Freight Forwarding Industry in Hong Kong

Lawrence  -  02:06 PM Overview
  • By arranging cargo transport, the freight forwarding industry has contributed fundamentally to Hong Kong's success as the 10th largest merchandise trading entity and one of the most trade-oriented economies in the world.
  • Most of the larger freight forwarders have a wide network of overseas branches, and act as agents for international air and ocean liners.
  • The industry is responding to customers' needs by providing more value-added services such as warehousing, packing, sorting, distribution and total logistics solutions.
  • The industry has benefited from Hong Kong's leading freight infrastructure. Hong Kong’s international air cargo throughput ranks first in the world, and Hong Kong is the world’s third busiest container port.
Industry Data Total (Inward + Outward) Freight Movements (million tonnes)

Seaborne

River

Road

Rail

Air

Total

2005

161.5

68.7

38.7

0.2

3.4

272.5

2006

166.2

72

37.3

0.2

3.6

279.3

2007

177.3

68.1

36.1

0.1

3.7

285.5

2008

180.0

79.4

31.7

0.1

3.6

294.9

2009

161.6

81.4

26.7

0.1

3.3

273.1

2010

182.0

85.8

29.7

0.04

4.1

301.6

2011

194.9

82.5

27.3

0*

3.9

308.7

Source: Summary Statistics on Port Traffic of Hong Kong, Hong Kong Port Development Council *The Mass Transit Railway Corporation Limited terminated the railway cross-boundary cargo transportation services from 16 June 2010.

As at December 2011

Number of Air Cargo Forwarders

1,268

Employment

16,608

Number of Sea Cargo Forwarders

2,404

Employment

22,214

Source: Quarterly report of Employment and Vacancies Statistics, Hong Kong Census and Statistics Department (US$ million)

2006

2007

2008

2009

2010

Business Receipts of Cargo Forwarding Services

19,337

20,242

20,846

14,895

19,201

Year-on-year (YoY) growth

0.2%

4.7%

3.0%

-28.5%

28.9%

Exports - Cargo Forwarding

2,289

2,168

2,690

2,037

2,174

Year-on-year (YoY) growth

+6.8%

-5.3%

+24.1%

-24.3%

+6.7%

Contribution to Services Exports

3.2%

2.6%

2.9%

2.4%

2.1%

Source: Report on Hong Kong Trade in Service Statistics, Report on Annual Survey of Transport and Related Services, Key Statistics on Business Performance and Operating Characteristics of the Transportation, Storage and Courier Services Sector, Hong Kong Census and Statistics Department Range of Services The core business of a freight forwarder is to move a shipper's consignment to the consignee within the stipulated time, in perfect order and at the most competitive price. Responding to changing customer demands, many freight forwarders also provide more value-added services such as warehousing, distribution and total logistics solutions. The services offered by the industry vary according to the sophistication of the freight forwarder. The larger and more comprehensive freight forwarders offer a full range of transportation and logistics services including warehousing, consolidation, air express, trucking, distribution and customs clearance, tracking and monitoring of freight being transported, and applying electronics data interchange (EDI) technology to facilitate just-in-time based supply chain management. Their customers, particularly those in the time-sensitive manufacturing, trading and retail sectors, can thus concentrate on their core competency and reduce their business cycle time. In general, the smaller freight forwarders provide more basic and economical services. Related services involved in the import/export process, such as the preparation of shipping documents, customs clearance and logistics, may be undertaken by the import and export traders or their agents. The smaller firms do provide more flexibility and more personalised services. In addition, they have lower overheads as they "piggyback" on the fixed capacities of the larger companies, and therefore can often provide lower rates. Hong Kong’s freight movement showed solid growth in the past two years. After growing 10.4% in 2010, total freight movement achieved a growth of 2.3% in 2011 despite the global economic downturn in 2011. Service Providers The Hong Kong Association of Freight Forwarding Agents (HAFFA) was formed in 1966 to represent the interests of the freight forwarding industry. It has been renamed as Hong Kong Association of Freight Forwarding and Logistics Ltd to reflect the sophisticated nature of the business. The larger sea freight forwarders tend to target big companies for exclusive deals. They provide value-added services and invest in information technology to ensure that they meet the expanding needs of the customer's changing markets. They can also set up individual logistics subsidiaries to provide tailor-made and specialised services in order to work as a service partner for their customers. Generally speaking, larger companies' well-established brands and far-reaching logistics networks have enhanced their significant market shares in the global export market. The smaller regional players, however, have better understanding of the business culture, better knowledge of their markets and have established networks in the region. As reliable and speedy delivery is the key to successful freight forwarding services, Hong Kong's forwarders' understanding of the international practices and their networks can help them to secure the confidence of international customers. Exports The destinations of freight forwarding services mirror the trade routes. The main markets for international freight forwarders in 2010 were Asia (34.1% of total share), North America (33.7%) and Western Europe (27.0%).The Chinese mainland is the most important source of cargo for Hong Kong's freight forwarders. In 2011, 61.6% of Hong Kong’s re-exports were originated from the Chinese mainland. The larger freight forwarders often follow their big international customers to new markets. In some instances transport service providers set up business in the new markets before recommending their customers to follow suit. They expand overseas usually by setting up subsidiaries, joint ventures or appointing agents to render global services. Major Export Markets of Cargo Forwarding Services 2008-2010 (US$ million)

