HPH Trust and Guangxi Beibu Gulf Port Group forge strategic alliance

Hutchison Port Holdings Trust (HPH Trust) and Guangxi Beibu Gulf International Port Group have signed a memorandum of cooperation aimed at promoting economic and trade exchanges between Guangxi and Hong Kong.

The companies said in a joint announcement that the ‘pivotal partnership is set to expedite the growth of the Guangdong-Hong Kong-Macao Greater Bay Area and the Beibu Gulf economic zone.’

The partnership will primarily focus on fortifying cooperation between the two regions, utilising the Beibu Gulf Port as a vital link connecting the northwest region over land and the Guangdong-Hong Kong-Macao Greater Bay Area via sea. The objective is to establish a route that seamlessly connects Asia with North America, Europe, and other regions. This envisioned sea-rail intermodal channel is referred to as the “Western-Beibu Gulf-Hong Kong (Kwai Tsing)/Yantian-Destination route”.

Additionally, by harnessing complementary routes and customs clearance convenience between Hong Kong and Yantian Port in Shenzhen, the parties aim to facilitate transhipment traffic between the Beibu Gulf Port and Hong Kong. In this way, the duo wants to expedite the collaboration on the logistics hub “Guangxi-Kwai Tsing-Yantian” based on the highly efficient cooperation among Guangxi, Kwai Tsing and Yantian port zones.

The partnership is expected to bring additional cargo volume to the Hong Kong Port and accelerate import/export cargo movement. For instance, shipping goods from the northwest to major Asian regions via Hong Kong can now be completed in 4-7 days.

“Hong Kong is an important hub port in the region providing excellent port and maritime services. As announced in the Action Plan on Maritime and Port Development in December 2023, we aim to enhance the overall competitiveness of the Hong Kong Port and the Greater Bay Area port cluster,” the Commissioner for Maritime and Port Development of the Transport and Logistics Bureau,  Amy Chan, said.

“This memorandum of cooperation symbolises our commitment to support Guangxi in establishing the ‘One Zone, Two Cities’ model and building it into an important strategic hinterland of the Guangdong-Hong Kong-Macao Greater Bay Area,” a spokesperson of Beibu Gulf Port Group, said.

“Dedicated to deepening the cooperation between Guangxi and Hong Kong across the ports and logistics sectors, as well as economic and trade exchanges, the memorandum will catalyse high-quality development towards a maritime economy, making significant contributions to national strategies including the Belt and Road initiative.”

The signing of the deal coincides with a decline in Hong Kong’s liner connectivity as the port is increasingly being omitted from major shipping lines’ East-West trades. What is more, the port is grappling with dwindling volumes, a challenge exacerbated by stiff competition from ports in southern China, notably the Port of Shenzhen.