Following is a question by the Hon Frankie Yick and a written reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (October 23):

Question:

     According to the Action Plan on Maritime and Port Development Strategy promulgated by the Government in December last year, the maritime and port industry, with economic contribution accounting for 4.1 per cent of gross domestic product, facilitates the growth of trade and logistics industry as one of the four major economic pillars in Hong Kong. However, it has been reported that with the rapid development of neighbouring ports, the container throughput of Hong Kong has been on a downtrend, and some major ocean-‍going cargo shipping companies have even removed Hong Kong from their voyage itineraries, thus further affecting Hong Kong's container throughput. In this connection, will the Government inform this Council:

(1) of the follow-up actions taken by the Government in response to the removal of Hong Kong from the voyage itineraries of some major ocean-going cargo shipping companies; whether it will introduce measures to attract these cargo shipping companies to put Hong Kong back on their voyage itineraries, including making reference to the practices of Singapore and the Mainland to exempt controlled goods for transhipment from licensing requirements, or streamlining the relevant procedures; if so, of the details; if not, the reasons for that;

(2) given that Hong Kong is an important entrepot for the Mainland, but cross-boundary land freight has been affected by the drop in container throughput of the Hong Kong port, and quite a number of cross-boundary goods vehicles have been forced to lie idle, of the progress of the Government's work in developing new cargo sources for the cross-boundary land freight sector; and

(3) as it is learnt that in the face of insufficient cargo volume, some small and medium enterprises in the logistics industry are on the verge of closing down, whether the authorities will introduce support measures to relieve the financial pressure of the industry; if so, of the details; if not, the reasons for that?

Reply: 

President,

     Hong Kong is an international maritime centre, with its port being one of the world's busiest and most efficient ports and its comprehensive strengths in terms of port conditions, professional maritime service and overall business environment among the world’s best. Hong Kong also ranked fourth in the 2024 Xinhua-Baltic International Shipping Centre Development Index.  

     To further consolidate our status as an international maritime centre, further to the promulgation of the Action Plan on Maritime and Port Development Strategy in December 2023, the Transport and Logistics Bureau (TLB) will take forward various measures as announced in the 2024 Policy Address in full steam, including reconstituting the existing Hong Kong Maritime and Port Board (HKMPB) into the "Hong Kong Maritime and Port Development Board", actively fostering the development of smart port, stepping up the promotion of green transformation of registered ships, developing a green maritime fuel bunkering centre, as well as promoting the development of high value-added maritime and professional services, such as the enhancement of tax concessions relating to ship lessors and shipping commercial principals, encouragement of leading or high-potential marine insurance operators to establish presence in Hong Kong and exploration of tax concessions relating to commodity trading, thereby strengthening the local maritime ecosystem. We will materialise the aforesaid measures in a proactive manner in order to boost the competitiveness of the maritime industry.

     Our reply to Hon Frankie Yick's question is as follows:

(1) Enhancing port competitiveness is one of the four major directions of development mentioned in the Action Plan on Maritime and Port Development Strategy. As a major transshipment port in the region, enhancing Hong Kong's attractiveness as a cargo transshipment hub, promoting the strengths of Hong Kong Port (HKP) and strengthening co-operation with the Mainland are important means to boost port cargo transshipment throughput.

     In terms of enhancing Hong Kong's attractiveness as a cargo transshipment hub, as announced by the Chief Executive in his 2024 Policy Address, the Government is exploring the feasibility of extending the arrangements under the Air Transhipment Cargo Exemption Scheme, that is, exempting the import and export licence requirements on specified controlled commodities, to other intermodal cargo transshipment modes, including sea-to-sea transshipment. In addition, in view of the international maritime industry's increasing concern about decarbonisation, we will develop Hong Kong into a green maritime fuel bunkering centre, so as to attract ocean-going vessels using green maritime fuels to call at Hong Kong, thereby enhancing the competitiveness of HKP.

