Online trade portal ready for launch

The deal may lessen competition in the emerging electronic marketplace governing the flow of goods through Hong Kong, according to the South China Morning Post. Units of Hutchison Whampoa and the Wharf Group early next week will announce the formation of OnePort, the HK$250 million online trade portal designed to manage the flow of cargo and vessels at the main terminals at Kwai Chung. Management of the joint venture will also announce a partnership with Tradelink, the government's minority-owned trade portal for regulatory documentation, which will take a 20 per cent stake in OnePort. Critics say the partnership has the potential to lessen competition in the emerging electronic marketplace governing the flow of goods through Hong Kong's cargo transport facilities. "The announcement will cover the formation of Oneport, the company and our alliance with Tradelink," said a OnePort source. "It's been a long time coming and we look forward to getting this out in the open and running with the issues." OnePort's formation was first reported in the South China Morning Post in February last year. Tradelink, tipped by senior industry executives to become the nerve centre of the government's digital trade transport network strategy, will acquire its share in OnePort in two stages, according to sources close to the deal. The first stage is thought to involve an initial outlay of HK$30 million, with an additional HK$20 million to be paid after the start-up company reaches targets for customers and transactions. The HK$50 million will bring Tradelink's share to 20 per cent. OnePort has yet to set levels for its transaction fees, but the main terminals will prove again to have handled well over 10 million boxes last year. The Commerce, Trade and Industry Bureau, Tradelink's biggest shareholder with 42 per cent, is said to be keen to divest itself of its interest in the company once its monopoly franchise expires at the end of the year. The government was to open the field to competition at the end of the year by making available two more Government Electronic Transmission (Gets) licences. Industry sources said the licences were destined for a consortium led by the Hong Kong General Chamber of Commerce and OnePort. But, with OnePort partnering Tradelink, it is thought the Wharf-Hutchison joint venture has withdrawn its bid. It is thought only one licence will now be made available, lessening competition in the field. Neither Hutchison nor Wharf have disclosed their shareholding in OnePort, but sources said it was likely to mirror their share of the container trade at Kwai Chung. The port's other terminal operators, CSX World Terminals and Cosco-HIT, have thus far declined to take a stake in the start-up. An executive from the OnePort's parent companies said last month: "They will likely be allowed to take a stake after it is launched, as it would better to have everyone in."Source: South China Morning Post