LOGISTICS Hong Kong – leading global logistics hub Hong Kong’s competitive advantage as a global logistics hub will revolve around three competencies – best-in-class transshipment hub, centre of excellence for logistics talent development and global leadership in e-logistics. s the world’s leading cargo increasingly seeking to nurture and retain such as decreasing the amount of paper- transshipment hub, Hong Kong their home-grown intellectual capital in work and improving vehicle utilisation, Amanages on an annual basis over logistics and supply chain management. thus reducing emissions. Within the cross 4m tons of air cargo and almost 24m Firmly reinforcing its position as a leading border trucking sector, electronic submis- teu of ocean freight. The International regional centre of excellence for logistics sion of road cargo information enables Air Transport Association predicts that industry skills and talent development, seamless customs clearance at the land Hong Kong will continue to be the world’s Hong Kong is home to 60 educational boundary control points. GPS communi- fastest-growing air cargo market, whilst and vocational training institutions, offer- cations technology is widespread in the the cluster effect of 200,000 vessel calls ing more than 1,000 programmes and fleet management of trucking companies, combined with the extensive network of courses related to logistics and shipping. with the On-Board Trucker Information connections to over 550 container ports From the e-logistics perspective, System. around the world, will ensure increasing Hong Kong’s increasingly widespread volumes of ocean freight transshipments. adoption of e-freight initiatives throughout Regional Logistics Leadership As skills shortages impact supply the international air and ocean cargo sec- serving the Asia Pacific Region chain execution in the emerging markets tors is generating operational efficiencies Being strategically located in-between around the Asia region, companies are whilst providing environmental benefits Singapore in Southeast Asia and Shang- 18 The Port of Hong Kong Handbook & Directory 2015 hai in Northeast Asia, Hong Kong is geo- graphically blessed and has a position- unique opportunity to become ‘The Super Hub’ for the Asia-Pacific region. Over 600 international transport and transport-relat- ed companies have established regional office infrastructure in Hong Kong. Leveraging Hong Kong’s extensive connectivity and privileged free-port status, provides companies with an ideal regional distribution centre platform from which to serve all the markets in Asia with efficient and competitive warehous- ing and distribution services, coupled with cost effective multi-modal transpor- tation options. With it’s unique on-airport location, Tradeport provides modern warehousing and logistics services at its purpose- built regional distribution centre, and is the only facility of its kind at Hong Kong International Airport, the world’s busiest cargo airport. Located minutes away from the From the trade perspective, Hong competitive, between companies, and air cargo terminal operators, only 20 Kong is China’s second largest trading also between countries and cities, all minutes from the container port and just partner after the United States, account- wishing to grow as IMCs. 40 minutes from the mainland border, ing for 9.6% of the Mainland’s total trade Hong Kong has the potential to the Tradeport Logistics Hub provides in 2013. Through the Mainland and Hong bring together a diversity of high value- multi-modal connectivity for the whole of Kong Closer Economic Partnership Ar- added maritime services and become a the Asia region. With both ambient and rangement, known as ‘CEPA’, all Hong preferred base in Asia for international air-conditioned processing and storage Kong-origin goods meeting the CEPA maritime business, but is facing keen areas, and the latest international accred- rules of origin are entitled to tariff free competition from other IMCs in the region itations including AEO, C-TPAT and TAPA treatment. who aggressively seek to expand their certifications, Tradeport is considered Hong Kong is Mainland China‘s larg- maritime business base. to be a world-class regional distribution est export market at $384.8bn, represent- The maritime services cluster is centre facility. ing 17.4% of total exports in 2013; whilst economically significant, with Hong Kong the Mainland is Hong Kong’s largest being home to Shipowners that own and Mainland China’s International domestic export market reaping $3.2bn manage 10% of the world’s merchant Gateway, in and out worth of goods, or 45.6% of total domes- fleet by dead weight tonnage and also Hong Kong and Mainland China are each tic exports in 2013. being the fourth largest