OECD adds its voice to those saying Hong Kong port set for steady decline

Hong Kong's deep-sea port is set to go into steady decline as mainland terminals catch up, a new report by an international club of developed economies says.

The growth in tonnage handled at the city's port has slowed to an average of 4 per cent a year in the past decade, compared with 16 per cent a year in Shenzhen and 18 per cent in both Guangzhou and Shanghai, according to the Paris-based Organisation for Economic Co-operation and Development.

Container throughput has seen a similar trend, with Hong Kong's growing 2 per cent between 2002 and last year, against 57 per cent in Guangzhou and 28 per cent in Shanghai.

The port's share of Hong Kong's gross domestic product declined from 2.4 per cent in 2001 to just 1.6 per cent in 2011. Port-related jobs account for 3.2 per cent of employment compared with 4 per cent a decade ago.

Olaf Merk, OECD administrator for governance and regulation of ports, said the mainland could take an even larger bite of the city's market share if its shipping regulations were removed.

"Should China open its shipping laws to allow foreign-owned vessels, Hong Kong would lose some of its advantages," he said.