The Department of Supply Chain and Information Management met with the media on 10 November 2016 with a preview of the report “Impact of Cabotage Relaxation and PRD Competition to Hong Kong’s Maritime Logistics Industry”, which examines the challenges facing Hong Kong maritime logistics industry and the recommendations. A very fruitful exchange and discussion was held.

The research team (Dr Collin Wong, Dr Eugene Wong, Dr Yue Wang, Dr Daniel Mo and Prof Lawrence Leung) warn in the report that a full relaxation of Mainland China’s Cabotage rules could deal a serious blow to Hong Kong’s container freight industry. In a critical examination of the challenges facing Hong Kong’s maritime logistics industry, the report projects that in the worst-case scenario, Hong Kong could lose all transshipment involving the non-PRD region. In terms of 2015 figures, the projected loss translates to 2.4 million TEU, or a 14% decrease of Hong Kong’s total throughput, which will compound the already difficult state of Hong Kong’s freight industry.

The report gives a detailed analysis on the impact and consequences when relaxing the Cabotage policy at a national level. It recommends the Hong Kong Government to further strengthen cooperation with PRD regions to create synergies and to explore collaborations between stakeholders in Hong Kong and PRD.

Professor Leung and the team will participate in a public forum entitled「十三五規劃中香港航運業的機遇與挑戰」on 24 November 2016 to elaborate on the report findings and share our academic views on the opportunities and challenges faced by the industry in Hong Kong.