Hong Kong 2006 - 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 transport and logistics hub, as well as an important gateway to Mainland China. It is also the world's busiest international air cargo centre and one of the world's busiest container ports. These achievements are attributed to the operators of the services and facilities — the investors as well as the efficient workforce. The success is also due to the constructive partnership and cooperation between the private and public sectors.

Efficient, reliable and well-connected, Hong Kong's airport and port are vital to the territory's logistics industry. The airport handles an average of more than 68 000 tonnes of cargo every week and, with its dual runways, has ample capacity for handling greater anticipated demand.

Hong Kong is also home to the most productive and efficient container terminals and to 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 across the globe. The nine container terminals at Kwai Chung-Tsing Yi provide a total handling capacity of more than 18 million TEUs.

Further measures were taken during the year to strengthen the air transport infrastructure. The Government's Economic Development and Labour Bureau concluded Air Services Agreements (ASAs) with Ethiopia, Mexico and Kazakhstan in 2006, bringing the number of ASAs to 58 and providing more opportunities for airlines to expand their services.

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

The Government provides the necessary infrastructure and an environment conducive to the development of the logistics sector. It also promotes closer cooperation with the Mainland, in particular, the Pearl River Delta region to achieve synergies in logistics development.

The Hong Kong Logistics Development Council, chaired by the Secretary for Economic Development and Labour, provides a forum for the private and public sectors to foster logistics development to strengthen Hong Kong's status as the leading logistics hub in Asia. Five project groups have been set up under the council to develop and implement work programmes for physical infrastructure, information connectivity, human resource development, support for small- and medium-sized enterprises, and marketing and promotion.

In 2006, the council joined hands with the Hong Kong Productivity Council (HKPC) to develop a pilot project for an On-Board Trucker Information System (OBTIS). OBTIS is an information and communications technology platform, which helps enhance connectivity between truckers and stakeholders along the supply chain, and efficiency in fleet management.

To promote the use of technology information in logistics operations, the council and the HKPC jointly organised training programmes and workshops for logistics practitioners in small- and medium-sized enterprises. The council also organised roadshows at secondary schools to enhance students' understanding of the development and employment opportunities of Hong Kong's logistics industry.

With the support of the council, the Government continued to discuss with the Mainland, ways to reduce cross-boundary road transportation costs. Further to the discussions between the Government and the Dongguan authorities, the Dongguan authorities introduced an express clearance system at the Liaobu inland control point which commenced operation in December. The express clearance system provides for faster and more efficient customs clearance.

On marketing and promotion, a council delegation, led by the Permanent Secretary for Economic Development and Labour (Economic Development) visited Atlanta, Chicago, Los Angeles, and Dallas in the United States in January to meet major US exporters and influential logistics players to promote Hong Kong as a premium logistics hub. The Secretary for Economic Development and Labour also led a council delegation to Yunnan in May and June. Members of the delegation signed seven Memoranda of Understanding with the Yunnan Provincial Economic Commission in June to lay the foundation for further cooperation in manpower training, information exchange, and application of e-logistics in logistics industry. The council also organised a logistics forum in Guangzhou in December to promote Hong Kong's latest IT services in supply chain management to logistics players on the Mainland.