Twelve countries in Asia-Pacific will play a key role in boosting the growth of the region’s transportation and logistics market despite global economic uncertainties, an official from Frost & Sullivan predicted.
Over the next five years, 12 countries—Hong Kong, Singapore, Australia, Japan, Taiwan, South Korea, India, Malaysia, Thailand, China, Vietnam, and Indonesia—will contribute to the Asia-Pacific transportation and logistics market’s annual growth of 7.6 percent to reach US$4 trillion in 2016, the international consulting firm said in a media statement on February 21.
Gopal R, vice president of transportation and logistics practice of Asia Pacific at Frost & Sullivan, said sea freight is the key transport mode for freight movement in Asia-Pacific, handling more than 60 percent of total freight traffic in the 12 countries researched.
He forecast total cargo volumes in Asia-Pacific to increase 5.1 percent year-on-year to 19.67 billion tons in 2012.
Gopal said that Hong Kong’s transportation and logistics market is projected to grow at a compound annual growth rate (CAGR) of 6.7 percent to reach $40.58 billion in 2016, supported by growth in external trade.
He added that Hong Kong, as one of the leading logistics hubs in Asia, saw its transport, storage and courier sector account for 6.7 per cent of total GDP in 2011.
Gopal noted that Hong Kong operates the world’s busiest cargo airport with 4.1 million tons of cargo throughput, and ranked third in the world’s busiest container seaports with 23.7 million TEUs in 2010.
“With the world-class logistics infrastructure and comprehensive transportation connectivity, freight volume by air and sea experienced a steady growth over the years,” he added.
But he also noted that Hong Kong port is facing increased challenges from neighboring ports within Pearl River Delta and mainland regions. He added that Shenzhen Port and Guangzhou Port have brought stiff competition to Hong Kong.
The emergence of other hubs for logistics and supply chain operations in the Asia-Pacific region, such as Singapore, is also a threat to Hong Kong’s dominance in the region, he said.
“In addition to its excellent connectivity, state-of-the-art infrastructure, and pro-business environment, Singapore has attracted many leading global logistics players to set up their regional distribution centers in the country, putting pressure to Hong Kong logistics market,” Gopal said.
