hong kong as a regional distribution hub

Hong Kong as a Regional Hong Kong as a Regional Distribution HubDistribution Hub

““Made in Hong Kong > Made by Hong Made in Hong Kong > Made by Hong Kong > Distributed by Hong Kong”Kong > Distributed by Hong Kong”

. , , , by Mr Willy Lin Sun Mo SBS MBE JP• ’ Chairman of the Hong Kong Shippers Council• Chairman of Advisory Board of the Hong Kong Export

Credit Insurance Corpora tion

Gina Giron-Urquiola, Editor/Executive Officer, Hong Kong Shippers’ Gina Giron-Urquiola, Editor/Executive Officer, Hong Kong Shippers’ CouncilCouncil

I composed the following powerpoint I composed the following powerpoint presentation & speech for Hong Kong presentation & speech for Hong Kong Shippers’ Council Chairman, Willy Lin, for a Shippers’ Council Chairman, Willy Lin, for a Hong Kong government promotional trip to Hong Kong government promotional trip to Chicago in November 2009.Chicago in November 2009.

Hong Kong is the conduit, the Hong Kong is the conduit, the distribution hub, that has been distribution hub, that has been making the supply chain move making the supply chain move smoothly and enables commerce to smoothly and enables commerce to run at a steady, timely phase in the run at a steady, timely phase in the region. region.


Hong Kong Export Credit Insurance Hong Kong Export Credit Insurance CorporationCorporation



Hong Kong port – Premier port for Hong Kong port – Premier port for Southern ChinaSouthern China

2008: 2.5 million containers handled 2008: 2.5 million containers handled 9 Container Terminals with 24 berths9 Container Terminals with 24 berths Located in Kwai Chung & Tsing Yi – 279 Located in Kwai Chung & Tsing Yi – 279

hectares of container yards & container hectares of container yards & container freight stationsfreight stations


Hong Kong’s excellent waterways ensure the Hong Kong’s excellent waterways ensure the smooth flow of cargo between Hong Kong and the smooth flow of cargo between Hong Kong and the manufacturing centers in the PRD. manufacturing centers in the PRD.

The connections between Hong Kong and The connections between Hong Kong and Mainland, particularly the southern province of Mainland, particularly the southern province of Guangdong are used by thousands of people daily, Guangdong are used by thousands of people daily, not to mention the millions of tonnes of goods that not to mention the millions of tonnes of goods that cross through the borders. cross through the borders.

The value of goods transport by land in 2007-2008 The value of goods transport by land in 2007-2008 totaled US$245 million, of which exports totalled totaled US$245 million, of which exports totalled US$120 billion and imports US$125 billion.US$120 billion and imports US$125 billion.

Conne ctiv ityConne ctiv ity A new A new Express Train service linking Hong Kong and Express Train service linking Hong Kong and

Guangzhou with intermediary stop in Shenzhen is Guangzhou with intermediary stop in Shenzhen is expected to carry about 99,000 passengers a day expected to carry about 99,000 passengers a day after it is completed in 2015. after it is completed in 2015.

Travel time between Hong Kong and Guangzhou Travel time between Hong Kong and Guangzhou will be cut by half to 48 minutes on the new trains, will be cut by half to 48 minutes on the new trains, which will travel at speeds in excess of 155 miles which will travel at speeds in excess of 155 miles per hour. per hour.

The link will also reduce travel times to Beijing and The link will also reduce travel times to Beijing and Shanghai by connecting Hong Kong to the Shanghai by connecting Hong Kong to the mainland's high-speed rail line.mainland's high-speed rail line.


With less than 4% of China’s With less than 4% of China’s population at nearly 9 million, the population at nearly 9 million, the PRD supplies 30% of exports and PRD supplies 30% of exports and 10% of the national GDP. The Pearl 10% of the national GDP. The Pearl River Delta’s GDP in 2008 was five River Delta’s GDP in 2008 was five times as big as Vietnam’s and nearly times as big as Vietnam’s and nearly the size of the Thai and Malaysian the size of the Thai and Malaysian economies combined.economies combined.



