Jinhui Huang
Mapping: Jinhui Huang Fall 2014 - Harvard Graduate School of Design - GSD 9132 - Term Project Copyright: Scanned texts and source references compiled in this booklet are intended for single-use academic purpose only, according to the Harvard University Fair Use Guidelines & Course Reader Copyright Guidelines. No part of this booklet may be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for commercial purposes. All files are copyright to their respective authors and/or publishers. All other content is Š2013-14 Harvard Graduate School of Design, The President & Fellows of Harvard College.
Contents 01. Hypothesis De-territorialization 02. HPH: the world trade infrastructure HPH as an index Historical development of HPH 03. HPH Globalization Seeing the world as Berths Seeing the world as a Coastline 04. Reginalized Globalization Administrative boundary of the Pearl River Delta Region GDP contribution of Pearl River Delta The hydrological map of Pearl River Delta Riverway cargo transportation The inland transportation at Pearl River Delta 04. The world as Delta(s)
Hypothesis: In order to understand the global merchant trade, one needs to deterritorialize the administrative boundaries of the world.
DEterritorialization
Our projections of global merchant trade have thus far been heavily based on the productivity of individual administrative regional boundaries. In the map of “Merchandise Export of WTO members”, the economic value of a country is gauged by the monetary worth of its exports. And yet, how accurate is to depict the world economy based on the contribution of every inscribed national boundary? I would argue that this method of representing the economic power of the world has become obsolete as soon as one speaks about globalization. Globalization has transcended the administrative borders that once demarcated land ownership, resource allocation, labor force, technological advancement and manufacturing intensities, all of which demonstrated the quality of goods as well as the legimitacy of a country’s resourcefulness. From the world of “made in U.S.A.” to a world of “designed in California, made in China, and mined in Brazil”, it appears that our methods of representing the economic world still reside in the paradigm of the Industrial Revolution. I would also argue that the content of the UN projection is contradictory to the methodology of the projection. In order to talk about global economies, we need to discuss the neglected mechanisms that first enabled global merchant trade: maritime trade.
“Merchandise Exports of WTO members� by World Trade Organization International Trade Statistics 2013
The Overarching Structure of the Maritime Trade
HPH
The World Trade Infrastructure
Maritime trade plays a significant role in the global merchant trade. The low freight rate for long distance transportation and the scale of shipment loads provided by maritime transportation has enabled the rapid growth of globalized economies and economic interdependence among nations. The growth of global trade has also demanded constant upgrade of port infrastructure for larger size cargos and more efficient logistic operations, thereby creating a severe competition amongst port operators. As port construction and operation require increasingly higher figures of investment as well as technical expertise, more and more nations seek for the cooperation between private port operators and public sectors, resulting in the consolidation of global terminal operators. In the last 2 decades, many port terminals were acquired by these global port operators while local port ownership continue to dwindle. By 2002, 55 percent of the maritime trade was controlled by the global terminal operators, 22 percent share by miscellaneous private sectors, and 24 percent by the public sector. The Top 10 global terminal operators are Hutchison Port Holding, Singapore Port Authority, APM Terminals, P&O Ports, DP World, Evergreen, Eurogate, Cosco, SSA Marine and HHLA. In 2005, Hutchison Port Holdings reached 8.3% share of the entire martitime trade and became the largest global port operator. Hutchison Port Holding is one of the subsidiary company under Hutchison Whampoa Limited. Originally established as a ship construction company, Whampoa Deck Company succesfully transformed itself into a ship operator company. HPH has invested in deep water ports in order to create a strong global network with a firmly established base in the Pearl River Delta and in Hong Kong. Being the largest port operator in the world, Hutchison Port Holding acts as an index for this research in order to reconfigure the projection of the world through the lens of maritime trade.
