Splash Hong Kong Market Report 2023

Hong Kong BY

Market Report 2023

Back To The Peak How to get the city higher up the maritime charts

Distributed across Hong Kong Maritime Week

CONTENTS

INSIDE THE ENTREPÔT 3 Editor’s Comment 5 Introduction 11 Economy 15 Strengths 19 Weaknesses 23 Talent 29 Port 33 Lines 39 Managers 43 Flag 45 Finance 47 The Captain’s Table 51 Environment 55 Opinion 56 Data

“Continued and consistent pro-business

messaging backed by actions will continue to be helpful to attract and retain companies to base themselves here”

—Angad Banga incoming chairman of the Hong Kong Shipowners Association

19

“Shipping as an industry needs to tap into the

local Hong Kong talent pool by promoting and showcasing opportunities within maritime”

23

— Kishore Rajvanshy managing director of FLEET Management

“The last three governments have been

giving more and more weight to the maritime industry”

— Rosita Lau partner at law firm Ince & Co

29

“We are showcasing solutions that contribute

to a sustainable future for an industry we are passionate to work in”

33 For all the latest breaking shipping news from Hong Kong

— Tabitha Logan co-founder of The Captain’s Table

“Ideas need nurturing, visions need focusing not blocking”

— Steven Jones the founder of the Seafarers Happiness Index

51

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EDITOR COMMENT

Hong Kong www.splash247.com

Market Report 2023

The site for incisive, exclusive maritime news and views

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EDITORIAL DIRECTOR Sam Chambers sam@asiashippingmedia.com CORRESPONDENTS Adis Adjin adis@asiashippingmedia.com Bojan Lepic bojan@asiashippingmedia.com All editorial material should be sent to sam@asiashippingmedia.com COMMERCIAL DIRECTOR Grant Rowles grant@asiashippingmedia.com GENERAL MANAGER Victor Halder victor@asiashippingmedia.com Advertising agents are also based in Tokyo, Seoul and Oslo – to contact a local agent please email grant@ asiashippingmedia.com for details.

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Getting people to fly in for a maritime week

S

hipping weeks at hubs around the world are now a dime a dozen. Hong Kong risks losing out unless it has a major rethink of how it pitches its own maritime week - now into its tenth edition.

I’d argue that it does not have a mega centrepiece exhibition and conference, nor enough diverse events to haul in overseas visitors in the numbers that such weeks deserve.

Singapore, the architects of the original shipping week, easily get 50,000 people flying in for their maritime jamboree these days. Cyprus gets 30,000 or so for theirs, while London has cemented its place on the calendar thanks to the immense breath of events that take place across the British capital - some 300 or so in just seven days. Hong Kong, by contrast, looks a bit limp in its line-up.

Organisers need to have a hard think about what they want to get out of their maritime week, and look at how other hubs have executed theirs.

With the notable exception of The Captain’s Table pitch competition (more of which you can find on page 44) this year’s line up of events looks rather tired and does little to excite.

The government needs to be speaking more with industry participants to understand what topics ought to be covered, and how best to make these events vital, topical and engaging. But then, I’ve been writing about how the Hong Kong government needs to engage better with the local shipping community ad nauseam for the past 23 years!

DESIGN Belinda Printed in Hong Kong Copyright © Asia Shipping Media Pte Ltd (ASM), 2023.

Although every effort has been made to ensure that the information contained in this review is correct, the publishers accept no liability for any inaccuracies or omissions that may occur.

All rights reserved. No part of the publication may be reproduced, stored in retrieval systems or transmitted in any form or by any means without prior written permission of the copyright owner. For reprints of specific articles contact grant@asiashippingmedia.com.

Sam Chambers Editor Splash

Organisers need to have a hard think about what they want to get out of their maritime week

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INTRODUCTION

In a different light Where does Hong Kong sit on the global maritime map today? Splash investigates

T

raditional trading entrepôt on the doorstep of China, Hong Kong continues to enjoy prominence as a major maritime hub not only due to its high number of shipowners, charterers and managers but also thank to its strategic position as a ‘super connector’ between mainland China and the outside world. Often referred to as ‘Asia’s World City’, now it also enjoys a new identity as part of the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) incorporating Shenzhen, China’s fourth largest city.

China’s latest Five-Year Plan and the Outline Development Plan for the GBA clearly support Hong Kong’s continuing development of high value-added maritime services in order to consolidate its position as an international maritime centre, states the Hong Kong Maritime and Port Board (HKMPB), a strategy likewise reiterated by Hong Kong Special Administrative Region (HKSAR) chief executive John Lee in his latest policy address given at the end of October.

To this end, the HKSAR government “proactively enhances the competitiveness of the maritime sector through various measures,” says

the HKMPB. These include a series of tax concessions to attract the setting up of high-value maritime business establishments in the city; establishment of a task force to put forward an action plan on strategies to further promote the development of Hong Kong as an international maritime centre; and additional funding support of manpower training for homegrown talent.

In addition, Hong Kong’s Transport and Logistics Bureau (TLB) signed a memorandum of understanding (MoU) on Greater Bay maritime co-operation with the Guangzhou Port Authority (GPA) earlier this year – “a concrete example of tapping the GBA synergy to enhance mutual competitiveness,” according to Hong Kong’s secretary for transport and logistics, Lam Sai-hun Hong Kong port has long been a transhipment hub for the region, notes the HKMPB, renowned for its high efficiency, strong connectivity and wide coverage, while Guangzhou port mainly handles domestic and foreign trade. The MoU will therefore enable “a differential development of the ports in the two places on the principle of complementarity,” it says, “collectively

benefiting the manufacturing industry as well as the import and export trade in the GBA and southern China area.”

Lam went on to avow that with its “talent, unique strengths and welldeveloped maritime cluster, Hong Kong will continue to play an important role in the provision of high value-added professional services to the global maritime industry. With the synergy between the government and the maritime sector, Hong Kong is also well positioned to contribute to the further development of the maritime capability of the GBA.”

Hub status?

Splash asked various leading figures in the Hong Kong maritime community to give their view on the city’s current status as an international maritime centre (IMC) - as well as on its greatest strengths, weaknesses and efforts to attract and retain suitable talent.

A recurring theme in answers to the IMC question was an assertion that Hong Kong remains a highly dynamic and cosmopolitan city, still living up to its tagline of ‘Asia’s World City’, and an attractive place for people around the

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INTRODUCTION

world to come and live - despite some recent negative perceptions outside the territory to the contrary. And while increased regional competition means the port has indeed lost its former world-leading role for some years now, conversely the city’s strengths in maritime professional business services – such as shipmanagement, ship registry, insurance, maritime law, and finance have only continued to grow.

Harry Banga is a longtime resident of the city as chairman and CEO of the Caravel Group, which marks its 10th anniversary this November, and before that a senior figure with global trading house Noble. He remarks that “Hong Kong as a maritime hub has consistently shown its mettle through industry peaks and troughs, reflecting the strength, depth, and breadth of the talent and companies here.”

Hong Kong’s geographical proximity to leading shipbuilding nations China, Korea and Japan, as well as to major crew supplier countries like the Philippines and India, is also a great asset for Hong Kong’s shipowning and management community, according to Banga.

Lawyer Rosita Lau, a partner with Ince & Co Hong Kong, agrees. While she concedes that some shipowners have moved their business to elsewhere in Asia or closed their Hong Kong branch, she also points to other instances where the city’s status has been elevated in the maritime arena. Examples include BIMCO having named Hong Kong as one of only four arbitration seats in its standard contracts, as well as the arrival of more International Group Protection and Indemnity (P&I) Clubs. China Merchants Group also now hosts its heavyweight Merchant Marine Forum in Hong Kong

annually since 2021, she notes.

China’s international city Former banker Kenneth Lam, now running new ship leasing company SeaKapital that he established jointly with Sabrina Chao this year, agrees that Hong Kong’s position has not changed dramatically. “Covid certainly has disrupted things for Hong Kong,” he says, “Owing to a longer than expected travel restriction policy, some people have left but they are returning as we speak.

“Shipping is a very international business,” he continues. “Having a workforce that can connect the world and starting with being the only city in China that practices common law, Hong Kong has the necessary ingredients to continue to be a meaningful international city. After all, it is clearly stated in both

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INTRODUCTION

China’s 13th and 14th Five Year Plans that Hong Kong is China’s international city in finance, shipping and Trade; there will continue to be policies and measures from both the state and HK governments to ensure that this is the case.”

Also, main rival Singapore’s greatest perceived advantage over Hong Kong as an international maritime centre, namely

its lower cost base, is fast waning due to the recent inflationary pressures in that city, believes Gautam Chellaram, chairman of KC Maritime.

Green port On the following pages can be found a summary of some of the key latest

developments in the city’s different maritime sectors - including the port, ship registry, shipmanagers, start-ups and an account of how Hong Kong’s shipowners are embracing the challenge of decarbonisation and investing in new, more efficient and environmentally friendly ‘eco’ ships.

And visitors to the city will soon be able to see and gain a taste of the latter for themselves. Sun Ferry Services is currently in the process of developing a new Urban Sprinter 100 series of hybrid diesel/electric double-ended craft that will ferry passengers around Victoria Harbour and outlying islands using zero-emission battery propulsion within pier boundaries and for berthing operations. A first vessel is expected to be operational in the second half of 2024 and a second in early 2025.

Long an advocate of green operations at its main port having been one of the first authorities worldwide to offer fee reductions for environmentally friendly vessels that call, Hong Kong will be moving towards ensuring that waterborne activities in its iconic city-centre harbour are as ‘eco’ as possible as well.