Shipping Register other’s major trading partners - with Hong With its free port status, Hong Kong worldwide, comprising 7.7% of the world’s Kong providing the bi-directional interna- plays a major entrepot role for trade be- merchant fleet by gross tonnage. tional gateway for substantial movements tween Mainland China and the rest of the of trade in goods and services into and world- providing a trading post through Conclusion out of mainland China – together with the which merchandise can be imported and Leveraging its strategic location, de- related commercial and financial flows. exported without attracting duties. In fensible competitive advantages and Mainland China is also the largest 2013, $403.6bn of goods were re-export- business-friendly environment, Hong source of inward direct investment, with ed through Hong Kong to and from the Kong is extremely well positioned to last year’s $460bn representing 37% of Mainland, representing 89.3% of Hong continue to develop and strengthen its Hong Kong’s total inbound investment. Kong’s total re-export trade value. logistics leadership role, thus enabling As at June 2013, there were 114 com- and empowering the global supply chain panies from the Mainland with regional International Maritime Centre ecosystems that drive international trade headquarters in Hong Kong, mainly en- The Hong Kong Government has recently and worldwide commerce. gaged in import/export trade, wholesale explored ways to enhance Hong Kong’s and retail, transportation, storage and position as an International Maritime Mark Millar is the managing partner of M courier services, finance, banking and Centre resulting in a strategic develop- Power Associates, an exclusive network professional business services. Another ment blueprint for Hong Kong to reinforce of experts that provide consulting, advi- 148 Chinese companies had set up and maintain its position amid intense sory, education and recruitment services regional offices in Hong Kong to oversee competition in the region. for the supply chain and logistics sectors business activities for the Asia region. The maritime industry is global and across the Asia region. The Port of Hong Kong Handbook & Directory 2015 19 Mark Millar 马克 – Bio “One of the Region’s Supply Chain Leaders” China Supply Chain magazine CHaINA “One of the most Progressive People in World Logistics” Global Institute of Logistics Acknowledged as an engaging and energetic presenter, clients have engaged Mark Millar as Speaker, Moderator, Conference Chairman or MC at more than 350 corporate events, client functions and industry conferences across 23 countries. Mark leverages over 30 years global business experience to provide value for clients with informed and independent perspectives on their supply chain strategies. His ‘Asia Supply Chain Insights’ series of corporate briefings, consultations and seminars deliver practical knowledge and educated insights that help companies navigate the complex landscapes in Asia, develop new business opportunities, improve the efficiency of their supply chain ecosystems and make better informed business decisions. Author of “Global Supply Chain Ecosystems” published by Kogan Page of London, Mark is a Visiting Lecturer at Hong Kong Polytechnic University and has delivered Guest Lectures at Georgia Tech (Atlanta), RMIT (Ho Chi Minh City) and SP Jain (Singapore & Dubai). He is a Graduate of the Australian Institute of Company Directors (GAICD), Chartered Fellow of the Chartered Institute of Logistics and Transportation (FCILT), Fellow of the Chartered Institute of Marketing (FCIM) and an APICS SCOR-P certified Supply Chain Professional. Mark achieved an MBA with Distinction from the University of the West of England, is a Graduate of the Chartered Institute of Marketing and holds a post-graduate Diploma in Management Studies. His international track record in the B2B services sector includes 20 years in the Asia Pacific region, where Mark led business development initiatives across ten Asian countries. His distinguished corporate career included executive positions at Thorn EMI, RR Donnelley, ModusLink, Platinum Logistix, Exel Contract Logistics (now DHL) and UPS Supply Chain Solutions - serving many leading companies in the Consumer Retail and High Tech Electronics sectors. He has lived and worked in the UK, the Netherlands, Australia, Singapore, USA, Ireland, mainland China and Hong Kong. Whilst with the Thorn EMI group in the UK, Mark’s international sales leadership earned Thorn Secure Science the “Queen’s Award for Exports”. Appointments: an active and enthusiastic industry contributor, Mark currently serves as: • Asia Ambassador, East West Transport Corridor Association, Europe • Advisory Board Member, Institute for Supply Management,