Transhipment Volume Challenges

Transhipment volume challenges

In 2000, Hong Kong has become a direct export container destination from Pearl River Delta (PRD) factories which comprised 75% of port’s throughput. However in 2016, the rise of major port i mainland china such as shenzhen starts to gain more market share by improving their efficiency while charging with much lower price rate as compared to hong kong. This situation causing hong kong direct shipment from PRD drop to 28% of total output in 2016 making port of hongkong become a transhipment port

Operational mode

In the past, hongkong’s ports have been considered modern and efficient in term of processing vessels’ cargo and major support from its goverment. However now the ports have been marked as outdated due to its inability to process complex the mega alliances including the growing of complexuty of cargoes mix with larger ship which causing the already congested port becoming even worse. The mega alliances is causing further more complexity in the process by carrying of up to si lines on their vessel which needs to be offloaded and moved around the port to be loaded onto the either non or alliance members’ vessels,

Government support/ incentives

The competitiveness of hong kong’s logistic industry is heavily realies on the government policyfacing strong competitiors. Hong kong is currently under bottlenect situation where governments involvement is seen not aggressive and decisive enough in its support. This is because the development model used was more market driven which mean the major consideration in making decision is cost of development where in singapore, the development activities would mostly subsidized by government.

Barge network

Many argue that hong kong needs to re-locate it port to place where more land, better