Hong Kong's logistics future: China: 3PLs look to the mainland as cost-conscious transportation providers search out alternatives to the Port of Hong Kong. (Special report: logistics/technology survey).(Brief Article)

Hong Kong is undergoing a profound and difficult change in adapting to its new role as a developed outpost within a rapidly industrializing China. No sector is experiencing those changes more dramatically than logistics, an area where the former British colony was an outright leader but is now struggling to find its role in a business often driven by price over quality.

Shippers that source goods in China find it cheaper to move goods directly through Chinese ports than through the Hong Kong. The port, though the world's largest, has virtually stopped growing. Volumes at the main Kwai Chung container terminals were down 4.4% in the first quarter, while those moving through the nearby …