2008

Share (%)

YoY growth

2009

Share (%)

YoY growth

2010

Share (%)

YoY growth

Western Europe

832

30.9%

+34.6%

484

23.8%

-41.8%

586

27.0%

+21.0%

North America

823

30.6%

+25.5%

683

33.5%

-17.1%

732

33.7%

+7.2%

Asia

816

30.3%

+23.1%

722

35.4%

-11.5%

741

34.1%

+2.6%

Australasia, Oceania

114

4.3%

+52.1%

79

3.9%

-30.7%

64

3.0%

-19.1%

Central & South America

27

1.0%

-61.5%

28

1.4%

+2.4%

23

1.0%

-18.1%

Others

77

2.9%

-9.9%

41

2.0%

-47.1%

28

1.3%

-31.7%

Sources: Report on Hong Kong Trade in Services Statistics, Census and Statistics Department Industry Development and Market Outlook Outsourcing Logistics Services A number of global trends are affecting the freight forwarding industry, including the globalisation of the supply chain, mass customisation, shortening of product cycles, low inventory, and quick response requirements. In the face of these trends, an increasing number of businesses feel the need to optimise their supply chains via external experts, i.e. third-party logistics (3PL) and fourth-party logistics (4PL). 3PL refers to an outsourced provider that manages all or a significant part of a business' logistics requirements and performs transportation, locating and sometimes product consolidation activities. In contrast, 4PL refers to an outsourced provider which completely integrates its client's supply chain - managing the resources, capability and technology of all parties, including the 3PLs, to deliver a comprehensive supply chain solution. Freight Forwarding Market in China
  • In response to the financial tsunami, the impact of which became highly visible in the fourth quarter of 2008, the Chinese government announced measures to re-invigorate ten industries to sustain economic growth, with the logistics industry being one of the ten. Stimulus policies included:
    • Enlarging demand for logistics services, as well as enhancing interaction between logistics companies, manufacturers and commercial enterprises with an aim to raise the professional standard of the industry.
    • Promoting growth of the 3PL industry through encouraging manufacturers and commercial enterprises to outsource logistics activities
    • Speeding up mergers and acquisitions (M&A) in order to breed a batch of large logistics companies that have high quality of service and are able to compete internationally.
    • Pushing forward the development of energy, mining, automobile, agriculture, and medicine logistics and to speed up development of international logistics and bonded-area logistics.
    • Constructing logistics facilities and to promote standardisation and computerisation of logistics service.
    • Nine major projects to develop the logistics industry, namely: (1) constructing inter-modal facilities; (2) building logistic parks; (3) developing urban distribution; (4) developing large scale merchandise and rural logistics; (5) enhancing interaction between manufacturers and logistics companies; (6) promoting standardisation and use of technology; (7) developing a common platform for shared information; (8) developing logistic technology and (9) developing emergency logistics.
  • Global trade recovery in the past two years, however, has boosted growth of the logistics sector on the mainland. In 2011, total logistics cost increased by 18.5% to over US$1.1 trillion, equivalent to 17.8% of China’s GDP.
  • In 2011, value-added of the mainland’s logistics industry was US$0.5 trillion, up 13.9% compared with 2010. The industry’s share of China’s GDP and value-added of all services industries was 6.8% and 15.7% respectively.
  • Logistics cost as a portion to GDP has been falling. In 2011, it was 17.8%, down from 19.4% as in 2000. This indicates that the mainland’s logistics sector has become more efficient. Nevertheless, it is estimated that logistics cost as a percentage to GDP is still about double of those in developed countries. For instance, US logistics costs represented 8.3% of its GDP in 2010.
  • To raise industry standard of freight forwarding, MOFCOM joined hands with CIFA to launch guidelines for international freight forwarding operations in 2008.
  • Since 11 December 2005, the mainland government has allowed the access of wholly foreign-owned forwarders to the industry as part of China's WTO accession terms.
The Closer Economic Partnership Arrangement between Hong Kong and the Mainland (CEPA) Freight Forwarding Since the promulgation of the Administrative Measures on Foreign-invested International Freight Forwarding Agency(Decree of the Ministry of Commerce No. 19 - Dec 2005), foreign companies enjoy more or less the same benefits as the Hong Kong service suppliers (HKSS). Both are allowed to set up wholly owned freight forwarding agencies on the mainland to provide the following services: (1)  Booking (leasing of ships, and chartering of airplanes and shipping space), consignment, warehouse storage and packing (2)  Supervising loading and unloading, container grouping and unpacking, allocating goods, providing transit as well as related short-distance transport services (3)  Arranging customs declarations, customs examination and inspection, and insurance (4)    Filling out of relevant documents, payment