The HKSOA viewpoint

S

hipowner Wellington Koo of Valles Steamship, outgoing chair of the Hong Kong Shipowners Association (HKSOA), is most categorical of all in defence of the city, his answer being worthy of replay in full: “Being the home for many world-renowned shipowners and shipmanagers, Hong Kong’s position on the world maritime map has not changed dramatically,” he asserts. “It is still the fourth largest ship registry and one of the top 10 busiest ports and top 10 leading maritime centres in the world according to multiple global surveys. Also, the establishment of new taxation regimes for ship leasing, shipmanagement and ship agency has seen Hong Kong become an increasingly attractive centre for ship leasing, management and brokerage activities.

“Perhaps the most dramatic change

of Hong Kong’s position is something to do with the ever-stronger support given by the country. While Hong Kong, with its central geographical location, is always the ‘super-connector’ between the East and the West, with the promulgation of the national Greater Bay Area (GBA) development plan in 2020, it has embarked on a new journey as part of the major southern China port cluster, enabling Hong Kong to tap into the mainland’s thriving maritime market.

“While China is one of the world’s biggest shipbuilding economies, the GBA cluster features a division of functions, with Hong Kong focusing on high-end maritime services such as ship management, ship leasing, marine insurance, law and arbitration, while the others specialise in shipbuilding, bulk and liquid cargo, and transhipment.

“Hence, Hong Kong is, and will continue to be, Asia’s world city.”

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“Together We Ride the Currents”

Hong Kong Shipping Registry Marine Department of the Government of the Hong Kong Special Administrative Region

ECONOMY

A tale of woe

The entrepôt is still not firing on all cylinders post-covid

I

t’s not easy to find much good news when writing about Hong Kong’s economy right now. Both the traditional pillars of the Special Administrative Region’s economic structure – the port and services - are in trouble. The reasons though for the, lacklustre at best, disastrous at worst, performance of the two pillars are different, but perhaps ultimately related in one word – China.

First the port. The old saying that if China catches a cold, Hong Kong gets the flu still holds. Though it’s not all the story of what ails the port of Hong Kong it is the primary problem. In the second quarter of 2023, total port cargo throughput at Hong Kong decreased by a whopping 14.9% compared with the second quarter of 2022 to 44.5m tonnes, according to Hong Kong’s own Census and Statistics Department. The dire news was even worse when it comes to container volumes. In Q2 2023 Hong Kong handled 3.69m teu, a through-the-floor decrease of 21.9% compared to Q2 2022. Q3 is not looking great, and volumes will also be impacted

by Typhoon Talim in July shutting down operations for some days.

It’s also the case that China’s currently tepid economy is not helping the postcovid rebound. Just how bad China’s economic performance is right now is the subject of heated debate with some

Financial services relocations will continue with Singapore looking to be the big winner

alarming projections set against the clear obfuscation of some key metrics

by Beijing. But both exports and imports appear to have slumped precipitously over the troubled summer months – PRC exports fell by 8.8% in August in yearon-year terms, while imports contracted by 7.3%, according to Chinese Customs Department data. Analysts are inevitably downgrading forecasts for the year.

Beijing may pump the economy somewhat, but factory activity reportedly shrank for a fifth straight month in August, according to a purchasing managers’ index (PMI).

Ultimately this all means less passing through the Port of Hong Kong and those poor tonnage and teu numbers.

So much for the port, what about services? Here of course it’s impossible not to discuss the current state of politics

Broad Composition of Hong Kong’s Economy, 2022 Sector % of total economy

Source: Hong Kong Trade Development Council (HKTDC)

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ECONOMY

in Hong Kong. The situation at the moment is clearly deterring international visitors and the slow recovery of Hong Kong International Airport (HKIA) has meant far fewer transiting/stopover passengers too. The weaker economy on the mainland, less disposable income, and the absence of the hoped for ‘revenge spending’ phenomenon (a surge in the purchase of consumer goods after people are denied the opportunity to shop for an extended period) have all combined to mean less cross-border visits - both luxury shoppers and large tour groups. Subsequently things are tough for both Hong Kong’s malls, hotels, and caterers. The numbers can be confusing - Hong Kong’s March retail sales rose 40.9% from a year earlier, but that only reflects Hong Kong’s longer than international average covid lockdown – March 2022 was a total bust, so any activity represents a major recovery.

It’s not clear how long, or if ever, it will take for tourism and retail sales to fully recover. In the first half of 2023 Hong Kong received 13m visitors, just 37% of pre-pandemic levels in 2019. It’s worth noting that HKIA processed 4m passengers in August 2023, up by 5% compared to the previous month, but still only 66% of pre-pandemic level passenger arrivals. The volume of international flights, passenger and cargo, remain significantly down on

pre-covid levels while the vast bulk of flights and passengers are arriving from Southeast Asia, Mainland China and Japan.

This also raises the question of whether or not Hong Kong still qualifies as ‘Asia’s World City’? The last few years have seen a flow of emigration out of Hong Kong. Due to a combination of factors – harsh covid regulations, the deteriorating political situation, outflow of investment (and jobs) to other regional locales, primarily Singapore. In total numbers terms that emigration appears to have stabilised, indeed the city’s population rose by 2.1% to 7,498,100 in the 12 months ending June 30, according to government figures. However, there has clearly been a brain drain and the number of high net worth individuals (HNWIs) in Hong Kong declined by a significant 30% between 2012 and 2023. This has led to less consumer spending, less profits in the key property sector, and knock-on adverse effects for catering, retail and other services.

The loss of HNWIs also reflects the continuing trend of financial services relocation, another key sector of the economy. This process is essentially manifesting itself in two ways: a number of foreign banks (though not always publicly admitting that the political situation is adverse to good corporate governance

and non-interference) moving, often to Singapore but to other locations too, while mainland banks in Hong Kong eyeing convergence of the political and financial systems are moving staff and back-office functions to the mainland to cut costs. The most recent, but far from only, example of the former trend is the National Australia Bank (NAB) which is exiting Hong Kong to concentrate on its ‘key customer hubs’ of Singapore, Tokyo, and Shanghai.

NAB’s decision follows fellow Aussie bank Westpac who closed their Hong Kong operation to refocus on Singapore, Shanghai and Beijing. An example of the latter trend is China’s large financial service company CITIC Securities, leaving Hong Kong for the mainland to cut costs and, crucially, also to meet Beijing’s recent edict to bridge income inequality in the financial sector. All these moves involve the loss of further HNWIs as well as numerous local back-office staff jobs.

In terms of port activity it seems that, as ever, Hong Kong will follow the trend in China – as long as the PRC economy remains weak so volumes through Hong Kong will remain problematic. As far as services go it seems that perhaps retail and tourism will pick up – slowly – but that financial services relocations will continue with Singapore looking to be the big winner.

2021

2022

Population (mn)

7.40

7.33

7.35

GDP (US$bn)

367.9

363.4

183.4

GDP per capita (US$)

49,613

49,464

-

Real GDP growth (%)

+6.3

-3.5

1.5

Inflation (% change in CPI)

+1.6

+1.9

2.0

Unemployment rate (%)

5.2

4.3

2.8

Retail sales growth (%)

+8.1

-0.9

+20.7

latest (as of 6/23)

Source: Hong Kong Trade Development Council (HKTDC)

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STRENGTHS

The trump cards What makes this Chinese city special on the world maritime map

H

ong Kong’s advantages as a global maritime hub remain numerous and resilient, feel local shipping industry players, the territory having survived political unrest and China’s prolonged zero-covid policy with its cherished ‘One Nation, Two Systems’ economic freedoms intact.

Outgoing head of the Hong Kong Shipowners Association (HKSOA) Wellington Koo, executive director of shipowner Valles Steamship, provides a broad overview. “As an international maritime centre, Hong Kong maintains a leading position owing to both its unique strengths and competitive edge: its connectivity with the world and its integration with the Greater Bay Area, as well as its central geographical location, its deep-water port with good infrastructure, the accessibility of travel, the ease of doing business, free flow of capital, people and cargo, low and simple taxation, and a robust legal system with common law in the core.”

Angad Banga, chief operating officer at The Caravel Group and incoming chairman of the HKSOA, agrees, characterising the city’s strengths as

“multifaceted and comprehensive. Besides “a strong maritime industry ecosystem” and the territory’s “great geographical position” within Asia and as a key gateway to mainland China, Hong Kong possesses “sound legal frameworks and arbitration systems, strengths in innovation and an extensive talent pool,” he continues. “This includes local talent who speak fluent English, Cantonese and – increasingly importantly from a newbuilding perspective in particular – mandarin.”

James Forsdyke, client marketing director at Lloyd’s Register, reckons that the city’s “cultural blend of east meets west is just as relevant today as it was before. In some ways, even more so, as Hong Kong can build the bridge to the now globally largest shipownership community in Greater China. International nomads, who want a stable platform for global operations might vie for Singapore and Dubai, but the North Asian business landscape has every reason to think Hong Kong.”

Firore Mirza, managing director of BSM (Bernhard Schulte Shipmanagement) Hong Kong, mentions the local maritime community’s “depth of knowledge, diversity of experience, and an unwavering commitment to continuous change. Even as general conditions and business environment evolve, we remain an international premier maritime centre providing extensive business opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area.”

Hong Kong is also “pre-eminent” as a global banking and financial centre, points out Vinod Sehgal, head of SeaQuest Shipmanagement, with a large pool of talented professionals, as well as excellent infrastructure – including efficient airport, port, logistics network and supply chain management. Then there are its relatively low taxation rates and a government “known to be businessfriendly and protective of intellectual property rights.” It’s no coincidence that several of the largest shipmanagement

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STRENGTHS

The vibrant, diverse, and supportive maritime community is always happy to support young professionals companies in the world are based in Hong Kong, he remarks.

