Archive for the 'Hong Kong' Category

Shanghai International Port, operator of the world’s second-busiest container harbor, said profit rose 23% last year as China’s rising trade boosted demand for sea-cargo transport.

Net income climbed to RMB3.64 billion ($519 million), or RMB 0.17 a share, from RMB2.97 billion. Sales climbed 27% to RMB16.3 billion.

Shanghai appears to have possibly passed Singapore as the world’s busiest container port so far this year, and boosted traffic 20% in 2007. It has already handily passed Hong Kong with 26.15 million TEUs crossing its wharves last year while Hong Kong handled 23.99 million boxes.

Growth in cargo volumes and profit at Chinese harbors may slow this year as demand weakens in the U.S. and China attempts to cool its economy.

Ji Min, an analyst at China Merchants Securities Co. in Shenzhen, said before the earnings release. said, ‘It will be a difficult year for all port operators. The export slowdown will hurt port operators, especially the container handlers, significantly.’ A figure of 30 million boxes is hoped for but that might not be attained.
Source: Cargo News Asia

Li Ka-shing is arguably the richest Asian in the world. And he is immensely shrewd. As chairman of Hutchison Whampoa Li Ka-shing said, while announcing the company’s results, that Hong Kong doesn’t need a 10th container terminal.

The government of the SAR believes container throughput will continue to increase and is eyeing southwestern Tsing Yi in Hong Kong as a possible site to build Container Terminal 10. A Transport and Housing Bureau spokesman said a new berth would be needed by as early as 2015.

Li Ka-shing said the idea that expanding the port and building a cross-border bridge would boost the city’s cargo business was ‘wishful thinking’.

He said Shenzhen would overtake Hong Kong within four years as the world’s third-busiest cargo port.

By cargo tonnage, or the total weight of goods loaded at a port, Shanghai currently ranks first, with 560 million tonnes in 2007, followed by Singapore with 483.4 million tonnes.

Measured by TEUs, Singapore is the world’s largest, with about 28 million, and Shanghai second, with more than 26 million.

Hong Kong handled 245.4 million tonnes of cargo and 24 million TEUs last year.

Li noted that at Zhuhai’s container terminals in Gaolan, the fees for handling cargo are cheaper than in Hong Kong. He said, ‘Even if the cargo leaves via Hong Kong, it would still be cheaper than if the cargo was handled here. We cannot compete.’

Zhuhai container terminals are in the city of Zhuhai on the western bank of the Pearl River Delta in Guangdong Province, adjacent to Macau and 36 nautical miles from Hong Kong.

Hutchison Whampoa generated 15% of its revenue last year from port-related business, which earned it US$4.85 billion, up from $4.23 billion in 2006.
Source: CargoNews Asia

DHL has appointed Edward Hui as country manager Hong Kong, Macau and South China for DHL Global Forwarding.

He will be responsible for developing and executing the company’s corporate strategies and operations in Hong Kong, Macau and South China.

He will also play a key role in exploring market opportunities and enhancing customer satisfaction for the complete range of DHL freight logistics services.

Victor Mok, senior vice-president, Greater China, DHL Global Forwarding said, ‘Edward has a proven track record, both in DHL and in the logistics industry, as well as excellent knowledge of Hong Kong and mainland China markets. I am confident that under Edward’s leadership, DHL will continue to attain and maintain the number one position in the region.’

Hui joined DHL Global Forwarding in 2004 as head of airfreight operations for Exel, and subsequently led the successful integration of the equally-sized freight operations of heritage Exel and DHL Danzas Air and Ocean.
Prior to joining DHL, he was with Cathay Pacific Airways for over 13 years where he began his career as a management trainee.
Source: CargoNews Asia

China National Foreign Trade Transportation, the nation’s logistics giant, is pushing ahead with plans to sell more assets to its listed unit, Sinotrans. The company is listed on the Hong Kong stock exchange.

Last October, Sinotrans, a partner of global players such as Deutsche Post’s, DHL and Korean Air, agreed to buy RMB1.11 billion ($156.2 million) worth of freight forwarding, shipping agency and warehousing businesses from its state-owned parent.

China National now plans to sell a second batch of assets to Sinotrans. That means it will have floated all of its key assets on the market.

China National President Zhao Huxiang who is also the chairman of Sinotrans said that the assets, located in Hunan, Jiangxi and other provinces, will help to fill out Sinotrans’ network and enhance efficiency.

He did not say when this would happen although it seems likely it will be this year.

He said China National’s two Hong Kong-listed units, Sinotrans and Sinotrans Shipping Ltd, would continue to expand via mergers and acquisitions. He added that both companies are cash-rich and would not need to raise funds.

Shares of Sinotrans Shipping have fallen 24% this year and Sinotrans has dropped 33%, underperforming a nearly 20% loss in the index of Chinese companies listed in Hong Kong .

Chairman Zhao Huxiang said Sinotrans continued to show good business growth and the U.S. sub-prime debt crisis had very limited impact on Sinotrans and Sinotrans Shipping.
Source: Reuters

DHL has announced it will build a North Asia hub at Shanghai Pudong International Airport for US$175 million. The facility will provide more regional connections for customers in the China and North Asia regions and intercontinental links to Europe and the U.S. The signing ceremony (pictured) was held in Shanghai on Monday.

The facility will cover 55,000 square meters and is scheduled for completion in the second half of 2010.

Wu Nian Zhu, Chairman and President of Shanghai Airport Authority, said Shanghai Airport is now the first in the world with two international transferring hubs.

Across the Asia Pacific region, DHL already has hubs in Hong Kong, Singapore, Incheon (South Korea), Bangkok and Sydney.
Source: PR DHL

Shanghai International Port Group will raise container tariffs at its ports from the beginning of next year which should boost annual revenues by US$119 million.