of transportation fees, settlement of accounts and miscellaneous freight charges (5)  Agency business of international exhibits, personal items and transportation of transit cargoes (6)  Arranging international multimodal transportation and container transport (including the packing of containers) (7)  International express delivery (excluding personal mail and postal services for official documents of provincial or higher branches of the party, government or military) (8)  Consultancy and other international forwarding agency business. The minimum registered capital requirements for overseas companies engaged in international freight forwarding companies remains at US 1 million. However, the minimum registered capital requirements for HKSS are the same as their mainland counterparts: a) International freight forwarding, sea transportation: RMB 5 million b) International freight forwarding, air Transportation: RMB 3 million c) International freight forwarding, land transportation: RMB 2 million If the forwarder operates more than one type of freight forwarding mode, the highest amount of the minimum registered capital should follow. For other services, HKSS has certain WTO-plus privileges over other foreign invested enterprises. Maritime Transport Services Compared with the conditions applying to other foreign companies, CEPA allows Hong Kong service providers to have greater flexibility in providing many types of maritime services, as they are allowed to form wholly owned units. China's Regulations on the Administration of Foreign Investment in International Marine Transportation stipulate that only minority-owned foreign joint ventures are allowed to provide services that include the following: international shipping agency; international ship management; international shipping; maritime cargo-handling services; customs clearance services for maritime transport; container station and depot services; international marine shipping, freight loading and unloading, and international marine shipping container terminal and yard business. Under CEPA, HKSS can form wholly owned units in providing maritime services such as international ship management services, container station and depot services, non-vessel operating common carrying services, port cargo loading and unloading services, tug services between Hong Kong and mainland ports, ship maintenance and repair services, international ocean container leasing, buying and selling as well as trading of container parts, and ship survey services for ships registered in Hong Kong. Because of Supplement V and Supplement VI provisions, the business scope is further expanded for Hong Kong service providers, as they are now allowed to set up wholly owned enterprises and branches in Guangdong on a pilot basis to provide shipping agency services to vessel operators for routes between Guangdong Province and Hong Kong and Macau. Hong Kong service providers can also set up wholly owned shipping companies to provide regular business services such as shipping undertaking, issuance of bills of lading, settlement of freight rates, signing of service contracts, etc. for the shipping transport between Hong Kong and the Class B ports in Guangdong operated by the HKSS using chartered mainland vessels. Road transport Services CEPA currently allows HKSS to establish wholly owned enterprises in the provision of road freight transport and related services like road freight transportation station and motor vehicle repair services. Approval for such services is generally undertaken by the Ministry of Transport. CEPA provision on road transport services also states that Guangdong is delegated the authority to approve the provision of road freight transport services by Hong Kong-invested production enterprises in Guangdong. Applications for providing transport-related services in Guangdong, such as road freight transport stations, repair and driver training enterprises are handled by the Guangdong authorities. These new arrangements are expected to hasten the approval process and facilitate HKSS in their business expansion into Guangdong. In addition, under Supplement VIII released in 2011, Hong Kong drivers who are going to take the Mainland driving license examinations will be provided with examination papers in traditional Chinese characters, and there will be an examination venue in Shenzhen for them to take the examination. Quoted from HKTDCTuesday May 15th, 2012  -  , , , , , ,  -  No Comments

Overview

  • By arranging cargo transport, the freight forwarding industry has contributed fundamentally to Hong Kong’s success as the 10th largest merchandise trading entity and one of the most trade-oriented economies in the world.
  • Most of the larger freight forwarders have a wide network of overseas branches, and act as agents for international air and ocean liners.
  • The industry is responding to customers’ needs by providing more value-added services such as warehousing, packing, sorting, distribution and total logistics solutions.
  • The industry has benefited from Hong Kong’s leading freight infrastructure. Hong Kong’s international air cargo throughput ranks first in the world, and Hong Kong is the world’s third busiest container port.

