HZMB cargo flow — turning the pag
Tung Chung — Hong Kong’s new “western downtown” — brings shoppers from the Pearl River Delta and beyond, traveling across the Hong Kong-ZhuhaiMacao Bridge. But where are all the trucks? Trucks are a rare sight traversing the newlyopened cross-border infrastructure.
The answer to the question is that the western part of the delta remains less developed than the eastern part. HZMB opens the door for investors to develop the western part of the now Guangdong-Hong Kong-Macao Greater Bay Area, and promote cross-border commerce among the 11-city cluster.
The Hong Kong Immigration Department reports that the bridge opened on Oct 24 attracted more than 100,000 people a day during peak periods. The figure doubled the government’s expectations of how popular the bridge would be with travelers.
Freight traffic, however, has been pretty lame. Data from the bridge operator, HZMB Authority, showed that cargo shipments accounted for only 6.4 percent of the 55-kilometer bridge’s daily traffic volume as of Jan 28. That’s about 217 trucks a day.
The percentage of truck traffic is climbing. Right at the start, cargo comprised only 1.6 percent of the daily traffic. Lately, it has reached 6 percent, and things are getting better.
Geographically, HZMB is considered the perfect channel for freight transportation between Hong Kong and the delta’s west. The bridge — the first sea crossing over the Pearl River Estuary — could replace the old route over the Humen Pearl River Bridge between Dongguan and Guangzhou. The travel time over HZMB cuts the grueling four-hour trek of days past to less than an hour.
Decision makers thought they had set up sufficient policies and facilities and they have. The Customs authorities have introduced what’s considered to be the country’s most advanced goods inspection machinery at the bridge’s Zhuhai Port. Procedures have been streamlined. The old three-step procedure of quarantine, customs and immigration clearance has now been replaced by a single, fully automated step.
As for access to the cross-border bridge, private cars are restricted on a quota basis. There’s no limit, however, to the number of trucks between Hong Kong and the mainland. Currently, there are about 13,800 double-plate trucks running between Hong Kong and Guangdong province that are eligible to use the bridge.
It’s hoped that these facilities and policies would increase the exchange of goods between Hong Kong to the east and the west of the delta.
Industry players in Hong Kong and the mainland Hong Kong-ZhuhaiMacao Bridge main bridge told China Daily they remain optimistic that freight traffic on the 120-billion-yuan ($17.8 billion) bridge will catch on in the near future.
Experts say the root cause is the geographical distribution of industries across the Bay Area. Most of the industries are to the east, Shenzhen, Guangzhou and Dongguan, in particular. Manufacturing development in the west, around Zhuhai, Zhongshan and Jiangmen is still sparse.
Forty years ago, Guangdong province became the launch pad for the country’s reform and opening-up. The delta, rebranded as the Bay Area, underwent rapid economic development and soon became one of the world’s leading production bases. It is a key area carrying on Chinese trade today.
Since 1978, business experts from Hong Kong have been the backbone for the nascent processing and manufacturing industries in Guangdong. Today, Hong Kong is still one of the mainland’s most important trading partners, according to Hong Kong’s Census and Statistics Department.
Capital from Hong Kong crossed the border and initiated blowout growth of cities reachable from the international financial center in three hours. Those cities are strategically located in the north and east of the delta. Today, that’s where factories of the PRD predominate.
Development on the west of the delta has lagged, by comparison. Zhuhai, the coastal city bordering Macao, is typical. In 1980, Zhuhai was designated as one of the country’s first four special economic zones in the south. With favorable investment policies, these cities were able to kick off the opening-up, and attract foreign capital for the nation-wide economic revolution.
The other special economic zone located in the delta was Shenzhen. Over decades, the city bordering Hong Kong has become one of the country’s most developed metropolises. In 2017, it recorded an annual Gross Domestic Product of 2.24 trillion yuan — almost the same size as Hong Kong’s in economic terms.
Zhuhai has similar land area as Shenzhen. But it recorded a GDP of only 256.47 billion yuan in 2017 — almost nine times smaller than that of Shenzhen.
Frank Yau Yik-kin, Cathay Pacific Cargo’s head of cargo sales, is in charge of the airline’s cargo sales at Hong Kong International Airport — the busiest airport in the Bay Area.
“Shenzhen remains our most important window for foreign trade with the mainland,” he said. “No matter whether it’s export or import, almost 95 percent of our cargo is situated in the eastern Bay Area. Only a small part comes from the west. That won’t change overnight just because the bridge is open,” Yau said.
Eddy Li Sau-hung is the managing director of Hong Kong watch manufacturer, Campell Holdings. Most of his factories are in Dongguan, which borders Shenzhen to the south, and is just two hours away from major goods distribution centers in Hong Kong by driving.
The opening of the HZMB doesn’t really change how goods are exchanged between Hong Kong and Li’s factories.
