The chairman of Hong Kong logistics and real estate conglomerate Wharf Holdings, Stephen Ng Tin Hoi, said that Hong Kong port is no longer among the world’s busiest ports and is not optimistic about the terminal business.
Wharf Holdings, which operates container terminals (under the Modern brand name) in Hong Kong and Shenzhen, saw operating profit from the group’s logistics business halve year-on-year, to US$48.4 million in 2023. Overall, the group achieved a net profit of US$141.5 million, reversing a net loss of US$183.8 million that was caused by high finance costs in 2022.
Ng said that southern Chinese ports like Nansha are emerging strongly, and the Hong Kong government must do more to rejuvenate the territory’s port.
While throughput in Wharf Holdings’ Shenzhen terminal recorded declines in single-digit percentages, the group’s Hong Kong terminal saw output fall 15% to 3.7 million TEU in 2023.
Hong Kong used to compete fiercely with Singapore to be the world’s busiest container port, but is now ranked ninth.
Ng said, “Twenty years ago, Hong Kong was among the world’s busiest ports and Nansha was then in its infancy. Shenzhen was just starting out but today, is processing many more containers. Competition in the region has intensified, which will not improve in the short term, or even deteriorate further. I’m pessimistic about the container terminal business and I hope the government can work with the industry to strengthen the competitiveness of Hong Kong’s container terminals and regain market share.”
Ng said that the recent disruption to container shipping through the Panama and the Suez canals has realigned supply chains, affecting Hong Kong’s volumes.
He opined that the break-up of the 2M alliance and Hapag-Lloyd leaving THE Alliance to form Gemini Cooperation with Maersk Line brings more uncertainty to the port.
Hong Kong does not feature among the port pairs in Gemini’s proposed network maps, and Hapag-Lloyd’s spokesperson had told Container News recently that with fewer ports on each string, the new alliance can help ensure schedule reliability.
Linerlytica analyst Tan Hua Joo told Container News: “There’s only one existing call at Hong Kong by THE Alliance and this is expected to be retained after the departure of Hapag-Lloyd so it will have a minimal impact as far as Hong Kong’s volumes are concerned.”
Martina Li
Asia Correspondent
