8 | HKFOCUS Friday, February 1, 2019 HONG KONG EDITION | CHINA DAILY 9 HZMB cargo fl ow — turning the page in the near future HZMB’s Tra c Volume

1.64% 17,670 Oct 24-31, 2018 Freight Volume Total Volume

Hong Kong-Zhuhai- 3.27% 103,344 Nov 2018 Macao Bridge main bridge 4.41% 118,993 Dec 2018 Zhuhai and Macao boundary crossing facilities Hong Kong 6.40% 95,055 Jan 1-28, 2019 boundary crossing facilities Source: Hong Kong-Zhuhai-Macao Bridge Authority

The mega Hong Kong-Zhuhai-Macao Bridge has brought the western Bay Area within an hour’s drive from Hong Kong, but cargo traffic on the bridge since its opening remains at a snail’s pace. Industry players, however, see a HZ B silver lining and expect the flow of freight and capital to pick up significantly in the near future, stimulating development in delta west. He Shusi reports.

ung Chung — Hong Kong’s new “west- land told China Daily they remain optimistic ern downtown” — brings shoppers that freight tra c on the 120-billion-yuan ($17.8 from the Pearl River Delta and beyond, billion) bridge will catch on in the near future. GDPs of Bay Area cities in 2017 traveling across the Hong Kong-Zhuhai- Experts say the root cause is the geographical (billion yuan) 2,150 MacaoT Bridge. But where are all the trucks? distribution of industries across the Bay Area. Trucks are a rare sight traversing the newly- Most of the industries are to the east, Shen- 383 opened cross-border infrastructure. zhen, Guangzhou and Dongguan, in particular. The answer to the question is that the west- Manufacturing development in the west, around 220 ern part of the delta remains less developed Zhuhai, Zhongshan and Jiangmen is still sparse. 955 758 than the eastern part. HZMB opens the door for investors to develop the western part of the Major global production base now Guangdong-Hong Kong-Macao Greater Forty years ago, Guangdong province became Bay Area, and promote cross-border commerce the launch pad for the country’s reform and among the 11-city cluster. opening-up. The delta, rebranded as the Bay The Hong Kong Immigration Department Area, underwent rapid economic development reports that the bridge opened on Oct 24 attract- and soon became one of the world’s leading 345 HZMB is seen as the ed more than 100,000 people a day during peak production bases. It is a key area carrying on 269 2,244 perfect conduit for periods. The fi gure doubled the government’s Chinese trade today. cargo transportation expectations of how popular the bridge would Since 1978, business experts from Hong between Hong be with travelers. Kong have been the backbone for the nascent 2,275 Kong and the delta Freight tra c, however, has been pretty lame. processing and manufacturing industries in west. The mega Data from the bridge operator, HZMB Author- Guangdong. Today, Hong Kong is still one of the 256 infrastructure has cut ity, showed that cargo shipments accounted mainland’s most important trading partners, the grueling four-hour for only 6.4 percent of the 55-kilometer bridge’s according to Hong Kong’s Census and Statistics 336 trek of days past to daily tra c volume as of Jan 28. That’s about Department. less than an hour. 217 trucks a day. Capital from Hong Kong crossed the border JUSTIN CHIN / BLOOMBERG The percentage of truck tra c is climbing. and initiated blowout growth of cities reachable Right at the start, cargo comprised only 1.6 per- from the international fi nancial center in three cent of the daily tra c. Lately, it has reached 6 hours. Those cities are strategically located in the percent, and things are getting better. north and east of the delta. Today, that’s where Zhuhai can o er key network link Geographically, HZMB is considered the per- factories of the PRD predominate. fect channel for freight transportation between Development on the west of the delta has Source: relevant government departments By HE SHUSI in Hong Kong Rent and manpower costs in Shenzhen are no Hong Kong and the delta’s west. The bridge lagged, by comparison. Zhuhai, the coastal city [email protected] longer low for cargo storage and distribution,” — the first sea crossing over the Pearl River bordering Macao, is typical. In 1980, Zhuhai was from the west. That won’t change overnight just Growth (of bridge tra c) depends on winning focusing on convenience. He believes HZMB special administrative region government plans Yau remarked. Estuary — could replace the old route over the designated as one of the country’s fi rst four spe- because the bridge is open,” Yau said. over new clients from surrounding areas.” will attract more investment to Zhuhai, thus to build a high value-added logistics center on