Page 246 - 2020 White Paper on the Business Environment in China
P. 246
0 White Paper on the Business Environment in China
New International Land-Sea cities, has caught the imagination of regional
Trade Corridor governments, corporations and investors. The plan
to integrate the cities in fields of manufacturing,
Hong Kong’s logistics businesses are struggling services, financing and high-tech is going to offer
as the Sino-US trade dispute has led to a reduction the bay area container port market a wealth of new
in exports. Logistics—one of Hong Kong’s four pillar opportunities.
industries, alongside finance, tourism and trade—
has been slipping toward a less-solid footing. In the Guangzhou (Nansha) port’s container volumes
first four months 2019, exports declined 2.5 percent reached 15.57 million transmission extension units
over the same period in 2018, while imports fell 3.7 in 2018, 11.6 percent up compared to 2017. The
percent, leaving a trade deficit of US$19.6 billion. port’s location as the only deep-water port on the
These issues, coupled with lackluster corporate west side of the Pearl River Delta is a key to the
financial results, have led to mega mergers between recent surge. The location is close to many new
several Hong Kong’s biggest players in the field sourcing factories providing products for export as
in an attempt to cap the pressure from declining well as a rising population of domestic consumers.
business volume. The new International Land- The Nansha Port On-dock Railway, which is
Sea Trade Corridor could be the answer. Formerly expected to start operation in 2020, runs through
known as the Southern Transport Corridor, it is a Jiangmen, Zhongshan, Foshan and Guangzhou. The
trade and logistics passage jointly built by western Guangzhou government gives aggressive support,
mainland provinces and ASEAN countries under offering financial incentives to the Nansha port,
the framework of the China-Singapore (Chongqing) related shipping lines, exporters and importers,
Demonstration Initiative on Strategic Connectivity. freight forwarders and the nascent maritime
The link serves as a bridge between the Silk Road cluster. The number of international shipping
Economic Belt and the 21st Century Maritime Silk routes to and from Guangzhou (Nansha) port grew
Road. It connects Chongqing to Beibu Gulf in the from 41 to 103 in the past five years, while cross-
Guangxi Zhuang autonomous region in the south border e-commerce surged from 30 million yuan to
by rail, and from there to Singapore and beyond 7.2 billion yuan during the same period. The port
by sea. If a new route on the corridor could be of Nansha has become the second largest port in
built between Guizhou province and Guangdong China for automobiles traded through the parallel-
province’s Zhuhai, which provides mainland access import plan. The number of shipping logistics
to Hong Kong via the Hong Kong-Zhuhai-Macao companies in Nansha has increased 12-fold since
Bridge, then a flood of goods could be shipped 2014 to 4,802 as of the end of 2018. Nansha port is
directly to Hong Kong via the 55-kilometer bridge, undergoing a fourth-phase expansion, a significant
eliminating the need to ship goods to Hong Kong move combining the three cities efforts towards the
from Beibu Gulf in Guangxi. In the coming years, construction of the GBA. A total of two 100,000-ton
a tremendous amount of goods, instead of going berths, two 50,000-ton berths and related berths
through Hong Kong, will be shipped straight for container barge carriers will be constructed in
through airports in Guangzhou and Shenzhen, the fourth phase project, which makes Nansha Port
two leading cities on the mainland side of the be able to handle 20 million containers annually.
Guangdong-Hong Kong-Macao Greater Bay Area The project will cost nearly 5.6 billion yuan,
(GBA), as the enterprises attempt to cap costs for and will create an extra annual cargo handling
exporting overseas. To resolve this issue, a more capacity of 4.8 million containers. Construction of
specific alignment plan should be rolled out to the project started in 2018 and complete fully in
align overall air transportation between airports in 2021. The cargo handling capacity of Guangzhou
the southern economic powerhouse, steering clear Port is expected to reach 650 million tons and 25
of potential disorder or chaos among them (Dai). million standard containers by 2020, with over 250
domestic and international shipping routes. As sea-
Sea Cargo railway combined transportation in the GBA faces
the greatest development opportunities ever, the
The vision of a GBA, China’s economic hub construction of a multimodal freight train transport
encompassing 11 urban southern Chinese system will help achieve greater efficiency in
246
New International Land-Sea cities, has caught the imagination of regional
Trade Corridor governments, corporations and investors. The plan
to integrate the cities in fields of manufacturing,
Hong Kong’s logistics businesses are struggling services, financing and high-tech is going to offer
as the Sino-US trade dispute has led to a reduction the bay area container port market a wealth of new
in exports. Logistics—one of Hong Kong’s four pillar opportunities.
