Mainland China

Hong Kong-based BPS Global Group is a logistics infrastructure service provider that offers integrated engineering building services and automated logistics solutions to its customers across Asia. Founded in 1992 and headquartered in Hong Kong, the company deals with projects including industrial and logistic parks, warehouse automation and equipment, logistic technology, construction and engineering, investment and real estates, and e-commerce platforms.

As China’s Belt and Road Initiative gathers momentum, BPS Global has recently completed a project with a business partner from a Belt and Road country. Whereas many collaborations between China and Belt and Road countries so far have involved Chinese firms establishing a presence on the Belt and Road, in a way that echoes China’s development strategy of “going global”, BPS Global’s partnership with Indonesia’s Salim Group is a typical case of “bringing in”, another state strategy which involves the inflow of foreign capital into China.

Indonesia’s biggest conglomerate, Salim has interests ranging from palm oil plantations to media companies. In late 2015, its Chinese mainland-based subsidiary Salim Wanye Shanghai Enterprise Group came up with a plan to build a harbour in Fujian Province specialising in importing food products from Southeast Asia. Positioned as an “international industrial food park”, the harbour is to be located on a site owned by Salim within the Yuanhong Investment Zone in Fuqing City of Fujian. The project involves an estimated investment of 6 billion renminbi.

Salim’s original idea was to use the harbour to import aqua products, frozen meat and fruits from Southeast Asia to the Chinese mainland. The perishable nature of the imports meant careful logistics planning was of paramount importance. Before setting the project in motion, Salim had to commission a logistics consultancy firm to study the feasibility of the plan and provide logistical solutions. With the help of the Hong Kong Trade Development Council’s Fujian office, which helped identify a number of candidate companies based in Hong Kong, Salim eventually decided to select BPS Global, which has affiliated companies in various mainland cities including Beijing, Shanghai and Guangzhou, and also Singapore.

The role of BPS Global, which had previously handled similar projects including Humen Port and Nansha Port in Guangdong Province, involved carrying out a feasibility study and devising logistical plans. In practice, there were a variety of tasks, including designing the layout of the industrial park and working out a multi-phase development scheme for the project. The Hong Kong company also conducted a study on the feasibility of Salim’s idea of importing frozen food. One conclusion of the study, which featured a wealth of analysis and data, was that Xiamen, a port city in southern Fujian, has abundant supplies of frozen meat and fruits. BPS Global advised Salim against entering the fray and to focus on importing seafood instead, a suggestion that Salim eventually heeded. BPS Global then took reference from fish markets in Hong Kong and Tokyo and drew up detailed logistical plans, including how to keep the imported seafood fresh, what fish species should be frozen, what equipment should be used and meticulous transportation plans.

In the space of less than six months, BPS Global completed its task. The next step is for Salim to construct the harbour and related infrastructure, which should take one to two years to complete.

By applying advanced logistics concepts and technologies and by drawing on its wealth of industry experience to provide integrated logistics support, BPS Global has demonstrated how a Hong Kong logistics expert can help smooth the way for companies in Belt and Road countries to seize business opportunities in China. Through its involvement in the harbour project, the Hong Kong company has also played a part in helping the mainland attract investment from Belt and Road countries, effectively promoting the Belt and Road Initiative, which is designed to benefit all parties involved.

From Chinese mainland firms’ legal structuring to major project development in ASEAN and Russia, Hong Kong is proving a focus for Belt and Road-related financing and mergers and acquisitions, say partners from law firm Bryan Cave Leighton Paisner. The Greater Bay Area development plan is also seen as a “massive opportunity” for Hong Kong companies to play a key role in planning and governance.

