* Ideal location * Proximity of China * Excellent service * Well established legal system * Strong and well-regulated financial sector * Government support for maritime services * CEPA agreement with China
| * Competition with Mainland container ports * Manufacturing sector relocated to Mainland
* Effectively cooperation with the Mainland under the CEPA agreement * Large number of China FTZ are not connected to ports * Advanced economy * Efficiency * Well developed infrastructure * Further expansion of port
| * Threats from Mainland ports overcoming Hong Kong importance * Slowdown of global economy * Increasing maritime transportation costs due to high petrol price
Hong Kong deep-water harbour and ideal location at the intersection of global and regional shipping lanes. More than 80 shipping lines are operating in HIT.
Proximity of fastest growing region in China.
The Hong Kong HIT has been noted for its excellence in high end services, range of shipping lines and extensive coverage of destinations. Excellent institutional framework, a business-friendly environment, the professionalism of workers. The most important is Hong Kong legal system, which is trusted, tried and tested by international business. Hong Kong retains a distinct advantage in permitting the parties in maritime arbitration, to have the contract governed and construed in accordance with Hong Kong or English law. As an international financial centre, Hong Kong position itself as the business, trading and services hub for the Mainland and the region as a whole. At the same time, Hong Kong and the Pearl River Delta will continue to be the main economic engine of southern China, as well as an increasingly wealthy consumer market and a strong regional economy aiming the global export market. Hong Kong does have a number of advantages over other Mainland cities, and will continue to do so in the future. A strong and well-regulated financial sector, a free press, the free flow of information, low taxes and a simple taxation system, a pool of highly skilled managers with international experience, proximity to major markets, and a close network of services companies are among the strengths and advantages for business in Hong Kong. Hong Kong is supporting services for the maritime sector in Hong Kong, for example export finance, trade documentation and logistics. The business-friendly tax policy and favourable customs laws make Hong Kong competitive. Sufficient terminal basin and its approach channel depth to accommodate the increasing draughts of ultra-large container ships. The Marine Department has an annual tonnage charge reduction scheme in place for Hong Kong registered ships. It has also recently reduced fees for 24 marine-related services such as port dues, seafarers‟ licences fees, and certificate fees. Hong Kong competitiveness is further enhanced by the Closer Economic Partnership Agreement (CEPA) with China. Weakness
The absolute majority of the world bigest container ports are located in Asia. Most of the container ports belongs to Mainland China, the second bigest economy in the world. All this provides enormous opportunities for HIT, however every individual port faces new challenges and competition. Hong kong HIT is not an exception. Competitiveness of HIT has become a key issue. In other words any other Mainland port could be considered a competitor threatening the success of the HIT. As before many Chinese ports were poorly equipped to handle the sudden increase in exports from a rapidly expanding manufacturing sector, HIT was the obvious port of choice. After returning Hong Kong to China almost immediately many manufacturing industries relocated from Hong Kong to Shenzhen. A report released by the Better Hong Kong Foundation noted that Hong Kong was rapidly losing market share in cargo throughput to Shenzhen „newer and cheaper...
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