industries, alongside finance, tourism and trade—
has been slipping toward a less-solid footing. In the Guangzhou (Nansha) port’s container volumes
first four months 2019, exports declined 2.5 percent reached 15.57 million transmission extension units
over the same period in 2018, while imports fell 3.7 in 2018, 11.6 percent up compared to 2017. The
percent, leaving a trade deficit of US$19.6 billion. port’s location as the only deep-water port on the
These issues, coupled with lackluster corporate west side of the Pearl River Delta is a key to the
financial results, have led to mega mergers between recent surge. The location is close to many new
several Hong Kong’s biggest players in the field sourcing factories providing products for export as
in an attempt to cap the pressure from declining well as a rising population of domestic consumers.
business volume. The new International Land- The Nansha Port On-dock Railway, which is
Sea Trade Corridor could be the answer. Formerly expected to start operation in 2020, runs through
known as the Southern Transport Corridor, it is a Jiangmen, Zhongshan, Foshan and Guangzhou. The
trade and logistics passage jointly built by western Guangzhou government gives aggressive support,
mainland provinces and ASEAN countries under offering financial incentives to the Nansha port,
the framework of the China-Singapore (Chongqing) related shipping lines, exporters and importers,
Demonstration Initiative on Strategic Connectivity. freight forwarders and the nascent maritime
The link serves as a bridge between the Silk Road cluster. The number of international shipping
Economic Belt and the 21st Century Maritime Silk routes to and from Guangzhou (Nansha) port grew
Road. It connects Chongqing to Beibu Gulf in the from 41 to 103 in the past five years, while cross-
Guangxi Zhuang autonomous region in the south border e-commerce surged from 30 million yuan to
by rail, and from there to Singapore and beyond 7.2 billion yuan during the same period. The port
by sea. If a new route on the corridor could be of Nansha has become the second largest port in
built between Guizhou province and Guangdong China for automobiles traded through the parallel-
province’s Zhuhai, which provides mainland access import plan. The number of shipping logistics
to Hong Kong via the Hong Kong-Zhuhai-Macao companies in Nansha has increased 12-fold since
Bridge, then a flood of goods could be shipped 2014 to 4,802 as of the end of 2018. Nansha port is
directly to Hong Kong via the 55-kilometer bridge, undergoing a fourth-phase expansion, a significant
eliminating the need to ship goods to Hong Kong move combining the three cities efforts towards the
from Beibu Gulf in Guangxi. In the coming years, construction of the GBA. A total of two 100,000-ton
a tremendous amount of goods, instead of going berths, two 50,000-ton berths and related berths
through Hong Kong, will be shipped straight for container barge carriers will be constructed in
through airports in Guangzhou and Shenzhen, the fourth phase project, which makes Nansha Port
two leading cities on the mainland side of the be able to handle 20 million containers annually.
Guangdong-Hong Kong-Macao Greater Bay Area The project will cost nearly 5.6 billion yuan,
(GBA), as the enterprises attempt to cap costs for and will create an extra annual cargo handling
exporting overseas. To resolve this issue, a more capacity of 4.8 million containers. Construction of
specific alignment plan should be rolled out to the project started in 2018 and complete fully in
align overall air transportation between airports in 2021. The cargo handling capacity of Guangzhou
the southern economic powerhouse, steering clear Port is expected to reach 650 million tons and 25
of potential disorder or chaos among them (Dai). million standard containers by 2020, with over 250
domestic and international shipping routes. As sea-
Sea Cargo railway combined transportation in the GBA faces
the greatest development opportunities ever, the
The vision of a GBA, China’s economic hub construction of a multimodal freight train transport
encompassing 11 urban southern Chinese system will help achieve greater efficiency in
246
