Can Hong Kong Port

Remain her Competitiveness?

Introduction

was once the pride of Hong Kong people
Hong Kong attracts the flow of cargo with
its free port status,
efficient and transparent customs
procedures,
high frequency of sailings,
multimodal transport system,
This report is find out the influences that affected
Hong Kong container throughput in the past
explore reasons and give advices
predict whether Hong Kong container terminals as
whole remain the competitiveness
Hong Kong container terminals
Methodology
Case study Singapore
Literature Review
Authorities Documents (Internet)
Combination
Data analysis
Updated source

Source : Data collected from various data sources

Source : Data collected from various data sources
Recent Trends
Source : Summary Statistics on Port Traffic of Hong Kong
Source : Summary Statistics on Port Traffic of Hong Kong
Reasons for the decline
of container throughput of Hong Kong

1. Economic transformation

2. New terminals construction of YanTian and
SheKou

3. Port Competitiveness - High total through cost
1. Economic transformation

Since the fast pace of development of the 1970s,
financial, trade and services industries have been
catching up.
The financial economy success also means that
the decline of the import and export trade of
Hong Kong,
the government pays less attention and invested
less in this sector.

Hong Kong Port - Kwai Tsing Container Terminals
These terminals are operated by five companies, namely:
Modern Terminals Ltd. (MTL)
Hongkong International Terminals Ltd. (HIT)
COSCO Information & Technology (H.K.) Ltd. (COSCO)
Dubai Port International Terminals Ltd. (DPI)
Asia Container Terminals Ltd. (ACT)
with limited destinations and low service frequency
But Shenzhen competed at the lower end offering the
lowest port charges in the region
Yantian Port has the highest charges on the Mainland
But offered a more competitive turnaround time and
better global network integration.
2. Challenge
- Port of Shekou and Yantian , Shenzhen
3. Port Competitiveness - High Total Through Costs

High road haulage tariffs
High Terminal Handling Charges (THCs).
it costs US$280 more per FEU for East
PRD cargo moved inland by road via
HKP to US West

However, barging via the West
Shenzhen ports of Shekou and Chiwan
still offers a US$160 cost advantage
versus HKP, the reason is that Hong
Kongs THC is about US$100 more
expensive.



FEU: Forty-foot equivalent unit (a 40 foot ISO
container).
Case Study
Port of Singapore
Currently the world's second-busiest port in terms of total shipping tonnage
it also transships a fifth of the world's shipping containers
half of the world's annual supply of crude oil
and is the world's busiest transshipment port.


Port of Hong Kong
Port of Singapore
Port comparison
As a trading port for ships plying their trade between Europe and
East Asia.
With the competition and technology that came with
containerization and building of faster ships with a more
economical use of fuel oil, shipping lines are using larger ships over
greater distances.
Case Study Port of Singapore
City Government Policy Support
Hong Kong RTE, DTA, CDTA
Singapore CDTA, LT, EIA
China FTZ, VAT, SEZ
Double tax agreement countries covered:

Hong Kong 51
Singapore 74
China 96

Source: Data collect from state administration of taxation (2014)
Government Support - Taxation
Other factors Labour Strikes
Source : Analyzed by Lam and Zhang, 2011
Conclusion
Shenzhens market share of cargo in the region will be drastically increase
Shenzhen has been predicted to become the worlds largest container
port
Hong Kong port lost her competitiveness unless transformation of
maritime cluster
Regards to well-integrated finance, legal and other service sectors
Framework Agreement on Hong Kong/Guangdong Cooperation which
may help the development between Mainland China and Shenzhen port
Recommendation
HKG provides additional land for containers and related uses
Port expansion, future container terminal
Strengthen collaboration PRD (e.g. CEPA)
HKG vigorously promote HK as the largest Port-service centre in Asia:
e.g. provide more incentives to SMEs ;
build a maritime service centre ;
provide more tax concession for owner to boost the maritime cluster
Limitation
Shortage of study time
Technical support
Data collection
Lack of Diversification
Experience
Resource

Q & A