Shipper charts course for expansion (hktdc.com)


	Sino-Global HK CEO Cao Lei is expanding the shipper's global network

	Many China-bound ships stop to offload cargo in the deep waters off Hong Kong's port

Sino-Global Shipping America Ltd, a Nasdaq-listed US shipping agency operating primarily in the Chinese mainland, has opened a wholly-owned subsidiary in Hong Kong.

Sino-Global Shipping HK will be the control and management centre for southern Chinese ports, said Cao Lei, CEO. At the same time, Hong Kong's deep-water harbour would enable the company to expand its comprehensive range of shipping agency services.

"As a key part of our development strategy, we are expanding the geographic reach of our operations globally, in order to better serve our existing clients from port to port. The establishment of our Hong Kong subsidiary will enable us to offer our comprehensive shipping agency services to another stop along our clients' journeys," Mr Cao said.

He continued that, because of its deep-water port, Hong Kong plays an important role in the country's shipping industry.

Deep-water harbour

"Many of our clients' vessels must first dock in Hong Kong's deep-water port to unload a significant portion of their cargo, before proceeding to shallow-water ports in southern China. Sino-Global aims to provide consistently high-quality shipping agency services that give our clients a competitive advantage in navigating China's complex shipping environment. Through our combination of comprehensive intelligence and analysis, as well as consistent and high quality on-the-ground implementation and support, we believe we are well equipped to keep our clients fully informed about the status of their shipments, minimise their costs, and simplify the shipping process."

Having an established presence in Hong Kong – a major global shipping hub – would also allow Sino-Global to attract new business opportunities and increasingly build up its global network, Mr Cao said.

"According to China Statistical Yearbook 2008, the total value of goods imported to and exported from Hong Kong reached US$1.28 billion in 2007, an increase of 18.8 per cent from 2006. In line with our strategy of building a world-class shipping agency, Sino-Global would like to participate in this huge market and grow our business in the world's second busiest port. Through Sino-Global HK, Sino-Global expects to provide the same level of shipping agency services we currently provide in the mainland, including intelligence, planning, real-time analysis of port-related information and execution of in-port logistics."

Key logistical hub

Mr Cao added that the Hong Kong operations would help the company to further capitalise on growth in the region.

"Hong Kong is a logistical hub for Asia, known for its efficiency and low costs of doing business. Hong Kong also has a favourable location for shipping and a comparatively mature shipping market – an excellent match for Sino-Global's professional operating team of key members with an average of more than 20 years experience in the shipping industry.

"With these advantages, we believe Hong Kong will become an important stage for Sino-Global's development and a window for our dialogue with the world's shipping industry."

Sino-Global has also recently established a branch in Zhoushan, Jiangsu Province, a gateway to the Yangtze River. Registered in the United States in 2001, Sino-Global has local branches in six of China's 76 ports, contractual arrangements in all other mainland ports, and a subsidiary in Perth, Western Australia.

With its deep-water port and status as a regional business and logistics hub, Hong Kong is firmly established as the naval gateway into the mainland. Hong Kong is one of the world's busiest container ports, with a throughput of nearly 24 million TEUs (Twenty-Foot Equivalent Units) in 2007, according to the Hong Kong Marine Department. It was the world's busiest container port from 1987 to 1989, from 1992 to 1997, and from 1999 to 2004.