Port strategy in the era of supply chain management: the case of Hong Kong

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.