The transition from freight consolidation to logistics: The case of Hong Kong

This paper examines the challenges and opportunities confronting the traditional container consolidation industry in Hong Kong as it strives to modernise by adopting logistics functions. The study is based upon a series of detailed surveys of the industry undertaken during a period of adjustment. Improving value-added services is seen as the key to the survival of Hong Kong as a major transportation centre; this study indicates that making the improvements represents unique challenges to the firms actually involved. The barriers and potentials for these firms to transform themselves to third-party logistics service providers are analysed.