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Hong Kong still favoured logistics hub

Mainland-origin exports managed by Hong Kong in the form of offshore trade (that is, direct shipment from the mainland or transhipment via Hong Kong), now make up 56% of Hong Kong’s total exports by value, compared to just 18%? ten years ago.

The reason for increased direct shipment, according to a Trade Development Council survey on Offshore Trade and Production are lower transportation costs as the Mainland’s port facilties continue to expand and improve.

The report also cites as reasons for Hong Kong companies choosing to re-export their goods through Hong Kong as mainly related to the quality of service, such as convenient shipping schedules and ability in cargo consolidation. Despite signs that Hong Kong's role as a logistic hub is diminishing, Hong Kong companies will still use Hong Kong as an operation centre for the coordination and management of their businesses.

In January, the Hong Kong port saw a container throughput of 2.07 million TEUs, a rise of 4.1% over the same period last year. In 2007, the port handled a total of 23.99 million TEUs, only 1.9% higher than 2006.

Meanwhile, across the border in Shenzhen, the ports there handled a total of 21.1 million TEUs in 2007, at a growth of 14.2%. In January, Shenzhen ports saw a throughput of 1.9 million TEUs, 12.3% higher than in January 2007.