(1) Introduction


Since from 1978, China adopted the “Open door policy”, and transformed the Shenzhen area (it is in the northern border of Hong Kong, and one of major industrial zones in the Pearl River Delta) as special economic zone, the flow of cargo, capital fund and people between Hong Kong and Pearl River Delta (its abbreviation is “PRD”) have been increased more than 2,000 percent up to now. [RR1] 


 


The above effects are implicated that most of Hong Kong manufacturers has shifted their factories from Hong Kong to PRD to take advantages of low labor costs and low set up costs. Within the PRD right now, over 40,000 factories and companies are wholly or partly owned by Hong Kong enterprises, and employed more than 5 million local residents. The cargo volume has been increased from 2,700 millions tons in 1980 to about 55,000 millions in 2005. This incurred average 31,000 vehicles or cargo trucks and 280,000 people across the border everyday.


 


To cope with these impacts, Hong Kong logistics firm change their business strategies, such as set up branch offices in PRD. All these moves are without any support from Hong Kong government. But on the other side, the Chinese logistics industries and infrastructures are growing very rapidly due to the directly supported by the PRD local governments and their commercial sectors. Thus, by taking advantages of geographically convenience and low transportation costs, the export cargoes from PRD through Hong Kong to other destinations such as US, Europe, have been switched to using the PRD logistics facilities (i.e. local container terminals and airports) instead since from 2003. Most of shippers in the PRD are not use Hong Kong as their export hub any more. Indeed, the recent statistics of the PRD cargo export from Hong Kong have shown in the downward trend, that threatens the Hong Kong logistics firms’ continued existence.


                            


For the economic policies, the Hong Kong government is using Laissez-faire practice for every industry within the territory. They are not actively to have enough policies to enhance the logistics firms’ competitiveness. Even though they notified that the logistics industry is one of largest four major economic sectors of Hong Kong. Without the support from the Hong Kong Government’s policies, the Hong Kong logistics firms are worrying [RR2] that they would be marginalized by their competitors in PRD gradually.


                          


                         


The aim of this review paper is to study the critical determinants in the logistics firms, analyze the effectiveness of their strategies and the Hong Kong Government logistics policies, and develop frameworks/models which focus on the critical determinants of the firms’ internal resources, that could make the firms to cope with the serious challenges from PRD and stay in a leading position.


 


[RR3] 


(2) Literature Review


   


  


(3) Frameworks/models


 


 


(4) Results


 


 


(5) Conclusion


 


 


(6) Recommendations


 


                          


(7) References


 


 


 


 


 


 


 


 


 


                        




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