Why Hong Kong?

Hong Kong offers unrivalled growth opportunities for companies in the transportation and logistics industry. In particular, proximity to Mainland China makes it an attractive investment destination for multinational companies.

China's recent accession to the WTO will significantly increase its global trade volume. The UN estimates that, China will be Asia's largest market in terms of container shipping volume. A significant portion of this trade will be moved through Hong Kong. This growth in container shipping will also increase the demand for supporting services in Hong Kong such as chartering, fleet management, marine insurance, ship repairing and bunkering and others.

Furthermore, the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and mainland China allows qualified Hong Kong companies to set up wholly-owned entities in the Mainland to provide transportation services in logistics, storage and warehousing, road transport, freight forwarding and maritime transport, enjoying liberalisation benefits which are more and/or earlier than the WTO commitment.

The growth of the Pearl River Delta (PRD) into a high-tech manufacturing base has intensified the need for an efficient logistics and air transportation network. Hong Kong is well positioned to capture this market. In order to accelerate the transportation and logistics flow between Hong Kong and the PRD, the Hong Kong- Guangdong Co-ordination and Co-operation Unit has been established as a fast-track facilitator.

As a result, more and more foreign companies are expected to use Hong Kong as a springboard to access the China market. Transportation and logistics companies are expected to be some of the key investors, since they were previously unable to establish a presence in China due to stringent government regulations. This presents an opportunity for Hong Kong to act as a bridgehead for logistics knowledge transfer between China and rest of the world. In this capacity, Hong Kong would be the gateway for Chinese transportation and logistics companies wishing to create global networks.

Hong Kong offers opportunities for companies in the transportation and logistics industry