Article
An evaluation of mid-stream operation in Hong Kong
Purpose – Mid-stream operation has had a significant role in Hong Kong’s economic development
since the 1960s. Prior to the building of container terminals in Hong Kong, cargo was mainly loaded
onto and discharged from ocean-going vessels by mid-stream operations and then shipped to Europe
and North America. This paper aims to reinforce mid-stream operation is considered a “must” in
supporting the substantial growth of maritime industry and strengthening Hong Kong’s role as an
entrepôt.
Design/methodology/approach – The authors undertake a historical review of the evolution of Hong
Kong’s mid-stream operation over the past half-century and investigate the future of mid-stream operation in
light of the Hong Kong Special Administrative Region government’s policy of allocating Public Cargo
Working Areas through an open auction process. Semi-structured, in-depth interviews are also undertaken in
this study.
Findings – The emergence of container terminals generated competition for cargo between container
terminals and mid-stream operators. In addition, the Hong Kong Special Administrative Region government’s
policy of allocating Public Cargo Working Areas to mid-stream operators through an open auction process
intensified negative influences on the survival of the mid-stream operation sector