Plus there’s the legacy factors of Hong Kong having a number of well-established shipowners as well as managers, adds Brian Yam, of health and security service firm International SOS, who feels the territory still serves as a “super-connector for mainland maritime enterprises to go global”, thanks to its “global vision, no currency control and sound legal system.”

Capt. J.F Zhou, managing director of one of the most important of those legacy shipowners, Wah Kwong, refers to Hong Kong’s maritime history stretching back over 150 years, which has allowed the city to establish itself as a prominent hub for maritime services. “Hong Kong’s advantageous geographical location has provided a solid foundation for the growth of sectors such as ship finance, insurance, and legal services,” he says, as evidenced, for example, by the presence of 12 out of the 13 International Group P&I Clubs.

Horace Lo, group managing director of Modern Terminals, offers a maritime trade-specific perspective. “Over the years, Hong Kong has developed into an international transhipment hub. It is a free port where goods can come in and out freely and has been benefiting from the cabotage rule and the ‘One Country, Two Systems’ arrangement. Also, the high efficiency and flexibility of operations and quality of our human capital are also

appreciated by shipping lines, shippers, and all stakeholders in the logistics chain.”

Kenneth Lam, founder and chief executive officer of new ship leasing company SeaKapital, likewise commends Hong Kong’s “human capital” in the form of its “knowledge in legal, tax and regulatory related matters. Hong Kong is second to none In terms of identifying and addressing regulatory matters,” he believes, “especially those that are finance, ESG or shipping related.”

Damien Laracy, partner and head of the Hong Kong office for law firm Hill Dickinson, elaborates that Hong Kong’s “status as the only common law jurisdiction in China, coupled with its pool of experienced maritime lawyers and arbitrators and its internationally renowned Admiralty Court and Commercial Court, have always made it a uniquely attractive forum for resolving China-related maritime disputes and, more recently, disputes related to the ‘Belt and Road’ countries.” Little wonder then that Hill Dickinson has just announced the appointment of 10 new hires to its HK office, to strengthen its marine and shipping practice across the region.

Gautam Chellaram, chairman of KC Maritime, pays tribute to the city’s “complete eco-system for a shipping company to thrive and grow – flag, owners, charterers, banks and financial institutions, lawyers, classification

societies, P&I clubs and so on.” He also gives credit to the HKSOA for having been “very active in its initiatives to further the interest of Hong Kong-based shipowners, with a focus on sustainable growth, and there is close co-operation and coordination in improving the nature of the shipping business and in turn the image of Hong Kong.”

Gautam Chellaram, chairman of KC Maritime, pays tribute to the city’s “complete eco-system for a shipping company to thrive and grow – flag, owners, charterers, banks and financial institutions, lawyers, classification societies, P&I clubs and so on.” He also gives credit to the HKSOA for having been “very active in its initiatives to further the interest of Hong Kong-based shipowners, with a focus on sustainable growth, and there is close co-operation and coordination in improving the nature of the shipping business and in turn the image of Hong Kong.”

Tabitha Logan, in charge of chartering and projects for shipowner /operator Cetus Maritime, commends the nurturing and development opportunities on offer. “There are so many fantastic opportunities to develop your career here, the vibrant, diverse, and supportive maritime community is always happy to support young professionals looking to advance their careers,” she says, adding: “I came to this city nearly 15 years ago with no experience at all in the maritime industry, but I had the support of my company, bosses, mentors, and friends to develop a fantastic, fun, and rewarding career here.”

Vanessa Toucas, founding partner of Latitude Brokers, pays tribute to Hong Kong’s “long-standing, well established owners and manager/operator companies, which have stood the test of time and of the covid crisis”, and also introduces mention of the ‘Captain’s Table’ [see later article] as an example of futurefacing private innovation. Above all, “Our relationships with mainland China still provide us with a unique proposition,” she feels.

Ince & Co. Hong Kong partner Rosita Lau, sums it all up succinctly by saying: “The rule of law, ‘One Country, Two Systems’ policy, independent judiciary, and our all-round excellent maritime services are our trump cards.”

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WEAKNESSES

Dark skies The local maritime community knows how to improve Hong Kong’s hub potential.

Will the authorities listen?

A

sia’s World City continues to have its many advocates and admirers as a leading maritime hub but there’s always room for improvement, particularly at a time when the shipping industry is undergoing rapid, disruptive change. What are the city’s greatest weaknesses in coping with the evolving challenges and what more should the HKSAR government be doing to address these?

Broker Valerie Toucas identifies a dwindling local workforce, as well as a lack of attraction for international candidates and companies.

“We have seen too many companies move away, with little or no new companies coming in not just to fill the gap but to grow our maritime industry here,” she says. This in turn becomes a vicious circle: “As the size of the sector reduces, so it will become ever more difficult to attract new business here.”

Cetus Maritime’s Tabitha Logan believes a major factor for this lies in the ageing local demographic. “Many

of Hong Kong’s experienced maritime professionals are approaching retirement age,” she says, “and this could lead to a shortage of skilled maritime workers in the future. Without a pipeline of younger talent then there is a risk that this wealth of experience is not passed onto the next generation.

“We are also facing increasing competition from other global maritime centres,” she adds, “such as Singapore and Shanghai which are investing heavily in their maritime infrastructure, innovation, and services.”

“Internationally, many countries are actively working to attract business to their major cities and ports, and are not shy about introducing and promoting new incentives,” agrees Caravel’s Angad Banga. “In Hong Kong, like in any market, continued and consistent pro-business

messaging backed by actions will continue to be helpful to attract and retain companies to base themselves here.”

Statutory body quest Wah Kwong’s Captain J.F. Zhou notes the positive that in early 2023 the HKSAR established a Taskforce on Maritime and Port Development Strategy, to enhance Hong Kong’s role as a maritime hub with deepened public-private partnership, in line with the challenges of decarbonisation and digitalisation, at the same growing the conditions for shipping’s business services. Lawyer Damien Laracy dubs this “a further step in the right direction to develop a coordinated game plan to facilitate the continued growth of the core strengths of Hong Kong.”

It will become ever more difficult to attract new business here www.splash247.com 19

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WEAKNESSES

But Zhou feels that more is still needed with the setting up a statutory body for the maritime industry to maintain Hong Kong’s position as a leading international shipping centre, keep up with the pace of change and position the city strategically.

While the HKSAR government is to be “commended” for its moves so far, he says, “it’s been proven, in the aviation industry, that setting up a statutory body staffed by full-time professionals will produce long-term dividends and elevate Hong Kong’s position.”

Ince’s Rosita Lau certainly agrees.

Besides Hong Kong’s “high cost of living” she calls its greatest weakness “the lack of a body, be it a statutory body or otherwise, that devotes all its time and resources to hold hands with the industry to develop the maritime industry with foresight and international vision, and according to a well-planned road map that captures all factos needed.”

The local industry has long been calling for such a body and there’s a feeling that the time for inaction is past, but any new entity must have “the right people and right strategies to allocate the resources effectively”, notes Brian Yam of International SOS. Shipowner Wellington Koo admits “nowhere is perfect, including Hong Kong” and offers two pieces of advice to the HKSAR government. Firstly, that they should foster innovation and commercialisation across the Greater Bay Area (GBA), using the combined pool of expertise “to spearhead new marine technologies, ideas and practices, with the GBA as a springboard to the end-users in rest of China and world markets.”

He gives cyber-risk management as an example where the expertise of Hong Kong’s shipmanagement community could be allied with with Guangzhou’s “comprehensive shipbuilding industry” and Shenzhen’s strength in “innovation and technology”.

Secondly, he says the government “could, and should, continue to tell the Hong Kong stories well’ in order to get the right messages across, both to young people considering a career in maritime and to overseas businesses thinking of setting up in the territory. “In this Age of the Information, we have to get better at presenting ourselves and telling our many good, fantastic stories,” he says, adding:

“If we wish to encourage the young generation to join the industry these days, it is not about the salary and perks only, but also important things like ESG.” Others, including Tabitha Logan, believe it really all boils down to a question of investment. The maritime industry is facing unprecedented regulatory change in the next decade,” she observes, and “Hong Kong now has a unique opportunity to support this transition through investment in innovation, talent, training, and position itself as a leading international shipping centre and a zero emissions port.”

For the port industry, “Hong Kong is currently not competing at a level playing field as other countries/places are having huge government support and subsidy,” says Modern Terminals’ Horace Low. “With the change in the overall competitive landscape in South China and the rest of Asia, the HKSAR government needs to work with stakeholders to put in place supporting policies to enhance the competitiveness of the Port of Hong Kong, in particular, for the port development.”

Central government can also help better coordinate strategies of the different GBA ports for the benefit of all, he suggests.

Innovation, innovation, innovation SeaQuest Shipmanagement’s Vinod

Sehgal identifies several areas as suitable for greater government investment including ports, education and training, and technical services. “Hong Kong is lagging in technological advancement,” he says, “and the government should take the lead in the adoption of digital technologies, such as 3D printing, AI, blockchain, automation, and data analytics.”

Lloyd’s Register’s James Forsdyke agrees, believing the government’s three main priorities should be: “Innovation, innovation, innovation. The HKSAR government must work with the industry and its counterparts globally to create an environment where the industry can innovate, disrupt and reframe business models to address the opportunities presented by digitalisation and the energy transition.”

BSM’s Firoze Mirza would also like to see more government investment in “stronger R&D initiatives focused on maritime technology and sustainability, in order to maintain a competitive edge in the industry,” as well as enhanced collaboration between the government, industry stakeholders, and educational institutions to develop specialised maritime training programmes. But he concludes in suitably upbeat fashion that “We have a strong maritime community in Hong Kong that can jointly shape a bright future.”

