The content of this article is forwarded from Shenzhen Evening News
This column is a key cultural initiative jointly organized by the Shenzhen Municipal Political Consultative Conference and Shenzhen Evening News, among other organizations. It is part of the Consultative Conference's efforts to carry out "firsthand experience, firsthand observation, and firsthand accounts" in its cultural and historical endeavors.
Lawrence Shum
Born in 1966 in Hong Kong, he is currently the Managing Director of Hutchison Ports YANTIAN and a member of the HPH Trust Exco. Since joining the Hutchison Ports Group in 1996, Mr. Shum has held various executive positions in Hong Kong, Shenzhen, and Shanghai. He served as the Chief Financial Officer of YANTIAN, took up various posts in Shanghai Mingdong Container Terminals and was the Regional Director - North and East China of the Hutchison Ports Group, Managing Director of COSCO-HIT, and Deputy Managing Director of Asia Container Terminals.
Currently, he is a member of the Sixth Standing Committee of the Chinese People's Political Consultative Conference of Yantian District, and President of the Shenzhen Ports Association. He is a Chartered Fellow of the Chartered Institute of Logistics and Transport in Hong Kong and is a Fellow of the Institute of Chartered Accountants in England and Wales and the Association of Chartered Certified Accountants. He is also an Associate of the Hong Kong Institute of Certified Public Accountants. From April 2020 to March 2022, he was appointed by the Hong Kong Government as a member of the Hong Kong Maritime and Port Board, where he worked to promote the high-quality development of port logistics, Shenzhen-Hong Kong cooperation, the Guangdong-Hong Kong-Macau Greater Bay Area, and international trade of China.
As a pioneer of Shenzhen-Hong Kong cooperation for over 31 years, YANTIAN was born from this partnership and has flourished through it. Since handling its first container in 1994, YANTIAN reached the milestone of 10 million TEUs in 2007 and grew to be one of the largest container terminals in the world. In 2021, it set a new world record for the fastest accumulation of 200 million TEUs at a single terminal in just 26.5 years. I am fortunate to have been part of this journey and take great pride in it.
Part One
The cooperation between Shenzhen and Hong Kong stands as a model of complementary strength.
In November 1996, I was introduced to YANTIAN. At that time, I had just joined Hutchison Ports Group, a subsidiary of CK Hutchison Holdings, as a financial manager, overseeing investment and financing matters. During my first week, I was tasked with an important responsibility—conducting the investment evaluation for YANTIAN's Phase III Project.
Prior to this, I was unfamiliar with YANTIAN and had never heard of the place. Through my research, I discovered that YANTIAN is not only a crucial part of Shenzhen’s development but also a symbol of the collaboration between Shenzhen and Hong Kong. It was founded in October 1993 through a joint agreement between and Shenzhen Dongpeng Industrial Company Limited (the predecessor of Shenzhen Port Group) and Hutchison Ports Yantian Limited (a subsidiary of Hutchison Port Group). The agreement was signed at the Diaoyutai State Guesthouse in Beijing. This marked the first time since the founding of the People's Republic of China that a Hong Kong enterprise was permitted to hold controlling shares and operate a large-scale port facility in mainland China, setting a groundbreaking precedent for the industry.
This pioneering collaboration originated in the 1970s. At that time, Hong Kong, benefiting from its naturally deep and wide harbour as well as its status as a free port, had emerged as one of the world’s busiest ports in terms of container throughput. Meanwhile, port development and management on the mainland were relatively underdeveloped. In response to this, Premier Zhou Enlai specifically called for efforts to substantially improve the condition of mainland ports within three years.
Subsequently, the Central Government conducted a comprehensive evaluation of the nation's port infrastructure. Yantian Port in Shenzhen, along with Beilun Port in Ningbo, Dayaowan Port in Dalian, and Meizhou Bay in Fujian, was designated by the Ministry of Transport as one of the four major deep-water ports to receive priority in national development.
Shenzhen's leadership has noted that Yantian benefits from exceptionally favorable natural conditions: with depths ranging from ten to twenty metres, calm waters, and no sedimentation—an ideal natural port gifted to us by nature. As early as his time, Dr. Sun Yat-sen had advocated for the establishment of a port in Yantian.
