While Hong Kong’s shipping industry faces challenges caused by evolving global dynamics, industry insiders remain confident in the city’s status as an international shipping hub, believing the industry can rejuvenate itself through systematic reform and innovation, with a particular emphasis on regional cooperation and green development.
The wave of optimism followed on from a high-level meeting when the country reaffirmed its support for the Hong Kong Special Administrative Region to develop its shipping industry. According to the resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China, which concluded on July 18, Hong Kong’s status as an international shipping center will be consolidated and enhanced, alongside its role as an international financial and trade center.
The city’s shipping industry “faces non-stop challenges on all fronts”, as “ships sail the world’s oceans 24 hours a day, seven days a week”, said Sandy Chan Pui-shan, managing director of the Hong Kong Shipowners Association. “We must promote reform.”
ALSO READ: HK sets action plan to become world's leading shipping hub
Encouragingly, the Hong Kong Special Administrative Region government and the industry have recognized the importance of urgent reform, and reached a consensus on major approaches, including deepening cooperation with other cities in the Guangdong-Hong Kong-Macao Greater Bay Area, and transforming the city into a green port, as well as developing high-value-added maritime services, as outlined in the government’s Action Plan on Maritime and Port Development Strategy released in late 2023.
“Hong Kong and 10 other GBA cities enjoy vast potential for cooperation despite competition,” said Yim Kong, a Hong Kong lawmaker for the commercial constituency.
As the city’s action blueprint shows, the growth of ports in neighboring Guangdong province in recent years has intensified regional shipping competition, as Hong Kong and these ports are geographically close, and share similar cargo sources.
“The key to cooperation lies in harnessing complementary advantages and pursuing differentiated development,” Yim pointed out.
ALSO READ: HK shipping accorded due attention in logistics mix
Chan highlighted GBA ports’ respective strengths: — Hong Kong is strong in ship management, with four of the world’s top 10 ship management firms headquartered in the city. Provincial capital Guangzhou has a solid foundation in shipbuilding, with local shipyards booked up until 2028. Shenzhen, a “pioneer” in innovation and technology, is expected to open its ocean university next year.
Yim, who is also the vice-chairman of China Merchants Port Group, called for the establishment of a cross-tariff “integrated port system” or “port alliance” in the GBA.
This model actually has taken shape among Chinese mainland ports in the region, where they share resources such as berths, storage yards and shipping routes. Notably, cargo exported through these ports is required to submit to declaration and inspection only once, greatly enhancing port efficiency. The SAR should consider joining the “system”, Yim said.
“Green” is seen by experts as another key word for the reform of Hong Kong’s shipping industry.
ALSO READ: Integration into GBA needed to leverage HK as shipping hub
A bill to amend shipping legislation is currently under review, which, once passed, will allow ships to use and refuel green fuels such as liquefied natural gas, methanol, ammonia, and hydrogen in Hong Kong waters, instead of relying on conventional petroleum fuels.
But industry leaders believe Hong Kong should take a step further. Chan suggested that the city be developed into an exporter for green fuels, including those produced on the mainland, and as a green fuel bunkering hub in the Asia-Pacific region. This would increase Hong Kong’s cargo throughput, and provide greater impetus for multinational companies to base their ships in the city, Chan said.
Yim agreed, saying that Hong Kong can join hands with other GBA cities to form a green shipping corridor, which typically refers to shipping routes connecting two or more ports, with the deployment of zero- or low-emission vessels and other decarbonization initiatives.
Hong Kong’s container ports’ throughput stood at 14.34 million twenty-foot equivalent units last year, down 14 percent from a year earlier, according to global shipping research firm Alphaliner, placing the city at 11th globally.
ALSO READ: Long-term strategies a prerequisite to consolidate shipping industry in HK
Experts said a region or country’s standing in the global shipping landscape is typically evaluated based on a range of objective benchmarks and subjective assessments. The former includes port handling capacity, global connectivity, maritime service ecosystem, and business environment. Container throughput, while significant, is not the determinant.
The latest Xinhua-Baltic International Shipping Centre Development Index, a comprehensive measure of international maritime hubs’ strength, ranks Hong Kong fourth globally.
According to the Shanghai Shipping Exchange, the average stay time for international ocean-going container vessels in Hong Kong is 1.04 days, far below the 2.38-day average for the world’s top 20 container ports, indicating the Hong Kong port’s efficiency.
Moreover, Hong Kong provides a wide range of maritime services, including ship registration, ship finance, marine insurance, arbitration, and equipment supply. Measured by gross tonnage, for instance, Hong Kong is the world’s fourth-largest ship registry, with 2,336 vessels totaling 127 million metric tons on its books.
READ MORE: Greater Bay Area buoys HK shipping
Industry insiders said they believe that with the foundations built over its 150-year maritime history, Hong Kong’s shipping industry can achieve greater development through sustained, in-depth reforms.