Hong Kong-Zhuhai-Macao Bridge creates a He noted that coordinated customs arrange- Humen Pearl River Bridge between Dongguan cial economic zones in the south. With favorable Eddy Li Sau-hung is the managing director Jin said several manufacturing enterprises stimulating the economy and making it more Lantau, centered on the bridge and airport, to direct link between Hong Kong International ments on the mainland are also required to make and Guangzhou. The travel time over HZMB investment policies, these cities were able to kick of Hong Kong watch manufacturer, Campell from Jiangmen and Foshan had consulted him competitive with the rest of the PRD. promote development of trade with the main- Airport and the tari -free zone, as well as the Zhuhai stand out. cuts the grueling four-hour trek of days past to o the opening-up, and attract foreign capital for Holdings. Most of his factories are in Dongguan, to seek out brokerage fees for the service he pro- Jin estimated that after the Chinese New Year land. airport in Zhuhai. Experts believe Zhuhai can Each Hong Kong airline has its own custom- less than an hour. the nation-wide economic revolution. which borders Shenzhen to the south, and is just vides. So far, the discussions have been explor- break, some enterprises in Jiangmen and Zhong- Chen Haiquan, dean of the Guangdong make full use of the bridge by providing logistics ized packaging pallet, each pallet with a tracking Decision makers thought they had set up suf- The other special economic zone located in two hours away from major goods distribution atory and Jin says no new contracts have been shan will make up their minds on using HZMB Research Institute of Modern Logistics, said and cargo distribution for Hong Kong products. number. Freight is carried on these pallets before fi cient policies and facilities and they have. The the delta was Shenzhen. Over decades, the city centers in Hong Kong by driving. signed. “They need some time to change their and to settle contracts with him. He has made various sectors in Guangdong, including the Alice Tsang, assistant principal economist for being loaded onto airplanes. Customs authorities have introduced what’s con- bordering Hong Kong has become one of the The opening of the HZMB doesn’t really regular operation and trading routes. It’s been an optimistic prediction that the bridge’s daily government, are studying ways of introducing Greater China at the Hong Kong Trade Develop- But, there’s a problem. Empty pallets, called sidered to be the country’s most advanced goods country’s most developed metropolises. In 2017, change how goods are exchanged between Hong easier for companies in Zhuhai to do so from the truck volume can surpass 1,000 in the second more policy breakthroughs, such as qualifi ca- ment Council, thought cargo from the mainland Unit Load Devices, are prohibited from export to inspection machinery at the bridge’s Zhuhai it recorded an annual Gross Domestic Product Kong and Li’s factories. beginning,” he said. half of this year. tions and quotas for cross-border trucks and can be packed at Zhuhai airport before being the mainland. That means packaging is required Port. Procedures have been streamlined. The old of 2.24 trillion yuan — almost the same size as “But the bridge surely paints us a new picture,” Despite the demonstrated decrease in travel drivers, to encourage more vehicles to use the delivered to Hong Kong International Airport to be done in Hong Kong, Yau said. three-step procedure of quarantine, customs and Hong Kong’s in economic terms. he said. Ports in Shenzhen have become very time across HZMB, Jin said companies outside Macao on the way HZMB, Chen said. via the HZMB. If this restriction was removed, some packag- immigration clearance has now been replaced by Zhuhai has similar land area as Shenzhen. But crowded due to heavy tra c. Manpower and Zhuhai are hesitant. Changing their shipping There’s never been a direct land connection The country’s blueprint for the Bay Area is Vice-versa, international goods arriving at ing and distribution work could be transferred to a single, fully automated step. it recorded a GDP of only 256.47 billion yuan in rents in Shenzhen and Dongguan are not cheap routes poses questions about the new boundary between Hong Kong and Macao. Until HZMB expected to be released early this year. Accord- Hong Kong International Airport can be sent Zhuhai. The operational cost of air freight could As for access to the cross-border bridge, private 2017 — almost nine times smaller than that of anymore. The bridge presents Hong Kong busi- terminal and raises concerns about the depend- opened, trade