59
Smoothing the path
As part of the Macau Business series looking at the young entrepreneurs
who are shaping the future of our economy, this month we look at the
logistics industry which is facing challenges on many fronts
by Yuci Tai
ance procedures were very complicated.
"For example, a shipment of three tons
from the mainland via Macau to Taiwan, if
D
ESPITE being small in size and
it consisted of 1,000 types of goods, only 5
population, and having an economy
items were allowed into one import or ex-
with limited internal demand,
port license,'' says Lei.
Macau has gained a foothold as a trans-
Even with annexes attached, at most,
shipment point for the logistics industry by
only 10 items could be contained on the
fully taking advantage of its position as a
license.
gateway to China and a trading platform
"In addition, the individual coding of
for the European Union and the world's
each item was required on the forms. This
Portuguese speaking countries.
was time consuming and labor intensive,
As a free port and an independent
S
it took hours just to prepare the licenses,''
T
O
customs territory, the city also places no
S
A
said Lei.
restrictions on the movement of capital
B
A
D
and it has a low-rate tax system. Since the
A Smoother
handover 10 years ago the government
L
Ç
A
has actively promoted the logistics indus-
C
O
N
Lei says since the handover the SAR
try while fostering the development of the
U
government has reached a consensus with
MICE (Meetings, Incentives, Conventions
/
N
N
the sector to facilitate these operations.
and Exhibitions) industry because the two T
I
O
P
For goods valued below MOP5,000, only a
are closely related.
: O
S
simple declaration form, stamped with the
T
O
company chop is required, saving a great
O
Fierce competition
lei ian lai H deal of time and manpower.
P
“Besides, with China adopting ever-
However, with Macau Airport facing
"After the handover, the relationship more open policies, annual cargo turno-
fierce competition from its Hong Kong,
between the central government and Macau ver keeps rising. For example, in 2006 it
Shenzhen, Guangzhou and zhuhai coun-
became like father and son. Not only were reached about 220,000 tons of airfreight.”
terparts, coupled with the fallout from the
customs clearance formalities simplified, Like every other industry logistics
global financial crisis and the beginning of
but they also made fair competition possi- has been affected by the global economic
“Three Direct Links” between mainland
ble in the industry.” crisis. In February this year, airfreight
China and Taiwan, the local logistics indus-
turnover recorded a year-on-year plunge of
try is under pressure.
Time consuming
60 percent.
In the current environment, how can it
According to Lei, because Macau is
find a way out, taking full stock of its own
After finishing high school, Macau
not a production base, its logistics lifeblood
advantages and features? Macau Business
native Lei opened a garment factory with
depends on the flow of goods between other
spoke to two entrepreneurs from logistics
friends but in 1996, due to the decline of the
territories. Since the onset of the financial
companies who shared with us their views
garment industry and his realization that
crisis, the shrinking demand of imports
about the development of the industry.
there was potential in the logistics industry,
from Europe, USA and other regions has
Lei Ian Lai of New World Express and
he switched businesses.
resulted in fewer business opportunities.
Macau’s logistics business relies on the
Morse lei
Transportation Company believes that the
key to the growth of the logistics industry
shipment of goods between Macau, main- Heavy blow
is government support. “Before and after
land China and Taiwan. Many Taiwanese
the handover, the colonial and SAR govern-
businessmen had set up factories in the Also, in the past, direct flights were
ments had completely different attitudes to-
mainland. They needed to transport mate- not allowed between mainland China and
wards the logistics industry.” says Lei.
rials to be processed in the mainland and Taiwan and goods had to be shipped via
Prior to the handover, goods from
deliver the finished goods back to Taiwan. Macau or Hong Kong. Now Taiwan has
the mainland were transported to Macau
Macau was in the right place to per- established direct flights to many cities in
through the Border Gate and clearance
form the trans-shipment role. Before the the mainland like Shanghai, Beijing, Shen-
procedures were very complicated. At that
handover, the general business outlook zhen, Guangzhou and Nanjing and since the
time there was no ACCIA and firms had to
for the logistics industry was quite good, beginning of this year, direct cargo flights
pay “coffee money” to clear customs, Lei
with an annual airfreight turnover of over across the Strait have also been allowed.
points out.
100,000 tons. But back then customs clear- This has dealt a heavy blow to the
april 2009
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