Aerial view of road traffic in a city

Infrastructure Connect: A joint new era for Hong Kong and Shenzhen

Transport infrastructure plays a critical role in facilitating economic development. This article explores the Government’s transport infrastructure development vision and strategies in the Greater Bay Area (GBA), focusing on Hong Kong and Shenzhen.


In brief:

  • The common challenge of land shortage for development in Hong Kong and Shenzhen can be solved through the Cities-Hubs-Industrials Transport Integrated Development (CHI-TID) model.
  • When it comes to development of the entire region, more issues need to be considered, and it is not a simple task at all.
  • Hong Kong and Shenzhen must be engaged in coordinated efforts, in order to benefit from the various economic arrangements in the mainland.

Substantial investment has been made in transport infrastructure in both Hong Kong and Shenzhen. Both cities have well developed road and rail networks that connect their population and key economic activity centres, as well as the ports and airports being among the world’s busiest by throughput. These top-class infrastructure have enabled highly efficient people and freight movements, within the city, across the boundary, and with the rest of the world.

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Chapter 1

Transportation investment and management models in Hong Kong and Shenzhen

Infrastructure projects and their challenges

In anticipation of the growing demand of domestic, cross-boundary, and international people and freight traffic, continuous investment is needed to upgrade the transport infrastructure in the GBA. Learning the current investment and management models of the key infrastructure projects and the official guiding development policies can help us see how these infrastructure plans may evolve in the future.

Hong Kong and Shenzhen have different transport infrastructure management models. Most of the operational and quasi-operational transport infrastructure in Shenzhen is operated by local state-owned enterprises, with only a relatively small number operated by private enterprises.

Transportation investment and management models


Transportation investment and management models

Projects

Hong Kong

Shenzhen

Operational highways

The Build-Operate-Transfer (BOT) operation model is mostly used. The party supplying social capital is responsible for building and operating the projects during the franchise period. Then at the end of the franchise period, the assets concerned will be transferred to the government or specified institutions.

Led by the state-owned platform, Shenzhen Metro Group Co., Ltd., various kinds of investment and financing models are used for the investment, construction, operation and management of highways.

Subways (intra-city and intercity)

Rail transport lines (subways, light rail, the Airport Express in Hong Kong and the High Speed Rail connecting Hong Kong to Shenzhen) are operated by the MTR.

The Government provides overall planning for rail transport while MTR conducts feasibility studies of projects and is in charge of investment, construction and operation.

Led by Shenzhen Metro Group Co., Ltd. Some lines are operated by the MTR in the form of PPP.

Shenzhen’s city rail was built and is operated by the Shenzhen Metro Group Co., Limited. It explores the use of investment and financing models to attract social capital.

Railroads

China State Railway Group Co., Ltd. or its subsidiaries built and operates the national trunk lines.

Airport and aviation

HKIA is operated and managed by AAHK, which is a statutory body of the HKSAR Government.

Shenzhen Airport Co., Ltd. invested in, built, operates and manages the Shenzhen Airport.

Ports and piers

The private operators built and operate container terminals under concession agreements with the HKSAR Government.

China Merchants Port Holdings, Yantian Port Group and other companies built, invested in, operate, and manage container terminals and fairways in Shenzhen.

Both Hong Kong and Shenzhen share common challenges of land shortage for development. One solution is through the CHI-TID model: through the integrated transport hubs, urban and transportation planning will be more aligned and optimized. Enhanced connectivity among cities will also enable synergy generation as cities can better focus on their planning objectives which are set to complement the overall development picture of the GBA.

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Chapter 2

Current development and planning concerning the interconnection between Hong Kong and Shenzhen

Government initiatives that are relevant to urban development, transportation, hub and industries, and presents how they can bring about development possibilities based on the CHI-TID model.

The Central Government of the People’s Republic of China, the Guangdong Provincial Government, the Shenzhen Municipal Government, and the Government of Hong Kong SAR have announced a number of development policies and plans for the GBA in order to increase capacity in Hong Kong and Shenzhen.

There are plans that focus on the more comprehensive economic development (e.g., the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and the Western Economic Corridor in Hong Kong), and plans that focus on the innovation and technology development (e.g., the Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone and the Shenzhen Knowledge and Technology Corridor).

Some transport infrastructure projects are in progress /under planning. These projects are expected to benefit urban and economic development, not only in the area but also the entire GBA.

Transportation infrastructures are priorities at the Northern Metropolis

  • There are plans to link up seven control points at the boundary, developing the Hung Shui Kiu/Ha Tsuen NDA, and the construction of the Hong Kong-Shenzhen Western Rail Link from Hung Shui Kiu to Qianhai.
  • Construction of the Northern Link Spur Line is underway to connect San Tin with the new Huanggang Control Point.
  • Consolidation of the hub at Luohu/Man Kam To Control Points enables co-location arrangement.

The development of the aviation and maritime hub

  • The HKSAR Government is supporting the construction of a third runway at HKIA. Upon completion, this will have the effect of further expanding the domestic and overseas aviation network of the GBA. 
  • The construction of an innovative “integrated port” model. The ports in the Qianhai Bay Bonded Port Area, Shenzhen, Hong Kong, and other international and river ports may be coordinated to bring shared benefits.
  • The parallel development of domestic and international transportation. 
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Chapter 3

Challenges

Both Hong Kong and Shenzhen have their respective challenges of development

The need for better communication

Hong Kong and Shenzhen are separated only by a strip of water but there exist notable differences in their economic systems. While the governments in Hong Kong and Shenzhen have multiple collaboration arrangements, there is a lack of leading bodies to guide the execution and ensure the cohesiveness of the projects.

Transport facilities construction to be optimized

An integrated intercity rail network covering the entire GBA is yet to be built. The transport hub in Shenzhen requires optimization, with particular attention to multi-modal transport, as well the coordination of central and local operators.

Difficulty in innovation and technology plan implementation

Shenzhen needs to enhance its research capability, core technologies, and industry-university-research institute collaboration, and Hong Kong needs access to a market to help its prototyping and commercialization of research outcomes.

Difficulty in raising capital for infrastructure

To make these plans appealing to external investors, Hong Kong and Shenzhen must explore ways to raise funds with market-based models to relieve the need for large capital input.

Synergy in smart transportation is to be achieved

Hong Kong and Shenzhen lack a unified digital platform in smart transportation development.


Summary

Both Hong Kong and Shenzhen can benefit from the various economic arrangements in the mainland, such as the special economic zones, pilot free trade zones and free trade ports. However, two cities must increase linkage to enhance interconnectedness, promote the building of multi-modal transport hubs and deepen coordination for hub-based industrial clusters, in coordinated efforts.

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