Wharf Holdings, a Hong Kong-based logistics and real estate conglomerate, has reported a significant downturn in its logistics business, with operating profits halving to US$48.4 million in 2023. This decline comes amidst broader challenges for Hong Kong's port, which has fallen out of the list of the world's busiest ports, according to the company's chairman, Stephen Ng Tin Hoi.
Despite an overall net profit of US$141.5 million for the group, reversing a previous net loss, the performance of its Hong Kong and Shenzhen container terminals has been lackluster, with the Hong Kong terminal experiencing a 15% drop in throughput to 3.7 million TEU in 2023.
Ng highlighted the competitive pressures from emerging southern Chinese ports like Nansha and the need for the Hong Kong government to bolster the port's competitiveness. The shifting dynamics in container shipping, including disruptions through the Panama and Suez canals and the realignment of shipping alliances, have further impacted Hong Kong's port volumes.
Source: container-news.com