The PRD Supply Chain study called for specialised and value-added logistics services in Hong Kong to maintain competitive edge

Conducted by the Chinese University's Center of Cyber Logistics and commissioned by  DHL Express, the Pearl River  Delta Supply Chain Study highlights challenges for "Hub Hong Kong".

"The study highlights the need for investment in specialised logistics centres in Hong Kong, in particular for material handling and component distribution," said Kelly Yu, general manager of DHL Express Hong Kong.

"DHL believes that a logistics centre should focus first on spare parts storage, repair and return and other specialised services, and second on driving highly efficient "cross docking" services for cargoes transiting Hub Hong Kong," added Mr Yu. (DHL launches HK hub targeting booming mainland market)

Superior connectivity

Professor Cheung Waiman who led the Chinese University in the study across five sectors in four PRD cities, said that the study showed high costs of transferring consignments through Hong Kong. Overall costs also differed from sea freight to trucking and airfreight.

"The study clearly flagged that such a large cost difference could be a source of vulnerability for Hong Kong in future," said Professor Cheung. But he said that Hong Kong has tremendous strengths that enable the city to retain its competitive edge in spite of these costs.
 
"These include superior connectivity and frequencies both in Asia and globally, as well as immense trust in the efficiency and simplicity of Hong Kong's custom processes. They also include management advantages that arise from establishing an 'importer of record' in Hong Kong," added Professor Cheung.

DHL's Mr Yu believed the findings called for careful attention to costs in Hong Kong but more importantly, it called for enhanced focus on specialised and value-added logistics services.  He said that DHL Express would examine carefully the findings to underpin plans for future investment in logistics facilities.

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