HONG KONG 2004 - Transport

Logistics is an important sector of the economy, accounting for about 5.2 per cent of Hong Kong's Gross Domestic Product. Hong Kong is Asia's premier international transportation and logistics hub, and for many years has maintained its position as the world's busiest container port and busiest international air cargo centre. These achievements are 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's port and airport are efficient, reliable and well-connected. These are important assets which facilitate the development of the logistics industry. In the case of air cargo, the airport handles an average of 59 000 tonnes of cargo every week. With its dual runways, the airport has ample capacity to handle anticipated increases in demand.

Hong Kong is also home to 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 worldwide. With Container Terminal 9 at Kwai Chung fully commissioned at the end of 2004, Hong Kong's container terminals have a total handling capacity of more than 18 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 concluded four new Air Services Agreements (ASAs) in 2004, bringing the number of ASAs to 54 and providing more opportunities for airlines to expand services. In August, the Express Cargo Terminal of Hong Kong International Airport, capable of handling 160 000 tonnes of express cargo a year, started operation.

The policy objective of the Government is to maintain and strengthen the role of Hong Kong as the preferred international transportation and logistics hub in Asia.

The Government provides a conducive environment and necessary infrastructure to facilitate the development of the logistics sector. It also promotes closer cooperation with the Mainland, in particular, the Pearl River Delta (PRD) region to achieve synergistic benefits in logistics development.

The Steering Committee on Logistics Development (LOGSCOM) provides policy steer on logistics development in Hong Kong under the chairmanship of the Financial Secretary. The Hong Kong Logistics Development Council (LOGSCOUNCIL), chaired by the Secretary for Economic Development and Labour, implements the policy directives of LOGSCOM. It also provides a forum for the private and public sectors to foster logistics development with a view to strengthening Hong Kong's status as the leading logistics hub in Asia. Five project groups are set up under LOGSCOUNCIL to develop and implement work programmes in specific areas, including physical infrastructure, information connectivity, human resource development, support for small and medium sized enterprises (SMEs), as well as marketing and promotion.

During the year, LOGSCOUNCIL focused on development of a Digital Trade and Transportation Network System for launching in 2005. The system is an open and neutral e-platform for the exchange of information and data among participants in the supply chain. LOGSCOUNCIL also worked on development of the Lantau Logistics Park to provide a purpose-built operating environment for the efficient delivery of individually customised and integrated services.

LOGSCOUNCIL worked closely with the logistics sector to upgrade the quality of human resources by encouraging training institutes to organise tailor-made courses for logistics practitioners. It also organised roadshows at secondary schools to promote awareness among students of the development of the logistics sector and the employment opportunities it offered. Seminars were also organised for logistics SMEs to update them on the latest trends and technologies relevant to the logistics industry. In May, LOGSCOUNCIL sponsored the 'Logistics Hong Kong' International Conference and Exhibition to showcase Hong Kong's logistics strengths to both local and overseas logistics-related companies. The event attracted about 2 200 delegates and exhibition goers.