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2011 November 28   13:53

Beijing backs HK as shipping hub

Despite the Pearl River Delta's declining role as the world's workshop, Beijing has underlined Hong Kong's status as a shipping hub, reported the South China Morning Post.

It also wants Shenzhen to evolve into a global logistics hub.

Vice-Minister of Transport Xu Zuyuan, said Hong Kong would remain a vital international port, and Beijing was committed to supporting its development as a maritime centre under the five-year plan to 2015.

Hong Kong and the mainland should increase collaboration in shipping and maritime activities, said Xu, who was in Hong Kong to attend the Asian Logistics and Maritime Conference.

The ministry has also set out roles for Shenzhen and Guangzhou.

"While consolidating Hong Kong's role as an international shipping centre, logistics and shipping services must be aggressively developed in the major ports of the Pearl River Delta, including Shenzhen and Guangzhou," it said on its website yesterday.

Shippers said the government was seeking to encourage the sector despite some industries leaving the delta because of rising costs.

"The central government is telling everybody it has confidence in the Pearl River Delta. Despite factories closing down, factories in southern China have to deliver their goods through Hong Kong and Shenzhen," said Willy Lin Sun-mo, the chairman of the Hong Kong Shippers' Council.

On Wednesday, the Shenzhen government published its five-year plan with an aim of making the city a global logistics hub.

"This is the first time the government's plan explicitly stated the notion of Shenzhen becoming a premier national logistics services city," said Qu Jian, the deputy head of the China Development Institute, a think tank.

The Shenzhen government wants the sector's value-added output to rise to US$23.55 billion in 2015 from $14.54 billion last year.

During the five-year plan period, Shenzhen would accelerate its partnership with Hong Kong in creating a joint international shipping hub and building an exchange in Qianhai, the Shenzhen Ports Association said on its website. An Asia-Pacific supply chain management centre and shipping services base would be built in Qianhai, a 15 sq km development zone in Shenzhen.

It would take time for Qianhai to develop into a logistics hub, said Lin. "The free-port status of Hong Kong will not apply to Qianhai. If Qianhai is to co-operate with Hong Kong, the government will have to change the laws for Qianhai."

The exodus of factories from the delta has caused throughput in Hong Kong, the world's third busiest port, and Shenzhen, the fourth busiest, to lag behind Shanghai, the world's busiest port.

In the first 10 months of this year, Shanghai's container throughput rose 10.3 per cent to 24.6 million TEUs while Shenzhen's fell 0.1 per cent to 18.8 million TEUs, according to government data.

"Shenzhen will never overtake Shanghai in throughput. In terms of throughput, Shenzhen and Hong Kong may reduce in future, but their value can increase a lot," said Anthony Wong, a former president of the Hong Kong Logistics Association.

In the first 10 months of this year, Hong Kong's container throughput rose 3.6 per cent to 20.25 million TEUs. Export value rose 11.3 per cent in the same period, according to the government.

"Hong Kong port is not just moving boxes. It has to be doing more high-value functions," Lin said.

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