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region fromthe fallout caused by the pandemic.


HongKongtops the ranking Hong Kong has been awarded the over- all winner of fDi’s Transport and Warehousing Cities of the Future rank- ing, and also takes first place for the Economic Potential category. With a deep-water seaport located by the South China Sea, strong railway con- nections and one of theworld’s busiest international airports, the city is well equipped for the Transport and Warehousing sector. Hong Kong received an impressive number of pro- jects in the sector, with 15 transport and warehousing megaprojects worth more than $100m recorded on green- field investment monitor fDi markets between 2015 and 2020. The city ranked the highest for overall capital expenditure on Transport and Warehousing projects, out of a total of 78 locations analysed. Thecityalsoperformswell in terms


of cost effectiveness, benefiting froma lowcorporation tax rateandaffordable construction permits at just 0.4% of warehouse value. Hong Kong has dem- onstrated a commitment to strength- ening its position in the Transport and Warehousing sector, with a substantial investment of an estimated $18.26bn into expanding their international air- port. The proposed expansion would entail adding an extra runway and pre- pare the airport for dealing with an expected 102 million passengers and 8.9megatonnes of cargo by 2030.


TOP10 TRANSPORT AND WAREHOUSING CITIES: OVERALL RANK


1 2 3 4 5 6 7 8 9


10


the Transport and Warehousing rank- ing, performing well in both the Economic Potential and the Human Capital and Lifestyle categories. It has also topped the 2020 Xinhua-Baltic International Shipping Centre Development (ISCD) Index for the sev- enth year in a row, demonstrating the island’s strong Transport and Warehousing credentials. The Maritime and Port Authority of Singapore reports that at any one time, there areabout1000vessels intheport, andit isconnectedto600ports inmore than 120 countries. While Singapore has a strong presence on the water, the island also benefits from an interna- tional airport that was awarded the title of ‘World’s Best Airport’ at the 2020World AirportAwards. Singapore’s preeminent port and


“QUISQUE TURPIS LOREM, PORTANEC VENENATIS NEC.MAURIS VIVERRA IACU- LIS NISLA HENDRERIT. PROIN FRING- ILLA VEHICULA LACUS, LUC- TUS LUCTUS MI. ”


Shanghai Abu Dhabi Zaventem Chicago New York


Amsterdam Singapore ranks in second place in


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airport lead to a strong FDI perfor- mance, scoring first place out of 78 locations for FDI in the Transport and Warehousing sector. Prospective inves- tors can also benefit from Singapore’s


LOCATION Hong Kong Singapore London Dubai


COUNTRY


Hong Kong Singapore UK


UAE


China UAE


Belgium US US


Netherlands


well educated workforce and low cost of establishinga business. Moving west, London takes third


place in the Transport and Warehousing rankings. In a similar pattern to Hong Kong and Singapore, London has a strong presence in both the shipping and airport sectors, with six international airports within80km andadeep-seaport.Londonrankedtop in the Connectivity category, scoring particularly well in the World Bank’s Logistics Performance Index. In 2019, UPS opened one of their largest parcel facilities outside of the US in the DP World London Gateway. Mark Vale, president for UPS UK, Ireland and Nordics, stated that London’s “state-of- the-art facility enables us to further improve our services to companies of all sizes that are looking to grow their cross-border business”.


Methodology To create a shortlist for fDi’s Transport and Warehousing Locations of the Future 2020/21, the fDi Intelligence division of the Financial Times col- lected data using the specialist online FDI tools – fDi Benchmark and fDi Markets as well as other sources. Data was collected for 78 locations, under five categories: Economic Potential, Business Friendliness, Cost Effectiveness, Human Capital & Lifestyle and Connectivity. Locations scored up to a maximumof 10 points for each data point, which were weighted by importance to the FDI decision making process in order to compile the subcategory rankings. In addition, survey submissions


“HONGKONGIS CLOSELYCONNECTED WITH THEGUANGDONG-HONGKONG-MACAO GREATER BAY AREA THROUGHHIGH-SPEED RAIL LINKSANDTHEHONGKONG-ZHUHAI- MACAOBRIDGE”


STEPHENPHILLIPS, DIRECTOR-GENERAL OF INVESTMENT PROMOTION, INVESTHK


December 2020/January 2021 www.fDiIntelligence.com


were collected under a sixthcategory, FDI Strategy, for which there were nine submissions. Locations which ranked in the top three in this cate- gory were given bonus points, which contributed to their overall score. Together, the data subcategory rank- ings and the FDI Strategy ranking make up the overall ‘Transport and Warehousing Locations of the Future 2020/21’ ranking.■


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