Sunday, February 27, 2000

Hong Kong is renowned among shipping lines as the "can-do" port because it is not only efficient and reliable but also hassle free. The total transportation cost differential between importing from Hong Kong and the Shenzhen ports has now narrowed down so substantially that shipping through Hong Kong definitely represents good value for money.

The fact that Hong Kong serves as the gateway for the very large and growing Chinese market ensures that shipping lines generally call Hong Kong as the last Asian port, ensuring the shortest possible transit time to the North American market.

These messages were put across by a delegation of the Hong Kong Port and Maritime Board (PMB) to major U.S. consignees, shipping companies and logistics providers at seminars and luncheons organised in Los Angeles, Chicago and New York.

The PMB delegation, comprising representatives from both Government and private sectors, has just concluded a fruitful one-week visit to the U.S to promote the attractions of routing cargo and shipping through Hong Kong.

The Deputy Secretary of Economic Services, Mr Alex Fong, said, "We took the opportunity to update users of our port on the measures we have been introducing to improve our port infrastructure so as to better serve their needs. We are embarking on a number of new measures to ensure that the access to the port will be improved and thereby reducing the cost to port users and the time needed to process goods through the port of Hong Kong."

Whilst in the U.S., members of the delegation spoke on different aspects of the port to illustrate the attractions of using the port of Hong Kong.

Speaking from the port users' point of view, the Chairman of the Hong Kong Shippers' Council, Mr Willy Lin, endorsed that Hong Kong definitely represents good value for money.

Noting that the total door-to-door cost of transporting cargoes through Hong Kong versus Shenzhen is narrowing, Mr Lin stressed that Hong Kong's free port status, simple, speedy and reliable customs clearance system, as well as competitive and predictable costs are very important reasons for shippers to choose it as the loading port. Moreover, using barges from the Pearl River Delta to feed cargo into the Hong Kong port can provide a cheaper alternative than trucking to either the Hong Kong port or Shenzhen ports.

To illustrate the high efficiency of the Hong Kong port, the Chairman of the Hong Kong Container Terminal Operators Association, Mr Eric Ip, said, "Hong Kong is renowned among shipping lines as the 'can-do' port. The operational efficiency and customer focused attitude of Hong Kong is the key element to assist shipping lines to maintain their schedules."

"Quay crane movements of 28 to 40 moves per crane per hour is a very respectable record in any terminal in the world," he said. "Hong Kong also offers extremely flexible operations where an urgent container shipment can be delivered into the terminals up to three hours before vessel sailing and get loaded onto the ship. The efficient and flexible operations help both shippers and shipping lines to achieve their just-in-time objectives."

Hong Kong is the transportation hub of the world, proclaimed the Chairman of the Hong Kong Liner Shipping Association, Mr Ulrik Brandt, Managing Director of the Maersk Hong Kong Ltd., the local agent of the world's largest container carrier Maersk Sealand.

Mr Brandt said, "There are over 80 international shipping lines in Hong Kong with about 450 weekly container services to over 170 ports in 60 countries." "Alone to North America there are 53 weekly sailings," he added.

"Hong Kong is also the gateway to China with regular feeder services to all coastal ports of Mainland China. There are over 7,600 TEUs daily river container movements and over 12,000 daily container truck movements," he further added.

Addressing luncheon gatherings of cargo consignees, freight forwarders, consolidators, logistics providers and representatives from shipping lines and chambers of commerce in the U.S., the PMB Chairman, Mr Peter Thompson, drew the attention of these key decision makers to the increasingly important role Hong Kong companies will play as strategic alliance partners for overseas companies wishing to take advantage of the growing opportunities in the transportation and logistics sectors following the accession of China into the World Trade Organisation.

"You will need to reconsider how you leverage your activities in Hong Kong to capture these opportunities. After all, Hong Kong will continue to be the most important base for your shipping, air services and logistical needs in Asia," Mr Thompson said.