Committee looking at ways to improve business opportunities and trade flow through Hong Kong from southern China
Although Hong Kong has the world's busiest container port and largest air cargo terminal, along with many other advantages, the SAR is in danger of losing its position as Asia's logistics hub unless it rises to address various challenges.
'Hong Kong needs a Mr Logistics, preferably at a senior level of Government, someone who can coordinate efforts between the different departments and their counterparts on the Chinese side,' said Swire Group chairman, James Hughes-Hallet.
The appointment of such a person to coordinate departments, such as immigration and customs on both sides of the border, would improve Hong Kong's status as an international logistics hub, he said. 'A consultant will be brought in to study whether there is a need to change the institutional structure.'
The logistics development committee, under the Hong Kong Port and Maritime Board, which Mr Hughes-Hallet chairs, has called for tenders for the appointment of the consultant, and ap plicants were being short-listed.
The consultant will conduct a study of Hong Kong's position as an international logistics hub vis- a-vis its counterparts in Europe, the United States and Asia.
The logistics committee, comprising representatives from a cross-section of the air and sea freight community, is looking at business opportunities and trade flow through Hong Kong from southern China, and the infrastructure needed to move cargo through the region.
Mr Hughes-Hallet warned the SAR could not afford to be complacent about its leading logistics position in Asia, as neighbouring territories were also competing to become logistical hubs.
The move by Shenzhen auth orities to turn the Special Economic Zone into an international logistics centre, and the designation of Shenzhen airport as a regional air cargo hub, are some of the threats the SAR faces. A large volume of air cargo throughput that would otherwise go through Hong Kong will flow out through the southern Chinese airport.
On the shipping side, Shenzhen port has reported an impressive 37.4 per cent rise in container throughput to 2.13 million teu (20-foot equivalent unit) between January and July this year, compared with the same period last year. About 1.36 million teu were laden containers, representing 60 per cent of the total.
During the first seven months, Yantian International Container Terminals recorded a 37 per cent increase to 1.12 million teu, Shekou Container Terminals was up 20 per cent to 377,000 teu, Shenzhen Kaifeng Terminal was up 43.7 per cent to 268,000 teu. And during the peak season between July and October, most of the terminals at Shenzhen port were filled to capacity, with excess containers spilling over to Hong Kong port.
In the same seven-month period, Hong Kong port's terminal operators did not do too badly either, reporting an impressive 15 per cent increase to 6.52 million teu in container throughput. In the first five months of this year, mid-stream container throughput was up 15.5 per cent to 1.17 million teu, while river trade was up 26.3 per cent to 1.31 million teu.
As 70 per cent of Hong Kong's air and sea cargo was coming from the mainland, the SAR had to strive to maintain its position, or lose out to the fast-growing neighbouring cities, Mr Hughes- Hallet said.
He said the SAR, which was expensive compared to the mainland because of rising rentals and labour costs, had to match the speed by which air cargo was growing in the mainland.
Mr Hughes-Hallet said Hong Kong had to improve its language skills, information connectivity with the mainland and efficiency, issues which the private and public sectors were well aware of.
While there are many languages spoken worldwide, Eng lish is the language most widely used in international transport, he said, adding that Singapore has already beaten Hong Kong in this regard. If the SAR did not wake up, Shanghai and Xiamen might do the same.
Referring to connectivity, Mr Hughes-Hallet said there was increased integration of electronic data interchange and customs clearance systems. The expansion of Dalian port had taken away transshipment cargo destined for northern China that had previously flowed through Hong Kong port, he said.
Mr Hughes-Hallet warned that unless the SAR brushed up its act, fast-growing Chinese cities like Shanghai and Xiamen would take away Hong Kong's business.
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