consideration that industrial uses generate less vehicular traffic than
2
There is another logistics site of 3.2 ha in Tuen Mun Area 49 right across Lung Mun Road.
Tender invitation will be issued for this site tentatively in March 2018.

–3–
non-industrial uses at peak hours and create less extra loading on the existing
congested road network in Tuen Mun. One idea that has been mooted is to
convert about 4 ha of the RTT site into off-airport air cargo screening and
consolidation facilities 3 to partly meet the demand for air cargo security
screening arising from a new requirement of the International Civil Aviation
Organisation (“ICAO”) 4. Such a proposed use may be warranted to help
enhance the utilisation of the RTT site in the short to medium term.

11. Other industrial and brownfield-related operations that may be

considered for the RTT site include modern logistics development, warehouse,
vehicle body building, vehicle repair workshop, container storage and
environmental industry to create synergy with the neighbouring uses. The
RTT site with the improved connectivity in the long run may be used to
construct multi-storey buildings for the aforementioned industrial functions to
cater for the demand for operating space generated by, among others,
brownfield operators in the New Territories that would be affected by the New
Development Area (NDA) projects in the pipeline. While land use at the
RTT site will remain as industrial under this suggestion, necessary statutory
and administrative procedures including rezoning may still be required to take
forward these alternative uses.

12. There are on-going proposals to increase the industrial and economic
land supply in Tuen Mun West. Besides the TM Areas 40 and 46 Study stated
above, the Civil Engineering and Development Department has recently
completed a Technical Study on Reclamation at Lung Kwu Tan. The
proposed Lung Kwu Tan reclamation at the coastal area to the north of CPPS
(see Annex 2) is expected to deliver 220 to 250 ha of land in phases between
2026 and 2030 for industrial and other uses subject to a detailed Planning and
Engineering Study to be conducted. With abundant supply of industrial land
in Tuen Mun West in near future, the possibility to use part or whole RTT site
for non-industrial purposes may also be considered.

3
This idea is being explored by relevant parties, and the feasibility of the proposed screening
facilities and the screening capacity that may be provided at the RTT site are being examined.
4
The ICAO’s new requirement, to be in force internationally from 1 July 2021, mandates that all
outbound cargo must be screened, or originate from an approved shipper. The proposed
screening and consolidation facility can be considered a “Cargo Handling and Forwarding
Facility” always permitted under the current “OU(RTT)” zoning, although the planning intention
of the zoning is to provide facilities mainly for river trade vessels from the PRD region.

–4–
Residential

13. The proposed Lung Kwu Tan reclamation provides a unique

opportunity to comprehensively rationalise the existing land uses, involving
about 240 ha of land, along the entire western coastal area of Tuen Mun. The
possibilities to use the RTT site for housing development to meet the acute
territorial housing demand could be explored as part of this comprehensive
land use rationalisation/review process. Purely drawing reference to the Tung
Chung New Town Extension (TCNTE) 5 and without the support of technical
studies, arithmetically speaking the 65-ha RTT site may produce about 22 000
housing units (as compared to the existing housing stock of about 170 000
units in Tuen Mun). Located 1.5 km away from the well-developed
residential neighbourhood in the Tuen Mun Ferry Pier area, the RTT site is a
piece of flat and formed reclaimed land of considerable size with existing road,
infrastructures, and public utilities connections. If the adjacent industrial and
other incompatible uses could be relocated to the Lung Kwu Tan reclamation,
the RTT site could be comprehensively re-planned together with the adjacent
land. However, if developed on its own, land use compatibility would be a
major challenge. In particular, air quality and noise impacts arising from the
nearby industrial developments and road infrastructures including the future
TM-CLKL would need to be addressed. Besides, the RTT site is subject to
the airport height restriction under the Three-Runway System of the Hong
Kong International Airport. The technical feasibility of residential
development on the RTT site and its interface with the implementation
programme of the immediately adjacent incompatible land uses are yet to be
ascertained by comprehensive studies.

14. While the external connectivity of Tuen Mun will be improved upon
completion of TM-CLKL and Tuen Mun Western Bypass (TMWB), one of the
major challenges to change the RTT site to residential use, other than land use
compatibility, is the capacity constraint of existing road network in Tuen Mun.
Currently a dual 2-lane carriageway, Lung Mun Road is one of the major roads
serving Tuen Mun West, which connects to Lung Fu Road and Wong Chu
Road within the town centre area and then Tuen Mun Road in the east to other
parts of the urban area. Annex 3 shows the existing road network in Tuen
Mun. Both Wong Chu Road and Tuen Mun Road are reaching their design
capacities. A detailed traffic and transport impact assessment is required to

5
Under the TCNTE, about 121 ha of land will be reclaimed in Tung Chung East for development
of about 40 800 housing units.