Speakers:
Ian Ivory, Partner, Bryan Cave Leighton Paisner
Ilan Freiman, Partner, Bryan Cave Leighton Paisner
Cora Kang, Registered Foreign Lawyer PRC, Bryan Cave Leighton Paisner

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

The transparency and predictability of English law as practiced in Hong Kong underpin huge opportunities for developing Belt and Road projects and transactions, according to the co-authors of a book published by legal firm Bryan Cave Leighton Paisner. Also, the Belt and Road Initiative has built significant momentum in a short time to already prove very successful.

Speakers:
Ian Ivory, Partner, Bryan Cave Leighton Paisner
Ilan Freiman, Partner, Bryan Cave Leighton Paisner
Cora Kang, Registered Foreign Lawyer PRC, Bryan Cave Leighton Paisner

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Hong Kong-based CALC is among the world’s top 10 aircraft leasing companies in the freight sector, says CEO Mike Poon. He says Hong Kong is an easy location for expertise in the sector, which also includes orders for aircraft parts, re-sale and recycling. CALC is connected to the Belt and Road Initiative through what is now called the “Aviation Silk Road”.

Speaker:
Mike Poon, CEO, China Aircraft Leasing Group Holdings Limited

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Dezan Shira & Associates (DSA) is a pan-Asia, multi-disciplinary services firm that provides professional consultation in accounting, auditing, taxation, IT and human resource management to multinational corporations and foreign investors.

DSA aims to assist and guide companies through the establishment, maintenance and expansion of their business operations in Asia. Their clientele is spread across many Belt and Road countries and regions including Hong Kong, mainland China, India, Vietnam, Indonesia and Singapore.

DSA used to run their internal data applications through a common network and IPSec VPN. However, after they installed a new large-scale Microsoft ERP system, the shared internet access was not sufficient to support a sound operation, and they found themselves in urgent need of more data security.

HKT devised a comprehensive virtual private enterprise network and internet service for DSA, that provided a high-quality, stable and speedy network connecting other regions.

HKT set up private networks for DSA at several core offices in the Greater China region, allowing interconnection and interoperability at various sites. Each branch enjoyed completely exclusive bandwidth, while DSA’s key ERP system was protected with high levels of privacy and stability of data transmission via HKT’s Quality of Service (QoS) and Flow Control Technology (CoS).

Enabled by HKT’s one-stop solution, DSA has managed to improve the user experience of their internal data applications. DSA now uses HKT’s Premium Internet services for all their mainland-based offices to resolve the issue of connection failure when staff access information from other regions from their offices in the Greater China region. HKT’s services have been well received by DSA staff, as speed has more than doubled when loading websites of other regions and transmitting documents online.

For example, the average data transmission delay between its Beijing office and other branches has been reduced from 120 to 40 milliseconds, with the packet loss ratio dropping from the previous 10% to close to zero*.

With HKT’s support, DSA’s is expanding rapidly, and offering comprehensive foreign investment services for multinational companies looking to enter Belt and Road markets.

*Remarks: All test results were provided by DSA

Contact us:
http://www.hktchina.com/contact-us.php?lang=En

China Aircraft Leasing Group Holdings Ltd (CALC), an aircraft operating lessor founded in Hong Kong, specialises in providing aircraft full-life solutions, such as aircraft leasing, purchase and leaseback, structured financing to airlines around the world. It also provides value-added services including fleet planning, fleet upgrade and aircraft recycling. In a dynamic market that has been gaining traction year after year, CALC is one of the market players that stand to benefit from the boom. Today, the company has grown to become China’s largest independent aircraft operating lessor, Asia’s first large-scale aircraft recycling facility operator, and one of the top 10 global aircraft lessors in terms of the combined asset value of its fleet and orders placed. Its global presence is continuing to expand.

CALC’s business is mainly divided into two areas: CALC itself is responsible for the leasing of new aircraft; its member company, Aircraft Recycling International (ARI), focuses on the disassembling and recycling of used aircraft and spare parts supply. This unique business model means the company’s services cover an aircraft’s full life cycle – from its days as a new plane to the time it comes to the end of its lifespan. As the first full value-chain aircraft solutions provider in Asia, CALC currently owns and manages 130 aircraft in its fleet and is on track to expand its fleet to more than 300 by year 2023.

