Modern Terminals has signed a Strategic Cooperation Agreement with Guangxi Beibu Gulf International Port Group Co. Ltd., which focuses on enhancing the role of the Beibu Gulf ports in Guangxi and the container terminal facilities in Hong Kong and DaChan Bay in driving economic growth in Western China and the Greater Bay Area.

The partners will collaborate to provide transportation services for domestic and foreign trade, with the objectives of promoting the efficient flow of goods and reducing logistics costs.

Integrating sea-rail intermodal services will connect manufacturing regions in Western China to the extensive shipping services network in Hong Kong, facilitating trade growth between Guangxi, Western China, and the global market markets.

In the announcement, Modern Terminals said that, through collaboration, the objective is to use the new Land-Sea Trade Corridor, which will use railway networks, canals, and road infrastructure to connect Beibu Gulf ports to the economic development areas in the hinterland of Western China.

By providing logistics solutions for cargo from Western China and facilitating smooth connections through the Beibu Gulf ports to Hong Kong's extensive shipping network, this collaboration will enhance the growth of the Guangxi Beibu Gulf Economic Zone and promote significant development in China's western regions, as well as trade with ASEAN and other major trading partners.

"As a major Free Trade Port in the region, Hong Kong has the distinctive system advantages of enjoying the strong support of the Motherland and being closely connected to the world. Compared with other ports in the region, apart from enjoying the same advantages of being highly internationalised with a common law system and a transparent business environment, Hong Kong, being the southern gate of the Country, can more fully protect the interests of domestic cargo owners and logistics operators," said Amy Chan, deputy secretary and commissioner for Maritime and Port Development at the Transport and Logistics Bureau of the Hong Kong SAR Government.

Horace Lo, group managing Director of Modern Terminals noted that establishing smooth connections between Hong Kong and Qinzhou, and other Beibu Gulf Ports, enhances the value of shipping through Hong Kong for export and import companies in Mainland China.

"With the land-based multimodal transportation services connecting through the Beibu Gulf ports, shipping lines can offer connectivity in Hong Kong with more than 170 international weekly service calls for cargo originating from - or destined for - Western China areas, enhancing the value proposition and competitiveness of the Port of Hong Kong," he said.

A spokesperson from Beibu Gulf International Port Group Co. Ltd said connecting the hinterland of western China to international shipping services in Hong Kong will help Guangxi accelerate the development of the "One Zone, Two Places" model and foster economic development and trade growth.

"Collaboration with Modern Terminals and other shipping and logistics industry stakeholders in Hong Kong will strengthen the strategic cooperation between Guangxi and Hong Kong and support the national strategies, including the One Belt One Road initiative and cementing Hong Kong’s status as an international transshipment hub," the spokesperson added.

Connie Chen, deputy managing director of OOCL Hong Kong Branch Connie, welcomed the initiative to improve the connectivity between Hong Kong and the western regions of Mainland China.

"Connecting cargo from Chongqing and other western areas through Qinzhou to Hong Kong enables us to improve the product we offer to cargo owners routing cargo through Hong Kong."

"OOCL maintains a large network in Hong Kong, covering nearly all trade lanes, and more cargo from the hinterland of western China will cement the importance of Hong Kong in our network," Chen added.