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Sustainability of Hong Kong as a Regional Container Hub: The Hong Kong International Terminals Story

REF ID : UST/P22/CC
Case Author : Prof Roger KING ; Prof Winnie Qian PENG ; Mike POOLE
PublicAction Date : 08.10.2011

Abstract

From early 2000s, the sustainability of Hong Kong as a regional transshipment hub was in face of fierce competition with the growing mainland China. Rising from the 90s as one of the world’s busiest independent container operators, Hong Kong International Terminals Limited (HIT) would need a direction change. Lately appointed as the Managing Director, Eric Ip was challenged to maintain the growth with the change to the hub and a spoke system of cargo handling. How could HIT balance the robust demand for lower yield transshipment cargo and that for higher yield import-export cargo? What would be the ultimate implications of this mix for the firm’s long term growth strategy?

Company/Organization Hong Kong International Terminals Limited (HIT)
Industry shipping, cargo, import-export business, logistics, port, transshipment hub
Major Discipline General Management
Subject(s) Cargo container, Business performance review, Competition, Development strategy, Government policy, Land supply and storage space, Market dominance, Operational strategy, Organization structure, tariff
Geography Hong Kong, China, Shenzhen, Pearl River Delta, Asia
Case Nature Field
Page count of the Case 18
Teaching Notes 9
Publisher HKUST (for CICC)