Challenges faced by Hong Kong as a maritime and logistics centre

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neighbouring regions are booming, whether the Government has, in the light of the latest assessment, changed its position that it is necessary to build Container Terminal No. 10, and when the Government will make adecision, in order not to delay or affect the development of southwest Tsing Yi Reply: President, (a) The Hong Kong and Pearl River Delta (PRD) ports serve the same cargo hinterland. Having regard to the Outline of the Plan for the Reform and Development of the Pearl River Delta (2008-2020), we will endeavour to push ahead with the co-ordinationinportdevelopmentbetweenthetwoplaces,such that a clear division of work and positioning will benefit both and wasteful duplication of resources could be avoided. Yet amid co-ordination between Hong Kong and the PRD ports, there is also competition. Despite the proliferation of port facilities in the PRD, some of the PRD cargoes still choose to route through Hong Kong due to our comprehensive and frequent liner shipping schedules, free port status, efficient customs procedures, and convenience in intermodal transport system. In the course of maintaining our competitive advantages in these aspects, we will strengthen the competitiveness of Hong Kong Port (HKP) by ensuring that the necessary port and related facilities would be provided in a timely manner. These include feasibility study for the development of Container Terminal 10(CT10)atSouthwestTsingYi,and takingforwardtheproject in dredging the Kwai Tsing Container Basin and its approach to cater for the next generation of container ships. We will also strive to lower the cost for the movement of cargoes between Hong Kong and the PRD. (b) Mainland is posing keen competition to us with its certain competitive advantages, for example, in cost.
Moreover, as a result of the global financial crisis, there has been a significant drop in the trading and freight activities worldwide. Our logistics sector, like their counterparts in other economies and other industries, are operating in a very difficult business environment. In the face of the challenges, Hong Kong should expand its cargo hinterland and sharpen its competitive advantages in providing tailor-made logistics services and solutions to complicated tasks. On the hardware, for example, the construction of the strategically important Hong Kong-Zhuhai-Macao Bridge would soon commence. We shall also work closely with the Mainland authority on the macro level to achieve better division of work, reasonable layout and complementarities in port and airport development. In view of the uncertain global economic situation, the Government has to take into account Hong Kong's and the global economic trend and outlook in deciding on the way forward for the Lantau Logistics Park, including the scale and timing of the proposed development. This is to make sure that public resources are used in a cost-effective way in the development of the logistics sector. In parallel, we would continue to make available more land for both long-term and short-term logistics use as far as possible. We shall also continue to work closely with the sector to promote e-logistics and to provide professional training courses to the industry to enhance the efficiency and competitiveness of our services. (c) The Study on Hong Kong Port Cargo Forecasts 2005/2006, whichwasreleasedlastyear,hastakenintoaccountthesupply of port facilities in South China. It projects that the total container throughput of HKP would continue to have modest and steady growth. It also expects that Hong Kong will need the first new container berth by 2015 at the earliest. As advance works would have to be undertaken for developing a new container terminal and it would take time to comply with the statutory requirements, we have expedited the study on the
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Challenges faced by Hong Kong as a maritime and logistics centre

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