between the cities traveled by ship. ing to the central government, the blueprint will directly to Zhuhai for Customs clearance and be reduced substantially, while e ciency would cars are restricted on a quota basis. There’s no Shenzhen. nessmen with a shorter path to more options in ability of delivery deadlines. Hong Kong truckers representative Chaing defi ne a preliminary outline of the Bay Area’s distribution, Tsang said. increase, he said. This would consolidate Hong limit, however, to the number of trucks between Frank Yau Yik-kin, Cathay Pacifi c Cargo’s head the west, Li said. Agreeing with Jin, Stanley Chaing Chi-wai, believes tra c on HZMB will go up once sur- development target and key tasks. Policies on This will not only help solve a chronic ware- Kong’s role as an aviation hub in the Bay Area, Hong Kong and the mainland. Currently, there of cargo sales, is in charge of the airline’s cargo Li hasn’t invested much in the west, so far. But chairman of the Lok Ma Chau China-Hong Kong face freight between Hong Kong and Macao is major infrastructures and important economic I believe people will choose the HZMB house shortage at Hong Kong International Yau added. are about 13,800 double-plate trucks running sales at Hong Kong International Airport — the he’s willing to consider transferring some of his Freight Association, said Hong Kong truck driv- open. Right now, governments are still in policy and trade cooperation will form part of the to replace ships, which are not cheap Airport, but will relieve shippers of the high cost Some enterprises in Jiangmen, west of Zhuhai, between Hong Kong and Guangdong province busiest airport in the Bay Area. factories to cities like Foshan, Zhongshan and ers are more than happy to use HZMB. The discussions related to Hong Kong-Macao surface outline. of labor in the city. The bridge o ers Zhuhai with use the airport in Guangzhou to ship foreign air that are eligible to use the bridge. “Shenzhen remains our most important win- Jiangmen. He said he is positive about business signifi cant cut in time helps reduce operational freight. Chen believes the top-level policy will facilitate and are much slower… After all, it’s the opportunity to develop itself into an air cargo freight, Yau said. Hong Kong airport has more It’s hoped that these facilities and policies dow for foreign trade with the mainland,” he potential there, thanks to the bridge. costs, including gas. A shorter path ensures more The planned logistics center at HZMB’s Macao better integration of the Bay Area as a whole, better to have the HZMB than not. distribution and transit point, and attract more international routes that could benefit those would increase the exchange of goods between said. “No matter whether it’s export or import, With HZMB, Zhuhai, Zhongshan and Jiang- trips within a day, Chaing said. Port has commenced preparatory work, accord- and further expand the functions of the HZMB. Without it, we don’t even have a vision cargo to the west, she said. companies. Once distributors adapt to the new Hong Kong to the east and the west of the delta. almost 95 percent of our cargo is situated in men now fall within the three-hour driving circle But it’s not up to the truckers to decide the ing to the Macao government. When that becomes a reality, development of the Frank Yau Yik-kin, Cathay Pacifi c Cargo’s head procedures, they may turn to Hong Kong in Industry players in Hong Kong and the main- the eastern Bay Area. Only a small part comes from Hong Kong. That is bound to attract more transportation route. It’s the people who own the Latest data from Hong Kong’s Census and western delta is expected to soar. for better development. ” of cargo sales in Hong Kong, told China Daily future, he said. foreign investment in those cities. cargo, Chaing said. They have their old habits, Statistics Department showed that the city’s Stanley Chaing Chi-wai, chairman of the Lok Ma Chau that Zhuhai needs to equip itself with more On Jan 10, Hong Kong’s largest political party “What can’t be ignored is that transportation their well-worn cross-border trading routes that exports to Macao reached HK$4.5 billion from Contact the writer at China-Hong Kong Freight Association support facilities and policies for handling cargo in the Legislative Council, the Democratic Alli- of goods from Zhuhai to Hong Kong has become they’ve been running for decades. Those people January to November last year, making Macao [email protected] before there can be a fresh spurt of growth. ance for the Betterment and Progress of Hong so much faster than it used to be, even though are not going to jump at the