-
Advertisement
Transport and logistics
Hong KongHong Kong Economy

Hong Kong to focus on boosting maritime services after leader Carrie Lam admits city cannot compete with rival ports on shipping

Government eyes areas such as ship leasing and insurance, and will offer ongoing support to make city a dispute resolution centre for global industry

Reading Time:3 minutes
Why you can trust SCMP
Hong Kong is the world’s fifth-largest port in terms of total containers shipped. Photo: Roy Issa
Danny LeeandErnest Kao

Hong Kong cannot compete with its shipping rivals and will turn its attention to maritime services as a way to strengthen its position as a key seaport trading centre, the city’s leader has admitted.

Acknowledging the decline in sea cargo passing through Hong Kong, Chief Executive Carrie Lam Cheng Yuet-ngor sought to address the weakness by boosting the sector elsewhere.

The government said it would focus on “high value-added maritime services” in areas such as ship leasing and insurance, and offer ongoing support to the city as a dispute resolution centre for the global industry. It would also inject HK$200 million (US$25.6 million) into the Maritime and Aviation Training Fund to boost talent in the respective sectors.

“Facing the fierce competition among neighbouring ports and ports in the region, we must admit that relying on our port container trade alone can no longer bring strong and sustained impetus for Hong Kong’s economic growth,” Lam said in her policy address on Wednesday.
Advertisement
“For this reason, we must capitalise on Hong Kong’s unique strengths and the immense opportunities brought by the ‘Belt and Road Initiative’ and the ‘Greater Bay Area’ development to develop high value-added maritime services.”

The rise of the Pearl River Delta cities of Guangzhou and Shenzhen plus the focus on the region working closer together, including with Hong Kong, is forcing them all to work out how to collaborate.

Advertisement

Hong Kong is the world’s fifth-largest port in terms of total containers shipped, down from fourth in 2014. It lags Singapore and three mainland Chinese ports: Shanghai, Shenzhen and Ningbo-Zhoushan. Guangzhou is not far behind. Recent government data showed container traffic declined 3.7 per cent in the first six months of 2018.

Advertisement
Select Voice
Select Speed
1.00x