China cabotage rules benefit Hong Kong: HIT

In a letter to the South China Morning Post, Hong kong International Terminals managing director Gerry Yim noted that the city had "unique advantage" under the "one country, two systems" principle which China adopts with regard to it.

While cabotage laws in China prohibit foreign-flagged vessels from moving cargoes from one mainland coastal port to another, this is waived for Hong Kong as it considered a foreign port for these purposes.

"Rather than being in direct competition, Hong Kong and other Guangdong ports have a complementary relationship, in large part due to China's cabotage laws," Yim said. He added that the phenomenal growth of southern Chinese ports "does not preclude" its own success, as Hong Kong acts as a consolidator of cargoes and is well-positioned to handle international transshipment cargoes.

"As long as China does not give up this sovereignty right and maintains the cabotage rules in order to protect the Chinese shipping line fleet, then Hong Kong will continue its successful operations handling both southern China import and export cargo as well as Asian trans-shipments," Yim concluded.