change, Chaing said. the 12th-largest export market for Hong Kong, Certainly, it will take a while for the delta’s Kong, submitted recommendations to the Hong the amount is small,” Yau said. In the past, it After all, he noted, the bridge has been in opera- surpassing the UK. industrial layout to change, but Zhuhai needs to Kong government on developing Zhuhai into a would take a day or even two, to come by ship tion for just three months to date. “I believe people will choose the HZMB to start creating favorable conditions now, if that’s cross-border airfreight distribution center. to Hong Kong from the western Delta. That was Everything about the 55-kilometer cross-bor- replace ships, which are not cheap and are much going to happen, Yau said. The suggestion was met with a positive a problem with goods bound for immediate der sea passage is unfamiliar — routing, tra c slower,” Chaing said, noting that ship freight “In the long run, will companies set up new response from Secretary for Constitutional delivery by air, he remarked. rules, boundary-crossing procedures at the Zhu- companies currently monopolize the market in factories in the west? Will our clients transfer and Mainland A airs Patrick Nip Tak-kuen. He “Now, it’s a matter of less than an hour,” he hai Port, and the policies regarding Customs and trade between Macao and Hong Kong. their production lines to the west? If Zhuhai has pledged the Hong Kong government will proac- said. quarantine. “After all, it’s better to have the HZMB than the capacity to pick up, it can attract goods from tively study these suggestions and seek agree- Policies vary at di erent ports on the main- not. Without it, we don’t even have a vision for the west, and even those from the east as well. ment from the mainland to get things moving. Zhuhai at the frontline land — permits are needed to import sea food better development,” he added. For all the bumps along the way, the opening from Huanggang Port, in Shenzhen, and bat- Li, who’s also president of the Hong Kong of HZMB does initiate Zhuhai as a main player teries and completed vehicles can’t be shipped Economic and Trade Association, believes Hong in the Bay Area’s foreign trade. across HZMB, Jin said. Kong should be developing the logistics industry Frank Jin is the founder of Yirong Customs Jin has high praise for the new Zhuhai Port, on Lantau Island to facilitate even more trade Declaration Agent in Zhuhai, a leading local citing its e ciency. It takes just one or two hours with the mainland. broker assisting companies to declare products for goods to pass random inspection at Zhuhai Lantau Island, where Hong Kong Interna- at Customs and get them across the border. Port, he said. But, for the same type of goods and tional Airport, AsiaWorld-Expo and the bridge’s He also sees growth opportunities for Zhuhai’s the same amount, it will take at least a day at Hong Kong Port are located, is Hong Kong’s logistics industry. “But now we haven’t seen an Huanggang Port, which opened in 1989 and is western gateway to the mainland. obvious increase in volume,” he remarked. one of the country’s busiest land ports. Last October, the Hong Kong government HZMB’s Zhuhai Port. He said his clients who are using HZMB are Tra c is much heavier in Huanggang, and unveiled its “Lantau Tomorrow Vision” project The bridge offers Zhuhai his regular clients from Zhuhai or Zhongshan. the inspection procedures are not as advanced, with a plan to reclaim about 1,700 hectares of with the opportunity to Those clients sent their goods on ships from Jin explained. land from the sea. The site will be developed into develop into an air cargo The Bay Area is an important region today for Chinese mainland trade. Currently, there are Zhuhai to Hong Kong before the bridge opened. Jin hopes the local government could make another central business district. The customs authorities introduced what’s considered to be the country’s most advanced goods inspection distribution and transit about 13,800 double-plate trucks running between Hong Kong and Guangdong province “At this stage, the bridge is competing only greater e orts to publicize the bridge and its With more supporting infrastructures on the machinery at HZMB’s Zhuhai Port. The previous three-step procedure for quarantine, customs and immigration point, and attract more that are eligible to use the HZMB. JEROME FAVRE / BLOOMBERG with local businesses (ship operators) in Zhuhai. new facilities, among manufacturers, especially way, including the airport’s third runway, the clearance has been replaced by a single, fully-automated step. INFORMATION SERVICES DEPARTMENT cargo to the west. XINHUA