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TALENT

How to attract the brightest and the best Here’s some diverse advice for maritime recruitment

L

ike many other maritime centres worldwide, Hong Kong faces a ‘war’ for talent, especially as its existing pool of expertise is not expanding at a fast enough rate. It must therefore look to grow its own domestic workforce equipped with relevant skills, as well as bring in more ready-made external talent.

That’s the view of the Hong Kong Shipowner Association’s Wellington Koo, who feels that as far as growing local skills is concerned, “Hong Kong has done fairly well in maritime education, thanks to the local universities and the Vocational Training Council. Together with many local shipping companies, they have made good use of the government’s Maritime and Aviation Training Fund, HK$500m ($64m) in total, to offer well-designed training programmes to equip young people to join the maritime force.”

Meanwhile, Hong Kong has spared no efforts in attracting suitable talent from

overseas, he continues. More recently, the government has taken the HKSOA’s advice to expand the ‘Hong Kong Talent List’ to attract high-quality professionals to pursue a career in, and to address the development needs of, Hong Kong, through the various government migrant admission schemes. Specifically, so far as maritime is concerned, a new category of ‘Ship Finance Professionals’ has been introduced under the expanded scheme, and the scope of ‘Marine Engineers and Superintendents of Ships’ has been expanded, with certain experience requirements relaxed as well.

As regards attracting overseas talent in the first place, Fleet Management Limited (FLEET) managing director Dr Kishore Rajvanshy maintains that Hong Kong continues to be a very attractive location for both singles and families, with low income tax rates and a great geographical position within Asia, as well as being a very liveable city, with

Hong Kong retains its advantages of being the most international city in China

something for everyone – nature for those into hiking and beaches, great dining and entertainment options and excellent schools, to name a few drawcards. Ultimately, “it’s up to individual companies to ensure we are offering competitive salaries and benefits, a great work culture and pathways for career progression,” he says. “This is top of mind for us as we seek to engage and retain the best in the business.

“Shipping as an industry also need to continue to tap into the local Hong Kong talent pool by promoting and showcasing opportunities within maritime,” he continues.

“FLEET actively supports internship programmes and other initiatives to give high school and university students a glimpse of the industry and what’s it’s like working in shipping.”

The Maritime and Aviation Training Fund has indeed played an important role in nurturing talents for the maritime industry, agrees Modern Terminals’ Horace Lo. His company has been supporting the effort by taking

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TALENT

up a number of interns and offering terminal visits to others under the fund’s internship scheme. After all, it is important to ensure the continued prosperity of the industry, he reflects, and hence the government must have relevant policies to support the continuous development of the industry.

“At Modern Terminals, we aspire to be an employer of choice through a peoplecentric talent acquisition, training and development strategy,” he adds.,

Greater GBA talent exchange Enhancing Hong Kong’s position as an international maritime centre relies heavily on the development of industry talent, observes shipowner Wah Kwong’s Capt. J.F. Zhou, and to this end he advocates greater exchange of maritime talent within the Greater Bay Area (GBA), with a focus on advancing schoolenterprise cooperation. In May 2023, on behalf of the HKSOA, an agreement was signed with the Guangzhou Navigation College to cooperate and jointly promote maritime education and training within the GBA, he relates. Both sides are now developing tailor-made maritime training programmes for Hong Kong’s shipping companies.

In addition, Wah Kwong has been involved in setting up an Ocean Business School and international smart shipping centre in Shenzhen, designed to promote maritime cooperation across the GBA. “We believe more support and funding for collaborations between industry

The war for talent generally comes down to one thing: How much are you able to pay and GBA educational institutions would incentivise programmes in nurturing maritime talent, both seafarers and shore-based professionals,” explains Zhou.

A ‘Maritime Services Traineeship Scheme – Legal’ is also being launched, relates Ince & Co’s Rosita Lau, as a pilot to support Hong Kong’s high valueadded maritime services, under which solicitor firms and barristers practicing maritime law can apply for employee subsidies to train up junior staff.

Furthermore, the government is stepping up various immigration schemes to encourage overseas talent to come and work in Hong Kong, she adds.

What other hubs are doing But all this is still not enough, feel many local observers. “To attract the brightest and the best we need to see what markets like Singapore and Dubai have to offer and how we stack up against them,” recommends KC Maritime’s Gautam Chellaram. “The clustering effect is intensifying for the maritime community in the region,” chimes Brian Yam of International SOS. “Other governments in the region have been proactively attracting talents by various kinds of incentives. Hong Kong should step up efforts in attracting and retaining commercial principals, which shall then

attract more shipping entities to come.”

Continuing the thread on competition with rival hubs, Lloyd’s Register’s James Forsdyke says: “The war for talent generally comes down to one thing: How much are you able to pay, and here Hong Kong has a great opportunity now to reinvigorate its global talent proposition by understanding how costs are skyrocketing in neighbouring maritime centres. It feels like opportunity is afoot, as Hong Kong looks to build back from its talent exodus during 2020/21. Similarly, the hardened Hong Kongers who stuck out the hard years are reaping the benefits today – lower costs of living and accelerated opportunity for promotion in the professional capacity due to the need for talent.”

Government must step up Latitude Brokers’ Valerie Toucas, however, feels it should not be left to the private sector alone to offer competitive packages to attract/retain talents to Hong Kong, either from within or from abroad.

“Companies from the maritime sector need the support and a drive from the government to increase the attraction of Hong Kong,” she says, since the brightest young talent are looking for good quality of life with all that entails in terms of accommodation, entertainment, medical care, schooling, etc, and on these aspects

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TALENT

We need to see what markets like Singapore and Dubai have to offer and how we stack up against them the Hong Kong maritime industry is competing with companies in cities like Singapore, Copenhagen, Hamburg and London, all of which arguably have more to offer in this respect. “We have seen a significant change in expectations from younger staff,” she relates, “and there’s a mismatch between those expectations and Hong Kong’s offering for the softer issues, which have to be addressed.”

As an extension of this argument, Cetus Maritime’s Tabitha Logan believes the city would benefit from an independent and statutory body specifically to promote Hong Kong as an international maritime centre. “Having the perspective of the actual shipping companies will mean that the government’s efforts are more targeted to what the industry need,” she says, “and more agile with strategies and policies to attract talent.”

For example, the government could provide support to maritime companies to help them develop and implement diversity and inclusion initiatives, she suggests, as well as better aligning its financial incentives and marketing efforts to what maritime companies are actually looking for. “If Hong Kong attracts the best companies to set up here, then this will in turn make it an attractive city for young professionals to come and seek

work,” she reasons.

“Hong Kong’s talent pool is diverse, highly educated, and extremely dedicated to their jobs,” BSM Hong Kong’s Firoze Mirza begins by saying. However, hard skills in areas such as IT and technical experience, especially aboard ship, are notably lacking as far as sectors like shipmanagement are concerned.

“We as BSM are actively engaging with educational institutions to promote maritime education and attract young talent,” he says. “In addition, we are collaborating with industry associations and organisations to enhance the sector’s reputation and visibility. Within the Hong Kong maritime community, we are working consistently on creating a strong culture of professionalism and excellence within the industry.”

SeaQuest Shipmanagement’s Vinod Sehgal agrees on the need to present Hong Kong as an attractive working and living environment for young people, which includes promotion of inclusivity in terms of gender equality and cultural diversity, and for the maritime industry to better promote itself. But he feels other strategies are needed too, with scope for the government to invest more in training schemes in order to “encourage and financially support universities and

institutions to innovate, research and develop digitisation, AI, sustainability, decarbonisation, alternative fuels and other maritime related cutting-edge technologies.”

Overall, the Hong Kong maritime industry “has to promote its uniqueness in a very global industry,” concludes SeaKapital’s Kenneth Lam, but nevertheless still has some strong cards to play. The Hong Kong government has in recent time introduced measures such as the Top Talent Pass Scheme to help companies based in Hong Kong, including those that are in the maritime industry, to attract and retain talents, he reminds.

Also, “Hong Kong retains its advantages of being the most international city in China,” he points out. “The Greater Bay Area not only provides a pool of talents that is 10 times the size of that of Hong Kong, it gives rise to an unique opportunity for talents across the globe to develop a wide variety of careers under the concept of One Country, Two Systems.”

In other words, with the economic advances seen by China over the past few decades, few would want to bet against the future employment prospects that the mainland and Hong Kong together may hold.

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PORT

What future for Hong Kong’s port in the 2020s?

Dr Jonathan Beard, a partner at EY Infrastructure Advisory, defines the city’s port role going forward.

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wo years’ ago I wrote an article for this publication, titled “Hong Kong Port and the Greater Bay Area (GBA) in the 2020s – Defining a Role or a Declining Role?” A continued and steady loss of cargo volumes suggests increasingly that the port will play a “declining role” unless some major action is taken. The drop in Hong Kong’s international throughput ranking has been stark, and whilst the rise of Shanghai to number one was always inevitable, it is Hong Kong’s performance versus other regional ocean-transhipment hubs, notably Singapore and Busan, and versus its gateway competitors in the GBA that is the real cause for concern.

Earlier this year, the HKSAR Government commissioned a consultancy study “Provision of Services for Action Plan on Maritime and Port Development of Hong Kong”. It is

notable, that the scope of work focuses on Hong Kong’s maritime cluster of professional services -i.e. ship financing, ship registry, maritime law, insurance, etc. and enabling technologies for those sectors, rather than addressing the challenges for Hong Kong port in attracting physical cargo. Perhaps this is tacit acknowledgement of the challenges faced by the port and a practical realisation that focusing on the high value-added professional services, of the type that London retained, even as its port fell away, is the pragmatic route to follow.

