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Mark Millar Hong Kong 47territories - across many sectors. Financial SecretaryTsang noted that maintaining close ties with themainland “will further reinforce Hong Kong’s leadingposition in the global supply chain and enhance ourstrengths in trade and logistics.”In his 2011 budget address, the Financial SecretaryJohn Tsang vowed to ensure that Hong Kong can copewith air traffic growth and to reinforce the maritimeservice cluster.Investment in Infrastructure Mega ProjectsIn order to further consolidate Hong Kong’s positionas a regional logistics hub and capitalise on ourcompetitive edge in handling high-value goods andproviding high value-added services, the governmenthas three infrastructure mega projects in the works.The Hong Kong-Zhuhai-Macau Bridge - 29.6kilometres long - is expected to open in 2016. Thisbridge will enhance the efficient, cost-effectivemovement of cargo between Hong Kong and thewestern Pearl River Delta – still very much the heart ofGuangdong province’s manufacturing base.The new bridge “bears strategic and symbolicimportance to Hong Kong” said Eva Cheng, Secretaryfor Transport and Housing and - the improvedconnectivity will expand our cargo hinterland and openup new consumer markets, bringing new impetus forour freight and logistics sector.Container Terminal 10 - within the ocean freight sector,much of the container movements are mid-streamtrans-shipments, and so the government hascommissioned a feasibility study on the development ofa tenth container terminal.Third Runway - at the airport, the current two runwaysystem will be at maximum capacity by 2015 – anew daily flight handling record was set on 30 March2011 with 983 aircraft movements. Hence, within theframework of the Master Plan 2030 Study, the AirportAuthority is now evaluating the feasibility of building athird runway – which is being called for by businesseslarge and small, throughout both the industrial and thelogistics sectors.Sustainable Competitive AdvantageHong Kong’s sustainable competitive advantage asa leading global logistics hub will revolve around threepivotal competencies – best in class internationaltranshipment hub, centre of excellence for logisticsskills and leadership in e-logistics.As a transhipment hub, Hong Kong will continue togrow. In 2011, the International Air TransportAssociation (IATA) forecast that Hong Kong will be theworld’s fastest-growing air cargo market, “growing12.2 per cent annually over the next two years” suchthat cargo volumes will increase to 5.3 million tonnesin 2014.Form the e-logistics perspective, increasingly widespreadadoption of e-freight initiatives throughout theinternational air and ocean cargo sectors is increasingefficiencies whilst providing environmental benefitssuch as reducing paperwork. Within the cross bordertrucking sector, introduction of electronic submission ofroad cargo information enables seamless customsclearance at the land boundary control points. GPScommunications technology is now also widespread inthe fleet management of trucking companies, with theOn-Board Trucker Information System (OBTIS).Firmly reinforcing its position as a leading regionalcentre of excellence for logistics industry skills andtalent development, Hong Kong is home to 60educational and vocational training institutions,offering more than 1,000 programmes and coursesrelated to logistics and shipping. Government fundedtraining allowance s benefit small and mediumenterprises.ConclusionLooking to the future, I am very confident that HongKong will continue its role as a leading global logisticshub – by means of its strategic location, its businessfriendlygovernment and its sustainable competitiveadvantage.Industry and government together envisage HongKong’s future positioning as a global logistics hubproviding high value-added services and handlinghigh value products - as well as strengthening its roleas the logistics gateway to mainland China, with thesupport of state-of-the-art infrastructural facilities andtrade facilitation measures.Achieving the number one position of the world’sair cargo hubs and maintaining its position as theworld’s number three sea container seaport, HongKong is indisputably one of the world’s leading logisticshubs - enabling effective and efficient global supplychain ecosystems.Mark Millar MBA, PMHKLA, FCILTMark Millar leverages over 20 years of global businessexperience to provide independent Consulting,Education and Advisory services that create value forclients by improving the performance of their logisticsand supply chain activities in China and the AsiaPacific region.Acknowledged as an industry thought leader, clientshave engaged Mark as Speaker, Moderator, Master ofCeremonies or Conference Chairman at more than200 functions in 17 countries – including Hong Kong,Singapore, China, Macau, Vietnam, Kazakhstan,Dubai, India, Philippines, Malaysia, Thailand, SouthKorea, England, USA and Australia. His articles areregularly published by trade magazines in fivelanguages in seven countries.Mark serves on the advisory board of several leadingorganisations and his industry contributions have beenrecognised with a number of accolades, includingbeing named in the “Who's Who of Power Players inSupply Chain Management in China", the “Pro’s-to-Know Thought Leaders in Supply Chain” and as “Oneof the most Progressive People in World Logistics”.Contact him at mark@markmillar.comwww.warehousinglogisticsinternational.comIssue No.3