Legislative Council Panel on Economic Services



This paper informs Members of the revised scope of the Cheung Sha Wan Wholesale Market Complex Phase 2 (CSWWM 2) proposal and our plan to consult market traders and other concerned parties.


2. In February 1996, the Economic Services Panel of the then Legislative Council was informed that CSWWM 2 on the West Kowloon Reclamation was planned as a government wholesale market to reprovision the Cheung Sha Wan Temporary Wholesale Poultry Market and the privately-run Yau Ma Tei Fruit Market. The site reserved for that purpose is 9.89 hectares in area. To optimise site utilisation, the Administration proposed to develop the Phase 2 site to accommodate mid-stream container handling facilities and industrial-office accommodation in addition to reprovisioning the two wholesale markets. It was planned that the site would be tendered out for private development with the Government paying the developer the cost of the wholesale market component. On this basis, in May 1997, the Finance Committee approved upgrading of the CSWWM 2 project to Category A of the Public Works Programme.

3. Tender procedures started in September 1997. When the tender closed in December 1997, only one tender was received but it departed materially from the tender conditions. The sole tender was therefore rejected.

Review of the Project Scope

4. In view of the imperative need to reprovision the dilapidated Yau Ma Tei Fruit Market and the Cheung Sha Wan Temporary Wholesale Poultry Market, the Administration has decided to implement the CSWWM 2 project by itself. Taking into account the need to optimise site utilization, we have revised the project scope of the Phase 2 development to include -

    - reprovisioning of all existing facilities of the Cheung Sha Wan Wholesale Market Complex Phase 1 (CSWWM 1)Note within the Phase 2 site;

    - reprovisioning of the Yau Ma Tei Fruit Market;

    - reprovisioning of the Cheung Sha Wan Temporary Wholesale Poultry Market;

    - reprovisioning of the Vegetable Marketing Organisation (VMO) Cheung Sha Wan Wholesale Vegetable Market;

    - tentative provision of chicken slaughtering facilities; and

    - provision of market related facilities such as cold storage facilities, if necessary.

The revised project will have the benefits of -

    - producing a plot ratio of 2.9 and optimise the utilisation of the Phase 2 site;

    - releasing the Phase 1 site for other developments; and

    - releasing the sites currently occupied by the VMO Cheung Sha Wan Wholesale Vegetable Market and the Cheung Sha Wan Temporary Wholesale Poultry Market for residential development.

The Multi-Storey Market Complex

5. To incorporate the wholesale marketing facilities for different types of fresh food produce including fruit, vegetable, egg, poultry, freshwater fish, VMO's market and FMO's market into the Phase 2 site, the complex will have to comprise of multi-storey structures. Despite a considerable departure from the established concept of a single storey wholesale market, it is considered feasible to proceed on the basis of a multi-level market.

6. To facilitate efficient market operation, individual markets will be located at one level, with the exception of the fruit and poultry markets each of which will be located on two levels due to their size and site constraints. To meet the requirement that the poultry market has to be completely separated from the other market sectors, the Complex will have to be divided into blocks. The poultry market and the fruit market, which require a gross floor area of 3.6 hectares and 9 hectares respectively, will each have to be split into two separate floors. Such a design may necessitate changes to current operational practices. We will consult the traders concerned on the market design.

7. A schematic sectional elevation of the Phase 2 Complex indicating the locations of different wholesale market sectors and facilities is at Enclosure 1. We will present a block model to Members to show the overall scale of the project, the general layout and massing of the buildings and the principles of vehicular and pedestrian circulation patterns of the Phase 2 Complex.

Next Steps Forward

8. The Yau Tsim Mong Provisional District Board and the Sham Shui Po Provisional District Board were consulted in October 1998 on the revised development plan of the Phase 2 site. They strongly urged the Administration to expedite completion of the Phase 2 project and to avoid further delay in reprovisioning the Yau Ma Tei Fruit Market. We will consult the wholesale market users, the Marketing Sub-committee of the Advisory Committee on Agriculture and Fisheries, the Marketing Advisory Board of the Vegetable Marketing Organisation, the Fish Marketing Advisory Board of the Fish Marketing Organisation and the two Provisional District Boards on the new design of the market complex starting from January 1999. We will also consult the Police over market security aspects.

9. In parallel, the Architectural Services Department will carry out environmental impact and transport assessments and detailed planning. After the consultation exercise and the completion of studies and detailed planning, we will report back to Members we intend to seek approval for the required funding from the Finance Committee for implementing the revised project in late 1999. The construction of the CSWWM 2 is expected to be completed in 2004.

10. The Administration has considered the possibility of phasing the development of this project with a view to -

    - speeding up the reprovisioning of the Yau Ma Tei Fruit Market; and

    - expediting the release of the sites occupied by the VMO Cheung Sha Wan Vegetable Market and the Cheung Sha Wan Temporary Wholesale Poultry Market for residential development.

However, as the existing Phase 1 facilities will be totally integrated with the proposed Phase 2 facilities, it would be undesirable to carry out construction works within the complex when the fruit market, the poultry market and the VMO vegetable market operate in other parts of the same Complex. Phased implementation is considered to be impractical.

Relocation of the Yau Ma Tei Fruit Market

11. We intend to relocate the fruit market in Yau Ma Tei as soon as the Phase 2 complex is completed. To ensure that the complex will be completed as scheduled, the Administration will closely monitor the progress of the project. For this purpose, a Steering Committee comprising of representatives from the bureaux and departments concerned will be set up. In addition, as mentioned in paragraph 8 above, wholesale market users including fruit market traders will be consulted on the new wholesale market design, ancillary facilities to be provided and the general reprovisioning proposal etc.. Their comments will be taken into account in finalising the project details to ensure that the new wholesale market will meet their operational needs, thereby facilitating timely relocation of the fruit market to CSWWM 2.

Future Market Management

12. At its meeting on 5 March 1997, the Public Works Subcommittee suggested that the Administration should consider the feasibility of contracting out or privatising the management of wholesale markets. We are actively considering the feasibility of hiving off the management of the new wholesale market complex from AFD.

Agriculture & Fisheries Department
7 December 1998

Note The Phase 1 market complex having a site area of 9.97 hectares is a two-storey building accommodating wholesale market facilities for vegetables, fresh water fish and eggs as well as a wholesale fish market for the Fish Marketing Organisation (FMO). It has a plot ratio of 0.7.