TY - JOUR
T1 - Port strategy in the era of supply chain management: the case of Hong Kong
AU - Zhang, Abraham
AU - Lam, Jasmine Siu Lee
AU - Huang, George Q.
N1 - Funding Information:
The authors would like to thank editors and two anonymous reviewers for their constructive comments. They are grateful to industry professionals who provided data for the analysis. They also appreciate Modern Terminals Ltd. and Hong Kong International Terminals Ltd., for hosting port visits. Partial financial supports from HKU research committee, the Guangdong Department of Science and Technology (2010B050100023, 2010B050400005), the Industry-University-Research Cooperation Key Project of Ministry of Education of Guangdong (20100901, 2011B090400409), and NTU research project SUG M4080118 are also gratefully acknowledged by the authors.
PY - 2014/6
Y1 - 2014/6
N2 - This article studies port strategy from a supply chain perspective considering the case of Hong Kong. Hong Kong port used to be the world's busiest container port, but it is now in danger of losing its hub status due to rising competition from neighboring lower-cost rivals. The analysis shows that Hong Kong's free port status and world-class customs clearance offer the port a sustainable and considerable advantage to shorten transit time. The port is thus a strategic fit for the shipping of high-value and time-sensitive cargoes, and should pursue an agile strategy for a responsive supply chain. It is imperative for the port to strengthen its core competencies in agility by retaining a favorable position in port rotation with shipping lines and raising the efficiency of barging. Further reducing cost substantially would be beneficial, but might not be feasible and should not be the primary nor sole focus of policy makers and port operators.
AB - This article studies port strategy from a supply chain perspective considering the case of Hong Kong. Hong Kong port used to be the world's busiest container port, but it is now in danger of losing its hub status due to rising competition from neighboring lower-cost rivals. The analysis shows that Hong Kong's free port status and world-class customs clearance offer the port a sustainable and considerable advantage to shorten transit time. The port is thus a strategic fit for the shipping of high-value and time-sensitive cargoes, and should pursue an agile strategy for a responsive supply chain. It is imperative for the port to strengthen its core competencies in agility by retaining a favorable position in port rotation with shipping lines and raising the efficiency of barging. Further reducing cost substantially would be beneficial, but might not be feasible and should not be the primary nor sole focus of policy makers and port operators.
UR - http://www.scopus.com/inward/record.url?scp=84902967221&partnerID=8YFLogxK
U2 - 10.1080/03088839.2013.863434
DO - 10.1080/03088839.2013.863434
M3 - Journal article
AN - SCOPUS:84902967221
SN - 0308-8839
VL - 41
SP - 367
EP - 383
JO - Maritime Policy and Management
JF - Maritime Policy and Management
IS - 4
ER -