Logistics Development in 2003 - the Year of Implementation

The Hong Kong Logistics Development Council (LOGSCOUNCIL) held the first meeting in its second term today (24 January). Members reviewed progress made in 2002 and agreed on the work plan for 2003.

"The year 2003 will be a year of implementation for LOGSCOUNCIL as members take forward key initiatives for promoting logistics development in Hong Kong," said Mr. Stephen Ip, Chairman of LOGSCOUNCIL and the Secretary for Economic Development and Labour.

"To promote active discussion between members and facilitate better planning in taking forward the key initiatives, both LOGSCOUNCIL and its five Project Groups will meet on a quarterly basis to review progress and offer advice on the way forward," Mr. Ip said.

At the meeting, members affirmed the importance for Hong Kong to reinforce its constructive partnership with the Pearl River Delta (PRD) region, especially in developing multi-modal transportation links. They welcomed the study jointly commissioned with the State Development and Planning Commission on cross-boundary logistics co-operation, which is scheduled for completion in June 2003. The study would recommend a broad framework for pursuing logistics co-operation with the Mainland, and shed light on the feasibility of operating concepts such as logistics pipelines and inland freight villages.

Enhancing physical connectivity with the PRD remains high on the agenda. LOGSCOUNCIL would closely monitor progress in achieving the announced target of enabling most freight vehicles to complete a cross boundary journey within one hour. Early completion of an additional bridge at Lok Ma Chau (LMC) was regarded as an important measure to relieve congestion. LOGSCOUNCIL would also explore measures to encourage the local industry to make better use of the extended operating hours and enhanced capacity at LMC.

Members supported Government's announcement to select a suitable site in North Lantau for the private sector to develop a modern logistics park. This facility would enhance Hong Kong's capability in providing "one-stop", integrated logistics services, and reinforce Hong Kong's status as the premier international logistics hub in Asia. LOGSCOUNCIL would monitor the site selection progress and be consulted on other aspects relating to this project.

LOGSCOUNCIL endorsed the broad direction of the recommendations arising from the study on the Development of the Digital Trade and Transportation Network (DTTN) System, which confirmed the strategic value of the DTTN in enhancing Hong Kong's overall logistics competitiveness. LOGSCOUNCIL would act as the forum for canvassing support and participation of the industry, in particular the small and medium-sized enterprises (SMEs), in developing the DTTN. It would also advise on compliance of the eventual DTTN blueprint with the guiding principles of openness and neutrality.

To help SMEs upgrade their cost-effectiveness, LOGSCOUNCIL would work closely with the relevant trade organisations to enhance staff training and promote the use of IT application amongst logistics SMEs. It would also develop proposals to promote a higher utilization of existing SME funding and other relevant schemes.

To promote human resource development and upgrade the quality of local logistics practitioners, LOGSCOUNCIL would continue to organise overseas study missions and seminars for exchange of experience with logistics executives and academics. It would also facilitate a direct dialogue among tertiary institutions, practitioners and service providers to ensure that the quality and content of logistics training courses meet the needs of the industry.

LOGSCOUNCIL would sustain its participation in major promotional activities to publicise Hong Kong's logistics strengths to potential customers. It would also pursue the proposal of staging an international logistics conference in Hong Kong in spring 2004.

Reviewing progress made in 2002, Mr. Ip said, "The first term of LOGSCOUNCIL was a fruitful and challenging year. Significant improvement was made in extending the operating hours of LMC and enhancing its handling capacity, thus reducing cost for the logistics industry. Major studies completed in 2002 also charted the way forward for important projects like the DTTN system, the value-added logistics park at North Lantau, and measures to enhance the competitiveness of SMEs in the logistics sector. An international study mission and various logistics seminars and roundtable sessions were organized for the practitioners. Participation in the Air Cargo Forum in Hong Kong and the Hong Kong Logistics Services Conference and Expo in Guangzhou offered LOGSCOUNCIL the opportunity to showcase Hong Kong's logistics strengths to a wide audience both internationally and in the Mainland."

"I am confident that LOGSCOUNCIL will find 2003 a busy and rewarding year," Mr. Ip concluded.