Hong Kong port losing market share in south China
Preference for city diminishing as shippers are lured by the increased capacities at mainland rivals amid stiff competition for the same cargo
A report on Hong Kong's port development commissioned by the government found that the city has been facing more competition from other south China ports, including Nansha, one of the regions in the new Guanghong free-trade zone approved by the State Council last week.
Although Hong Kong remains competitive in international transshipments, it had been facing increasing competition in the south China cargo market, the report said.
Hong Kong's share of the south China cargo base had dropped from more than 70 per cent in 2010 to below 40 per cent in 2011, the report showed.
"Current trends suggest a diminishing preference for using Hong Kong port for south China cargo, which is related to the significant increase in port capacity that occurred in south China in the last 10 years, giving shippers much more choices," it said.
The report expects transshipments to account for 75 per cent of Hong Kong's throughput by 2030.
The government released the findings of the report earlier this month together with a preliminary feasibility study for container terminal 10, and dismissed the need to build another terminal before 2030.
It did not, however, address the possible policy changes in relation to a Guangdong free-trade zone or how the city would coordinate with such a zone, including ports in the area.