Essay about Hong Kong and Shenzhen’s Coopetition in Logistics Industry

6817 Words May 5th, 2013 28 Pages
| Hong Kong and Shenzhen’s Coopetition in Logistics Industry | Assignment 2 – LGT5013 Transport Logistics in China | | | CHAN PUI YUK, SIMON 10670562GFUNG MEI SHAN, JO 10670090GLEUNG TING CHEUNG, VINCE 10609081GLO WING LING, WINNIE 10634888GYIP KIM HUNG, CURTIS 09608879GYUEN MAY YEE, ELSA 10670039G |

Executive Summary

Hong Kong Port, being the world busiest port for 12 years from 1992 to 2004, is globally well known and this container port industry became one of its vital economic pillars. Such a prosperous development began in 1970s with the boom of manufacturing business activities. The effect on the end of ‘close-door policy’ of China was reflected in early 1990s due to the launching and the rapid development of ports
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This drawn manufacturing enterprise moved from Hong Kong to backyard China at a relatively lower cost. Therefore, Hong Kong port turns to focus on transporting container cargo; shifting from a relay hub to a load center and enjoying its superb period till mid-1990s. The Handover in 1997 did not weaken the role of Hong Kong as a port due to the ‘one country, two systems’ policy. However, starting from 1997, the share of Hong Kong port started diminishing because of the rapid growth of Shenzhen. According to GHK 2004, the share of Hong Kong port experienced a significant drop from 93% in 1997 to 62% in 2003. Hong Kong port started to face the challenges from Shenzhen and being limited by the lack of space and the relatively high operations costs. Shenzhen, the nearest province of China from Hong Kong, has a 260km long coastline. This coastline was separated in to East and West by Kowloon Peninsula in which the western port area lies also in the Pearl River Region (PRD). There are altogether nine container terminals and the major two of them are Shekou (on the West) and Yantian (on the East). In 2010, the total containers throughput of these Shenzhen ports is 22.51 million TEUs (Shekou - 9.8796 million TEUs; Yantian - 10.13 million TEUs and the overall containers throughput of all ports in China is 146 million TEUs). Geographically, both port of Hong Kong and port of…