New markets needed to boost Hong Kong's maritime industry

Hong Kong's total port cargo throughput slumped 13.8 percent in 2015, the biggest year-on-year drop in the past 10 years.

The sluggish global economy is one of the main reasons to blame and the industry is in need of new markets to alleviate the situation.

The Census and Statistics Department of Hong Kong released the data on March 7.

Further statistics from the department shows that year-on-year decrease in port cargo throughput were also recorded in 2009 and 2012, falling 6.3 percent and 2.9 percent respectively, when the world economy was hit by financial tsunami and Europe's debt crisis.

"Maritime Industry relies heavily on trading," Sunny Ho, Executive Director of the Hong Kong shippers' Council said, however, the international trade is now in a difficult situation when purchasing power is weak and economic recovery is slow in Europe, and currencies largely devalued in Asia Pacific countries like Japan, South Korea, Australia and New Zealand.

Ho told Xinhua that demands arise from new markets could be a way out of the plight. "New opportunities will stimulate the economy and unleash potential of the markets."

He reckoned that the Belt and Road Initiative and Asian Infrastructure Investment Bank, which have become hot topics among different sectors, are capable of offering new investment opportunities.

Looking ahead, unless global trade picks up, local maritime industry can hardly see notable improvement in near future, he added.

Apart from economy, port congestion problem, which, Ho said, is brought about by alliances in shipping lines and the growing in number of large ships, is also attributed to the sharp fall of the port cargo throughput last year.

He said, for instance, normal-sized container vessels occupy one berth, while big ones take up one and a half, which added burden to the already crowded container terminals in Hong Kong, affecting cargo handling efficiency.

Gilbert Feng, Assistant Director of Hong Kong Shipowners Association, agreed that the stagnant world economy that led to a slowdown in commodities demand is crucial for the port cargo throughput to tumble.

Furthermore, maritime industry is cyclical, Feng said, the international shipbuilding industry has largely expanded in the past few years and more new vessels will be in use in the next few years, therefore, the competition within the industry will become more intense.

Feng said, as the maritime industry in Chinese mainland is growing rapidly, the role of Hong Kong as a transshipment port has become less significant, which also put pressure on Hong Kong's port cargo throughput.

This is not to say that Hong Kong's maritime industry is dying down, he said, but it is transiting towards a direction of high-value areas, such as maritime insurance, financing, legal service and training.