KONG REINFORCES INTEGRATED LOGISTICS HUB POSITION

Hong Kong has taken full advantage of its geographical position, its long standing role as a global trading centre and its unparalleled international access to to become one of the world’s leading integrated logistics hubs, affirmsMark Millar

lobal Supply Chain weekly sailings to more than 500 destinations Ecosystems simply worldwide, is well established as could not function if “The Hong Kong Shipping both a leading trans-shipment hub and the Gthe various logistics Register is the world’s fourth international gateway for southern China. networks that connect the Hong Kong’s maritime development also system’s infrastructure and partners largest, with gross tonnage enjoys the staunch support of the Central were not fully integrated. From containerised Government. China’s 12th five-Year Plan deep sea traffic and to inland dry docks and at 91 million and Hong Kong expressly supports Hong Kong›s position as an trans-shipment zones, in the air, on the road or international maritime centre. The Hong Kong via the railways - every stage from component companies own or manage Shipping Register is the world’s fourth-largest, sourcing through to final consumer delivery 9% of the world’s merchant with gross tonnage at 91 million and Hong Kong depends on integrating the physical movement of companies own or manage 9% of the world’s goods and related information exchange. fleet in deadweight tonnage” merchant fleet in deadweight tonnage. The city’s Hong Kong has taken full advantage of its 700 shipping-related companies offer a flotilla of geographical position, its long standing role as a Mark Millar maritime services, including ship agency and global trading centre and its unparalleled management, broking and chartering, finance, international access to China to become one of marine insurance, and maritime legal and the world’s leading integrated logistics hubs. As an integrated logistics hub, Hong Kong arbitration services. With its strategic location and time-zone enjoys an unassailable leadership position In the global air freight sector, which accounts linking Asia and Europe, Hong Kong is a global amongst its peers in Asia, uniquely fulfilling all for one third of the value of international trade in centre for trade, finance, business and the essential roles to efficiently and effectively goods, Hong Kong International Airport (HKIA) communications. It remains an important serve global supply chain ecosystems. is the world’s largest air hub with 2014 regional hub for international companies—more In container shipping, Hong Kong processed throughput of 4.36 million tons, an increase of than 7,500 externally owned are based throughput volumes of 22.3 million TEUs during 6% over the previous year. there, and of these, nearly 1,400 operate as 2014, making it number four in the world. Its Serving almost 100 airlines, HKIA manages regional headquarters and some 2,400 as regional nine container terminals are privately owned and 7,000 flights per week, connecting freight and offices; it has also become the super-connector operated, with a total 24 berths. Served by 80 passengers to over 180 destinations, including 40 between China and the rest of the world. international shipping lines, providing 380 cities in . To meet air traffic

44 | Logistics News ME | August 2015 LOGISTICS HUB

Serving Global Gateway into Asia Regional International Global Multi Supply Chain and out of Distribution Tran-Shipment Modal Logistics Ecosystems? mainland China Centre Centre Hub MARK MILLAR Hong Kong MBA, FCILT, FCIM, Singapore FHKLA, GAICD, SCOR-P Shanghai Shenzhen demand in the long run, planning is underway the Asia region. With both ambient and air- for the construction of a third runway, which will conditioned processing and storage areas, and more than double the cargo handling capacity to the latest international accreditations including over nine million tons per annum by the 2020s. AEO, C-TPAT and TAPA certifications, To better service the substantial volumes of Tradeport is considered to be a world-class international trans-shipments and enable regional distribution centre facility. seamless multi-modal connectivity, Hong Kong’s CEO Kenneth Bell said: “In today’s world, logistics service providers have adopted e-logistics connectivity is of paramount importance to solutions that provide integrated technology facilitate safe, secure and efficient movement platforms to submit road cargo information of goods between buyers and sellers. electronically, speeding up customs clearance and Regional Distribution Centres are key hubs facilitating efficient cross-border trucking. for the storage and processing aspects within the supply chain. Hong Kong’s logistics LOGISTICS LEADERSHIP FOPR A-PAC industry has long been a significant Being strategically located in-between geographical cluster, underpinning its world- Singapore in south-east Asia and Shanghai in leading air cargo and sea throughput as a north-east Asia, geographically blessed Hong logistics centre for not only the city itself, but Kong is uniquely positioned to be the Logistics its immediate hinterland in mainland China Mega Hub serving the whole Asia-Pacific and beyond throughout the rest of Asia.” region. Leveraging Hong Kong’s extensive CONNECTIVITY THROUGH THE connectivity and privileged free-port status, DELTA INTO MAINLAND CHINA Author of ‘Global Supply provides companies with an ideal Regional The Tradeport integrated logistics hub is Chain Ecosystems’ Distribution Centre (RDC) platform from perfectly positioned at the eastern end of the which to serve all the markets in Asia with new Hong Kong-Zhuhai- Bridge, due to commissioned by efficient and competitive warehousing and open in 2017. leading business book distribution services, coupled with cost effective The 29.6 km bridge will further enhance multi-modal transportation options. Over 600 connectivity with South China and enable publisher Kogan Page international transport and transport-related more efficient cargo flows between Hong Kong of London, Mark Millar companies have established regional office and the western – in the heart infrastructure in Hong Kong. of Guangdong province’s manufacturing base, is an internationally which generates around one third of China’s known industry expert TRADEPORT total exports. With its unique location adjacent to Hong The mega-bridge links up the three cities who leverages over 30 Kong International Airport, Tradeport is a across three jurisdictions and when completed, years of global business purpose-built 30,000 sqm logistics hub and will reduce travelling time between Zhuhai and regional distribution centre, providing modern the Hong Kong International Airport from the experience to deliver warehousing and logistics services present four hours to just 45 minutes. practical knowledge and The only facility of its kind on , the Tradeport facility is literally two CONCLUSION educated insights that minutes from the world’s largest cargo airport, Hong Kong is uniquely positioned as the ‘The help companies navigate twenty minutes from the world’s fourth largest Super-Connector’ for the whole Asia-Pacific and just forty-five minutes from region. Its critical mass of cargo throughput the complex landscapes the border to mainland China. and far-reaching air-and-ocean connectivity in Asia and improve the The Tradeport logistics hub provides enable the network-effect that empowers Hong solutions for a wide range of customers Kong’s enviable position as the pre-eminent efficiency of their supply needing cost effective logistics solutions and Integrated Logistics Hub servicing Global chain ecosystems. multi-modal connectivity to serve the whole of Supply Chain Ecosystems.

Logistics News ME | August 2015 | 45 LOGISTICS HUB

30,000sqm Logistics hub 22 4 100 4.36 Loading bays Cargo lifts Airlines million tons of air cargo in 2014 24,000 7,000 180 Pallet positions Flights per week Destinations connected

HONG KONG TRAVEL PORT

HONG KONG INTERNATIONAL AIRPORT IN NUMBERS 7,500 Number of externally owned 1,400 businesses based in IN NUMBERS Hong Kong Regional HQs in 29.6KM Hong Kong Length of Hong Kong Zhuhai 2,400 Macau Bridge; due to be Regional 395,000 completed in 2017 offices in Projected expat Hong Kong population of Hong Kong by 2017 HONG KONG: THE ASIAN LOGISTICS HUB The numbers driving Asia-Pacific ‘Super Connectors’ HKIA, Travel Port and Port of Hong Kong

46 | Logistics News ME | August 2015 LOGISTICS HUB

PORT OF HONG KONG

80 22.3M Initial Shipping Lanes TEUs 2014

380 Weekly sailings to 500 destinations

24 4TH Number of berths in Globally for the container terminal Container Shipping

Logistics News ME | August 2015 | 47