The Hong Kong budget: most of the port sector should instead move to Shenzhen

As I write in today’s South China Morning Post, in his budget speech?on February 26, Financial Secretary Paul Chan Mo-po announced two initiatives related to Hong Kong’s port sector.

He allocated HK$215 million (US$27.6 million) for developing a “smart” port by enhancing the flow of data among stakeholders – always welcome – and he said that the government would establish a Hong Kong Maritime and Port Development Board to “strengthen relevant research, promotion and manpower training to facilitate the sustainable development of the international maritime centre”.

The first item on the board’s agenda should be moving most of the port sector to Shenzhen thus freeing up the well-connected waterfront for much greater value-added real estate development.

Although the port is an integral part of Hong Kong’s history, its contribution to gross domestic product is not what it once was. In a similar vein, London moved its docks away from Canary Wharf in the 1980s, New York likewise moved its docks from Hudson Yards and Singapore’s docks are currently moving out to Tuas.

Yes, regulatory differences would need to be resolved, environmental contamination needs to be cleaned up and existing staff will need retraining. But the transition would be eased by many of the private sector operators in Hong Kong’s port already having operations in Shenzhen;? the government could claim a welcome one-off land premium; and this move would represent further integration between Hong Kong and the mainland consistent with “one country, two systems” and the Greater Bay Area initiative.

Not least, it would finally kill off the already unnecessary Lantau Tomorrow Vision / Kau Yi Chau artificial islands?project.