2012 World Container Port Throughput
600 million TEU
2012 Merchandise Exports of WTO members
17.3 Trillion US Dollars
Global Seaborne Trade
80% of global merchandise
Hutchison Port Holdings
76.7 million TEUs No.1 Privately held port corporation in the world
319 berths 52 ports 26 countries
significant historical event
History TimeLine of Hutchison Port Holdings
1863
Hong Kong and Whampoa Dock founded by Douglas Lapraik and Thomas Sutherland
1939 - 1945 World War II
1960s
Whampoa Dock Company controlled by Douglas Clague through Hutchison International
1974 1978 Economic Reform in China
Establishment of HongKong International Terminal
1979
Sold to Li Ka Shing’s Cheung Kong Holdings
1985
Cheung Kong Holdings and Whampoa merged Hutchison Whampoa
1994
1997 The return of Hong Kong to China
Hutchison Port Holding becomes an independent company under Hutchison Whampoa Limited establishing a world-wide network
1998
Establishment of Hutchison Logistics
2011
Establishment of Hutchison Port Holding Trust
“Shewing Kau Lung (or Kow Loon) Docks” by British Government The Dock Book, 1909
significant historical event
History TimeLine of Hutchison Port Holdings
1863
Hong Kong and Whampoa Dock founded by Douglas Lapraik and Thomas Sutherland
1939 - 1945 World War II
1960s
Whampoa Dock Company controlled by Douglas Clague through Hutchison International
HIT
KWAI CHUNG TERMINAL 4 1974 1978 Economic Reform in China
Establishment of HongKong International Terminal
1979
Sold to Li Ka Shing’s Cheung Kong Holdings
Cheung Kong Holdings and Whampoa merged Hutchison Whampoa
1994
1997 The return of Hong Kong to China
Hutchison Port Holding becomes an independent company under Hutchison Whampoa Limited establishing a world-wide network
1998
Establishment of Hutchison Logistics
2011
Establishment of Hutchison Port Holding Trust
HLC
Hong Kong International Terminals official website, 2014
1985
significant historical event
History TimeLine of Hutchison Port Holdings
1863
Hong Kong and Whampoa Dock founded by Douglas Lapraik and Thomas Sutherland
1939 - 1945 World War II
1960s
Whampoa Dock Company controlled by Douglas Clague through Hutchison International
1974 1978 Economic Reform in China
Establishment of HongKong International Terminal
1979
Sold to Li Ka Shing’s Cheung Kong Holdings
HWL is among the largest companies listed on the main board of the Hong Kong Stock Exchange. With roots in Hong Kong in the 1800s, HWL’s operations now span the globe. HWL has six core businesses - ports and related services, property and hotels, retail, infrastructure, energy and telecommunications.
Ports and Related Services: Hutchison Port Holdings Property and Hotels: Hutchison Whampoa Properties limited
1985
Retail: A.S. Watson & Co. Limited Energy, Infrastructure, Investments: Cheung Kong Infrastructure share in Hong Kong Electric Holdings and Husk Energy
1994
1997 The return of Hong Kong to China
Hutchison Port Holding becomes an independent company under Hutchison Whampoa Limited establishing a world-wide network
1998
Establishment of Hutchison Logistics
2011
Establishment of Hutchison Port Holding Trust
Telecommunications: “3” Brand largest share in Hutchison Telecommunications International Limited Video Encoding and Streaming: Vidiator Phone manufacturing: WHAM
Hutchison Whampoa Limited official website, 2014
Cheung Kong Holdings and Whampoa merged Hutchison Whampoa
significant historical event
History TimeLine of Hutchison Port Holdings
1863
Hong Kong and Whampoa Dock founded by Douglas Lapraik and Thomas Sutherland
1939 - 1945 World War II
1960s
Whampoa Dock Company controlled by Douglas Clague through Hutchison International
1974 1978 Economic Reform in China
Establishment of HongKong International Terminal
1979
Sold to Li Ka Shing’s Cheung Kong Holdings
1985
Cheung Kong Holdings and Whampoa merged Hutchison Whampoa
1997 The return of Hong Kong to China
Hutchison Port Holding becomes an independent company under Hutchison Whampoa Limited establishing a world-wide port operator network
1998
Establishment of Hutchison Logistics
2011
Establishment of Hutchison Port Holding Trust
Hutchison Port Holdings official website, 2014
1994
significant historical event
History TimeLine of Hutchison Port Holdings
1863
Hong Kong and Whampoa Dock founded by Douglas Lapraik and Thomas Sutherland
1939 - 1945 World War II
1960s
Whampoa Dock Company controlled by Douglas Clague through Hutchison International
In 1998, Hutchison Tibbett & Britten Logistics Co., Ltd. (HTBL) was founded as a joint venture of Hong Kong Hutchison Whampoa and the UK Tibbett & Britten Group, and set up divisions in Beijing, Shanghai, Tianjin, Guangzhou and Chengdu. With business growth of over 10% per year and a change in government policy to open the logistics industry in China, the company formally registered as “Guangzhou Hutchison Tibbett & Britten Logistics Services Co., Ltd.” in Guangzhou in 2004. The company is the sole business entity of HTBL in China. At the end of 2005, HTBL became the wholly owned subsidiary of Hong Kong Hutchison Whampoa Group.