Industry Data

Total (Inward + Outward) Freight Movements (million tonnes)

Seaborne

River

Road

Rail

Air

Total

2005

161.5

68.7

38.7

0.2

3.4

272.5

2006

166.2

72

37.3

0.2

3.6

279.3

2007

177.3

68.1

36.1

0.1

3.7

285.5

2008

180.0

79.4

31.7

0.1

3.6

294.9

2009

161.6

81.4

26.7

0.1

3.3

273.1

2010

182.0

85.8

29.7

0.04

4.1

301.6

2011

194.9

82.5

27.3

0*

3.9

308.7

Source: Summary Statistics on Port Traffic of Hong Kong, Hong Kong Port Development Council
*The Mass Transit Railway Corporation Limited terminated the railway cross-boundary cargo transportation services from 16 June 2010.

As at December 2011

Number of Air Cargo Forwarders

1,268

Employment

16,608

Number of Sea Cargo Forwarders

2,404

Employment

22,214

Source: Quarterly report of Employment and Vacancies Statistics, Hong Kong Census and Statistics Department

(US$ million)

2006

2007

2008

2009

2010

Business Receipts of Cargo Forwarding Services

19,337

20,242

20,846

14,895

19,201

Year-on-year (YoY) growth

0.2%

4.7%

3.0%

-28.5%

28.9%

Exports – Cargo Forwarding

2,289

2,168

2,690

2,037

2,174

Year-on-year (YoY) growth

+6.8%

-5.3%

+24.1%

-24.3%

+6.7%

Contribution to Services Exports

3.2%

2.6%

2.9%

2.4%

2.1%

Source: Report on Hong Kong Trade in Service Statistics, Report on Annual Survey of Transport and Related Services, Key Statistics on Business Performance and Operating Characteristics of the Transportation, Storage and Courier Services Sector, Hong Kong Census and Statistics Department

Range of Services

The core business of a freight forwarder is to move a shipper’s consignment to the consignee within the stipulated time, in perfect order and at the most competitive price. Responding to changing customer demands, many freight forwarders also provide more value-added services such as warehousing, distribution and total logistics solutions.

The services offered by the industry vary according to the sophistication of the freight forwarder. The larger and more comprehensive freight forwarders offer a full range of transportation and logistics services including warehousing, consolidation, air express, trucking, distribution and customs clearance, tracking and monitoring of freight being transported, and applying electronics data interchange (EDI) technology to facilitate just-in-time based supply chain management. Their customers, particularly those in the time-sensitive manufacturing, trading and retail sectors, can thus concentrate on their core competency and reduce their business cycle time.

In general, the smaller freight forwarders provide more basic and economical services. Related services involved in the import/export process, such as the preparation of shipping documents, customs clearance and logistics, may be undertaken by the import and export traders or their agents. The smaller firms do provide more flexibility and more personalised services. In addition, they have lower overheads as they “piggyback” on the fixed capacities of the larger companies, and therefore can often provide lower rates.

Hong Kong’s freight movement showed solid growth in the past two years. After growing 10.4% in 2010, total freight movement achieved a growth of 2.3% in 2011 despite the global economic downturn in 2011.

Service Providers

The Hong Kong Association of Freight Forwarding Agents (HAFFA) was formed in 1966 to represent the interests of the freight forwarding industry. It has been renamed as Hong Kong Association of Freight Forwarding and Logistics Ltd to reflect the sophisticated nature of the business.

The larger sea freight forwarders tend to target big companies for exclusive deals. They provide value-added services and invest in information technology to ensure that they meet the expanding needs of the customer’s changing markets. They can also set up individual logistics subsidiaries to provide tailor-made and specialised services in order to work as a service partner for their customers. Generally speaking, larger companies’ well-established brands and far-reaching logistics networks have enhanced their significant market shares in the global export market. The smaller regional players, however, have better understanding of the business culture, better knowledge of their markets and have established networks in the region.