Over the past three decades, the aviation leasing industry has been growing at a remarkable speed as more and more airlines prefer to lease, rather than own, their aircraft for operation flexibility and efficiency. The outlook for the industry has become even more positive in recent years, with low interest rates and surging demand for air travel providing strong tailwinds. Amid the boom, CALC launched in 2014 a “globalisation strategy” aimed to carve out a global presence for the company. In less than two years, CALC’s clientele expanded to include airlines in Asia Pacific, Southeast Asia, Europe, Middle East and the United States, many of which are flag carriers or top-tier airlines in their markets.

The aircraft lessor first set its sights on Harbin, the pivot hub of the Longjiang Silk Road Economic Belt under the Belt and Road framework, which connects Eurasia with the Pacific and Baltic countries through a comprehensive land and sea transportation network. In 2014, CALC signed an agreement with the Harbin Municipal Government on the establishment of China’s first and largest aircraft disassembly project, the China Aircraft Disassembly Centre. The centre features an ageing aircraft material recycling system, which provides services to countries including those along the Belt and Road routes.

Also in 2014, CALC entered into leasing agreements with Air India – its first non-Chinese customer – for five new Airbus A320 aircraft. The first of the five planes was delivered during Indian Foreign Minister Sushma Swaraj's trip to China in February 2015.

As the “Aviation Silk Road” continued to gather momentum, CALC expanded its reach into more and more Belt and Road countries. In 2016, it delivered two new Airbus A320 aircraft to Pegasus Airlines, Turkey’s leading low-cost carrier, and four Airbus A320 aircraft to Jetstar Pacific, Vietnam’s first low-cost carrier. In 2017, CALC continued to deliver aircraft to airlines in various parts of the world, including in Russia, one of the largest markets on the Belt and Road.

Currently, aviation is one of the key areas of focus of the Belt and Road Initiative. As of the end of December 2016, China had signed bilateral air transportation agreements with 120 countries and regions. Mike Poon, Chief Executive Officer of CALC, said CALC sees great growth opportunities arising from the Belt and Road Initiative.

“In China, demand for domestic and international air transport services, including different aviation financial services, is growing rapidly. Meanwhile, many Belt and Road countries are emerging economies with an underdeveloped aviation sector. We believe our growth potential is high since we are the first-mover in the industry and one of the few operators that provide full value-chain aircraft solutions and value-added services to our clients around the world,” Poon said.

That is not to say there is no challenge. As with many other cross-border industries, the aircraft lessor sector is exposed to different operational risks, including political instability, credit risk and interconnectivity risk. To counter the risks, which are not unusual in Belt and Road countries, CALC relies on its own professional team with substantial experience in global financing and a comprehensive risk management system. This enables the company, which is listed on the Hong Kong Stock Exchange, to keep risks under control when expanding internationally.

According to Poon, in its continued effort to expand its international presence, CALC, being a Hong Kong company, also enjoys a diversity of advantages that the city offers. They include an open economy, the city’s sophisticated banking and financial sector, the common law system, and Hong Kong’s role as a facilitator of Belt and Road opportunities. In addition, the Hong Kong government’s move last year to grant aircraft leasing tax concessions to qualifying lessors has taken the city a step towards establishing itself as an international aircraft leasing hub. All these local advantages stand CALC in good stead, enabling it to grow fast and in the right direction while playing an effective role in building the “Aviation Silk Road”.

Zai Lab is a high-tech biopharmaceutical company headquartered in Shanghai that specialises in transformative medicines. With its expertise and experience in innovative medical research and development (R&D), Zai Lab partners with the world’s top multinational companies and institutions to carry out joint research and product development. For Zai Lab, global data transmission and internet accessibility are vital to its daily operation.