1974 1978 Economic Reform in China
Establishment of HongKong International Terminal
1979
Sold to Li Ka Shing’s Cheung Kong Holdings
1985
Cheung Kong Holdings and Whampoa merged Hutchison Whampoa
1997 The return of Hong Kong to China
Hutchison Port Holding becomes an independent company under Hutchison Whampoa Limited establishing a world-wide port operator network
1998
Establishment of Hutchison Logistics
2011
Establishment of Hutchison Port Holding Trust
In January 2011, Hutchison Whampoa Limited (HWL), the parent company of Hutchison Port Holdings Limited (HPH), announced plans to spin off its deep-water container port businesses in Guangdong Province in Mainland China, Hong Kong and Macau and to list the units of Hutchison Port Holdings Trust (HPH Trust) on the Main Board of Singapore Exchange Securities Trading Limited. HPH Trust is the first publicly traded container port business trust and provides Unitholders with an attractive opportunity to invest in the market leader of the world’s largest trading hub by throughput, the Pearl River Delta, which hub consists of two of the world’s busiest container port cities by throughput – Hong Kong and Shenzhen, PRC. HPH Trust’s sponsor is Hutchison Port Holdings Limited, the global leader in the container port sector by throughput and a subsidiary of HWL.
Hutchison Port Holdings official website, 2014
1994
Seeing the World as Berths In 1974, Whampoa Dock Company established the first terminal at Hong Kong International Terminal 4. Terminal 4 and its related logistics development became a succesful operating model for its subsidiary HPH to emulate in order to secure its reputation as a world class port operator. Over the course of HPH’s worldwide expansion, the “Terminal 4” model, along with its strong financial, technological and managerial configuration has been replicated in other locations to form a collection of highly efficient nodes.
HPH Globalization
Seeing the World as a Coastline On a larger scale, HPH’s network of ports consists of highly strategically located nodes that help assert its dominance at the global scale. An approved HPH port investment at any given existing location balances between the potentials for manufacturing development, surrounding market viability as well as its strategic role in relationship to other existing ports of the HPH network.
Hong Kong International Terminal
Hutchison Port Holdings official website, 2014
The Port of Felixstowe (PFL) is located in the fast-growing Haven Gateway sub-region on the UK’s southeast coast. It was the first operational container handling facility in the UK. It is also the largest and busiest container port in the country. Customers benefit from PFL’s competitive advantage of lock-free, fast and convenient access to the North Sea and European ports through its deep-sea, short-sea, feeder and transshipment operations.
Hutchison Port Holdings official website, 2014
Barcelona Europe South Terminal (BEST) is the first semi-automated terminal in the HPH Group and the most technologically advanced port development project in Spain. It is capable of serving multiple mega-vessels simultaneously and has an eight-track railway facility, the biggest on-dock railway terminal of any port in the Mediterranean connecting it to traffic coming from, and destined for, Southern Europe.
Hutchison Port Holdings official website, 2014
Jakarta International Container Terminal (JICT) is located in Tanjung Priok, covers a total of 100 hectares and is the largest container terminal in Indonesia, is jointly owned by HPH and PT Pelabuhan Indonesia II. JICT serves as Indonesia’s national hub port and a gateway to Jakarta and industrial heartland of West Java.
Hutchison Port Holdings official website, 2014
The Port of Cristobal is operated by Panama Ports Company (PPC) – the Panamabased subsidiary of the HPH Group. The port, along with its sister port at Balboa, provides shipping lines a one-stop shop with world-class efficiency and comprehensive services.
Hutchison Port Holdings official website, 2014
Xiamen International Container Terminals (XICT), which commenced operations in 1997, is located at the Haicang Port Zone in the Xiamen Special Economic Zone in Fujian Province. As a natural deep-water port with a quay length of 1,083 metres and equipped with the most advanced super post-panamax container quay cranes, XICT is capable of serving mega-sized container vessels all year round.
Hutchison Port Holdings official website, 2014
Yantian International Container Terminals Limited (YICT) is a natural deep-water port and the leading gateway serving import and export container traffic generated by its immediate cargo hinterlands. With a total of 19 berths* and a yard area of 373 hectares, YICT has built up an extensive cargo base which attracts over 40 major shipping lines that provide about 100 weekly services linking to major ports worldwide.
“Prototyping Terminal 4” by Jinhui Huang
“Seeing the World as Berths” by Jinhui Huang
“HPH - overarching structure” by Jinhui Huang
“Seeing the World as Coastline” by Jinhui Huang
Pearl River Delta: the Hinterland Development of HPH HPH’s strong global network can be largely attributed to their persistent and calculated investments at the regional scale. Originated based in Hong Kong, HPH seized the opportunity to invest in the Southern Chinese Sea in the wake of major revolutions in both political and economic structures of Mainland China. Since the implementation of the Open Door pPolicy at the Pearl River Delta in 1979, the region had attracted vast amount of investments whereby many of which can be traced back to Hong Kong corporations. Clearly, HPH has been one of the biggest investors in the infrastructure system of the region, as they sought to position themselves as important links for value chains that connect between Southern China Sea manufacturing hub and major markets around the world (Yap, 2009).