–5–
assess the additional traffic demand and the cumulative traffic impact on the
adjacent road network to identify enhancements to disperse the potentially
high traffic flows arising from the proposed residential development. While
the completion of the TM-CLKL may ease congestion at Tuen Mun Road 6,
more major improvements are only expected after the commissioning of Route
11 and TMWB, both of which are under planning 7. Subject to further studies,
there may be a case to time the population intake of the proposed development
at the RTT site, if taken forward, to be after the completion of Route 11 and/or
TMWB in order not to aggravate traffic congestion at Tuen Mun Road.

15. As for rail-based transport, the RTT site is about 4.5 km from the
existing Tuen Mun Station of the MTR West Rail Line (“WRL”) and about 2.5
km from the proposed station of Tuen Mun South (“TMS”) Extension
recommended under the Railway Development Strategy 2014 (“RDS-2014”).
Subject to the development scale, road-based feeders may be provided to carry
residents to and from the WRL. However, the WRL is approaching its
capacity and the traffic loading of WRL will further increase following the
implementation of other major developments in the NWNT such as the Hung
Shui Kiu NDA. The WRL will have little spare capacity to accommodate
new traffic demand from the proposed development at the RTT site.

16. If a new transport link is considered necessary to support the

proposed development, the proposed strategic NWNT-Lantau-Metro Transport
Corridor identified as the long-term transport network for the East Lantau
Metropolis (ELM), a Strategic Growth Area with comprehensive housing
development and a core business district proposed under the Hong Kong
2030+: Towards a Planning Vision and Strategy Transcending 2030, may serve
the purpose. Annex 4 shows the conceptual NWNT-Lantau-Metro Transport
Corridor. As part of this strategic transport corridor, a railway is proposed to
link up ELM with the existing urban districts and North Lantau, and further to

6
TM-CLKL will provide the most direct route for vehicles commuting between North Lantau and
Northwest New Territories (NWNT). It will also provide an alternative route from NWNT to
urban areas via the Lantau Link.
7
Both Route 11 and TMWB form part of the strategic road network in the NWNT. Route 11
connects Yuen Long with North Lantau and relieves traffic bottlenecks along Tuen Mun Road
and Tai Lam Tunnel. Funding is being sought from the Legislative Council to conduct a
feasibility study on Route 11. TMWB links up Hung Shui Kiu NDA via Kong Sham Western
Highway in the north, and TM-CLKL in the south, with an intermediate connections to Tsing Tin
Road in Tuen Mun North. Upon agreeing with stakeholders on the latest proposed alignment,
the Government commissioned the investigation study and preliminary design last October for
completion in about two years’ time.

–6–
NWNT via the Hong Kong-Zhuhai-Macao Bridge Boundary Crossing Point.
This proposed railway extension to NWNT may serve the new development at
the RTT site. This rail loop is also strategically important by providing an
alternative railway route from NWNT to the Metro Area and can alleviate the
congestion along WRL, subject to more detailed technical assessments.

17. In gist, the suitability of the site for residential development has to
be established by further studies to address the land use interface and the
traffic/transport and infrastructure constraints as explained above. Subject to
such studies, and depending on the scale of the proposed residential
development, large-scale site formation works may not be required. Given
the lead time required for resolving land use compatibility and transport issues,
and other technical issues (e.g. provision of new infrastructure or upgrading of
existing utilities, and site decontamination) as well as the associated statutory
and administrative procedures required for residential development such as
rezoning, it appears that the RTT site may only become a source of land supply
in the medium to long term. If reclamation at the existing basin and
near-shore is proposed so as to provide more developable land for integrated
planning and better economy of scale in development, more time is required to
resolve additional issues.

18. Whether the alternative land uses along the Tuen Mun western
coastal area, including the RTT site, suggested above would deliver
community benefit is subject to a lot of factors, including negotiation with
existing land owners and operators, as well as the assessment of overall social
cost, economic and financial viability of the proposed options. In particular,
it would not be appropriate to come to a conclusion before detailed
assessments are conducted by relevant parties.

