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But while the LDC has identified Hong Kong's inland
transport network as a strategic priority, the competitiveness
of current cross-border transportation is hampered by
inherent bottlenecks. Currently, a trucker carrying
a laden container northbound to the Mainland must return
the empty container to Hong Kong. In the case of a southbound
order, he has to pick up an empty container from Hong
Kong, transport it to China, where they fill it, and
then carry it back to the SAR. In both instances, it
takes one laden trip and one empty trip per transaction.
This means valuable time wasted queuing at the congested
border crossings, unnecessary work for customs officials
and high transportation costs for shippers.
The potential for cost savings here is huge. Right
now, some 15,000 container trucks cross the border between
Hong Kong and China every day, with roughly half of
them travelling northward to China and half heading
south to the SAR. Of the 7,500 that travel north, approximately
2,000 are laden and 5,500 are empty. In the opposite
direction it is the reverse, with 5,500 full and 2,000
empty.
If an effective matching service were in place and
ALL the empty container trips were full loads , the
4,000 very costly empty trips per day would be turned
into revenue-generating "matched orders".
This means that each trucker would be able to carry
out two shipping orders instead of one in each round
trip across the border. Such a new supply-chain model
would also allow the trucker to fill each shipping order
at a much lower cost. Assuming that, currently, an average
trip costs a shipper HK$3,000 and that the new model
might save the shipper 15% overall, the savings per
single delivery trip would be HK$450. Using this simple
formula, the savings for Hong Kong shippers over a year
could amount to the huge sum of over HK$600 million.
Transport Link, LINE's1
cross-border truck-load matching service, addresses
this very issue by providing a matching service for
truckers and shippers - and it requires no upfront investment
or registration fees. For truckers with a northbound
order, Transport Link matches their idle southbound
capacity with a southbound order from another shipper.
So, the trucker transports the northbound laden container
and unloads it in China as normal. He then simply returns
the empty container to a nearby depot - the Guanlan
Inland Container Depot (GICD)2
. There, he picks up another empty container, drives
to the second shipper's factory for loading, and carries
the second revenue-generating order back to Hong Kong.
In one round trip, he has filled two orders.
While it is too much of a quantum leap to expect most
companies to do their transactions on-line in order
to achieve cost savings, Transport Link combines an
advanced load-matching system with a friendly, professional
Operations Centre. The Centre is open from 7:00 a.m.
to 11:00 p.m., seven days a week, while the GICD operates
from 7:00 a.m. to 10:00 p.m. - longer hours than those
of most trucking companies and container depots in Hong
Kong. Shippers can place orders via their preferred
mode of communications - be it phone, fax, e-mail or
via the Internet. Orders are confirmed verbally, as
well as in a clear written format by dedicated staff.
Shippers can also use the service to enquire about the
latest status of their containers. In this way, both
shippers and truckers can benefit from personalised
customer services that provide a better overall view
of the shipping situation.
"This a collaborative model whereby all participants
benefit"; said LINE CEO Aaron Mak. "Shippers
can save approximately 15% on normal market prices by
placing their orders with Transport Link. They then
get better service at lower cost, and truckers enjoy
more business opportunities with their previously unused
capacity. Hong Kong as a whole benefits from less congested
border traffic, less pollution and improved competitiveness
in international trade."
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