Given the situation at the time, Shenzhen urgently needed to attract foreign investment and world-class management expertise to develop a modern, international port. Hong Kong, with its close proximity and seamless connection to Shenzhen by land and water, was uniquely positioned to provide these resources.
During the early stages of YANTIAN's construction, Hutchison Ports not only provided substantial financial backing to YANTIAN but also contributed exceptional talent, extensive business resources, advanced management practices, and state-of-the-art computer systems. Furthermore, the high-quality infrastructure, built to British standards, laid a solid foundation for the port's development. This played a pivotal role in YANTIAN's journey to become the only port in China to secure six national engineering awards. At the same time, Shenzhen offered invaluable experience in the domestic shipping market and in liaising with various government bodies and superior port authorities. The collaboration between Shenzhen and Hong Kong stands as a quintessential example of mutually complementary strengths.
Part Two
The mutual trust between Shenzhen and Hong Kong shareholder, along with their decision to start construction projects ahead of schedule, played a pivotal role in setting YANTIAN on a path toward a virtuous development cycle, providing a firm foundation for its goal of becoming a world-class port.
When I first engaged with YANTIAN, its container throughput had just exceeded 100,000 TEUs, representing 20% of the terminal's designed throughput capacity and 10% of its actual throughput capacity. At that time, the growth trend was not yet clearly apparent.
At that time, the company had already committed to investing in the development of YANTIAN Phase II, with a total investment of 4.7 billion HKD—almost double the cost of Phase I. Yet, we did not stop there. After conducting a thorough investment evaluation for YANTIAN Phase III project, the company made the forward-thinking decision to plan both Phase III and its subsequent expansion in advance. This was aimed at accommodating larger container vessels and supporting the rapid growth of China's manufacturing and international trade sectors.
Unexpectedly, this decision came back to me four and a half years later. In May 2001, I was appointed to be the CFO of YANTIAN, and in November of that same year, the contract for Phase III was officially signed, with a total investment of approximately CNY6 billion.
However, before construction began, disagreements emerged between the Shenzhen and Hong Kong parties over the operational model. Since the Hong Kong side held a larger stake in Phases I and II than in Phase III, the Shenzhen side feared that the Hong Kong-led management team would prioritise resources and business for Phases I and II, only focusing on Phase III once the resources of the former phases were fully utilised. In response, Shenzhen considered whether to establish separate financial, operational, and business units for each phase to safeguard the interests of Phase III. However, this approach would complicate the company structure, increase operational costs, and potentially lead to conflicts and unhealthy competition between the companies. Moreover, resources would not be maximised, which could result in longer vessel waiting times and extended port operation durations, ultimately impacting YANTIAN's global competitiveness.
After further discussions, the Hong Kong side proposed an innovative "integrated management" model, in which the existing management team would oversee the port as a unified whole, ensuring shared resources. With this concept in mind, both parties, guided by mutual trust and understanding, reached a consensus. They agreed to allocate costs, revenues, and profits based on the operational capacities of Phases I, II, and III.
Implementing this innovative management model was no small feat. With domestic regulations on finance, taxation, and port operations still evolving, interpreting and managing these new models became a central focus of my communication and coordination with various government departments. If mishandled, it could increase the company’s administrative burden and operating costs, potentially undermining the efficiency and economic feasibility of the management model. Fortunately, the proactive feedback and genuine support from Shenzhen's government departments were invaluable, offering us significant assistance.
Ultimately, our management model proved highly effective. Just two years after the contract for Phase III was signed, and despite having only five available berths, the port’s throughput reached 5.45 million TEUs—setting an impressive industry benchmark of over 1 million TEUs per berth annually.
On November 8, 2005, we embarked on the expansion of YANTIAN Phase III. In this project, we continued to employ the "integrated management" approach. I clearly recall that on the eve of signing the contract for the expansion project, my colleagues from both Shenzhen and Hong Kong worked relentlessly through the night to finalise all necessary preparations, including shareholder agreements, joint venture contracts, and other legal documents, ensuring everything was ready ahead of the scheduled signing date.