“But the bridge surely paints us a new picture,” he said. Ports in Shenzhen have become very crowded due to heavy traffic. Manpower and rents in Shenzhen and Dongguan are not cheap anymore. The bridge presents Hong Kong businessmen with a shorter path to more options in the west, Li said.
Li hasn’t invested much in the west, so far. But he’s willing to consider transferring some of his factories to cities like Foshan, Zhongshan and Jiangmen. He said he is positive about business potential there, thanks to the bridge.
With HZMB, Zhuhai, Zhongshan and Jiangmen now fall within the three-hour driving circle from Hong Kong. That is bound to attract more foreign investment in those cities.
“What can’t be ignored is that transportation of goods from Zhuhai to Hong Kong has become so much faster than it used to be, even though the amount is small,” Yau said. In the past, it would take a day or even two, to come by ship to Hong Kong from the western Delta. That was a problem with goods bound for immediate delivery by air, he remarked.
“Now, it’s a matter of less than an hour,” he said.
For all the bumps along the way, the opening of HZMB does initiate Zhuhai as a main player in the Bay Area’s foreign trade.
Frank Jin is the founder of Yirong Customs Declaration Agent in Zhuhai, a leading local broker assisting companies to declare products at Customs and get them across the border.
He also sees growth opportunities for Zhuhai’s logistics industry. “But now we haven’t seen an obvious increase in volume,” he remarked.
He said his clients who are using HZMB are his regular clients from Zhuhai or Zhongshan. Those clients sent their goods on ships from Zhuhai to Hong Kong before the bridge opened.
“At this stage, the bridge is competing only with local businesses (ship operators) in Zhuhai. Growth (of bridge traffic) depends on winning over new clients from surrounding areas.”
Jin said several manufacturing enterprises from Jiangmen and Foshan had consulted him to seek out brokerage fees for the service he provides. So far, the discussions have been exploratory and Jin says no new contracts have been signed. “They need some time to change their regular operation and trading routes. It’s been easier for companies in Zhuhai to do so from the beginning,” he said.
Despite the demonstrated decrease in travel time across HZMB, Jin said companies outside Zhuhai are hesitant. Changing their shipping routes poses questions about the new boundary terminal and raises concerns about the dependability of delivery deadlines.
Agreeing with Jin, Stanley Chaing Chi-wai, chairman of the Lok Ma Chau China-Hong Kong Freight Association, said Hong Kong truck drivers are more than happy to use HZMB. The significant cut in time helps reduce operational costs, including gas. A shorter path ensures more trips within a day, Chaing said.
But it’s not up to the truckers to decide the transportation route. It’s the people who own the cargo, Chaing said. They have their old habits, their well-worn cross-border trading routes that they’ve been running for decades. Those people are not going to jump at the change, Chaing said. After all, he noted, the bridge has been in operation for just three months to date.
Everything about the 55-kilometer cross-border sea passage is unfamiliar — routing, traffic rules, boundary-crossing procedures at the Zhuhai Port, and the policies regarding Customs and quarantine.
Policies vary at different ports on the mainland — permits are needed to import sea food from Huanggang Port, in Shenzhen, and batteries and completed vehicles can’t be shipped across HZMB, Jin said.
Jin has high praise for the new Zhuhai Port, citing its efficiency. It takes just one or two hours for goods to pass random inspection at Zhuhai Port, he said. But, for the same type of goods and the same amount, it will take at least a day at Huanggang Port, which opened in 1989 and is one of the country’s busiest land ports.
Traffic is much heavier in Huanggang, and the inspection procedures are not as advanced, Jin explained.
Jin hopes the local government could make greater efforts to publicize the bridge and its new facilities, among manufacturers, especially focusing on convenience. He be will attract more investment to stimulating the economy and m competitive with the rest of the PR
Jin estimated that after the Chin break, some enterprises in Jiangme shan will make up their minds on and to settle contracts with him. an optimistic prediction that the truck volume can surpass 1,000 half of this year.
There’s never been a direct lan between Hong Kong and Macao opened, trade between the cities tra
Hong Kong truckers represen believes traffic on HZMB will go face freight between Hong Kong open. Right now, governments are discussions related to Hong Kong-M freight.
The planned logistics center at H Port has commenced preparatory ing to the Macao government.
Latest data from Hong Kong’ Statistics Department showed t exports to Macao reached HK$4. January to November last year, m the 12th-largest export market fo surpassing the UK.
“I believe people will choose t replace ships, which are not cheap slower,” Chaing said, noting tha companies currently monopolize trade between Macao and Hong K
“After all, it’s better to have the not. Without it, we don’t even hav better development,” he added.
Li, who’s also president of th Economic and Trade Association, Kong should be developing the log on Lantau Island to facilitate eve with the mainland.
Lantau Island, where Hong K tional Airport, AsiaWorld-Expo an Hong Kong Port are located, is western gateway to the mainland
Last October, the Hong Kong unveiled its “Lantau Tomorrow V with a plan to reclaim about 1,70 land from the sea. The site will be d another central business district.
With more supporting infrastru way, including the airport’s third