Some measures have been successfully implemented, notably the creation of the Hong Kong Seaport Alliance (HKSPA), whereby all terminals, save terminal 3, are operated as one facility, has gone a long way to addressing the inefficiencies created

by the fragmented nature of terminal ownership and operations. That ownership and operational structure made sense when the port was the “only show” in the GBA, and the Government quite rightly wanted to encourage competition. However, GBA importers and exporters now have a choice of ports and terminals, and shipping lines have a choice of transhipment hubs (e.g. Hong Kong, Busan, Kaohsiung, Singapore, etc.).

Inter-port competition provides choice – there is little need for inter-terminal competition.

High cross-boundary trucking costs, generated by regulatory inefficiencies rather than distance, have been a major competitive weakness for over 20 years.

Failure to take swift remedial action, and liberalise this sector to permit better access by PRC Mainland drivers whilst reducing the cross-boundary licence cost

There is little need for inter-terminal competition www.splash247.com 29

YOU CAN MOVE THE WORLD

PORT

Where did my port go? ‘000 teu handled 2012-22

Source: Hong Kong Marine Department; Alphaliner

- and align it with the more successful cross-boundary barge industry - has diverted cargo to GBA competitor ports.

Somewhat ironically, seeking to extend the life of a declining cross-boundary trucking industry by protecting it from competition, has undermined the port on which that very same cross-boundary trucking industry depends.

No port authority Hong Kong Port does not have a port authority. This is highly unusual and many industry stakeholders feel it has undermined the ability of the port to undertake strategic change, - for example, implementation of a smart port initiative to close the digital gap with competitors - and has left it without a champion in government to represent its interests. The Maritime and Port Board (MPB) was created in 2016 to fulfil some of this advocacy role, but it has very limited powers and resources. It is primarily the re-creation of the earlier Port and Maritime Board (PMB) which had been in abeyance.

In the absence of a port authority, industry stakeholders and consultants put together a Smart Port Initiative (SPI) in 2020 and an application for initial funding to one of the Government’s technology funds. Unfortunately, the application was rejected. On the upside, the initiative was then put into the Chief Executive’s policy address and has been taken forward by the Government’s Logistics and Supply Chain Multi-tech

R&D Centre. However, three years later, progress has been limited, especially in terms of the critical cross-boundary digital connectivity.

In stark contrast, Hong Kong’s airport, which is still the world’s busiest for air cargo and does have an Airport Authority, has made considerable progress on its Cargo Data Platform. A quicker, more practical option for Hong Kong port might therefore be to extend the coverage of that platform to include maritime cargo, not least as some of the industry stakeholders and critical issues are similar.

Relocation time?

One drastic option for the port, is its wholesale relocation to a greenfield site, where it would benefit from new state of the art facilities, but more importantly, would free up the Kwai Tsing site for much needed housing and commercial development. The current site is in a dense urban environment, but key infrastructure – roads, mass transit system, utilities are all in place. The redevelopment potential is considerable – a fact that was noted in the Hutchison Ports’ prospectus for its South China Port Trust - and offers a better located and lower cost option to address Hong Kong’s housing needs, as compared with “Lantau Tomorrow Vision”, which entails costly and environmentally challenging creation of artificial islands to the south of Lantau, in Hong Kong’s harbour.

None of the supporting infrastructure

for this site is in place and is extremely challenging and expensive to build.

Moving port facilities from congested brownfield sites, to newer out of town locations is common practice. There are numerous examples, from Shanghai to Singapore and Oman to South Vietnam.

However, in those instances, cargo volumes where growing. This is not a given for Hong Kong and it makes little sense to embark on such a Hong Kong centric initiative without considering the GBA port market. In that respect there may be an alignment of interests and an option for the Hong Kong and local GBA governments to partner for a “true” GBA port project which incorporates the needs of both Hong Kong and Shenzhen, and could showcase the potential for crossboundary policy implementation.

The West Shenzhen port facilities at Shekou, Chiwan and Mawan are also in a congested urban area, that is increasingly focused on residential and hi-tech commercial property. Moving the cargo handling elements to another location, whilst preserving the cruise and passenger facilities, would likely also provide a range of economic and environmental benefits for Shenzhen.

Is there a location within Hong Kong that could provide a large enough site for both Hong Kong and West Shenzhen?

Possibly not, however there are options to the southwest of Lantau, close to Hong Kong’s airport and strategically located for GBA inland barge services, that are currently part of Zhuhai’s jurisdiction, but which under current legislation can be ceded to Hong Kong and operated as such. This might be a win-win-win solution for Hong Kong, Shenzhen and Zhuhai and could demonstrate the potential of GBA co-operation. At the very least, it is worthy of further consideration and study. Could this be a way for Hong Kong to redefine its role rather than accepting a declining role?

For all the latest port news from around the globe

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receipt of four 2,600 teu newbuildings - SITC Ruiming, SITC Huiming, SITC Shengming and SITC Qiming - as well as the larger 1,800 teu SITC Shunde from Yangzijiang Shipbuilding Group in China earlier in the year. As at end-June the company operated 100 vessels, 89 of them owned, on 72 services covering 77 major ports in Asia.

TS Lines

Fleet renewal time

A rundown of what Hong Kong’s leading owners have been up to this year

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ong Kong shipowners have been taking advantage of the generally favourable markets of the last couple of years to invest in growing and renewing their fleets, opting for larger, more efficient and environmentally friendly vessels in line with tightening regulations.

Famous Hong Kong liner brand Orient Overseas Container Line (OOCL) is half-way through taking delivery of a series of 12 eco-friendly 24,188 teu containerships newbuildings ordered in 2020, the 24,188 TEU OOCL Gdynia having been handed over by Dalian COSCO KHI Ship Engineering Co (DACKS) in October.

Vessels in this 24,000 teu class series are deployed on Asia-Europe services and incorporate the latest technology, equipped with advanced smart systems and upgraded green design, such as low resistance lines design and an energysaving bulbous bow.

The Hong Kong liner company has been able to profit from the sector’s windfall earnings of the 2020-2022 period, investing wisely in what it calls its new ‘smart and green mega vessels’ before this year’s normalisation of

freight rates kicked in. Total revenues for the nine months ended 30 September this year were down 61.8% on the comparable 2022 period to $5.9bn despite total liftings rising by 1.5%, average revenue per teu having decreased by 62.4%.

OOCL, a subsidiary of public company Orient Overseas (International) Limited (OOIL) listed on the Hong Kong Stock Exchange, was taken over

by COSCO some five years ago. It has always been known for its strong emphasis on technology and recently Chinese tech expert Chen Yangfan, with 25 years’ experience in the IT industry before joining COSCO two years ago, has recently been appointed to take over from retiring Huang Xiaowen as chief executive officer of OOIL.

SITC At the other end of the containership size scale is Hong Kong-headquartered SITC International. In September the company took delivery of its new 1,023 teu vessel SITC Renhe, the fifth in a series of sisterships built by Dae Sun Shipbuilding of Korea. This followed its

Also focusing on intra-Asia operations is fellow small boxship owner TS Lines, due to take delivery of 16 newbuilds ranging from 1,100 teu to 2,900 teu over the 2023-424 period, also moving up in scale to receive six 7,000 teu vessels as well. Originally from Taiwan and listed on the stock exchange there, it has several times announced plans for an IPO in Hong Kong as well. Most recently was last November, when it said: “We believe that our high-frequency services provide our customers with greater flexibility to manage their logistics needs and stronger capability to achieve faster inventory turnover. We have established a long-term presence in the Greater Bay Area, which we view as instrumental to our future development in the Asia region market and in which we also see significant opportunities for sustained profitable growth in the future.”

Wah Kwong On the wet and dry bulk side, Wah Kwong is leading the newbuilding charge technology-wise with its order for two firm plus two option 175,000 cu m LNG carriers. The newbuilding contract with Dalian Shipbuilding Industry Offshore Co (DSIC) was signed

by Sea Jade - a joint venture company comprising China Gas, CSSC (Hong Kong) subsidiary Fortune Clean Energy and Wah Kwong – in August, with the confirmed pair of vessels scheduled for delivery in 2027 ahead of a 20-year lease to a China Gas subsidiary. The JV partners described the teaming as “a strategic partnership [that] heralds a new paradigm, maximizing the core strengths of respective parties to

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jointly deliver high-quality LNG energy services in China.”

DSIC’s 175,000 cu m LNG carrier design, independently developed by the shipyard, is described as containing four cargo tanks with a GTT Mark III Flex membrane type cargo containment system. The tanker is fitted with a range of eco-friendly technologies including two sets of LNG dual fuel two-stroke main engines with iCER, offering lower daily fuel consumption and full compliance with the most stringent emission control requirements of IMO in both gas and fuel oil mode. Ship performance is enhanced with the application of the latest generation optimised twin-skeg hull form, ultraefficient propellers and twist rudders with a rudder bulb for lower resistance, higher propulsion efficiency and improved propulsion redundancy.

Wah Kwong has 30 years’ experience of owning and operating gas carriers, and in August 2022 took over management of what was then the largest LNG bunkering vessel operating in mainland China, the Hai Gang Wei Lai. Then in April 2023, Wah Kwong partnered with Shanghai International Port Group as the shipowner completing the first ship-to-ship LNG bunkering operation in mainland

China.

The Hong Kong company also established a Liquid Cargo Training Centre outside Shanghai n Weihai, Shandong province back in 2017, as part of a commitment to establish a mainland talent pipeline both in Shandong and the Greater Bay Area.

As of 1 August 2023, the centre had carried out 172 STCW classes with 6,851 graduates certified by the China Maritime Safety Association.