Reginalized Globalization
Granted, the relationship between the Pearl River Delta and HPH is unseparatable. The investment of HPH at the Pearl River Delta has enabled the Pearl River Delta to transform into a competitive manufacturing basin that has attracted investments from around the world. However, it should be emphasized that the relationship between HPH and PRD is mutually beneficial, as the development of the Pearl River Delta has also strengthened the growth of HPH, thereby reinforcing its own global presence in return. The geographic advantage at the Pearl River Delta lies in its extensive inland waterway network whose considerable depth allows for the passage of large cargo ships (Kervezee, 2011). HPH exploits this advantage to promote explosive manufacturing growth in the region by providing cheap and efficient shipping service with an extensive operating range. As such, HPH was capable of penetrating, activating and extending the depth of the manufacturing hinterland surrounding the delta while easily connecting those industrial entities with the rest of the world. The waterway ports at the Pearl River Delta can be divided into two types: the semi inland ports such as Guangzhou, Zhuhai, Zhongshan and Jiangmen, and inland ports such as Foshan, Zhaoqing and Guigang. HPH has been actively engaged in the development of shallow waterway cargo transportation networks in the region (Kervezee, 2011). By 1994, HPH purchased a number of mid-stream operators and controlled 35 to 40 percent of the trade activities occurring within the shallow waterway network (Rossignol, 2007). It is also the primary shareholder of the Tsuen Mun River Terminal, which is the only container terminal in Hong Kong for river cargo. Besides the rivertrade investment, HPH has also invested in inland transportation infrastructure such as highways and bridges. In sum, these strategic investments has enabled HPH to construct an efficient logistics network for global trade.
“Pearl River Delta Counties Map” by Him Mark Lai Him Mark Lai Digital Archive
“Role of Hong Kong SAR in Pear River Delta Export Performance” by various sources Statistics Yearbooks of Guangdong and PRD Cities (2008)
“Pearl River Delta Hinterland - the hydrological map” by Jinhui Huang
“Inland Waterway Network” by Kervezee Inland waterway transport in the Pearl River Basin (2011)
“Inland Shipping Ports Cargo Throughout” by Kervezee Inland waterway transport in the Pearl River Basin (2011)
“Pearl River Delta Hinterland - the map of River Terminals” by Jinhui Huang
“Pearl River Delta Hinterland - inland transportation as the extension of waterway transportation system” by Jinhui Huang
The world in the eye of Global Port Operator(s)
the World as Delta(s)
HPH deterritorialized the boundaries of the Pearl River Delta by constructing an infrastructural interface capable of receiving foreign investments to generate enormous capital flows. The Pearl River Delta therefore is no longer an enclosed manufacturing region, but a dynamic network that simultaneously connects to the global economy. To HPH, the world is a delta. By constructing a global network using Pearl River Delta as an achor point, HPH opened the region for capital investments. The global capitals, therefore, becomes the upperstream while the hinterland of Pearl River Delta becomes the downstream that receives the capitals and produces a manufacturing basin. The downstream exploits the resources originating from the upstream to be economically productive. HPH is not the only company that takes advantage of the regionalized globalization. Other global corporations such as APM terminal operators and PSA also use the production and consumption link to reshape the world as a delta for their own profits. In other words, the world can be seen as layers of delta through these global corporations.
“The World as a Delta (HPH)” by Jinhui Huang
APM Terminals is an international container terminal operating company headquartered in The Hague, Netherlands. APM Terminals offers the global shipping community a geographically balanced, integrated Global Terminal Network which includes current operations at 64 ports and terminal facilities in 39 countries with seven new terminal development projects and 16 expansion programs now underway, along with 165 Inland Services operations in 47 countries. Staffed by 20,300 professionals across a total of 67 countries spanning five continents, we serve every major trade lane with a truly global presence, providing our customers with the most advanced terminal technology, equipment and operations in the industry.
APM Terminals official website, 2014
PSA was formerly the Port of Singapore Authority, a statutory board regulating, developing, operating and promoting the port of Singapore’s terminals. In 1996, PSA’s regulatory functions were handed over to the Maritime and Port Authority of Singapore. PSA Corporation Limited was subsequently incorporated in 1997 as the corporate successor to the Port of Singapore Authority to manage and operate its terminals and related businesses. In December 2003, PSA International became the investment holding company for PSA’s businesses in Singapore and world-wide. PSA International is fully-owned by Temasek Holdings. PSA’s core business is transhipment. Transhipment is the transfer of containers from one vessel to another vessel bound for its final destination, whereas in transit. This is essentially the business PSA is in.
Port of Singapore Authority official website, 2014
Singapore’s strategic location in the heart of Southeast Asia and at the nexus of major shipping routes has made it an important logistic hub and conduit for world trade. Being the world’s top transhipment hub, Singapore is connected to 600 ports in 123 countries, with daily sailings to every major port of call in the world.
“The World as Deltas” by Jinhui Huang
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