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The Hong Kong alternative: some companies that source in China are using Hong Kong as a distribution hub for the entire Asia-Pacific region.(SPECIAL REPORT: THIRD-PARTY LOGISTICS)
When a U.S. manufacturer that sources restaurant equipment in China decided to set up a distribution center for China and Southeast Asia in 2002, the Shanghai Free Trade Zone seemed the perfect choice. Many of its customers were nearby in China's Yangtze River Delta. For the minority located elsewhere in Asia, the Port of Shanghai offered efficient delivery service.
Yet so many things went wrong in Shanghai that the U.S. manufacturer ultimately relocated its distribution center to Hong Kong. Getting its products in and out of the Shanghai Free Trade Zone, and distributed within China was no problem, said Peter Levesque, chief executive of V-Logic, the Hong Kong-based …
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