Wah Kwong is now further pushing the technology envelope with plans for a carbon capture and storage (CCS) project onboard two of its vessels, for which it and Qiyao Environmental Technology (Qiyao Environ Tec), a subsidiary of Shanghai Marine Diesel Engine Research Institute, have just received approval in principle from classification society Bureau Veritas.

TCC Group Meanwhile, fellow illustrious Hong Kong shipowner Tai Chong Cheang (TCC Group), headed up by Kenneth Koo, earlier this year signed for two LR2 aframax product tankers at Shanghai Waigaoqiao Shipbuilding (SWS), marking its first newbuilds for around five years.

For delivery in 2026, the 114,000

dwt ships are independently designed by SWS and dual-fuel LNG capable, able to load 800,000 barrels of oil products or crude, meeting all the requirements of EEDI phase III and Tier III. The Koo family-controlled TCC and SWS enjoy a strong relationship. Around the turn of the century, it was TCC which helped the yard develop a capesize design, which became a bestseller around the world. The yard says that its 114,000 dwt crude/product carrier design also merits the ‘China famous brand’ accolade.

Landbridge Landbridge is another Hong Kong-based tanker owner that runs a young fleet of modern VLCCs. It recently declared a purchase option on a VLCC, Landbridge Wisdom, a 2020 Dalian-built 308,000 dwt vessel that it had on bareboat charter from John Fredriksen’s sale-andleaseback specialist SFL Corp, ahead of its obligation to buy at the end of the charter in mid-2027.

Pacific Basin Among Hong Kong’s many dry bulk owners, Pacific Basin Shipping began the year on a note of fleet renewal, acquiring six secondhand vessels – four

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ultramaxes and two supramaxes – to replace eight older, smaller vessels it had sold during 2022 when vessel prices approached historical highs.

CEO Martin Fruergaard said: ‘‘We remain committed to our longterm strategy of further growing our supramax/ultramax fleet and renewing our handysize fleet with younger, larger and more efficient vessels, thereby further optimising our fleet to more easily meet tightening environmental regulations.

This transaction is a further step in the execution of this strategy, while in parallel we are continuing to cooperate in the investigation and development of zeroemission vessels and investment in related bunkering infrastructure, as we accelerate the transition and make zero-emissionready vessels the default choice by 2030.’’

Cetus Maritime Hong Kong-based Cetus Maritime, formed by the merger of Hong Kong’s Asia Pacific Maritime and Hamburg Bulk Carriers in 2022, owns and operates a fleet of over 50 bulkers. This August it announced it was partnering with

Singapore-listed Yangzijiang Financial to set up a new handysize-owning joint venture with the aim of buying between four and eight eco-designed ships, which will be deployed in Cetus Maritime’s commercial handysize pool, as well as looking to acquire secondhand vessels.

The JV represented a natural extension of Cetus Maritime’s existing fleet renewal strategy of selling smaller, older handysize vessels while at the same time buying new modern vessels where good opportunities arise to optimise the fleet, its CEO Mark Young said.

KC Maritime KC Maritime Hong Kong, founded in 1999 as the dry bulk arm of the Chelleram Group, is commercial manager for a fleet of kamsarmax, panamax and ultramax bulk carriers, as well as specialised cement carriers. Chaired

by Gautam Chellaram, it also owns vessels and last year ordered a pair of 63,600 dwt bulk carrier newbuildings from Cosco Shipping Heavy Industry (Zhoushan). The ships meet IMO Tier 3 regulations and EEDI Phase 3

compliance. Sister company Chellaram Shipping (Chellship) is likewise Hong Kong-based and is believed to have ordered another three ultramaxes over the last 15 months, from New Dayang Shipbuilding, China.

Seacon Seacon Shipping listed on the Hong Kong Stock Exchange in March and has since ordered two handysize bulk carriers from Tsuneishi Shipbuilding and a pair of 62,000 dwt multipurpose dry cargo ships at Huanghai Shipbuilding, as well as a 13,500 dwt general cargo vessel to be built at Murakami Hide Shipbuilding in Japan. The size of its controlled fleet is expected to grow to around 35 ships by the end of 2025.

The company’s strategy of optimising its fleet by disposing of older tonnage and buying in newer and more efficient vessels, at the same time growing in overall size and complying with all environmental regulations coming down the line, merely typifies the trend being seen among Hong Kong’s forward-looking owners.

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SHIPMANAGEMENT

One area in shipping where Hong Kong rules the roost The city remains a preeminent centre for shipmanagement

H

ong Kong is one of the world’s largest centres for third-party management, alongside the likes of Limassol, Cyprus and Singapore. Several of the largest groups have headquarters or principal offices in the city, alongside a constellation of smaller players whose number is being added to all the time.

Most senior is Wallem Group, celebrating its 120th anniversary this year. Established by Haakon J. Wallem in 1903 in Shanghai, it quickly moved into third-party shipmanagement – one of the world’s first companies to do so – when it was appointed to manage Chinese sisterships SS Chingtifu and SS Tsinanfu, both employed in the coastal coal trade.

The company has continued to enjoy a particularly close relationship with the mainland to this day, and its anniversary celebrations around the world in 2023 will be rounded off with one in Shanghai

this December.

Current Wallem Group CEO JohnKaare Aune has also decided that the end of the year is a fitting time for him to move on, with John Rowley joining the group as his successor. Before his departure, he stressed that while Wallem embraces future technologies, “the future of maritime is still very human – and our commitment to seafarer training and welfare stems from this conviction.”

Meanwhile, Ioannis Stefanou remains Wallem’s MD of shipmanagement. On welcoming two new Chinese-built dual fuel LR2 tankers into the managed fleet in October, he commented that Wallem has always had “a keen eye to adopt

industry change. In the 21st century decarbonisation leads the sector’s agenda, and Wallem’s key focus is to develop and build our expertise both onboard and ashore in new technologies and alternative fuel systems.”

FLEET Marking its 30th anniversary next year is Hong Kong-based Fleet Management Limited (FLEET), now under the ownership of 10-year-old The Caravel Group. It is one of the world’s largest shipmanagers with more than 650 vessels under full technical management, over 450 of which are handled by FLEET’s team in

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SHIPMANAGEMENT

Hong Kong, making it one of the largest single offices in this respect of any ship manager worldwide. The company employs 27,000+ seafarers plus 1,000+ onshore maritime professionals, serving some 130 different shipowning clients.

FLEET is headed up by co-founder and managing director Dr Kishore Rajvanshy, one of the most respected figures on the international shipping scene, who was awarded the honorary degree of Doctor of Engineering and Technology by the Academy of maritime education and Training, aka AMET University, in Chennai earlier this year.

“Shri Rajvanshy is a visionary always ahead of his time” read the citation, attested to, for example, by FLEET’s early adoption of digitalisation with development of its award-winning proprietary PARIS (Planning And Reporting Infrastructure for Ship) portal first launched over 20 years ago and continuously upgraded ever since.

Anglo-Eastern Anglo-Eastern Univan Group is another of the world’s foremost ship management companies with a major presence in Hong Kong, where its CEO Bjorn Hojgaard resides. A former chairman of the HKSOA and before that a Captain with Maersk, Hojgaard was heading up Hong Kong-based Univan - after its legendary founder Capt. Vanderperre passed away - until the 2015 merger with AngloEastern.

The group remains a technology pioneer with a keen concern for the

welfare of its seafarers, as evidenced by the company’s current rolling out of Starlink’s maritime broadband service across its fleet, with over 200 installations expected by the end of the year and an “overwhelmingly positive” shipboard response reported in respect of both operations and crew wellbeing.

“The addition of Starlink’s LEO network – and OneWeb and Project Kuiper thereafter – will change life on board in a way that we have never experienced in the history of shipping,” commented Hojgaard at the outset of the programme.

“Soon seafarers will be ‘alwayson’, enjoying the same connectivity as ashore, with the ship becoming a seamless extension of the office, where team members are just closer to the machinery.”

BSM (Bernhard Schulte Shipmanagement) Hong Kong was founded in 1981 as Eurasia Group, one of four separate Schulte Group brands that were subsequently merged into BSM as a single identity in 2008. While the overall company is today headquartered alongside the group in Hamburg, sharing the same CEO, Hong Kong remains one of its principal operational centres and down the years has played a key role in shaping major industry trends, including the Shipping KPI Project and benchmarking studies undertaken to analyse seafarers’ wages. It was also the first company within the shipping industry to be awarded with the Hong Kong Management Association Award in 2003.

Offering both crew and technical management services, BSM Hong Kong is mindful that staff with technical experience, especially sailing aboard ship, are hard to come by in the city. “We greatly appreciate that the Immigration Department has been liberal in granting work permits to overseas professionals, allowing us to plug this gap,” says MD Firoze Mirza. “But of course, a work permit alone cannot attract skilled employees to Hong Kong. We have to provide clear career progression paths and professional development opportunities to attract and retain talented individuals.”

SeaQuest Shipmanagement is one of the newer arrivals in Hong Kong, having opened a technical operation office in the city in early 2021. The company itself is more than 30 years old, has a fleet of around 20 vessels under full management and service centres in Switzerland, Italy, Croatia, Manila and a point of presence in China.

Vinod Sehgal is in charge of SeaQuest’s HK operations and he agrees with his counterpart at BSM that the city needs a skilled workforce, “including seafarers, shipbuilders, and logistics professionals” if it is to fulfil its potential as a maritime hub. “The Hong Kong government needs to invest in training programmes,” he says, “and discuss with educational institutions on ways to promote maritime education and provide career opportunities to help create a sustainable talent pool” [see also Skills article].

One of the very newest arrivals is Seaways Ship Management, which set up offices in Kowloon Bay offering both technical and crew management earlier this year. Led by ex-seafarer Sanjeev Verma, the company plans to “leverage the latest technologies and innovations to enhance its operational efficiency and customer satisfaction. It’s our vision to become a leading shipmanagement company in the region and beyond, with a strong focus on safety, sustainability, and excellence,” he says.

