Hong Kong’s container throughput has been on a steady decline, a fact that is undeniable: from a peak of 24.38 million TEUs in 2011, it fell to just 13.69 million last year, nearly halving; in the first half of this year, it was only 6.58 million. This is not an isolated incident but a long-term trend. The global shipping map has been redrawn, and Hong Kong’s transshipment advantage is unlikely to return.
With the comprehensive upgrades of ports in the Pearl River Delta, foreign trade no longer needs to detour through Hong Kong; large automated terminals are more efficient, have larger hinterlands, and lower logistics costs than those in Hong Kong. Shipping companies are increasingly concentrating on massive port areas like Nansha and Yantian to reduce costs. Hong Kong’s limited land and narrow roads hinder its logistics capacity, naturally marginalizing its throughput. The annual decline in port activity is not a management issue but a consequence of changing international divisions of labor, a fate that is difficult to reverse.
The utilization rate of the Kwai Chung container terminal is only above sixty percent and is still declining. As throughput decreases, the marginal cost per container increases, making it impractical to maintain full operations in the long term. Rather than clinging to the illusion of past prosperity, it is better to face reality, return the land to the city, and utilize the decline for transformation.
The flat terrain of Kwai Chung terminal, along with its contiguous land and complete infrastructure, is a rare find in Hong Kong. With the Route 3 highway and three railway lines (Tung Chung Line, Tsuen Wan Line, and East West Line) nearby, such a large area of developable urban land should not be left idle for an unnecessary transshipment port. This is a waste of the city’s future.
Therefore, the government must discuss with terminal operators the reclamation of part of the land for redevelopment into residential, research, commercial, and community facilities. This will not only supply land but also be an environmental victory. If the city can effectively utilize existing resources, there is no need to excavate mountains or build extensive roads and railways in new development areas, nor to spend trillions on land reclamation for artificial islands. Instead of expanding, it is better to make good use of the existing, well-developed prime locations, shifting development pressure back to the urban area, reducing commuting distances, and making Hong Kong more compact and environmentally friendly.
Many port cities around the world, such as Rotterdam, Hamburg, and London, have transformed decommissioned old port areas into new towns, finding new urban vitality from declining old industries. Hong Kong stands at the same crossroads today. The decline of container terminals is a global trend that will not reverse; however, the future of the land remains in the hands of officials. Let Hong Kong be liberated from outdated logistics logic and rebuild a more rational and sustainable urban landscape.