OTHER LAND SUPPLY PROPOSAL IN THE AREA MOOTED

19. In December 2017, Professor Jimmy Leung submitted to the Task

Force a preliminary proposal on Castle Peak Bay Reclamation (“CPBR”). A
copy of the proposal was tabled at the Public Engagement Editorial Advisory
Board for reference on 8 December 2017. Key features of the proposal
include -

(a) reclaiming about 68 ha of land at the Castle Peak Bay for

mixed residential and commercial development (please see

–7–
 Annex 5 for the proposed reclaimed area);

(b) the transport need of the additional population to be met by

road-based connection to nearby WRL stations, as well as
proposed implementation of the TMS Extension and Tuen
Mun to Tsuen Wan Link (“TM-TWL”); and

(c) the Tuen Mun Typhoon Shelter (“TMTS”) and Tuen Mun
PCWA (“TMPCWA”) be reprovisioned to the east of the
landfall of TM-CLKL in Tuen Mun Area 40.

20. In the context of the Enhancing Land Supply Strategy – Reclamation

outside Victoria Harbour and Rock Cavern Development commissioned in
2011, a reclamation site in proximity to the site currently proposed by
Professor Leung was put forth for public consultation in the Stage 1 Public
Engagement (“PE”). It was not shortlisted for Stage 2 PE owing to local
objection and potential adverse impacts to surrounding beaches and waters.
While Tuen Mun Area 40 may be a possible reprovisioning site for TMTS and
TMPCWA subject to further study, the proposed CPBR with reclamation area
about five times that of the 2011 proposal will unlikely be less controversial,
particularly given the close proximity of the CPBR to the existing residential
areas, the public aspirations for turning the area where the traditional fishing
village, Sam Shing Hui used to be into tourism and leisure facilities, as well as
potential fisheries impact to fishermen as the Castle Peak Bay is a major
homeport in Hong Kong. The adjacent waters of the CPBR are a commercial
fishing ground. The potential ecological, fisheries and other environmental
impacts will also have to be carefully assessed.

21. As in the case of alternative uses of the RTT site, transport and
traffic remains the primary concern for the CPBR. The analysis for the RTT
case is applicable to the CPBR proposal as both have a similar development
scale. On the proposed TM-TWL, a preliminary conceptual scheme
comprising a railway station in Tuen Mun West and five intermediate stations
along the 20 km coastal corridor between Tuen Mun and Tsuen Wan was
examined when formulating the RDS-2014. It was noted that the catchment
population of the proposed link was mainly concentrated at the eastern and
western ends of the corridor, while the remaining population was scattered and
dispersed along the coast. The cost of the scheme was also expected to be
very high (in the region of $65 billion (in 2013 prices)) due to the technical
difficulties involved. The cost effectiveness of the proposed railway line

–8–
could hardly be established at the time of formulating the strategy. Moreover,
the implementation of the scheme would also create negative visual and
landscape impacts along the scenic coastal areas. The TM-TWL was
therefore not included in the RDS-2014.

ADVICE SOUGHT

22. Whether the RTT and/or CPBR proposals should be taken forward
are subject to further studies. The two proposals share some similarity as the
scale is broadly the same involving land of 65 ha or more. They are in the
same locality, hence subject to similar transport infrastructure constraint. We
welcome Members’ initial views on the proposals.

Development Bureau
Transport and Housing Bureau
2 March 2018

–9–
 附 件 ANNEX 1

本摘要圖於2018年2月6日擬備，
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M UN -
PROPOSED

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STATION

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CHEK

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River Trade Terminal

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Proposed Route 11 (Indicative Alignment)
LANTAU ISLAND
ÀÀij¤Ùªù¦è¶¹ ¨ªú
Proposed Tuen Mun Western Bypass (TMWB) CHEK LAP KOK
(Subject to Review)

ÀÀij¤Ùª
Proposed Tuen Mun South Extension

¡m-»´ä2030+: ¸ó¶V2030¦~ªº³
«Øijªº·s¬É¦è¥_-¤jÀ¬
(¦³«Ý¶i¤@
NWNT - Lantau - Metro Transport Corridor ªF
Proposed in "Hong Kong 2030+:
Towards a Planning Vision and Strategy TUNG CHUNG ©¹ªð³
Transcending 2030" (Subject to Further Study) to/from
Metro Area
ÀÀij
Proposed Station

-»´ä¤º RIVER TRADE TERMINAL

¥»ºK-n¹Ï©ó2018¦~2
¥¼¨Ó·s¬É¦è¥
EXTRACT PLAN PREPARED ON 26.2.2018 FUTURE TRANSPORT NETWORK IN NORTHWEST NEW TERRITORIES
°Ñ¦Ò REFERENCE No. ªþ¥ó
¦
SCALE 1 : 80 000 ¤ñ¨ ¦
METRES 1000 0 1000 2000 3000 4000 5000 METRES
M/TM/18/14 ANNEX 4
 附 件 ANNEX 5
6  

來源：梁焯輝教授的建議書
Source: Professor Jimmy Leung's Proposal