Business Focus - JAS

The Future in Logistics

With a population of roughly 86 million and a combined GDP of US$1.7 trillion, it’s no surprise that the Greater Bay Area (GBA) is going to play a key role in the steady economic growth of China. To contextualize the numbers, the GBA’s economy is already greater than some G20 economies, it is renowned to be the largest production area in the country, making it one of the most affluent regions in China, and attracting a very large number of capital investments.

The project objectives are to further deepen cooperation amongst Guangdong, Hong Kong and Macao, fully leverage the composite advantages of the three places and facilitate in-depth integration within the region. With the GBA Initiative, Hong Kong aims to consolidate and enhance the city’s status as international transportation and trade centre as well as an international aviation hub and maritime centre.

In terms of the development of the ocean freight capabilities, the GBA is designed to enhance the international competitiveness of the PRD port cluster, treated as one individual entity.

The main objective is to progressively increase the overall capacity of international shipping services of Guangzhou and Shenzhen, further enhance the service efficiency of infrastructural facilities including ports and fairways, form a complementary and mutually beneficial system of port, shipping, logistics and ancillary services with Hong Kong.

Freight Forwarders and logistics operators will benefit greatly from such expansion plans of the major coastal ports and the improvement of cargo distribution, through an efficient network of inland waterways, port railway lines and motorways. In parallel, Hong Kong will also support the development of high-end maritime services such as ship management and leasing, ship finance, marine insurance as well as maritime law and dispute resolution services, and provide such services to Mainland and Macao enterprises.

On the other hand, the airfreight scenario will see Hong Kong play a particularly central role. Today, almost the entire quantity of cargo shipped via airfreight out of HKIA is produced within the GBA region, and around 50% of the cargo imported is destined to the South China market. In this respect, many logistics operators like JAS are routing their charter flights into Hong Kong, benefitting from its efficiency in terms of cargo clearance and its ideal geographical position, allowing us to serve customers in a timely manner not only in China but also in South East Asia.

To ensure that Hong Kong’s future in logistics will keep thriving for years to come, investments have been made under the GBA initiative: by 2024 the ‘Third Runway Project’ at HKIA will be completed, alongside the development of a new dedicated cargo logistics centre, Kwo Lo Wan, essentially increasing the handling capacity of the express air cargo terminal by 50% and servicing the e-commerce business.

As online shopping increases its outreach, with more and more people working from home, demand for essential commodities raises hugely; online orders and home deliveries are a new trend that cannot be overlooked, and future service expectations will change accordingly. Therefore, a well-equipped and technological facility such as Kwo Lo Wan, will easily become an appealing partner for Freight Forwarders like JAS, already fully invested in the E-commerce sector. JAS has in fact recently acquired a primary supply chain management company named Tigers, as a strategic move that broadens the company’s range of logistics services, adding omnichannel supply chain management capabilities, supported by advanced digital solutions that will help our customers ramp up their B2C e-commerce operations.

The GBA has the potential to extend its reach beyond the Pearl River Delta region. In the longer term, it should be able to act as a catalyst for China’s broader Belt and Road Initiative, where Hong Kong should strengthen its role. Now more than ever, it becomes a necessity to build a modern comprehensive transport system, able to move cargo as well as people in an efficient way.

Company Profile

JAS Hong Kong, incorporated in 1980, is one of the top market leaders in Italy - Far East Air and Ocean freight forwarding business. The network was soon expanded to China with its headquarters in Shanghai. Today, JAS’s strategic presence in the major cities of China includes 18 self-owned offices to cope with the ever-increasing needs for logistics services. The organization has over 710+ specialized staff and offers consolidation and logistics warehousing services in 28 locations across mainland China.

As Hong Kong is one of the World’s busiest container ports and the World’s busiest international airport, and the Third Runway System is expected in 2024, JAS has fully leveraged these advantages by developing a closely connected network in Greater Bay Area (GBA), including Hong Kong, Shenzhen, Guangzhou and Zhongshan to provide first-class, comprehensive, and customer-focused services. Our expertise in E-commerce logistics, Distribution and Warehousing service further complements Hong Kong’s high global connectedness and its role as a regional logistics hub in GBA.