Page 16 - Sphere No.29 (Jun 2011)

Flashback:
The Pearl River Delta’s first
transformation
Farmers and fishermen in the sleepy rural backwater of the Pearl River
Delta 30-odd years ago could scarcely have imagined what the future
had in store. In 1979, the Chinese Government launched its “open door
policy”, a bold economic experiment that dictated a blistering pace of
development and permanently altered China’s economic course. Since
that monumental year, there has been no turning back for this regional
economic powerhouse.
The first big steps were the establishment in 1980 of Special Economic
Zones (SEZs) in Shenzhen, adjoining Hong Kong, and Zhuhai, next to
Macau. The zones were trailblazers for a new era of development fuelled
by foreign direct investment, mainly from Hong Kong.
The new policies brought about dramatic changes in the region’s rural
economy. Farm labourers walked off fields and onto production lines as
export processing activities burgeoned across the landscape. The rise of
local township and village enterprises further ramped up output, dramat-
ically decreasing the Delta’s reliance on agricultural industries, boosting
incomes and contributing to the export processing boom.
The success of these early experiments led to the establishment of the
Pearl River Delta Economic Zone in 1994. The new structure aimed to
harmonise development and increase coordination between local govern-
ments, with the guidance of the region’s leading urban centres, Guang-
zhou and Shenzhen. The region was officially seen as the testing ground
for market-based policies that would pioneer a new economic age.
The pace of ongoing transformation was boosted by delegation to pro-
vincial authorities of increased responsibility for setting economic policy.
Unprecedented autonomy paved the way for the implementation of novel
initiatives, such as the Shenzhen Stock Exchange, new land lease systems
and experiments in privatisation. All were nurturing the development of
a market oriented culture that would be integral to the region’s competi-
tiveness and sustained success.
The 1990s saw increased diversification in the manufacturing base
through investment in high value added industries such as computers,
information technology and biological engineering. By 2001, the Pearl
River Delta was producing close to five per cent of the world’s goods,
with an export value totalling USD289 billion. In categories such as toys
it was the world’s main source. Around this time, the region became
justifiably recognised as the “world’s factory”.
Thirty years of stellar economic results are testament to the extent of
the Pearl River Delta’s development miracle. Regional gross domestic
product, standing at just USD8 billion in 1980, rose to USD89 billion in
2000 and nearly USD428.29 billion in 2008, according to a report com-
missioned by Invest Hong Kong. With such an illustrious record, solid
foundations in place, and a far-reaching vision underpinned by clear
targets, the Delta is positioned for another era of impressive growth.
Port milestones
• Hongkong International Terminals (HIT)
commences operations at Terminal 4 at
Kwai Chung container port.
1976
• China announced its open door economic
policy, throughput at HIT is just under
500,000 TEUs.
1978
• HIT completes Terminal 6 at Kwai Chung,
by which time throughput at HIT is more
than 1.5 million TEUs.
1989
• HIT’s Terminal 7 opens, uniting all HIT’s
Terminals (4, 6 and 7) into one integrated
facility.
1990
• The Group signs a contract to form a joint
venture to own, operate and further develop
the Port of Yantian in Shenzhen.
1993
• The first berth of Terminal 8 East at the
Kwai Chung Port is completed and starts
operation.
• Hutchison Port Holdings Limited (HPH) is
established to manage HWL’s interests in
port and related businesses in Hong Kong,
the Mainland and overseas.
• HPH forms a new subsidiary, Hutchison Delta
Ports Limited, to hold and manage its river/
coastal ports and related facilities in the
Mainland.
1994
• Hutchison Delta Ports forms a joint venture
with Jiangmen Shipping Company to own
and operate Gaosha Cargo Terminals in
Jiangmen.
1995
• The River Trade Terminal Company, in which
HPH owns a 37 per cent stake, is awarded
the contract to design, develop and operate
the River Trade Terminal in Tuen Mun; the
Government awards two berths at Container
Terminal Nine (CT9) to HIT.
1996
• The Guanlan Inland Container Depot is set up
to facilitate the growth of import and export
trade in the South China region.
1998
• HPH signs agreements with the Shenzhen
Government and Yantian Port Group to jointly
develop Phase III of Yantian International
Container Terminals.
2001
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