Hong Kong As A Regional Distribution Hub

Hong Kong as a Regional Distribution Hub “ Made in Hong Kong > Made by Hong 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 Corporation

Gina Giron-Urquiola, Editor/Executive Officer, Hong Kong Shippers’ Council
I composed the following powerpoint presentation & speech for Hong Kong Shippers’ Council Chairman, Willy Lin, for a Hong Kong government promotional trip to Chicago in November 2009.

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

Hong Kong Export Credit Insurance Corporation

Hong Kong port – Premier port for Southern China
2008: 2.5 million containers handled
9 Container Terminals with 24 berths
Located in Kwai Chung & Tsing Yi – 279 hectares of container yards & container freight stations

Hong Kong’s excellent waterways ensure the smooth flow of cargo between Hong Kong and the manufacturing centers in the PRD.
The connections between Hong Kong and Mainland, particularly the southern province of Guangdong are used by thousands of people daily, not to mention the millions of tonnes of goods that cross through the borders.
The value of goods transport by land in 2007-2008 totaled US$245 million, of which exports totalled US$120 billion and imports US$125 billion.

Connectivity
A new Express Train service linking Hong Kong and Guangzhou with intermediary stop in Shenzhen is expected to carry about 99,000 passengers a day after it is completed in 2015.
Travel time between Hong Kong and Guangzhou will be cut by half to 48 minutes on the new trains, which will travel at speeds in excess of 155 miles per hour.
The link will also reduce travel times to Beijing and Shanghai by connecting Hong Kong to the mainland's high-speed rail line.

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

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

The unique advantages of Hong Kong as a regional distribution hub:
The legal system is fully mature and international legal practitioners provide extensive maritime insurance products
Global financial institutions have supported trade in Hong Kong for centuries, and the territory is never wanting in products and services available to the smallest SME or the largest multinational corporation to ship goods, including marine insurance

Hong Kong International Airport (HKIA)
The fourth busiest international passenger airport
The busiest international cargo facilities in the world

Hong Kong International Airport is one of the most important aviation centres for the Chinese Mainland.
As an air cargo hub, Hong Kong has the following advantages:
Free port policy
Strategic geographic location
Excellent connectivity and accessibility
Extensive IT application
High safety and security
Sufficient cargo capacity
Efficient cargo operation
Competitive costs

Hong Kong International Airport serves close to 90 airlines
750 flights per day, reaching more than 150 destinations (Including 40 mainland destinations)
One-stop multimodal cargo services to/from 17 ports in PRD

Streamlined Customs
One of Hong Kong’s advantages as a hub is its Free Port status, and a fast and efficient Customs process.
The Hong Kong airport expedites clearance by providing integrated Electronic Data Interchange (EDI) linkage between the seven major air cargo operators and the Customs & Excise Department (C&ED).
Benefits include:
Allowing pre-arrival customs clearance, covering all types of cargo down to “house” airway bill level;
Providing a “priority consignments” facility and automatic assignment of default constraint codes; and
Enabling authorised service providers to provide cross boundary bonded truck services to Mainland China.

Mainland integration
To strengthen the role of HKIA as the preferred cargo hub, cargo depots have been set up at strategic locations in the Pearl River Delta. The aim of this initiative is to reach out to cargo sources, and to facilitate the flow of goods via Hong Kong, enhancing the Hong Kong airport’s role as a premier supply chain together in China.
“ Made in Hong Kong > Made by Hong Kong > Distributed by Hong Kong” Cross-boundary coach to and from Shenzhen International Airport departs at 30-minute intervals

Distribution hub
Hong Kong's wine industry has attracted many experts and professional bodies. Liquor license holders, distributors, wine tasting companies and specialised market promoters are now making use of their marketing experience to ally themselves with Mainland wine companies in promotions.

“ Made in Hong Kong > Made by Hong Kong > Distributed by Hong Kong” Hong Kong as a regional distribution hub Your support services: HKTDC HKECIC HKSC

Hong Kong As A Regional Distribution Hub

by HONG KONG SHIPPERS' COUNCIL

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