'Trading and Logistics' is an important sector of the economy, accounting for about 25.9 per cent of Hong Kong's Gross Domestic Product. Hong Kong is a major international and regional transportation and logistics hub, and for many years has maintained its position as the world's busiest container port and a leading international air cargo handling centre. This achievement is due to the people who run the services and facilities — the investors as well as the efficient workforce. It is also the result of a productive blend of private and public sector cooperation.

    Hong Kong has a port and an airport that are efficient, reliable and well-connected, facilitating the development of the logistics industry. In the case of air cargo, every week there are about 4 100 scheduled passenger and all-cargo flights to some 140 destinations. With its dual runways, the airport has the capacity to accept the anticipated future increases in demands comfortably.

    The HKSAR also has the most productive and efficient container terminals and the biggest private terminal operator in the world. A comprehensive network of container line services connects the port of Hong Kong with over 500 destinations world-wide. A new container terminal, CT9, is under construction, with its first berth scheduled for completion in 2003. When the six-berth CT9 becomes fully operational by 2005, Hong Kong's container terminals will have a total handling capacity of about 15 million TEUs.

    Necessary measures continued to be taken during the year to further strengthen the air transport infrastructure. The Government's Economic Development and Labour Bureau signed three and initialled three new air services agreements (ASAs). This brings the total number of signed and initialled ASAs to 58 and provides more opportunities for airlines to expand services. In October, the Airport Authority entered into a franchise agreement for the development, construction and operation of a dedicated express cargo terminal at the Hong Kong International Airport.