Hong Kong may favor shipping companies over port operators when awarding the rights for a planned container terminal to help secure traffic as competition from cheaper mainland harbors mounts.

"This idea allows us to tie up with shipping lines, who will bring more containers,'' Permanent Secretary for Transport & Housing Francis Ho said in an interview. China Shipping Container Lines Co., the nation's second-largest sea-cargo box carrier, may consider bidding, spokesman Ye Yumang said today by phone.

The tenth terminal, a bridge to Macau and a new airport runway are part of government plans to boost links with China and spur Hong Kong's transport and trade sector, which accounts for about a quarter of the economy. The city lost its spot as the world's second-busiest container port to Shanghai in 2007 after traffic grew at the slowest pace in six years.

"Whether Hong Kong will be able to increase container traffic depends on the neighboring economic developments,'' said Edward Wong, a Quam Ltd. analyst based in the city. ``The terminal operator isn't able to change the demand on its own.''

Hong Kong will need the new terminal by as early as 2015 because existing facilities in Kwun Chung, its main port area, are already working at 90 percent of capacity, Ho said. Growth in the Pearl River Delta, China's manufacturing center, will also continue to boost sea-cargo traffic, he added.

"The region as a whole is growing, therefore you would expect different parts of the region to benefit from the economic development,'' he said on June 19. China's export growth accelerated to 28 percent in May. About 90 percent of world trade moves by sea.

Li Opposition

Li Ka-Shing, Hong Kong's richest man, has said that the terminal isn't necessary as fast-growing mainland ports such as the neighboring city of Shenzhen will lure business away. Li controls Hutchison Port Holdings Ltd., the world's largest container-terminal operator, which runs facilities in Hong Kong, southern China and worldwide.

Hong Kong's government may seek traffic guarantees for the new terminal rather than just auctioning off the concession to the highest bidder, Ho said. China Shipping Container will consider applying for the facility, once more details are available, Ye said.

Stanley Shen, spokesman for Orient Overseas (International) Ltd., Hong Kong's biggest container line, was unavailable because he was traveling.

Hong Kong boosted its container traffic 2 percent last year to 24 million twenty-foot equivalent units. Traffic in Shanghai surged 20 percent to 26.2 million. Singapore, the world's busiest container port, increased its volume 13 percent to 27.9 million.

Hutchison Port, a unit of Hutchison Whampoa Ltd., Cosco Pacific Ltd. and PSA International Pte are among companies currently operating Hong Kong terminals, either directly or through ventures.

Macau Bridge

Hong Kong is also planning a 29.6-kilometer (18 mile) bridge to Macau and Guangdong province to boost links with Western China and the Pearl River Delta. The bridge will help secure cargo traffic and tourism visitors, Ho said.

"If we don't have the bridge, we are done for,'' Ho added. "Hong Kong has no connectivity to the western parts of China.''

Hong Kong, Macau and Guangdong will share the cost of subsidizing the HK$60 billion ($7.7 billion) bridge. The right to build and operate it out will be put out to tender, with the winning bidder earning money from toll fees.