However, an analyst questioned whether Singapore can stay on top for long, with China's booming economy and its ports in Shanghai and Shenzhen recording annual growth of over 20 percent.

Hong Kong's Port Development Council said Monday, Jan 17, an estimated 22.43 million 20-foot-equivalent units, or TEUs - a volume unit equal to a shipping container and used to measure cargo volume - passed through the city's port facilities in 2005.

That figure was up just 2 percent from the previous year.

By comparison, Singapore handled 23.19 million TEUs last year - up 8.7 percent from 2004 - it's Maritime and Port Authority said.

This puts the city-state back on top spot after losing to Hong Kong every year since 1999.

The change comes as competition intensifies between Hong Kong and nearby southern Chinese ports. In the mid-1990s, Hong Kong handled more than 90 percent of all cargo from the Pearl River Delta industrial hub.

That share has rapidly fallen to about 50 percent.

"The slowing growth in Hong Kong's port isn't a surprise, considering the strong competition with ports in Shenzhen," said DBS Vickers analyst Oscar Choi, noting Shenzhen's "cheaper handling charges."

"As a result," he said, "Hong Kong's logistics industry, especially shipping, is on a downtrend."

While Singapore's container-handling growth has outpaced Hong Kong's in recent years, analysts expect the island republic's growth to slow due to stiff competition neighboring Malaysia, whose ports have lower handling charges.

Meanwhile, China's Shanghai and Shenzhen ports - now the world's third- and fourth-busiest, respectively - are recording rapid growth. Volume handled by Shanghai rose 24 percent to 18 million TEUs last year.

"New handling capacity is coming online to meet the robust export and import demand in both Shanghai and Shenzhen," said DBS' Choi. "With the current rate of growth, Shanghai will almost certainly surpass Singapore as the world's busiest port by 2007."

Choi said he expects Shenzhen's, which handled 16.2 million TEUs last year, to become the world's second-busiest by 2010.

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