As reliable and speedy delivery is the key to successful freight forwarding services, Hong Kong’s forwarders’ understanding of the international practices and their networks can help them to secure the confidence of international customers.

Exports

The destinations of freight forwarding services mirror the trade routes. The main markets for international freight forwarders in 2010 were Asia (34.1% of total share), North America (33.7%) and Western Europe (27.0%).The Chinese mainland is the most important source of cargo for Hong Kong’s freight forwarders. In 2011, 61.6% of Hong Kong’s re-exports were originated from the Chinese mainland.

The larger freight forwarders often follow their big international customers to new markets. In some instances transport service providers set up business in the new markets before recommending their customers to follow suit. They expand overseas usually by setting up subsidiaries, joint ventures or appointing agents to render global services.

Major Export Markets of Cargo Forwarding Services 2008-2010 (US$ million)

2008

Share (%)

YoY growth

2009

Share (%)

YoY growth

2010

Share (%)

YoY growth

Western Europe

832

30.9%

+34.6%

484

23.8%

-41.8%

586

27.0%

+21.0%

North America

823

30.6%

+25.5%

683

33.5%

-17.1%

732

33.7%

+7.2%

Asia

816

30.3%

+23.1%

722

35.4%

-11.5%

741

34.1%

+2.6%

Australasia, Oceania

114

4.3%

+52.1%

79

3.9%

-30.7%

64

3.0%

-19.1%

Central & South America

27

1.0%

-61.5%

28

1.4%

+2.4%

23

1.0%

-18.1%

Others

77

2.9%

-9.9%

41

2.0%

-47.1%

28

1.3%

-31.7%

Sources: Report on Hong Kong Trade in Services Statistics, Census and Statistics Department

Industry Development and Market Outlook

Outsourcing Logistics Services

A number of global trends are affecting the freight forwarding industry, including the globalisation of the supply chain, mass customisation, shortening of product cycles, low inventory, and quick response requirements. In the face of these trends, an increasing number of businesses feel the need to optimise their supply chains via external experts, i.e. third-party logistics (3PL) and fourth-party logistics (4PL).

3PL refers to an outsourced provider that manages all or a significant part of a business’ logistics requirements and performs transportation, locating and sometimes product consolidation activities. In contrast, 4PL refers to an outsourced provider which completely integrates its client’s supply chain – managing the resources, capability and technology of all parties, including the 3PLs, to deliver a comprehensive supply chain solution.

Freight Forwarding Market in China

  • In response to the financial tsunami, the impact of which became highly visible in the fourth quarter of 2008, the Chinese government announced measures to re-invigorate ten industries to sustain economic growth, with the logistics industry being one of the ten. Stimulus policies included:
    • Enlarging demand for logistics services, as well as enhancing interaction between logistics companies, manufacturers and commercial enterprises with an aim to raise the professional standard of the industry.
    • Promoting growth of the 3PL industry through encouraging manufacturers and commercial enterprises to outsource logistics activities
    • Speeding up mergers and acquisitions (M&A) in order to breed a batch of large logistics companies that have high quality of service and are able to compete internationally.
    • Pushing forward the development of energy, mining, automobile, agriculture, and medicine logistics and to speed up development of international logistics and bonded-area logistics.
    • Constructing logistics facilities and to promote standardisation and computerisation of logistics service.
    • Nine major projects to develop the logistics industry, namely: (1) constructing inter-modal facilities; (2) building logistic parks; (3) developing urban distribution; (4) developing large scale merchandise and rural logistics; (5) enhancing interaction between manufacturers and logistics companies; (6) promoting standardisation and use of technology; (7) developing a common platform for shared information; (8) developing logistic technology and (9) developing emergency logistics.
  • Global trade recovery in the past two years, however, has boosted growth of the logistics sector on the mainland. In 2011, total logistics cost increased by 18.5% to over US$1.1 trillion, equivalent to 17.8% of China’s GDP.
  • In 2011, value-added of the mainland’s logistics industry was US$0.5 trillion, up 13.9% compared with 2010. The industry’s share of China’s GDP and value-added of all services industries was 6.8% and 15.7% respectively.
  • Logistics cost as a portion to GDP has been falling. In 2011, it was 17.8%, down from 19.4% as in 2000. This indicates that the mainland’s logistics sector has become more efficient. Nevertheless, it is estimated that logistics cost as a percentage to GDP is still about double of those in developed countries. For instance, US logistics costs represented 8.3% of its GDP in 2010.
  • To raise industry standard of freight forwarding, MOFCOM joined hands with CIFA to launch guidelines for international freight forwarding operations in 2008.
  • Since 11 December 2005, the mainland government has allowed the access of wholly foreign-owned forwarders to the industry as part of China’s WTO accession terms.