The fees at Waigaoqiao port will be increased by 10% to $74 per TEU (a standard container), while those at Yangshan port will rise 21%to $69 per TEU.

Citigroup estimates the price rises will lift the 2008 profit of China Merchants by $26.5 million.

By that time, analysts believe Shanghai will be the busiest container port in the world, price rises not withstanding.

To do that it will have to pass Hong Kong and the current leader, Singapore. Whether the increase in pricing will affect the rise and rise of Shanghai International Port has yet to be shown.
Source: CargoNews Asia

The idea of a Hong Kong-Shenzhen metropolis — megapolis? — could make it the third-strongest city economically in the world by 2020. The illustration is but a small slice of Victoria on Hong Kong island. Trying to think of Hong Kong-Shenzen as a single entity boggles the mind.

Zhu Wenhui, a consultant at the Bauhinia Foundation Research Centre’s Hong Kong-Shenzhen Metropolis Study Group, said should the proposed metropolis keep an 8% gross domestic product growth per annum, its GDP would reach $1.11 trillion by 2020. From a logistics point of view the two ports working as one would be seriously efficient.

Which would make the pecking order in GDP Tokyo, New York, Hong Kong/Shenzen with London, Paris and Los Angeles bringing up the rear.

The foundation proposed ten recommendations to achieve that status, one of which involves the building of a high-speed railway connecting the airports of the two cities forming a super air hub.

A spokeswoman from the Hong Kong Transport and Housing Bureau said, ‘We already plan to suggest building the Tuen Mun western bypass and another link of Tuen Mun and Chek Lap Kok . . . to shorten the journey between the two airports.’

Another proposal involves the issuing of electronic multiple-entry visas in the first stage and which would enable two million permanent Shenzhen residents more convenient access to Hong Kong.

On a national level, opinions of officials from the Commerce Ministry, National Development and Reform Commission and the State Council’s Hong Kong and Macau Affairs Office were solicited and the concept has gained the support from 90 and 60% of Shenzhen and Hong Kong officials, respectively.

Zhu Wenhui, said, ‘As a think-tank, we hope more discussion can be brought about on an important issue to the development of the region and the nation . . . and hopefully governments can use the report as a starting point for a policy breakthrough.’

Note carefully the research report was compiled without the blessing of the central government. But a Constitutional and Mainland Affairs Bureau spokesman said the government has all along attached importance to the cooperation between Hong Kong and Shenzhen.
Source: The Standard

Zhang Xiaoqiang, deputy chairman of the National Development and Reform Commission, Hong Kong should focus on developing the high-end logistics industry and leave the expansion of container terminals to neighboring cities in Guangdong. He said authorities should embrace a ‘regional perspective’ in building new terminals in the future.

This comes after the news published in the same source, Cargo News Asia (a most excellent trade magazine) that Hong Kong’s container ports are not competitive with its neighbors, such as Yantian, which offer efficient service at cut-throat prices.

In 2005, Hong Kong lost its position as the world’s busiest port. Shanghai nicked past. Next year Shenzhen will overtake it.

Zhang Xiaoqiang is in charge of Hong Kong and Macau affairs in the commission and he said there was a case for Guangdong to build more container terminals. He added no words of comfort for Hong Kong as a container port: ‘This would allow Hong Kong to focus more on the high-end logistics industry. . . . Retaining Hong Kong’s status as an international shipping centre means moving everything made in Guangdong to Hong Kong ports. This increases the time and cost of transporting the products.’

Zhang Xiaoqiang said diverting cargo throughput to Guangdong would be a win-win situation because the province’s economic growth had outpaced Hong Kong’s and its trade volume had expanded robustly. He said, ‘We have to look at the fact that the cake is ever increasing.’
Source: Cargo News Asia

Greg Knowler is the editor of CargoNews Asia. In an editorial he dismisses Hong Kong as a major port with a major future.

A strongly edited version of what he wrote follows. The full account is in Cargo News Asia.

Hong Kong hosted the general meeting of the influential Baltic and International Maritime Council (BIMCO) last week. Its influence could be seen by the name topping the list of opening session speakers — none other than Hong Kong Chief Executive Donald Tsang. A shipping conference would usually be fronted by an official of lesser stature than the boss himself.

Tsang informed the BIMCO delegates that the national government fully supported Hong Kong’s position as an international maritime centre. . .

Then came the denial. He said Hong Kong was rising to the challenge from these ports by ‘improving the quality of service and upgrading the skills and knowledge of our maritime professionals’.

If the chief executive really believes that by improving service quality and skills, the port will fend off the challenge being posed by Shenzhen, then he needs to sit down and read the research reports by consultants his government paid for.

Because no matter how efficient Hong Kong becomes, no matter how many container moves its cranes can make an hour, no matter how high it can stack boxes and turn around ships, it still costs around US$250 more per FEU to truck the box across the border than to export it via the Shenzhen port of Yantian.

This has seen Hong Kong’s market share of South China direct exports plunge from 80% in 2000 to less than 50% last year.

Hong Kong port’s best days are behind it . . . and in the absence of any meaningful cost-slashing cross-border initiatives, its inexorable decline will continue.

Source: Cargo News Asia

DHL, the express carrier and logistics provider, has a new, dedicated flight connecting Qingdao and Hangzhou with its central Asia hub in Hong Kong. The carrier has already started gateway operations at the Hangzhou International Airport. These latest investments are part of the planned $110 million investment in its China business in the next few years.

The new ten-time weekly flight, operated by a Yangtze River Express Airlines 737-300 freighter aircraft with a payload capacity of 13 tons, marks Hangzhou Airport’s first international air express cargo connection.
Source: Logistics Today