HKT provides ICT solutions to a number of the world’s top 500 companies and many established pharmaceutical enterprises. HKT’s project team possesses extensive experience to offer customised solutions to Zai Lab – using multiprotocol label switching (MPLS) to create virtual private networks (VPN).

HKT’s experienced advisory service team understood the project objectives and was able to tackle issues encountered during implementation. The project team coordinated across various departments in Zai Lab and was able to complete the project ahead of schedule.

HKT’s MPLS VPN solution to Zai Lab has improved the company’s internet accessibility significantly. Zai Lab’s staff can now access information from overseas websites more easily and data transmission has become faster, more stable and more secure.

Going forward, leveraging the expertise of HKT, Zai Lab plans to expand its business worldwide to capitalise on the opportunities presented by the Belt and Road Initiative.

Contact us:
http://www.hktchina.com/contact-us.php?lang=En

The Hong Kong University of Science and Technology is playing a key research role for Belt and Road Initiative opportunities, says HKUST’s Albert Park. Co-presenting a series of market insight seminars, Professor Park says the HKUST’s Business School has a major collaboration with overseas academics while as founding member of the Asian Universities Alliance it is promoting two-way partnerships with Belt and Road countries and opportunities in Hong Kong.

Speaker:
Albert Park, Director, HKUST Institute for Emerging Market Studies

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Hong Kong’s historic Peak Tram and The Peninsula are iconic landmarks for visitors while the Belt and Road Initiative provides long-term opportunities for their owner, The Hongkong and Shanghai Hotels. CEO Clement Kwok says the key to success is the company’s focus on people-to-people relationships.

Speakers:
Clement Kwok, CEO The Hongkong and Shanghai Hotels
Kim Wedderburn, Lawyer, IT sector
Antonia Theresa Rodriguez, Chief Order Taker, Room Services, The Peninsula Hong Kong
Henry Ho, Guest Relations Executive, The Peninsula Hong Kong

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Prosper Construction Holdings, a Hong Kong-based contractor specializing in marine construction services, has an established track record in marine infrastructure developments at home and abroad.

Established in 2001, Prosper Construction owns over 50 marine plants and vessels, including floating jetties, a floating batching plant, a wide range of barges and dredging equipment, and a diversity of land construction equipment such as cranes and earth-moving machines. It also operates its own crew and technicians. All these give the company an edge when bidding for projects and enables it to ensure high project quality and good time control. This strength in resources has also helped Prosper Construction win a variety of marine infrastructure projects in regions or countries along the Belt and Road route. A good number of the projects are located in Indonesia, Southeast Asia’s largest economy which has the region’s greatest need for new infrastructure.

A high-profile project that Prosper Construction completed recently through its subsidiaries, Hong Kong River Engineering Co. and PT Indonesia River Engineering Co., is a coal-fired power plant in Bali.

Located in Celukan Bawang, North Bali, the plant was built with an investment of US$700 million by China Huadian Group, one of the five largest state-owned power generation enterprises in China, as well as PT Merryline International, and PT General Energy Indonesia. It consists of three units, each carrying a capacity of 142 megawatt units and using efficient, clean coal technology.

Over the past decade, Bali the island has been depending heavily on electricity supplied by Java-based power plants. Demand for electricity on the island has been on the rise, and frequent blackouts have hampered local businesses and investments. The establishment of the plant is expected to help the island enjoy more stable power supply.

Prosper Construction was responsible for constructing the jetty, revetments and seawater intake pipeline. The company’s Hong Kong team was behind the scenes, drafting the tender proposal in the early stage and liaising with consultants.

There were considerable challenges in executing the project, including local shortage of building materials and strong wind and fierce waves in the area where the plant is located. Yet Prosper Construction managed to pull through by ensuring its technicians upheld the safety standards and by sourcing materials from China.

The project is an example of how a resourceful Hong Kong company can readily employ what it has to support Chinese investors to go abroad and help build infrastructure projects that benefit Belt and Road countries.