Carriers Follow Traffic Flow

After I tweeted a link to the AP article below on South China losing its position as a low-cost manufacturing region, I received the following comments.

What Russell Green says is particularly interesting because it suggests that within the PRD region there is opportunity to reduce costs without having to abandon the region, either relocating elsewhere in China or to another country.

Peter Tirschwell: Article describes how South China is losing its position as a low-cost manufacturing center due to cost increases.

Russell Green, Hong Kong-based transport PR representative: "However there are some interesting developments on the western side of the Pearl River Delta. Maersk is shifting 30 per cent of its calls from HKG to Dacheng Bay, part of the reason they say is to tap into the growing manufacturing base, building up around Zhuhai and further west in Guangdong. The land and labour costs are cheaper and the infrastructure is improving. The PRC Government's 'Go West' strategy is also supporting manufacturing companies that set up in the many industrial parks established in western PRD during the last few years. "

Richard Butcher of Intellect technologies: Hi Russell - yep Da Chan Bay is an excellent facility and Modern Terminals and Andrew Miliken (CEO of Da Chan Bay) has done a great job in marketing and promoting the strategic locations of the facility -- with all the river traffic from the Pearl Delta, Da Chan Bay with its deep water is an ideal hub location. I can see why Maersk would switch. After all, where the traffic flows the carriers will follow. "

-- Contact Peter Tirschwell at ptirschwell@joc.com. Follow him on Twitter @PeterTirschwell.

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