3 minute read
Tim Huxley
Still the one
Hong Kong has taken a few knocks in recent years, but it’s still a major maritime centre, and, argues Tim Huxley, the best is yet to come
It’s been a tough few years for Hong Kong. Protests in 2019 and one of the strictest anti-Covid policies in the world have meant few have managed to get a first-hand impression of developments in what has always been one of the shipping industry’s favourite destinations. Whilst we look forward to welcoming everyone back once travel restrictions ease, the shipping world would be wise to keep Hong Kong very much on their radar - the next few years are going to see Hong Kong shift up a gear as a maritime centre.
A good market always helps. August saw Hong Kong’s leading bulk carrier owner Pacific Basin post its strongest half yearly results for 13 years. Meanwhile, the privately held shipowners who are at the core of the Hong Kong shipping cluster are reaping the benefits of having stuck with shipping through the downturn, with the expansion of several fleets showing renewed confidence in the future.
A recent exhibition at the city’s acclaimed maritime museum titled ‘Believe in Hong Kong’ celebrated 150 years of the Swire Group’s presence in the city and the diverse conglomerate that now exists, which started with shipping as its foundations. The message the exhibition gets across is that through good times and bad, seizing the opportunities that Hong Kong offers, believing in the city and its people and continuing to invest in them will always yield benefits for everyone. That remains as true today as it has been for the past 150 years.
Pivotal moments such as the arrival of migrants from Shanghai in 1949 and the opening up of China in the late 1970s were seen by some as a threat to Hong Kong but ultimately proved to be crucial in making Hong Kong Asia’s world city. After all the dramas of the past few years, Hong Kong is now poised for another significant moment in its development with the growth of the Greater Bay Area. Integrating the economies of Hong Kong with nine municipalities in neighbouring Guangdong province will see Hong Kong take on the role as facilitator and connector for a burgeoning economic powerhouse with a population of over 70m people.
The potential for Hong Kong’s shipping industry is vast. In addition to providing a massive new market for Hong Kong’s established service providers, recent initiatives such as the Ship Leasing Bill, enacted in Hong Kong last year, will greatly increase the commercial authority vested in Hong Kong as well as access to more investment capital from across the border, which will further drive activity.
With two of the three largest third party shipmanagers not only headquartered in Hong Kong but also founded here, Hong Kong is now the global leader in shipmanagement. Together with its existing world class shipping services, in areas such as law, broking and finance, all underpinned by a shipowning community where a 70-year-old enterprise is a relative youngster, Hong Kong has got the experience and talent to embrace this enormous new opportunity. It truly is time to believe in Hong Kong.