The Closer Economic Partnership Arrangement between Hong Kong and the Mainland (CEPA)

Freight Forwarding

Since the promulgation of the Administrative Measures on Foreign-invested International Freight Forwarding Agency(Decree of the Ministry of Commerce No. 19 – Dec 2005), foreign companies enjoy more or less the same benefits as the Hong Kong service suppliers (HKSS). Both are allowed to set up wholly owned freight forwarding agencies on the mainland to provide the following services:

(1)  Booking (leasing of ships, and chartering of airplanes and shipping space), consignment, warehouse storage and packing

(2)  Supervising loading and unloading, container grouping and unpacking, allocating goods, providing transit as well as related short-distance transport services

(3)  Arranging customs declarations, customs examination and inspection, and insurance

(4)    Filling out of relevant documents, payment of transportation fees, settlement of accounts and miscellaneous freight charges

(5)  Agency business of international exhibits, personal items and transportation of transit cargoes

(6)  Arranging international multimodal transportation and container transport (including the packing of containers)

(7)  International express delivery (excluding personal mail and postal services for official documents of provincial or higher branches of the party, government or military)

(8)  Consultancy and other international forwarding agency business.

The minimum registered capital requirements for overseas companies engaged in international freight forwarding companies remains at US 1 million. However, the minimum registered capital requirements for HKSS are the same as their mainland counterparts:

a) International freight forwarding, sea transportation: RMB 5 million

b) International freight forwarding, air Transportation: RMB 3 million

c) International freight forwarding, land transportation: RMB 2 million

If the forwarder operates more than one type of freight forwarding mode, the highest amount of the minimum registered capital should follow.

For other services, HKSS has certain WTO-plus privileges over other foreign invested enterprises.

Maritime Transport Services

Compared with the conditions applying to other foreign companies, CEPA allows Hong Kong service providers to have greater flexibility in providing many types of maritime services, as they are allowed to form wholly owned units.

China’s Regulations on the Administration of Foreign Investment in International Marine Transportation stipulate that only minority-owned foreign joint ventures are allowed to provide services that include the following: international shipping agency; international ship management; international shipping; maritime cargo-handling services; customs clearance services for maritime transport; container station and depot services; international marine shipping, freight loading and unloading, and international marine shipping container terminal and yard business.

Under CEPA, HKSS can form wholly owned units in providing maritime services such as international ship management services, container station and depot services, non-vessel operating common carrying services, port cargo loading and unloading services, tug services between Hong Kong and mainland ports, ship maintenance and repair services, international ocean container leasing, buying and selling as well as trading of container parts, and ship survey services for ships registered in Hong Kong.

Because of Supplement V and Supplement VI provisions, the business scope is further expanded for Hong Kong service providers, as they are now allowed to set up wholly owned enterprises and branches in Guangdong on a pilot basis to provide shipping agency services to vessel operators for routes between Guangdong Province and Hong Kong and Macau. Hong Kong service providers can also set up wholly owned shipping companies to provide regular business services such as shipping undertaking, issuance of bills of lading, settlement of freight rates, signing of service contracts, etc. for the shipping transport between Hong Kong and the Class B ports in Guangdong operated by the HKSS using chartered mainland vessels.

Road transport Services

CEPA currently allows HKSS to establish wholly owned enterprises in the provision of road freight transport and related services like road freight transportation station and motor vehicle repair services. Approval for such services is generally undertaken by the Ministry of Transport.

CEPA provision on road transport services also states that Guangdong is delegated the authority to approve the provision of road freight transport services by Hong Kong-invested production enterprises in Guangdong. Applications for providing transport-related services in Guangdong, such as road freight transport stations, repair and driver training enterprises are handled by the Guangdong authorities. These new arrangements are expected to hasten the approval process and facilitate HKSS in their business expansion into Guangdong.

In addition, under Supplement VIII released in 2011, Hong Kong drivers who are going to take the Mainland driving license examinations will be provided with examination papers in traditional Chinese characters, and there will be an examination venue in Shenzhen for them to take the examination.

Quoted from HKTDC

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