Fortunately, after years of collaboration and adjustment, the management teams from Shenzhen and Hong Kong had built deep trust and mutual understanding. Throughout the negotiations, we fostered an atmosphere of trust and tolerance, sought common ground while respecting differences, and worked together to identify shared interests, ultimately producing the optimal solution. This high level of cooperation and coordination ensured the smooth advancement of Phase III Expansion, laying a solid foundation for the port's future growth.
In 2013, with the arrival of Maersk's 18,000-TEU 3E-class vessel, YANTIAN became one of the only three ports in China capable of accommodating the world's largest container vessel at the time, alongside Shanghai Port and Ningbo Port. The mutual trust between Shenzhen and Hong Kong shareholders, along with their decision to proceed with the Phase III Expansion, played a pivotal role in setting YANTIAN on a path toward a virtuous development cycle, providing a firm foundation for its goal of becoming a world-class port.
Part Three
On August 20, 2024, the "Chongqing-Shenzhen-Hong Kong Scheduled Service" was successfully launched, cutting the transportation time for Chengdu-Chongqing cargoes from the original 5-6 days to just 2 days (to YANTIAN) and 3 days (to Kwai Tsing Port of Hong Kong). This initiative capitalised on the strengths of Shenzhen-Hong Kong connectivity, creating seamless links between inland and costal markets.
Supporting the efficient connection between the Guangdong-Hong Kong-Macau Greater Bay Area and mainland cities
From 2006 to 2021, I was assigned to oversee three joint venture terminals in Shanghai and two in Hong Kong, all the while maintaining a close watch on the development of YANTIAN.
On January 8, 2013, YANTIAN set a new industry record, achieving a cumulative throughput of over 100 million TEUs in just 18 and a half years, the fastest ever. On February 1, 2021, YANTIAN hosted the "200 Million TEU Celebration and South China Cross-Border E-Commerce Preferred Port Launch Ceremony" to mark the milestone of surpassing 200 million TEUs in cumulative throughput. With every achievement in YANTIAN's growth, I celebrated its success in my heart.
In June 2021, I returned to YANTIAN as the Managing Director. In recent years, Hong Kong's port throughput has been gradually declining. While Hong Kong continues to benefit from its global status as a free port and international transshipment hub, and remains South China's primary gateway for Intra-Asia and South America services, the challenge remains: how to leverage Hong Kong's unique advantages to complement YANTIAN, achieve mutual benefit, and avoid homogenous competition. This is an issue that still requires urgent resolution.
Since the opening of YANTIAN, there has been regular feeder services between it and Hong Kong's Kwai Tsing Port. Initially, this was a one-way shipping model from YANTIAN to Hong Kong, but it later evolved into a "two-way" service. In 2023, container transport between YANTIAN and Hong Kong grew by 27% year-on-year, and in 2024, it surged to approximately 30%, setting a historical record.
Beyond Shenzhen-Hong Kong cooperation, we have also actively expanded partnerships with ports in other mainland cities, fully leveraging the advantages of both Shenzhen and Hong Kong ports to ensure smooth and uninterrupted cargo flow.
In July 2023, during the "2023 Hong Kong Enterprises Tour to Chongqing" event co-organised by the Hong Kong Trade Development Council and Chongqing Commerce Commission, we proposed the concept of the "Chongqing-Shenzhen-Hong Kong Scheduled Service". This express service, utilising rail transport, significantly improves cost efficiency, transit time, and carbon reduction compared to the previous road-based method of transporting cargoes to Shenzhen for container loading. Through the "Chongqing-Shenzhen-Hong Kong Scheduled Service", mainland cargoes can not only be consolidated with related orders from Hong Kong but also connected to multiple advantageous services in Kwai Tsing Port, particularly those to South America and Asia.
Lawrence Shum (center) promoted the "Shenzhen and Hong Kong Maritime Industry Dinner 2024", which was jointly organised by the Shenzhen Ports Association and the Hong Kong Container Terminal Operators Association.
Surprisingly, this initiative was realised just two months later. In mid-September 2023, containers from Chongqing reached YANTIAN via rail in just five days. They were then transshipped onto a mega vessel in Hong Kong and shipped to Brazil. On August 20, 2024, with the support of railway authorities and government departments at various levels, the "Chongqing-Shenzhen-Hong Kong Scheduled Service" successfully launched, further reducing transportation time for cargoes from the Chengdu-Chongqing region from the original 5-6 days to just 2 days to YANTIAN and 3 days to Kwai Tsing Port.
