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Shekou threat to Hong Kong transshipments

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Shekou port in southern China will soon become a hub for international transshipments and cease to be merely a feeder port to Hong Kong, says general manager Christopher Langford.

'The fact that cargo sources are closer to Shekou than Hong Kong, and the handling costs are cheaper, will mean that Shekou will increasingly be used, as direct calls provide a real choice to exporters and importers,' he said.

Analysts have long said it was inevitable ports in southern China would compete with Hong Kong for cargo once they achieved a certain critical mass through their berths.

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According to Mr Langford, Shekou would become a preferred choice because it can turn around a truck in 15 minutes.

The rapid handling time is vastly preferable to the 10-kilometre queues endured at Hong Kong's land border before trucks can access the territory's container terminals, Mr Langford said.

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Hong Kong's moves to increase capacity were also resulting in rising costs which was playing into Shekou's hands, Mr Langford said.

The re-introduction of direct calls to Shekou would be the catalyst for the introduction of transshipment cargoes, he said.

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