Da Chan Bay Terminal 1, a new container terminal that serves the western part of the PRD

A feeder loads up at Yantian International Container Terminal in Shenzhen

Export Credit Insurance CorporationExport Credit Insurance Corporation


The unique advantages of Hong Kong as a The unique advantages of Hong Kong as a regional distribution hub:regional distribution hub:

The legal system is fully mature and The legal system is fully mature and international legal practitioners provide international legal practitioners provide extensive maritime insurance productsextensive maritime insurance products

Global financial institutions have supported Global financial institutions have supported trade in Hong Kong for centuries, and the trade in Hong Kong for centuries, and the territory is never wanting in products and territory is never wanting in products and services available to the smallest SME or the services available to the smallest SME or the largest multinational corporation to ship largest multinational corporation to ship goods, including marine insurance goods, including marine insurance



Hong Kong Inte rnational Airport Hong Kong Inte rnational Airport (HKIA)(HKIA)

The fourth busiest international The fourth busiest international passenger airport passenger airport

The busiest international cargo The busiest international cargo facilities in the worldfacilities in the world

Hong Kong International Airport is one of the mos t Hong Kong International Airport is one of the mos t important aviation centres for the Chines e important aviation centres for the Chines e. Mainland. Mainland

As an air cargo hub, Hong Kong has the following As an air cargo hub, Hong Kong has the following

advantages:advantages: Free port policyFree port policy Strategic geographic locationStrategic geographic location Excellent connectivity and accessibilityExcellent connectivity and accessibility Extensive IT applicationExtensive IT application High safety and securityHigh safety and security Sufficient cargo capacitySufficient cargo capacity Efficient cargo operationEfficient cargo operation Competitive costsCompetitive costs


Hong Kong International Airport Hong Kong International Airport serves close to 90 airlinesserves close to 90 airlines

750 flights per day, reaching more 750 flights per day, reaching more than 150 destinations (Including 40 than 150 destinations (Including 40 mainland destinations)mainland destinations)

One-stop multimodal cargo services One-stop multimodal cargo services to/from 17 ports in PRDto/from 17 ports in PRD


Streamlined Cus toms Streamlined Cus toms

’ One of Hong Kong s advantages as a hub is its Free Port ’ One of Hong Kong s advantages as a hub is its Free Port, . s ta tus and a fas t and efficient Cus toms process, . s ta tus and a fas t and efficient Cus toms process

The Hong Kong airport expedites clearance by providing The Hong Kong airport expedites clearance by providing ( ) integra ted Electronic Data Inte rchange EDI linkage ( ) integra ted Electronic Data Inte rchange EDI linkage

be tween the seven major a ir ca rgo opera tors and the be tween the seven major a ir ca rgo opera tors and the ( ). Customs & Excise Department C&ED ( ). Customs & Excise Department C&ED

:Benefits include :Benefits include - , Allowing pre arriva l cus toms clearance covering a ll types - , Allowing pre arriva l cus toms clearance covering a ll types

;of cargo down to “house” a irway bill leve l ;of cargo down to “house” a irway bill leve l Providing a “priority cons ignments” facility and automatic Providing a “priority cons ignments” facility and automatic

; ass ignment of default cons tra int codes and ; ass ignment of default cons tra int codes and Enabling authorised service providers to provide cross Enabling authorised service providers to provide cross

.boundary bonded truck services to Mainland China .boundary bonded truck services to Mainland China


Mainland integration Mainland integration To strengthen the role of HKIA as the preferred cargo To strengthen the role of HKIA as the preferred cargo

hub, cargo depots have been set up at strategic hub, cargo depots have been set up at strategic locations in the Pearl River Delta. The aim of this locations in the Pearl River Delta. The aim of this initiative is to reach out to cargo sources, and to initiative is to reach out to cargo sources, and to facilitate the flow of goods via Hong Kong, facilitate the flow of goods via Hong Kong, enhancing the Hong Kong airport’s role as a enhancing the Hong Kong airport’s role as a premier supply chain together in China.premier supply chain together in China.


Cross -boundary coach to and from S he nzhe n Inte rnational Airport de parts at 30-minute inte rvals

Distribution hubDistribution hubHong Kong's wine industry has attracted many experts Hong Kong's wine industry has attracted many experts

and professional bodies. Liquor license holders, and professional bodies. Liquor license holders, distributors, wine tasting companies and specialised distributors, wine tasting companies and specialised market promoters are now making use of their market promoters are now making use of their marketing experience to ally themselves with marketing experience to ally themselves with Mainland wine companies in promotions.Mainland wine companies in promotions.


Hong Kong as a

regional dis tribution

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hong kong as a regional distribution hub

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