The launch of the service provides international trade enterprises in the Chengdu-Chongqing region with a more stable, efficient, and environmentally friendly channel to global markets. It also enhances the seamless connection between the Chengdu-Chongqing region and the Guangdong-Hong Kong-Macau Greater Bay Area, promoting mutual benefits and fostering win-win cooperation among these places.
From "two-time pilotage" to "one-time pilotage"
Between April 2020 and March 2022, I was appointed by the Hong Kong SAR government as a non-official member of the Hong Kong Maritime and Port Board, where I provided strategic insights to support Hong Kong's deeper integration into the country's overall development.
Due to the unique geographical position of Mirs Bay, vessels calling at YANTIAN must pass through Hong Kong waters. On January 1, 2020, Hong Kong authorities introduced mandatory pilotage for certain segments of services within Hong Kong waters for vessels bound for YANTIAN. This policy led to a "two-time pilotage" between Hong Kong and Shenzhen, harming navigational efficiency and increasing logistics costs.
Recognising the challenges posed by this arrangement, I actively engaged with the Hong Kong SAR government, Legislative Council members, the Hong Kong Liaison Office, the Shenzhen Transport Bureau, pilotage stations, and the Shenzhen Maritime Safety Administration. Through persistent efforts and coordination, we successfully advocated for the implementation of a "one-time pilotage" policy in Mirs Bay, streamlining vessel navigation, enhancing operational efficiency, and reducing costs for the shipping industry.
On March 15, 2022, the Shenzhen Transport Bureau and the Hong Kong SAR Government Marine Department signed the Framework Agreement on Pilotage Cooperation in Mirs Bay Waters. This agreement established mutual understanding on key aspects such as the scope of vessels covered by the pilotage cooperation, scheduling procedures, and pilotage fee standards. It represents the first substantial collaboration between the Shenzhen and Hong Kong governments in the field of pilotage, aimed at fostering the development of ports within the Guangdong-Hong Kong-Macau Greater Bay Area.
The Mirs Bay waterway, with its exceptional natural conditions—including expansive waters and a secure navigation environment—provides a robust foundation for the effective implementation of the "one-time pilotage" policy. This initiative not only shortens the stay-at-port time of vessels and improves operational efficiency but, more importantly, significantly lowers operational costs for enterprises. In the past, there were over 4,000 container vessel calls to YANTIAN annually, incurring additional "two-time pilotage" fees totaling up to CNY200 million. Today, by optimising services, each voyage can save between CNY50,000 and CNY80,000 based on vessels' actual loading, enhancing the efficient flow of vessels in the Greater Bay Area and further promoting the region's economic synergy.
Part Four
As a pioneer of over 31 years of Shenzhen-Hong Kong cooperation, YANTIAN was born from this partnership and flourished through the joint efforts of Shenzhen and Hong Kong.
Serving as a member of the Standing Committee of the Chinese People's Political Consultative Conference of Yantian District contributing to Shenzhen-Hong Kong development
In 2021, I was appointed as a member of the Standing Committee of the Chinese People's Political Consultative Conference of Yantian District. I actively participated in political consultation and was dedicated to providing constructive opinions and suggestions for the cooperation and development between Shenzhen and Hong Kong.
As a representative in the Hong Kong and Macau special category, I have organised several research trips for mainland government officials and enterprises to Hong Kong, while also facilitating visits by Hong Kong groups and associations to YANTIAN and Yantian District. These exchanges provided a platform to explore collaboration opportunities between Shenzhen and Hong Kong. At the same time, I have maintained active communication with the Hong Kong SAR government, the maritime industry, and other relevant organisations, including the Liaison Office in Hong Kong, members of the Hong Kong Legislative Council, the Hong Kong Liner Shipping Association, the Guangdong and Hong Kong Feeder Association, the Hong Kong Shippers' Council, the Hong Kong and Macau Affairs Office, and various mainland ministries. Through these efforts, I have contributed to the strategic planning and development of "Shenzhen-Hong Kong win-win cooperation".
