Development of Hong Kong Multimodal Facilities. Stephen Ip Vice President Hong Kong Logistics Association. Agenda
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1 Development of Hong Kong Multimodal Facilities Stephen Ip Vice President Hong Kong Logistics Association Agenda 1. Challenges to Hong Kong 2. Hong Kong Multimodal Facilities Developments 3. Multimodal Link between Hong Kong and South China 4. Role of Hong Kong as Stepping Stone to China Market
2 Current Situations Hong Kong Logistics Enterprises Type Number (2002) Number (2004) (a) Warehouse & Cold Storage (b) Trucking & Container Hauliers (c) Airlines (d) Freight Forwarders (e) Shipboard Operators (f) Shipping Lines (h) Terminals 8 13 (i) International Couriers (j) Other Logistics Service Providers Total Source: Vocational Training Council
3 Few are Value-added 3PLs Challenges to Hong Kong
4 Container Throughput Port 2006 World Ranking 2005 World Ranking 2004 World Ranking 000TEU 000TEU 000TEU Singapore 24,792 (1) 23,200 (1) 21,329 (2) Hong 23,539 (2) 22,602 (2) 21,984 (1) Kong Shanghai 21,719 (3) 18,000 (3) 14,557 (3) Shenzhen 18,470 (4) 16,000 (4) 13,615 (4) Rank Air Cargo Throughput 2006 City (Airport) Total Cargo % Change 1 MEMPHIS, TN (MEM) HONG KONG, CN (HKG) ANCHORAGE, (ANC)* SEOUL, KR (ICN) TOKYO, JP (NRT) (0.5) 6 SHANGHA, CN (PVG) PARIS, FR (CDG) FRANKFURT, DE (FRA) LOUISVILLE, KY (SDF) SINGAPORE, SG (SIN)
5 Competition is Fierce in the Region A5 Air Cargo Statistics Airport Tonnes Tonnes Hong Kong 3,400,000 (+10%) 3,088,000 Guangzhou 600,603 (+12%) 506,988 Shenzhen 466,476 (+10%) 423,270 Macau 227,232 (+2.8%) 220,828 Zhuhai 7,980 (-18%) 9,731
6 Cost Comparison Southern China to USWC TEU Hong Kong Shenzhen Differences Ocean US$2,500 US$2, Freight THC US$369 US$269 US$100 Haulage US$320 US$120 US$200 Total US$3,189 ======= US$2,889 ======== US$300 ======= Source: Hong Kong Government Big Market in China with Many Hurdles Bohai Rim Yangtze River Delta Pearl River Delta
7 Major Distribution Corridors Dailin Beijing Qingdao Tianjin YANGTZE RIVER Chengdu Suzhou Shanghai Guiyang Guangzhou Hong Kong is closely linked with the Pearl River Delta
8 Relationships Between Hong Kong and PRD 600,000+ Hong Kong residents visit PRD once a week (shopping + leisure) 100,000+ Hong Kong residents own properties in the PRD 50% of these living there 4,000+ school boys/girls living in PRD across the boundary to schools of Hong Kong 12,000+ managers from HK working in PRD 3 H 1 L High Pollution High Energy Consumption High Resources Low Technology The above industries are not welcomed by the provincial and local governments
9 The Above Interfaces are Biased Pearl River Delta EAST How to React to Challenges?
10 Economic Summit on China s 11 th Five-Year Plan and the Development of Hong Kong HKSAR Government Four Focus Groups Focus Group on Trade and Business Focus Group on Financial Services Focus Group on Maritime, Logistics and Infrastructure Focus Group on Professional Services, Information & Technology and Tourism
11 Major Strategies Feasibility to build Container Terminal No. 10 Expedite to build the Hong Kong- Zhuhai-Macau Bridge Construction of a Dedicated Logistics Park Encourage the development of e- Logistics
12 Container Terminal No.10 Lantau Island Tsing Yi Island Two sites have been identified initially. Extensive reclamation is required for the site at Northwest Lantau, which may affect the ecological environment. Consequently, the Government will study the other site at Southwest Tsing Yi. Although this site will require the relocation of the existing oil depot, it can achieve synergy with the container terminals in Kwai Chung and Tsing Yi Budget Speech, Financial Secretary HKSAR Expedite to Build the Hong Kong-Zhuhai-Macau Bridge
13 Financing Model The Hong Kong-Zhuhai-Macau Bridge (HZMB) Advance Work Co-ordination Group has reached a consensus on the bridge s financing and way forward at a meeting in Guangzhou B-T-O 50 years rights of operation Other Multimodal Platform to link HK with PRD
14 Connectivity Shanghai Hongkong Harbin Changchun Shenyang Dalian Lianyungang Qingdao Urumqi Chengdu Tianjin Wuhan Suifenhe Manzhouli Jiamusi Tongli Shenzhen Yingtan Yantai Jinan Baoji Liuzhou Wuwei Zhuzhou Xuzhou Jilin Dandong Chengde Beijing Lanzhou Xining Baotou Shijiazhuang Taiyuan Qinhuangdao Mudanjiang Tumen Xiamen Guiyang Xingyi Nanchang Guangzhou Xiangfan Chongqing Ankang Kunming Hekou Ningbo Hangzhou Huangshan Zhengzhou Wuhu Jinzhou Nanning Bengbu Hefei Anqing Nanjing Nantong Nanping Fuzhou Quanzhou Zhangzhou Hengfeng Jinhuang Luoyang Changsha Xian Zhanjiang Yangpingguan Huhehaote Xian Existing major railways Planned improvements and new railways Railway 八縱八橫幹線
15 5 North-South Corridors 7 East-West Routes Manzhouli Tongjiang Korgas Suifenhe Erlianhaote 五縱七橫國道 Yinchuan Beijing Dandong Qingdao Liangyungang Lasa Chengdu Shanghai Chongqing Kunming Henyang Fuzhou Ruili Hekou Sanya Zhuhai Zhanjiang Construction of a Dedicated Logistics Park
16 Planning Considerations 72 hectares on reclamation 600,000 sq meters of Gross Floor Area for logistics purposes Container throughput is estimated to increase from 19.1M TEU in 2002 to 40.2M in 2020 Aircargo throughput is estimated to increase from 2.48M tonnes in 2002 to 5.97M tonnes in 2020 Changing of Logistics Industry Development of 3PL Requires more space than conventional freight consolidation Returns management System integration Raw materials management Pick and pack operations Quality control Customs documentation and consultancy Postponed assembly Labeling Repacking Call centre management services Outsourcing trends
17 System Integration To offer the most up-to-date IT infrastructure with broadband connections to DTTN system Fully integrated with their suppliers, end consignees, transport providers and IT systems Lease/Sale of Sites Build their own facility to meet specific operational needs Leasing space in newly constructed multi-tenanted buildings Purchasing or leasing either in whole or in part, an existing building
18 Transport and Access Own marine cargo facility Connected to North Lantau Highway via a proposed elevated roundabout at Siu Ho Wan to the Airport and downtown Connected to HK-Zhuhai-Macao Bridge via North Lantau Highway Timeframe Feasibility study and EIA to be completed at early 2007 Reclamation and site infrastructure works completed in 2009
19 Encourage the development of e-logistics RFID E-SEAL Thank You
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