The cost gap between routeing cargo from southern China via Hong Kong as opposed to Shenzhen is considered one of the primary reasons behind the deteriorating competitiveness of Hong Kong. A report published by consultant McKinsey last year highlighted that it costs USD200 more to truck 1 x 40ft container to Hong Kong than to Shenzhen (Yantian, Chiwan, Shekou) from the manufacturing hub in the Pearl River Delta (PRD) region. A number of factors are involved in this cost differential, and all add to the difficulties in crossborder transportation. These include a lack of infrastructure, truck-licensing issues, a lack of high-quality drivers, and the simple fact that there appear to be limited alternative transport modes to trucking.
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