In 2023, I had the privilege of attending the 13th Standing Committee Meeting of the 7th Shenzhen Committee of the Chinese People's Political Consultative Conference. During the meeting, I proposed leveraging the development opportunities presented by "Shenzhen as a logistics hub with global influence" and the "Northern Metropolis of Hong Kong." I recommended fully capitalising on the unique advantages of the deep-water navigation channels in both eastern Shenzhen and Hong Kong, along with the strengths of their port and logistics industries. I also advocated for the creation of a "Shenzhen-Hong Kong Cooperation International Logistics Hub Demonstration Zone" in the area where eastern Shenzhen borders Hong Kong. This demonstration zone will facilitate the integration of institutional systems and the interconnection of key resources across the two regions, while fostering the collaborative, co-constructed, and shared development of the industrial ecosystem. Through this cooperative platform, we can reshape the framework for Shenzhen-Hong Kong maritime cooperation and expand the "pie" of maritime collaboration between the two regions.
In March 2023, at the " Shenzhen and Hong Kong Maritime Industry Dinner 2023" event, Lawrence Shum (fourth from the left) posed for a photo with representatives from both Shenzhen and Hong Kong, as well as maritime industry professionals.
In that same year, I, together with the leadership of the Shenzhen Committee of the Chinese People's Political Consultative Conference, visited the Hong Kong Transport and Logistics Bureau. In November 2022, YANTIAN launched South China's first offshore international bunkering service, and I proposed that Shenzhen's LNG bunkering vessels could extend their services to Hong Kong. This initiative would not only swiftly enhance Hong Kong's competitiveness as an international shipping center but also expand Shenzhen's offshore LNG bunkering service. The Hong Kong Transport and Logistics Bureau responded positively, recognizing the potential of the proposal to invigorate Hong Kong's maritime industry. I am confident that it will soon come to fruition.
Shenzhen and Hong Kong will continue to strengthen cooperation, achieving seamless connectivity both internally and externally
In 2024, the Decision of the Central Committee of the Communist Party of China on Further Deepening Reform and Advancing Chinese-style Modernization passed during the third plenary session of the 20th National CPC Congress, clearly highlighted Hong Kong's strategic role: “Consolidating and enhancing its position as an international financial, shipping, and trade center." In parallel, Shenzhen has set forth plans to accelerate the development of a globally influential logistics hub. Against this backdrop, our focus is on advancing the efficient linkage between the Kwai Tsing Port in Hong Kong and YANTIAN in Shenzhen, ensuring the smooth flow of logistics resources. This initiative will boost the international competitiveness of the Greater Bay Area and contribute to the high-quality development of international trade in China.
In 2024, YANTIAN's annual throughput exceeded 15 million TEUs for the first time, reinforcing its position as one of the largest container terminals run by a single operator globally.
We leverage the world-class road networks, airports, and seaports of both Shenzhen and Hong Kong. YANTIAN is seamlessly integrated with the national railway network via the Pingyan Railway, while Hong Kong benefits from the institutional advantages of "one country, two systems" and its status as a free port. Together, we create a robust framework for connectivity, driven by enhanced infrastructure, collaborative regulations, and a shared sense of unity between the people of both cities.
Currently, the development of ports in both cities is steadily progressing, with passenger flow now operating seamlessly. The trip from YANTIAN to Kwai Tsing Port takes only 60 minutes. If freight transport can match the efficiency of passenger transit, it will further accelerate the growth of both cities, enhance trade flow, and foster industrial prosperity.
As a pioneer of over 31 years of Shenzhen-Hong Kong cooperation, YANTIAN was born from this partnership and flourished through the joint efforts of Shenzhen and Hong Kong. Since handling its first container in 1994, YANTIAN has set a global port record, achieving the fastest cumulative handling of 200 million TEUs at a single terminal in just 26.5 years. Following China's accession to the WTO, the manufacturing sector made a significant leap from being the "world's factory" to becoming a "manufacturing powerhouse." YANTIAN has provided a reliable and efficient logistics channel for "Made in China" to reach global markets, playing a pivotal role in supporting the high-quality development of international trade in Shenzhen and nationwide.
Interviewed and written by: Shenzhen Evening News reporters: Cheng Gong and Tang Wenjuan