Picking up the pieces for logistics players

Air-sea cargo synergy
Hong Kong's cargo air-sea transshipment operation model allows security screening, palletization, cargo acceptance and other services to be completed upstream at the HKIA Dongguan Logistics Park, before freight is shipped to HKIA by sea for air transshipment to destinations worldwide. A similar process is in place for international imports in the mainland.
Such a sea-air transshipment operation model is vital as Hong Kong expands its air cargo capacity to meet growing cross-border e-commerce and intra-Asian trade, says Ip. Global logistics operators like DHL, China Post Group Corp, Cainiao Smart Logistics Network and United Parcel Service have set up cargo handling facilities at HKIA to cope with increased e-commerce business opportunities.

As Hong Kong continues to build high value-added aviation and shipping services, it should not abandon its traditional sea freight business completely. "The point is how to create synergy between Hong Kong Port and other container ports in the South China region. Developing high value-added maritime services should include deploying expertise in trading and sales, traffic and network planning, and equipment planning," says Wong.

Ho argues that Hong Kong Port still has various advantages over its mainland counterparts. Unlike ports in Guangzhou and western Shenzhen, Hong Kong harbor is a deep water port, which saves dredging and reduces maintenance costs. Hong Kong's container port is relatively concentrated in the Kwai Tsing area while Shenzhen's port operations are divided between Yantian in the east and Shekou in the west, which undermines efficiency.

Hong Kong container port owners have formed a business alliance in the past few years to centralize port operations, as well as berth and ship arrangements, raising the utilization ratio of port infrastructure and hardware. Kwai Tsing container port can handle complex transit operations efficiently with adequate berthing positions.