Container terminal operator Hutchison Port Holdings Trust (HPH Trust) is seeing a deeper structural decline in cargo volumes in Hong Kong, while its mainland China assets continue to grow. The trend highlights the mounting pressure on Hong Kong as regional shipping patterns shift.

Volumes at Kwai Tsing terminals have been falling since 2018, reflecting changes in trade flows and intensifying competition from ports in the Greater Bay Area, especially Shenzhen. A key driver is the growing preference of shipping lines for direct calls at mainland Chinese ports, bypassing Hong Kong as a traditional transshipment hub.

At the same time, Yantian terminal in Shenzhen, which is part of HPH Trust’s portfolio, continues to post steady growth and is expanding further. The first phase of Yantian East Port is expected to come online by 2027 with capacity of 1 million TEU, with a longer-term plan to raise that to 3 million TEU.

HPH Trust is also reviewing “strategic alternatives” for the Hong Kong Seaport Alliance, a move that may point to changes in how terminal operators cooperate in a weaker volume environment. Even so, Kwai Tsing remains profitable at the EBITDA level thanks to cost optimization and operational efficiency improvements.

In broader industry terms, the situation reflects a long-term shift in logistics flows toward mainland Chinese ports, which offer greater scalability and stronger capabilities for handling mega-container ships. Hong Kong still retains its role as a transshipment hub, but its relative importance is gradually declining under the pressure of regional competition and changing carrier preferences.