Verma previously headed up Landbridge Ship Management, and before that worked for shipowner Wah Kwong, so is hardly a newcomer himself to this burgeoning sector of Hong Kong’s maritime cluster.

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FLAG

In fourth spot The Hong Kong Shipping Registry remains just outside the podium in the flag rankings

T

he Hong Kong Shipping Registry (HKSR), fully administered by the Hong Kong Marine Department, is holding steady its position as the world’s fourth largest flag in tonnage terms, behind only the ‘big three’ of Panama, Liberia and the Marshall islands. As at the end of last year it had 2,384 vessels of 126m gross tonnes (gt) registered, according to HK Marine Department statistics.

This year has seen only a slight variation. Latest HK Marine Department figures for September show total tonnage has edged up to over 127m gt but vessel numbers have dropped slightly to 2,336, in line with the trend for larger newer ships.

More importantly, the Hong Kong flag boasts quality as well as quantity. The International Chamber of Shipping (ICS) Flag State Performance Table for 2022/23 shows that it received all green/positive indicators in its table, one of only 19 flags worldwide - including 8 of the 10 largest - to do so.

ICS positive indicators include having ratified various IMO conventions; figuring on the Paris and Tokyo MOU Port State Control inspection ‘white lists’ and in the US Coast Guard’s Qualship 21 programme; and having reported on seafarer labour standards as part of ILO audit commitments, including repatriation

of seafarers, accommodation provision, health protection and medical care.

ICS says the purpose of its Flag State Performance Table is “to encourage shipowners and operators to examine whether a flag State has sufficient substance before using it”. Also “to encourage shipowners and operators to put pressure on their flag Administrations to affect any improvements that might be necessary”… which in the case of HKSR appears not to apply.

In fact, the HKSR has been making conscious efforts to improve quality of late. Over the past three years it has established a series of regional desks worldwide - including in Europe, US, Canada and the Middle East – all with its own appointed surveyors. The move is in order to be able to better assist owners and carry out its flag state inspection of vessels, says the HKSR, as well as to try and expand its client base and recruit more tonnage from outside the Registry’s traditional home territory of China and the Asia Pacific region.

The registry also has in place, since 1999, a Flag State Quality Control mechanism which provides a regular review of the fleet’s performance, selecting ships with perceived risk for inspections. With addition of the new regional desks the target for number of these inspections has been raised to 10%

of the total fleet each year.

Furthermore, the HKSR ensures that there is genuine linkage with shipowners having vessels under the flag, insisting that for every HK-registered ship there should a ‘qualified person’ with either a HK-based or -registered company or HK presence.

Eric Lee, general manager, ship registration and quality at the Maine Department, HKSAR, has also gone on record as saying that the HKSR does not aim to make any profits from its flag registration fees and most of the service provided is given on a purely costrecover basis, which is why the registry can provide “a low-cost service with high quality”.

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FINANCE

Banking capital The Special Administrative Region has refined its ship finance offerings a great deal of late

H

ong Kong is renowned as one of the world’s leading financial and banking centres, with robust legal and insurance sectors to match. Iconic buildings belonging to the likes of HSBC and Bank of China have long dominated the city’s skyline, while Hong Kong has served as the Asia hub for BNP Paribas, the world’s largest shipping bank, since 1966.

Of late, HKSAR governments have introduced a whole series of measures to enhance the financial competitiveness of shipping-related businesses, reports Rosita Lau, partner at law firm Ince & Co. and member of the previous Maritime Development Council, as well as of the Hong Kong Maritime and Port Board since its inception in 2016.

Lau says she has witnessed “the last three governments giving more and more weight to the maritime industry, and passing legislations enhancing the maritime business of Hong Kong, such as the June 2020 legislation giving preferential tax allowance to qualified ship leasing companies and qualified ship leasing managers who operate in Hong Kong.”

Then later the HK government introduced legislation giving “tax allowance to marine insurers who operate

in Hong Kong,” she continues, “and last year, in 2022 passed legislation that gives similar tax allowance to shipmanagers, shipbrokers and ship agents. All these make Hong Kong an attractive place to run shipping businesses.”

Fellow lawyer Damien Laracy, partner and head of the Hong Kong office for Hill Dickinson, agrees that fiscal incentives are key to attracting and retaining shipping business.

“Hong Kong’s favourable tax treatment for shipping profits is understandably a huge draw for shipowners, operators and managers and has contributed massively to the growth of the Hong Kong Register,” he says.

Kenneth Lam is founder and chief executive officer of new Hong Kongbased ship leasing company SeaKapital, set up this year in conjunction with shipowner Sabrina Chao of Wah Kwong, past chair of the HKSOA and of BIMCO. Lam himself headed up Credit Agricole Asia Shipfinance before embarking on the SeaKapital new venture, the aim of which is to provide, through long-term ship leasing, “sustainable and responsible capital” to what he calls the most essential and capital-intensive part of shipping – i.e. the ships themselves.

“Tax stability,” he stresses, “would be

key in attracting commercial principals to be based in Hong Kong and here we have the longstanding Section 23B of the Inland Revenue Ordinance plus the recently enacted Ship Leasing Bill which protect the geographical concept of taxation.”

Then July 2022 saw the introduction of half-rate profits tax concessions for ship agents, shipmanagers, and shipbrokers enhancing Hong Kong’s competitiveness in the industry.

Enactment of the Ship Leasing Bill in 2021 “has attracted increased commercial interest to the region,” Lam states. “The latest talent attraction and attrition initiatives announced in the latest Policy Address also sees government moving in the right direction aligning the industry’s development needs.”

On the subject of these latest initiatives to attract new talent to the industry, some announced as recently as late October, Rosita Lau points out that these also include the postponement of the paying of stamp duty on the purchase of property in Hong Kong for such talent, thereby helping alleviate one of the main bugbears of Hong Kong’s fight to attract high-level overseas recruitment… the city’s sky high real estate prices.

www.splash247.com 45

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Shaping a better maritime world.

THE CAPTAIN’S TABLE

Shipping’s pre-eminent pitch competition Splash hears from the founders and three past winners of The Captain’s Table

T

he Captain’s Table, shipping’s preeminent pitch competition, is set for its biggest showcase to date.

The Hong Kong-based maritime startup contest, now in its fifth year, serves as a launchpad for aspiring entrepreneurs, inventors, and dreamers who aspire to transform their groundbreaking concepts into reality in the maritime industry.

With an unwavering commitment to nurturing innovation, this unique competition provides participants with an unparalleled opportunity to pitch their ideas to a panel of esteemed judges, comprised of industry leaders, venture capitalists, and seasoned entrepreneurs.

With their extensive knowledge and expertise, the judges will assess each pitch based on its viability, market potential, scalability, and impact on society. The competition will not only recognise exceptional ideas but also offer valuable feedback to help participants refine and strengthen their concepts.

In addition to the honour of being selected as one of the finalists, participants will compete for a generous prize pool, which includes access to funding, legal advice, corporate partnerships, mentorship opportunities, and vital resources to help turn their business into thriving ventures.

As in previous years Splash is the official media partner of the competition and will be televising the finals live on November 23 from the HKEX Hall at the Hong Kong Stock Exchange.

Su Yin Anand, co-founder of The Captain’s Table, commented: “The Captain’s Table is truly unique. Not only is it a collaborative platform between the shipping industry and start-ups but, we also have the government’s support in showcasing Hong Kong as an international maritime centre and start-up hub. This offers ample opportunities for our startups to provide solutions for both the public and private sector.”

Tabitha Logan, co-founder of The Captain’s Table, added: “Future-proofing is high on the agenda for many shipping companies and, we are excited to play our part, in showcasing solutions that contribute to a sustainable future for an industry we are passionate to work in.”

The finalists this year are 123Carbon, a Dutch digital decarbonisation start-up, Crewdential, a seafarer well-being/SaaS solutions provider from Guernsey, ESG NRG, a decarbonisation/sustainability specialist from Norway, Indian education and training start-up Marine Insight, onboard IoT connectivity solutions firm Sealution from Belgium, and digital collaboration platform MagicPort.

Giving these finalists a few pointers, three previous winners talked recently about what is it like to win the competition and what has it done for their respective businesses.

The winners for 2019, 2020, and 2021 had quite different experiences

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THE CAPTAIN’S TABLE

We are showcasing solutions that contribute to a sustainable future for an industry we are passionate to work in when it came to the participation in the competition. Founder and CEO of ocean freight visibility firm Portcast, Nidhi Gupta, was the only one of the three to win in a live event and receive her award on stage.

Due to covid restrictions, the event’s hybrid format, and the finalists presenting remotely, co-founder and CEO of crew travel software specialist Greywing, Nick Clarke, and founder, CEO, and chief scientist of drag reduction solutions specialist 13 Mari, Krassimir Fotev, won the 2020 and 2021 competition, respectively, without being on stage – although neither found it problematic, perhaps even the opposite.

“To be honest, doing The Captain’s Table during covid was a bit of a boon because I didn’t have to get up on the stage. It was a bit easier; I didn’t have to go to Hong Kong, and I was able to do it all remotely, so I think I was a little bit lucky,” Clarke remarked.

Participating in The Captain’s Table competition was not a shoo-in for either of these eventual winners. But the most attractive thing about it for all three of

these start-up companies at the time was the opportunity to talk to people from the maritime industry and more importantly, discuss ideas with investors from the industry which, as Clarke put it, “speak their language.”

No one was short on superlatives regarding the competition with Clarke pointing out that The Captain’s Table was “definitely the highest ROI on time invested” that Greywing got in terms of networking and connections with new customers and participants.

