THE Asia Pacific transport and logistics market is set to grow at a compound annual growth rate of 7.6 per cent over a five-year period to reach US$4.09 trillion in 2016 with Hong Kong expected to reach US$40.58 billion, a CAGR of 6.7 per cent.
    Sea freight will be a key transport mode making up 60 per cent of total freight traffic for the 12 countries included in the market research report from Singapore-based Frost & Sullivan.
    The report forecasts that cargo volumes in these countries will increase by 5.1 per cent year-on-year to 19.67 billion tons in 2012 with customers of logistics requiring more from their providers including optimising inventory and improving forecasting, said vice-president for transportation & logistics (Asia-Pacific) R Gopal.
    "With rising awareness of the cost of supply chain disruptions, [Asia Pacific] companies are looking at re-designing the supply chain and focus intensively on calculating risk," he said, following Japan's earthquake and Thailand's flooding in 2011.
Sustainable logistics practice is important, but needs to deal with the price impact on customers for greening logistics operations that lower CO2 emission, together with the more efficient use of fuel and reduction in power consumption.
The report noted Hong Kong's double digit growth in 2011 was contributed by external trade which reached $915.52 billion and is forecast to increase further to $970.45 billion in 2012.
    Ocean cargo volumes are predicted to go up by 5.5 per cent with Hong Kong's Kwai Tsing Container Terminals taking an estimated 72 per cent of 2011's container volumes. Shenzhen and Guangzhou port have brought stiff competition to Hong Kong along with the dominance of Singapore port. Free trade policies set by the Hong Kong Government continues to promote Hong Kong but the shift of manufacturing source to mainland has dented it's transportation and logistics services for this sector, Mr Gopal added.
Air cargo volumes are down at the world's busiest cargo airport, HK International airport, recorded in a decline of 4.6 per cent forecast to increase marginally by one per cent into 2012. Interestingly, road is to experience the biggest growth at 8.7 per cent in 2012 with the busiest road to remain of Lok Ma Chau connecting HK to mainland China. 

 (source:shipping online)