Logistics and the rise of e-commerce to be examined at ALMC 2018

Logistics and trade is one of the four pillar economies of Hong Kong, accounting for some 22% to the territory’s gross domestic product and 20% of its employment.

It’s no surprise that the Asian Logistics and Maritime Conference (Hong Kong Convention and Exhibition Centre 20-21 November 2018) is devoting no less than nine forums to logistics and e-commerce.

The sessions devoted to these most important of topics include:

Plenary Session 1: Boosting Asian Connectivity for a New Regional Economic Order (20/11)

 Supply-chain Management & Logistics Forum 1 (20/11)

 Air Freight Forum 1: New Paradigm of Regional E-commerce Order Fulfilment Centre – Where and How? (20/11)

 Regional Forum 1: A New Channel for Inland Opening – Hubei International Air Freight Hub (20/11)

 Plenary Session 2: Online Shopping Revolutionising Logistics and Supply Management (21/11)

 Regional Forum 2: Don’t Get Left Out in the Cold: Winning @ Cold Supply Logistics (21/11)

 Regional Forum 3: The Synergetic Development for Cross-border E-commerce and Modern Logistics in Zhuhai, Hong Kong and Macao (21/11)

 Supply-chain Management & Logistics Forum 2: How Logistics Related Technologies Boost Productivity in the Guangdong-Hong Kong-Macao Greater Bay Area (21/11)

 Regional Forum 4: The Opportunities and Prospects of the CCI – New Land and Sea Corridor: A New way of Western China-ASEAN Trade (21/11)

Support from the highest quarters

In November 2017, Hong Kong’s chief executive, Carrie Lam came out with all guns blazing in defence of the territory’s pole position as a logistics and maritime hub.

“We have no plans to relinquish our global leadership position,” Ms Lam declared as she unveiled plans to move ahead with a three-runway system at Hong Kong’s International airport. HKIA staked its position as the world’s busiest air cargo hub in1996. It has retained that position ever since.

With the opening of the Hong Kong-Zhuhai-Macao Bridge on 23 October, which has further integrated Hong Kong with the Greater Bay Area, more seamless logistics operations can be anticipated, particularly among the ports of the territory and their counterparts in the Pearl River Delta.

 Third runway and Premium Logistics Centre

At a cost of HK$141.5bn and with an expected completion date of 2024, the addition of the new runway will push up passenger capacity from 2017’s 70m to 100m, and double cargo capacity to 9m tonnes. The project includes reclamation of 650 hectares of land, construction of a third runway, a new concourse, and cutting edge people-moving and baggage-handling systems. DHL has shown its strong support for the expansion with a HK$3bn investment to expand its Central Asia Hub in collaboration with the Airport Authority.

In the meantime, a joint venture made by Cainiao, the China National Aviation Corporation Group and YTO Express won the Airport Authority’s contract for constructing a premium logistics centre at the Hong Kong International Airport. This echoes the Policy Address 2017 which aims to enhance Hong Kong’s role in offering value-added logistics services in cope with the rise of e-commerce logistics.

These infrastructure investments are strategically located on the heart of Hong Kong logistics hub, the HKIA. With the enhanced cargo handling capacities, value-added logistics services and the Hong Kong-Zhuhai-Macao Bridge, it will strengthen Hong Kong’s position in the region and foster the regional connectivity for the Greater Bay Area. The connections to Guangzhou and another six mainland cities will be significantly shortened bringing immense benefits to the territory’s logistics sector. But the largest prize, which Hong Kong has in its sights, is access to the more than 60 countries that line the Belt and Road.

Port of Hong Kong

The Port of Hong Kong will play a strategic role along China’s 21st century Maritime Silk Road. Offering around 330 container vessel services a week to 470 destinations across the planet, the Port handled more than 20m teu in 2017. The Port has been swift to react and adapt to the arrival of mega-vessels sometimes with capacities above 20,000 teu, and the increasingly consolidated container line sector now considered the new normal. In order to maintain the competitiveness of the port the use of back-up land has been optimised, terminal yard space has been expanded and the barge fleet has been boosted with new vessels.


On the second day of ALMC Plenary session 2

In the October policy address, Hong Kong’s chief executive, Ms Carrie Lam recognised the increasing importance of e-commerce as a growing element of the logistics equation. According to Transport Intelligence the global express and small parcels market is set to grow 8.6% in 2018 after the market grew 9.7% in 2017.

“Cross-border e-commerce is growing extremely quickly and international express providers are seeing big opportunities fill the demand it’s generating,” said Ti research head Nick Bailey. “To make the most of the opportunity, significant scale and investment in infrastructure will be required, even by today’s biggest players.

“We are undoubtedly entering into a period of transformation in the cross-border e-commerce market, not only for express providers like DHL, UPS and FedEx but for online retail giants like Amazon, Alibaba and JD.com among others, all of whom have aggressive international expansion plans,” said Mr Bailey.

The express and small parcels market continues to see change beyond e-commerce, too. “It is clear that the pharmaceuticals, life sciences and healthcare sector is of growing importance for the express sector as a whole,” the report noted.

“Express providers see opportunities to make better returns due to the more complex handling, regulatory and operational sophistication of the sector and a changing demographic which will lead to market growth for many years to come,” he concluded.

Air Freight Forum 1 and Plenary Session 2 will unlock the secrets of successful e-commerce operations. To learn more about how key logistics and e-commerce providers are taking advantage of Hong Kong’s international airport, be sure to attend Air Freight Forum 1 on day one of ALMC. Moderated by Ms Alaina Shum, general manager, Aviation Logistics of the Airport Authority of Hong Kong, in this session experts such as Roger So, executive general manager, Cainiao Global, Suken Xiao, vice president, Overseas Region, SF Express, and James Chang, group chief Cross Border Officer of Lazada Group, will share their real-life successes and practices in this forum.

Plenary Session 2, on day two of ALMC, will provides a broad perspective on the extraordinary rise of e-commerce. It will examine the battle between providers and newcomers like Amazon and other e-tailers for the most efficient last-mile delivery. Leading Panel Speakers for this session include, Yang Haifeng, general manage, Value Supply Chain Department, JD Logistics, Zhang Jianwei, executive chair, ICC China Commission on Customs and Trade Facilitation, and Cissy Chan, executive director, Commercial, Airport Authority Hong Kong.

Post your registration to ALMC 2018 today: www.almc.hk

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