IntroductionHong Kong has been a leading logistics hub in Asia and the world over the past decades. We are ranked as the world's busiest ports for Hong Kong Airport as well as Container Port for over ten years. However, in recent years, Hong Kong has faced intense competition, particularly from neighboring ports, notably Shenzhen. Although Shanghai and Singapore surpass Hong Kong in terms of container volume, we are geographically separated and therefore do not serve the same cargo source. Therefore, this article will mainly focus on comparing neighboring ports. I will analyze Hong Kong's competitiveness as a logistics hub by tracking aspects of freight volume, government policy and costs. Analysis Cargo Volume Hong Kong is one of the busiest seaports and airports. Hong Kong's seaports handled 23.1 million TEUs in 2012. It is the third busiest container port in the world. But throughput fell 0.7%, from 24.4 million TEUs in 2011 to 23.1 million TEUs. And we expect this decline to continue. Meanwhile, Shenzhen handled 22.9 million TEUs in 2012 and this figure is constantly increasing. It is expected to exceed the throughput of the Hong Kong port in 2013. Besides Shenzhen, the throughput of the ports of Singapore and Shanghai is also constantly increasing. In contrast, Hong Kong Airport's throughput ranked number one in 2012 with 4.03 million tonnes. We have doubled the flow rates compared to Shanghai and Singapore. Air cargo throughput increased by 2.2% in 2012. Hong Kong Airport has a very strong lead in the world and in the Pearl River Delta (PRD). Despite the decrease in seaport throughput, Hong Kong's total trade value continued to increase from nearly HKD$6 trillion in 2008 to HKD$8.2 trillion in 2013, and this amount continues to grow ... middle of paper ...... to manage Hong Kong ports and develop new policy. Third, train more professional personnel in the field of logistics.Works Cited1. Legco 香港港口競爭力 研究簡報第1期 http://www.legco.gov.hk/yr13-14/chinese/sec/library/1314rb01-c.pdf 17/3/20142. HKGOV THE 2014-15 BUDGET http://www.budget.gov.hk/2014/eng/pdf/e_budgetspeech2014-15.pdf 17/3/20143. Department of Census and Statistics Hong Kong Monthly Digest of Statistics: Air Cargo Statistics http://www.statistics.gov.hk/pub/B71401FA2014XXXXB0100.pdf 17/3/20144. Department of Census and Statistics Hong Kong Monthly Digest of Statistics: Container Statistics http://www.statistics.gov.hk/pub/B71306FA2013XXXXB0100.pdf 17/3/20145. Better Hong Kong Foundation restores Hong Kong's competitiveness as a maritime trade logistics hub http://www.betterhongkong.org/mediaupload/D9805EC9-B0F2-4C50-B86CA0F57BAA17EF.pdf 17/3/2014