Success Factors of the Hong Kong Maritime Industry
Developments in the container terminals and the rising demand for the inland river transport. The government’s supports the maritime sector through initiatives and incentives. The Hong Kong Special Administrative Region Government (HKSARG) proposed objectives and arranged with trading partners to avoid double taxation on income derived from international shipping operations. This improves the maritime industry’s competitiveness and thus helps the country to position itself as a global maritime sector. The low tax regime and strong institutional environment, as well as the cluster of maritime services, make Hong Kong a preferred choice for foreign vessel owners.
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A well-established port which is strategically located is responsible for high value-added & professional maritime services and fostering talent development, thus propelling Hong Kong as an international hub. Read further to learn about other internation hubs?
With enhanced integration between Hong Kong and other cities under the Greater Bay Area (GBA) development, the port is likely to gain a new lease of life as being part of the major Southern China port cluster. Under the GBA plan, it plans to consolidate and enhance Hong Kong’s status as an international maritime centre and support its development of high-end maritime services.
What Affects the Maritime Industry in Hong Kong?
The significant developments and expansions in the Chinese maritime sector and the growth of the Chinese alternative modal transport with Western areas have restrained the growth of the Hong Kong industry.
The registration fees collected from ship registration has not been directly allocated to the marine department. The money is supposed to improve facilities and increase the workforce.
The Sino-US trade war exposes the international shipping market to greater uncertainties and risks of a downward trend. Hong Kong suffered a drop in container throughput in 2018, falling from the fifth position to the eighth in the world.
Importance of Maritime Industry
The maritime industry offers low-cost and efficient maritime transport, especially to developing countries.
Shipping ensures a more evenly spread of the benefits of trade and commerce to most parts of these countries.
The industry provides various job opportunities for aspiring marine professionals.
Joining the Maritime Industry
Youths aspiring to be seafarers should first choose to work in the deck or the engineering departments. By obtaining professional qualifications and accumulating experience, the crew members of local vessels, river trade vessels and seagoing vessels may be gradually promoted to higher ranks in a well-planned manner.
Those aspiring to operate local pleasure vessels for a living should obtain the required qualifications for the Pleasure Vessel Operator Certificates of Competency.
Joining Maritime Department is open to crew members who have appropriate professional qualifications and have accumulated sufficient experience for careers such as pilotage, ship management, maritime law, surveying. The professional grades in the Maritime Department include Marine Officer, Surveyor of Ships and Shipping Safety Officer.
Historical Changes in the Port and Shipping Industry in Hong Kong
Shipping is a major contributor to total global carbon dioxide emissions. In recent years, various operational and technical measures have been put in place to counter this problem.
The port and shipping industry has experienced three development stages: rapid growth from the 1970s – 1990s, solid growth form 2000 – 2005, and slow/sluggish growth form 2006 – 2015. Hong Kong’s maritime roots are tied to its role as a conduit for trade even from the 1800s because of its strategic location at the southern tip of China and because of its natural deep-water harbour.
From 1972 to 2012 the port is said to have expanded to 18 times its original size compared with a growth factor of 10 in Singapore.Container throughout between Hong Kong and Singapore were similar between the 1980s and 1990s. But in 2000s Hong Kong was dominating the world stage in term of container volumes as mainland China opened up its economy and became the world’s factory. At that time ports in Yantian, Nansha was not well developed, and they did not have the systems and laws to support shipping; therefore, the manufacturing industries shipped everything to Hong Kong, and then out to the rest of the world contributing to the rapid growth of the port.
For ten years, the government did not implement measures to stay competitive. It was content at being the world’s best thus during the second half to the 2000s it lost pace being forced out of the first place by Singapore followed by Shanghai which has remained the world’s best since. If you are interested in starting your maritime business in Singapore, feel free to consult to us as well. Paul Hype Page has the experience you need in establishing your company and connect you with the specific target markets to meet your needs.
Maritime is an international industry with markets all over the world. Building various hubs around the ASEAN region will be of upmost importance for your business to prosper. Speak to our consultants today if you are interested in incorporation in both Hong Kong and Singapore.
Covid-19 and the Maritime Industry
Coronavirus restrictions mean that thousands of seafarers are unable to return home. The seafarers manage the merchant ships that keep the global trade flowing. These seafarers are working extended periods, risking their well-being and the supply chain. After months at sea, stress, fatigue and time away from loved ones is taking its toll.
The Future of Maritime In Hong Kong
Under the GBA pan, the government will inject funds into the Maritime and Aviation Training Fund to nurture talents for the sectors and introduce tax measures to promote the development of ship leasing and marine insurance businesses.
The industry is also embracing technologies to address ongoing management challenges and improve efficiencies. Truck platooning is being tested in which a series of automated trucks will follow a lead vehicle and travel closely together, thus achieving a smoother traffic flow.