Shanghai Capital Logistics Transport supervisor says Guangzhou-Nansha rail link threatens Hong Kong and Shenzhen
GUANGZHOU Nansha port railway project is expected to start construction soon to facilitate the distribution of shipments via the port and products manufactured inside the harbour-front industrial parks, according to a Xinhua report.
Costing CNY11.56 billion (US$1.89 billion), the 80-kilometre railway runs through four Guangdong cities, including Guangzhou, Foshan, Zhongshan and Jiangmen, which will further be connected to the Beijing-Guangzhou railway in the north, Nanning-Guangzhou and Liuzhou-Zhaoqing railway in the west and Guangzhou-Shenzhen railway in the east.
In response to questions from Hong Kong Shipping Gazette on what benefits can the new railway bring and how it will affect the ports in Shenzhen and Hong Kong in a long term, Jason Qian, project and break bulk assistant manager of Shanghai Capital Logistics Transport Co Ltd said: “This helps Nansha port to enhance its competitive edges and extend its direct services in neighbouring cities in Guangdong province.
“Also, companies along the railway line can reduce their logistics costs. So this railway can further enhance the economic development in Guangdong province and raise the competitiveness of the companies. Overall, it helps the industrial upgrade in Guangdong province.”
According to the Xinhua report, manufacturing cities along the railway line, such as Zhongshan and Shunde, will benefit after the completion of the construction.
However, Mr Qian believes Nansha port will become a rival to both Shenzhen and Hong Kong, reducing these two ports’ importance in Pearl River Delta.
“The container volumes for Shenzhen port’s domestic coastal service will be adversely affected after the completion of this railway. Besides, there will be a further diversion of Hong Kong’s export container volumes then.”
Hong Kong has seen its export container volumes being diverted to Shenzhen over the past few years. It is believed that Shenzhen port will replace Hong Kong as the third largest container port in the world in one or two years.
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