Hong Kong: Soaring rents are forcing one of Hong Kong’s most famous shipmamanagers to relocate a chunk of its business. The Wallem Group will shift a lot of its operations to a new business zone called Qianhai in neighbouring Shenzhen.
"We, like most other service providers in Hong Kong, work on very tight profit margins," Jim Nelson, managing director of Wallem's shipmanagement arm, told Reuters.
Wallem will open an office in Qianhai by June to manage ships from Shenzhen. The office will start off with 11 employees, though there are plans to ramp up business there going forward.
"Hong Kong is expensive rent-wise, and we don't see that is going to change in the short term," Nelson told Reuters. "Hong Kong is doing everything it can to drive businesses out of Hong Kong." [18/01/13]