Thanks to its world-class infrastructure, business-friendly environment and state-of-the-art logistics services, Hong Kong has been the cradle of international shipping, facilitating movements between the world and the vast markets of Asia and China. Positioned as a global logistics hub, Hong Kong’s modern port facilities have also enhanced its competitiveness as one of the busiest container ports globally. Seas aside, its extensive rail network and road connectivity have further added to the city’s appeal for domestic and international logistics.
While it seems rosy on the frontlines with Hong Kong’s wide range of logistic services, other value-added offerings and efficient transportation infrastructure, the city slipped down the ranks of the world’s business ports earlier this May. As challenges like rising competition from neighboring ports and cities, geopolitical uncertainties and the evolving global trade landscape may have contributed to the downturn of the industry, the call for transformation could not be more important than now to stay relevant in changing times, while keeping its shipping flag flying high.
Technology, innovation and a secure infrastructure
Embracing technology and innovation is the way forward for the logistics industry to improve its operational efficiency, scalability and agility in its next phase of growth. It is promising to see Hong Kong’s long-standing logistics industry’s adoption of technology and innovation to maintain its regional and global competitiveness, such as smart contract with blockchain, AI, data analytics, robotics or automation, and Internet of Things (IoT) to improve productivity, reduce operations costs and enhance visibility across the logistics network.
For instance, IoT enables logistics services providers to perform asset tracking, real-time data sharing and customer service communications, thereby improving productivity and customer experience. 5G technology makes IoT deployment a lot easier while offering new and improved solutions of low latency and high speed to the logistics industry. In addition, the use of robotics automates operations, improving efficiency and reducing operational costs as a result.
At Orange Business, we provide end-to-end solutions in our role as a complete digital transformation partner – with reliable connectivity, modernization through the latest technology, enhanced and secure communications platforms with customers, digital tracking tools, hyper-automation, and more. We co-innovate with enterprises to create new value as explained in the following examples for the logistics sector:
- Use of IoT for monitoring of critical environmental conditions and to conduct preventive and predictive maintenance, automation of tasks to improve operational efficiency and energy consumption
- IoT smart asset tracking to monitor critical asset usage and locations across indoor, outdoor and global locations
- AI and fleet management solutions for dynamic route optimization, logistics scheduling and carbon emissions management
- Digitalized operational processes which combines Robotic Process Automation (RPA) with AI, OCR (Optical Character Recognition) CRM with chatbots and smart contract blockchain for shipment declaration
- Securely connected digital infrastructure through the use of SD-WAN with a hybrid network on traditional MPLS, Internet, Low Orbit Satellite networks (for example Starlink) and mobile connectivity including 5G, IoT LoRa-WAN, Zigbee and NB-IoT networks
It is also imperative to note that logistics happened to be one of the two hardest-hit sectors in Hong Kong last year by cybercriminals for ransomware. As bad actors have become savvy about using new tools, such as AI, to launch attacks, an increased cybersecurity posture is required to safeguard the industry.
For any logistics company, start by securing your digital infrastructure to protect your data and assets and ensure uninterrupted operations and to withstand and defend against cyberthreats. By virtue of the extensive Orange Business customer base and experience in the transport and logistics sector, we not only understand the digital needs of supply chains but can ably offer customized cybersecurity solutions with proven capabilities to support every step of our customers’ transformation journeys.
Conclusion
Private sector aside, the Hong Kong government is also helping with the long-term sustainability of the logistics industry through R&D support while supporting collaboration between industry players and research institutions. The multi-pronged approach that combines technological uptake, innovation push, advocating sustainability and continuous investments in infrastructure that is secure-by-design with network monitoring solutions that offer visibility will go a long way to solidifying Hong Kong’s logistics future.
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Edmund is the General Manager of Orange Business Hong Kong and Taiwan. He is responsible for developing and managing our portfolio of business solutions for multinational enterprises and provides strategic direction to support the growth of Orange Business as the leading integrated communications provider in Hong Kong and Taiwan. Edmund likes having a whisky or two during his down time to unwind when he is not driving.