Strength

Free Trade port Although Hong Kong is facing other cities’ port to competitive, it still has a lot of strength in this area over other Mainland cities. It will continue to do so in the foreseeable future. Free Trade port is one of the strength to Hong Kong which offers customs convenience to shippers to ship their cargoes. Compare with Guangdong’s port, as regulated by the Chinese Law, some of the large vessels are set with trade protectionist polices. Also, importing and exporting from China generally involves three types of taxes such as Value-added tax, Consumption tax and Customs duties. As a result, Hong Kong benefits exporters and importers with free trade and minimum level of regulations. Thus, they will use Hong Kong for sea transport as the city facilitates then with higher flexibility and better business environment.
Zhang, S. (2013). Import-Export Taxes and Duties in China. Retrieved March 19, 2014 from http://www.china-briefing.com/news/2013/03/11/import-export-taxes-and-duties-in-china.html
High Connectivity Hong Kong port has a high connectivity to other ports around the world. It is because Hong Kong is located between Europe and Pacific Ocean. It is among the world ports one of the most central ports in port networks. Hong Kong also has deep harbor in South China. It depth around 15.5 meters(Planning Department, 2004). Hong Kong is very closed to Pearl Rive Delta, which is not to our sources. It also one of the world’s largest exporter so most of cargoes handling are from or destined for Pearl River Delta area. According to Hong Kong Government(2001), Hong Kong is served by about 80 international shipping lines with 380 liner services per week to 550 destinations worldwide. This advantage helps shippers to directly ship their cargoes to the destinations and minimize the needs for transshipment when sing other ports. (2014). Retrieved March 15, 2014 from, Planning Department Web site: http://www.psdas.gov.hk/content/doc/PowerPoint_Bosco_Fung.pdf
Well-developed transport network Another strength in Hong Kong Port is well-developed transport network. Firstly, Hong Kong port is located at Kwai Chung and Tsing Yi. The Port is closed to Hong Kong International Airport. Cargoes can delivery between port and airport by Tsing Ma Bridge faster. This is one of the reason that exporters choose Hong kong to deliver cargoes to over the world. Not only that, Hong Kong handles cargoes from or to Pearl Rive Delta also because of well-developed road. The government built Hong Kong-Shenzhen Western Corridor at 2007 and building Hong Kong-Zhuhai-Macau Bridge aiming to enhance connection to China and attract more companies to choose Hong Kong to be their import or export’s port.

Internal Solution
Port Expansion Kwai Tsing Container Port is the major port to handle container and cargoes in Hong Kong. It handles around 80% containers, total 17118 thousands TUEs in 2013. There are total 5 operators to operate nine ports in Kwai Tsing Container Port. However, Hong Kong port is losing competitiveness after Shenzhen and Shanghai developed. Port expansion is one of the way that to keep competitiveness. The government should consider to expanse CT10 to keep the competitiveness. According to Presentation to LegCo ES Panel-Study on Hong Kong Port - Master Plan 2020(2004), expansion is enhancing the competitiveness of existing port assets, retain a leading position in the provision of port services in South China, provide a sound basis for further port expansion and secure sustainable economic benefits for the HKSAR community. Northwest Lantau is the best location that to expanse CT 10 in the future. It is because Northwest Lantau is characterised by its rural nature and has bigger area to expanse. It offers capacity to 2030 and a better terminal layout than Southwest Tsing Yi. Northwest Lantau also located at west Pearl River Delta. After expansion, Hong Kong can handle more container capacity. This is the chance that to get back the first port in China.
Container Throughput of Hong Kong Port (2013). Retrieved March 17, 2014 from, Marine Department Web site: http://www.pdc.gov.hk/docs/Hkport.pdf
GHK (Hong Kong) Ltd (2004). Study on Hong Kong Port - Master Plan 2020 Presentation to LegCo ES Panel. Retrieved March 15, 2014 from, Marine Department Web site: http://www.legco.gov.hk/yr04-05/chinese/panels/es/papers/es1122cb1-230-5ce.pdfLower Terminal operation price According to the Legislative Council of Hong Kong(2013), Shenzhen passed Hong Kong in terms of container volume in the first nine months of 2013. Shenzhen handled 17.3 million twenty-foot equivalent units of containers in the first nine months in 2013 and Hong Kong only handled about 16.4 million TEUs. The reason that why Shanghai and Shenzhen’s ranking passed Hong Kong in few years is about the operating costs. Comparing with Hong Kong and other Asian port’ s price: Transpacific Eastbound, Asia/Europe and Intra Asia, Hong Kong charges per TUE is the highest price in Asia. the Port of Hong Kong is relatively more expensive. In Hong Kong, the average price is about two thousand dollars, but Shenzhen charges about one thousand dollars and Shanghai is only changes few hundreds. If Hong Kong wants to get back the first port in Asia, five different operators should consider to decrease the terminal operation price. Due to Hong Kong ports are operated by private companies, the operating cost is higher than Chinese. It is because Guongdong’s port is operated by the government, If Hong Kong government gets back the right of operation, the cost will be lower and increase the competitiveness. Hong Kong port still has advantages when comparing with other ports. Efficiency is Hong Kong’s competitiveness. Due to scarcity of land, Hong Kong has become one of the ports with the highest land productivity in the world. If the terminal operation price can be lower, it is not difficult that to attract importers and exporters to choose Hong Kong port. Merk, O. & Li, J. (2013). OECD Regional Development Working Papers, 2013/16. In . Retrieved March 15, 2014 from, Marine Department Web site: http://www.oecd.org/governance/regional-policy/Hong-Kong-Port-Cities-Report.pdf
Competitiveness of the port of Hong Kong (2013). Retrieved March 17, 2014 from, Legislative Council Web site: http://www.legco.gov.hk/yr13-14/english/sec/library/1314rb01-e.pdf

Super-connectivity Initiative Basic on current initiatives and implement complementary measures to improve the efficiency of trucking movements and review the registration fees, it can reduce the inland transport costs to Hong Kong port. There are some suggestion to increase connectivity such as improve empty containers circulation in Pearl River Delta, container and vehicle can separate movements. improve barge service and documentation and Electronic Document System.