The Hong Kong Freight and Logistics Market is estimated to grow at a CAGR of approximately 5% during the forecast period.
In terms of both value-added and employment, the trading and logistics industry is the largest among the four main economic pillars in Hong Kong. Trading and logistics accounted for 21% of the city’s GDP and provided some 718,600 jobs in 2018. The logistics industry alone contributed 3.1% of Hong Kong’s GDP and 176,900 jobs in 2018. Transport services made up 29.2% of Hong Kong’s service exports in 2018.
Hong Kong has nine container terminals for sea transport, comprising 24 container berths capable of handling up to 20 million TEUs a year in total.
Air transport has become more important for Hong Kong’s trade over the last few decades. 39% of Hong Kong’s total exports and 45% of its total imports were transported by air in 2019, Mainland China is the largest export and import market for items carried by air.
To foster cross-border logistics and trading activities and grasp business opportunities in electronic commerce, Government set aside USD 5 billion in 2019 for the redevelopment of the Air Mail Centre at the HKIA.
The government intends to spend around USD 25 billion for four new infrastructure projects considered as strategic to modernise the city, as well as to stimulate economic growth.
Get The Sample PDF Report Here: https://www.sdki.us/sample-request-83381
The Sha Tin-Central railway line, which runs between Tai Wai and Kai Tak, passing through the neighborhoods of Hin Keng and Diamond Hill. The project cost USD 12.7 billion and involves the construction of 10 city railway stations.
To encourage the logistics industry to enhance productivity through technology application, the Government announced that it will introduce a pilot subsidy scheme in 2020 with an injection of USD 345 million. Each eligible third party logistics service provider will receive subsidies to implement up to four projects, subject to a cumulative subsidy ceiling of USD 1 million. The scheme is expected to benefit about 300 companies.
Key Market Trends
Increase in AirCargo:
The cargo throughput of the Hong Kong International Airport in 2018, at 5.02 million tonnes, was the largest in terms of international air cargoes handled among all airports in the world. This was followed by airports in Shanghai, Incheon, Dubai, and Taipei. T. The air cargo throughput of Hong Kong increased generally from 4.38 million tonnes in 2014 to 5.02 million tonnes in 2018 with an average annual growth rate of 3.5%. On the contrary, the total cargo throughput covering all main modes of transport recorded an average annual decline of 3.3% within the same period. Growth in cargo throughput was registered for both inward and outward air cargoes. Inward air cargoes increased from 1.59 million tonnes in 2014 to 1.78 million tonnes in 2018, with an average annual growth rate of 3.0%. Over the same period, outward air cargoes increased from 2.79 million tonnes to 3.24 million tonnes, with an average annual growth rate of 3.8%.
The construction of the Three-Runway System and associated air cargo facilities should further strengthen the competitiveness of air cargo industry of Hong Kong. Hong Kong International Airport (HKIA) has identified three strategic areas for future development: capturing cross-boundary e-commerce opportunities, targeting high-end, high-value cargo, and enhancing cargo services for the region. It adds that e-commerce’s demand for timely delivery to consumers in different parts of the world can be met through HKIA’s extensive air network of 220 destinations worldwide, many of which are also hubs in their own or major cities served by frequent flights.
Download The Sample PDF Report Here: https://www.sdki.us/sample-request-83381
Increase Value added in Transportation, courier and storage segment:
The government is increasing its spending on transportation infrastructure and that boosts road freight and other logistics services. The government announced that it will continue to promote the development of transportation and logistics services, and harness the opportunities brought about by the Belt and Road Initiative and the development of the Greater Bay Area, so as to consolidate Hong Kong’s position as international and regional aviation, maritime and logistics hub.
The report covers the major players operating in the Hong Kong Freight and Logistics Market. Many international players are presence in the market and holding a slight high market share compared to the local players. The market is Fragmented and expected to grow during the forecast period due to the increase in exports and many other factors.
-Related Trending Reports: