Hong Kong's Port Loses More Market Share to its Neighbours

HKG has fallen to 7th on the list of the world's busiest ports according to Bloomberg, the 1st time in 40 years. It may lose its 7th-place spot to Guangzhou this year. HKG was at the top of the list until 2004, but it has been falling down the rankings ever since.

Guangzhou opened Nansha container terminal and has enjoyed rapid traffic growth in recent years. HKG has not added a new terminal in more than a decade, and any potential expansion would have to compete with demand for commercial development along the waterfront.

HIT has implemented a salary freeze in order to control costs, but as regional competitors pile on more infrastructure investment - like SIN's 65 million TEU terminal at Tuas, it may prove challenging for HKG to regain pole position.

(MarEx)