“Everything that the company did and the talent that it was able to attract and the funding that it was able to attract all traces back to The Captain’s Table,” Fotev said.

Since the experience of the competition was quite different for Gupta, she looked back at the live event in Hong Kong and the on-stage presentation she gave as one of the finalists of the first edition of the competition.

“I think The Captain’s Table is unique because the time given to the Q&A is significant. It was 15 minutes for Q&A and 15 minutes on stage which is a pretty long

time with a lot of deep questions about the business in front of an audience of 100 people,” Gupta recalled.

The three Captain’s Table winners also tried to give a little bit of guidance to people who are thinking of creating startups. Fotev noted that the most difficult thing, apart from creating the product itself, was finding people who think the same way and he stated that winning The Captain’s Table was what accelerated the process of finding like-minded people.

Clarke was a little bit more practical with his advice. He said that it was important to always work the long game as sales cycles in maritime are often long and clients may take a long time to come onboard but “by the time they do they’re unlikely to leave.”

“Playing for the long term I think is important because it affects all kinds of dynamics around hiring, around funding, and also around managing your expectations,” Clarke stated.

Even though almost all advice was constructive, Gupta gave a small warning for those looking to launch a start-up.

“There are so many unexpected things that happen all the time, you are constantly fighting fires, and every day there is something new to think about, something new to tackle and you need to be resilient and realise that it’s normal to deal with constant and unprecedented changes,” she concluded.

For all the latest shipping tech developments

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ENVIRONMENT

Discovering demonstrable decarbonisation Adytya Reuben Halder, manager for ESG at AIA Group, Hong Kong writes for Splash on shipping’s green path

T

here seems to be an anticipatory tension in the air when you think about maritime and decarbonisation.

Three percent of global emissions are derived from the sector. With COP28, the global stage of climate action, looming on the horizon, the International Maritime Organization (IMO) has a flashy new set of targets to represent the sector. After the showboating in Dubai ends however, decisions are expected to be made. The industry as a whole is at an inflection point, mirroring seafaring Europeans setting out to new lands. A north star firmly situated in the sky, but the actual route remains uncertain. The spirit to explore exists, the “how?” of ambitious targets set remains mercurial.

It is a tall order. Currently plans from the most recent Marine Environment Protection Committee (MEPC) 80, have illustrated to achieve an average

reduction in carbon intensity across international shipping, by “at least 40% by 2030”, including an uptake in “zero or near-zero emission technologies to represent at least 5%, striving for 10% of the energy used by international shipping by 2030.” This is accompanied with a collection of other measures pertaining to the environment and biodiversity. This renewed suite of targets is a step-change in ambition for the body compared to its previous position of a 50% emission reduction by 2050, now being aligned to the objectives of the Paris Agreement.

Zeroing in on climate specifically, there has been obvious progress in the space in the past months. Each part of the value chain seems to have leaders to

pull their weight to transition. The Laura Mærsk was completed this year, and is the first methanol-enabled container vessel, ever, supporting Maersk’s wider and determined goal of achieving netzero emissions by 2040. They aren’t alone, with a recent survey of shipowners and operators finding the industry has high ambitions, with aspirations to increase green investments and develop sustainability roadmaps being touted by many respondents.

Like almost all sector net-zero transitions, there needs to be instruments or incentives available to internalise the meaning of decarbonisation, such as the actual price of producing carbon. The market forces are currently not strong

There needs to be instruments or incentives available to internalise the meaning of decarbonisation www.splash247.com 51

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ENVIRONMENT

Every stakeholder in a ship’s lifecycle requires an epiphany to be attuned to the IMO’s goals enough to tip the scales all the way, teeing up the IMO’s COP28 and subsequent MEPC meetings to decide and solve for how to ensure action towards its targets.

This broad base support is an important piece of the puzzle, but carrots and sticks should be complementary to promises that can, at the moment, easily be deprioritised when market trade winds hit. Either in the form of regulation or universal standards, this will be a precondition to any major milestone in the transition journey. We see good movement from Europe, with the inclusion of maritime emissions in their EU Emission Trading System (ETS) from next year, as the ETS itself has seen success in its implementation, despite ports decrying carbon leakage.

While work on a unified financial or regulatory instrument is in progress, every stakeholder in a ship’s lifecycle requires an epiphany to be attuned to the IMO’s goals. Acknowledging what expertise they bring to the table as well as the regional contexts of their climate transition will be important to effectively engage in the collective knowledgebuilding that will be required.

The headlines on the diversity of fuels

available resemble the inundating types of milk available at your coffee shop – liquefied natural gas (LNG), biofuels, hydrogen, methanol, ammonia, and even battery-hybrid and wind-based solutions.

The climate space, across sectors, is filled with noise that illustrates progress, but can just as easily distract. But let’s focus on what we know. We know, and most companies do too, that we will need alternative fuels. We know operational efficiency is important, already being addressed by IMO’s stance on the CII and the EEXI. We know that ports shouldn’t be gas-guzzling meccas, and data will be a big part of deciding what works and what doesn’t.

With that, as different technologies, fuels, and processes develop, cognisance around establishing mechanisms to ensure a virtuous cycle, to allow for the industry to evolve in an enigmatic and innovative way, akin to a second industrial revolution. If success is to be seen, the next 10 years will be vital to catalyse this effort to ensure roadmaps are feasible, and to do so means operating with agility to reinvest in the sector’s climate successes.

Over the next 24 months there are MEPC touchpoints to finalise shortterm measures of the 2023 plan, and to revisit it in 2028 after perceived progress is measured. A fork in the road is presented. Stagnating into unactionable commitments and half-baked global standards run the risk of falling in with the ways of oil and gas, who have seen “climate leaders” Shell and BP partake in greenhushing - rolling back targets and investment that contribute to their targets.

On the flipside, automotives have been surging ahead with the hearts and minds of consumers and regulatory bodies won, and sales predicted to be virtually all electric by 2035.

Shipping will always play a part in the global heartbeat of commerce, with 90% of all traded goods heaved up and down the planet in a hundred-thousand hundred-thousand-ton behemoths. In order to continue in this duty an evolution will occur. Not everything is known at the moment, yet we depart the riparian shores of uncertainty, well on our way towards a modern Age of Discovery.

For all the latest shipping environmental news

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OPINION

Don’t feed the trolls Steven Jones, the founder of the Seafarers Happiness Index, on how to nurture ideas in your organisation

O

ne of the best things about working in the maritime industry is the fact that it is so ripe for new ideas and thinking. The worst bit is the tendency for entrenched ideas to push back. This is especially true when older heads sometimes think that there is more value in playing “whack a mole” to the visions for change, posturing and trying to justify either their own beliefs or deeprooted views.

Unfortunately, I have noticed a just such a worrying and disappointing trend of late. I call it the rise of the living dead…where leaders from the past decide to come out and dismiss or decry the efforts of others.

These zombies seemingly hunting out new ideas and innovations, so they can feast on the brains and hearts of those trying to do good things. LinkedIn seems

to be an especially important hunting ground for the zombie leaders – they can sit back on the cushioned comfort of the plaudits of the past and pass ill-informed judgements and calls on all manner of topics.

With no real skin in the game, they can flail and condemn as much as they like. Though this is not solely an online phenomenon – in committee meetings and board rooms, I have sadly looked on as respected senior after respected former leader gets the wrong end of the stick and runs off with it like a rottweiler, shaking innovation to death.

It is all the more damaging and disappointing because we need the lessons of the past to be shared, and we desperately need the shoulders of giants to stand upon as we look to make positive change. To be told that a project

will never start, and if it does start it will never finish is not overly constructive.

We need to find, somehow, the mechanism that allows young, yes maybe inexperienced people to bring forth ideas, visions, plans and schemes, and to have them supported and guided to success. Not cut down like so many green shoots meeting a Flymow.

For those trying to drive change to have access to wisdom, to be able to learn the lessons of past ventures, and to know how we have reached certain points is vitally important.

Ideas need nurturing, visions need focusing not blocking. Those who have held senior positions, and those who have the knowledge, contacts and insights need to be encouraged to share, not to flex what is left of their corporate muscle to bemoan, decry, dismiss and even troll. That is no use or help to anyone.

Global shipping trouble-shooter James Wilkes has a great rule for everyone around the table: you have to find five positive things to say about an idea before you’re allowed to say one negative thing. Framing a discussion that way, he says gets more productive outcomes.

My message across the generations would be that if you feel there are lessons to be learned from past efforts, then share them. If there are different approaches which can work, then raise them and help guide success. Just because something didn’t work in 1979 does not mean that it cannot work today.

Conversely, perhaps we need to make sure we are better at bringing everyone into things together. But until then, we all have a responsibility to either be helpful or silent.

No one needs to know someone thinks your idea is flawed, they need to know how it can be made to work! There is of course value in spotting problems, but that value is exponentially increased if such wisdom can also deliver solutions too.

So, if in doubt be positive, be supportive, if you have concerns ask for more information, and if you have lessons to share, share them. Don’t be a Dooku, be a Yoda, and good things you might bring.

www.splash247.com 55

DATA

Hong Kong by numbers Population: 7.5m, up 2.1% year-on-year GDP per capita: $51,168, ranking 13th in the world Carrying capacity of the combined Hong Kong Shipowners Association (HKSOA) in m dwt: 223 Labour force by occupation:

HKSOA fleet breakdown

Hong Kong flag by m dwt

Most expensive Hong Kong ship on the water CSSC Shipping’s Wen Cheng LNG carrier Valued at $252m

56

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Port throughput by m teu

Largest Hong Kong-flagged ship

Wah Kwong’s Hong Kong Spirit VLCC

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