Efficient Sea And Air Cargo Handling Centers Essay Example
Efficient Sea And Air Cargo Handling Centers Essay Example

Efficient Sea And Air Cargo Handling Centers Essay Example

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  • Pages: 4 (1091 words)
  • Published: June 21, 2017
  • Type: Essay
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In the past three decades, Hong Kong has witnessed remarkable development and has established itself as the foremost hub for sea and air cargo handling in Asia. The city is home to 9 cargo terminals that jointly managed 22 million TEU in 2013. Moreover, Hong Kong International Airport holds the prestigious title of being the world's leading airport for air cargo, with a capacity to handle 4 units.

Hong Kong handled 38 tonnes of cargo in 2014, making it a prominent player in both sea and air cargo transportation. The success of a sea-air hub relies heavily on government policies, such as the establishment of a free port, which aims to reduce or eliminate commercial barriers.

Both Dubai and Hong Kong have become leaders in the free trade zone industry. In Dubai, there are more than 20 free zones that provide no customs duties or controls

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for transshipment. This has made Dubai a crucial hub for trans-shipment in the Middle East, where cargo is sent by sea from the Far East and Sub-continents to destinations in Europe, USA, and the Middle East ; Africa via aircraft. Similarly, Hong Kong operates as a free port, with imports and exports not being subjected to any Customs tariff imposed by the government.

Transshipment does not require companies to pay export or import tax, easing cash flow for shippers and logistics service providers while ensuring smooth cargo flows and customs territory. The Hong Kong Government introduced the Air Cargo Clearance System (ACCS) to expedite Customs procedures for air cargoes, offering fast clearance service for legitimate trade while maintaining security. This policy encourages companies to select Hong Kong as a transshipment location.

Neil Davidson,

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director of ports for Drewry Shipping Consultants in London, states that the location is crucial for the success of a sea-air hub. Singapore, which serves as a sea-air hub and has strategic geographical benefits, is situated at the southern tip of the Malayan Peninsula. It holds control over the Straits of Malacca, an essential shipping route that connects the Indian Ocean and Pacific Ocean. As a result, Singapore gains significant economic advantages through transshipment activities.

Hong Kong is located at the mouth of the Pearl River Delta on China's southern coast, making it a vital channel for sea traffic in Asia and worldwide. It serves as a gateway connecting the Taiwan Straits, the South China Sea, and the Pacific Ocean.

Due to its advantageous location, Hong Kong holds a central position in the Asia-Pacific region with close links to both Asia and the rest of the world. With easy access to key markets within a 4-hour flight time and half of the world's population within 5 hours of flight time, Hong Kong plays a significant role in global connectivity.

In addition to its strategic location, Hong Kong also benefits from direct connections to the thriving Pearl River Delta region, giving it an advantage in intermodal business operations. Notably, sea-air transportation is commonly used for shipping on major trade routes between oceans and air.

An example of this connectivity can be seen through regular shipping services from China that connect to Korean ports like Busan and Incheon in North Asia. Forwarders can then access Korean Air's extensive global network through its hub at Incheon International Airport.

As its name suggests, a successful hub requires expertise in both shipping

and aviation. Hong Kong excels in both areas, boasting a top international airport and seaport. Hong Kong's seaport is the fourth-busiest in the world, signifying its ability to provide logistics services as a Sea-air service platform. The port is well-connected globally, ensuring easy access for ships to the port and other destinations.

Enhancing commerce in the port is achieved through various means. One significant aspect is the seaport's extensive offerings, providing 400 container liner services per week to over 500 global destinations. The natural shelter and deep water at the Port of Hong Kong further contribute to its capabilities, with an average water depth of 40 feet, allowing for the handling of all types of vessels, including 10,000-ton ocean liners. This implies that Hong Kong is adept at managing a diverse range of cargoes.

In terms of air transportation, the Hong Kong International Airport (HKIA) holds a significant advantage over other South China airports. With 90 airlines operating 5,800 flights weekly, HKIA connects Hong Kong to 117 international destinations across the globe, as well as 40 mainland China destinations. This extensive network surpasses that of Hong Kong's neighboring airports by a large margin. Furthermore, HKIA has earned international recognition for its efficient air cargo operations, such as the Air Cargo Award of Excellence by Air Cargo World. Notably, HKIA also maintains strong connections with industry players like DHL Aviation (HK) Ltd.

Both DHL and the Hong Kong Association of Freight Forwarding and Logistics Ltd. (HAFFA) have played significant roles in contributing to Hong Kong's emergence as a logistics hub. The success of both the seaport and airport has created growth opportunities in this industry. Furthermore, the land

transportation services in Hong Kong exhibit remarkable efficiency, ensuring strong connections between the seaport and airport. Moreover, there are plans for multiple mega infrastructure investments in Hong Kong that will further enhance its competitive advantage. One noteworthy project is the imminent opening of the 29.6-kilometer long Hong Kong-Zhuhai-Macau Bridge, scheduled for 2016.

The government is currently carrying out a feasibility study to develop a tenth container terminal at Container Terminal 10. This development aims to enhance cargo movement between Hong Kong and the western Pearl River Delta, which serves as the manufacturing hub of Guangdong province. In addition, as part of the Master Plan 2030 Study, there is consideration for constructing a third runway at the airport. This initiative is necessary because the current two runway system will reach its maximum capacity by 2015. The expansion plans have received support from businesses operating in the industrial and logistics sectors.For more information, please see the following links:
- List of Free Trade Zones in Dubai: https://en.wikipedia.org/wiki/List_of_Free_Trade_Zones_in_Dubai
- Hong Kong Customs cargo clearance: http://www.customs.gov.hk/en/cargo_clearance/index.html
- Air cargo report by Strategic Access: http://www.strategicaccess.com.hk/Reports/CXAircargoOct2006.pdf
- Sea-Air-Sea transshipment services in Dubai: http://www.reliancefreightsystems.com/trans-shipment-sea-air-sea-services-dubai-uae.aspx
- Statistics on cargo traffic in Hong Kong: http://www.statistics.gov.hk/pub/B71401FA2014XXXXB0100.pdf
- List of busiest airports by cargo traffic: https://en.wikipedia.org/wiki/List_of_busiest_airports_by_cargo_traffic
- Importance of Malaysia to TPP: < ahref = " http ://downwithtyranny.blogspot.hk/ 2015 /05/ why-is-malaysia-so-important-to-tpp. html "> http ://downwithtyranny.blogspot.hk/ 2015 /05/ why-is-malaysia-so-important-to-tpp. html

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