     As regards promoting the strengths of HKP, the Government has been working with the industry to strengthen external promotion and liaison. For example, HKMPB visited Tokyo, Japan and Hamburg, Germany as well as Athens, Greece in Europe, in July and September this year respectively to visit various ports and companies in the maritime industry. It will also visit the Middle East at the end of this year, with a view to allowing the relevant stakeholders there to learn about the strengths and latest development of Hong Kong’s maritime and port industry, and explore new cooperation opportunities.

     Regarding enhancing cooperation with the Mainland, the container terminal operators of Hong Kong, with the support of the Government, have signed multiple cooperation agreements with different regions of the Mainland. Amongst others, Hong Kong container terminal operators signed a memorandum of understanding on cooperation with Guangxi Beibu Gulf International Port Group in May 2024 to strengthen Hong Kong-Guangxi cooperation on the port and logistics fronts. In August 2024, under the cooperation between a Hong Kong container terminal operator and Shenzhen Yantian Port, the Chongqing-Shenzhen-Hong Kong scheduled rail-sea service commenced, which allows export cargoes from Chongqing to be exported via Shenzhen Yantian Port and Kwai Tsing Container Terminals in Hong Kong through the sea-rail intermodal transshipment mode, thereby bringing more cargo to Hong Kong. In addition, Hong Kong's port industry is also cooperating with Shenzhen Dachan Bay Terminals on handling high-value cold chain products by facilitating fast and efficient transshipment of containers from Hong Kong to Dachan Bay by barges, so that the relevant cargoes can reach cities in the Greater Bay Area (GBA) speedily, thereby strengthening HKP's connectivity with other ports and cargo sources in the Mainland.

(2) As a regional logistics hub, Hong Kong has all along been one of the major gateways for air and sea cargoes to and from the GBA. With the commissioning of the Hong Kong-Zhuhai-Macao Bridge (HZMB), the driving distance between Hong Kong and Western Guangdong and Guangxi has been greatly shortened, thereby further unleashing the enormous potential for logistics cooperation between Hong Kong and the two aforesaid places. For this reason, the Government has proposed in the Action Plan on Modern Logistics Development to actively explore new cargo sources and new opportunities for cross-boundary land freight transport in relation to Western Guangdong and its neighbouring regions by enhancing multimodal transport measures and making good use of the HZMB.

     The TLB has been actively discussing with Zhuhai on enhancing synchronised development on the logistics front between Hong Kong and Zhuhai by making good use of the HZMB. The TLB also visited Zhuhai in March 2023 together with the Hong Kong Logistics Development Council to learn about Zhuhai's logistics development and explore cooperation opportunities. Apart from Zhuhai, the Secretary for Transport and Logistics also led a delegation to Zhanjiang, Guangdong, in June 2024 to learn about the business opportunities in logistics development between Hong Kong and Zhanjiang arising from the "New Land-Sea Corridor for Western Regions". In addition, the Transport and Logistics Bureau also signed the "Framework Agreement on Deepening Strategic Co-operation for the Guangxi-Hong Kong Task Force on Transport and Logistics" with the Department of Transport of Guangxi in May this year, with a view to strengthening logistics cooperation with Guangxi, including cross-boundary land freight logistics.

     The TLB will continue to enhance liaison and cooperation with Western Guangdong and its neighbouring regions, with a view to further enlarging the cargo catchment for Hong Kong’s cross-boundary land freight logistics sector.

(3) The Government has been supporting the development of Hong Kong's logistics industry through various measures. In terms of financial assistance, since 2020, the Government has been providing assistance to eligible logistics service providers through the $300 million Pilot Subsidy Scheme for Third-party Logistics Service Providers, with a view to supporting local logistics industry, especially small- and medium-sized third-party logistics service providers, to increase productivity by applying technology. On the other hand, we are also supporting logistics practitioners in receiving training, and providing sponsorship for logistics enterprises to engage interns, through the Professional Training on Smart and Green Logistics Scheme under the Maritime and Aviation Training Fund and Internship Scheme on Modern Logistics, respectively. In addition, the Chief Executive has announced in his 2024 Policy Address a number of measures to support small and medium enterprises (SMEs), including allowing borrowing enterprises (including those in the logistics sector) under the SME Financing Guarantee Scheme (SFGS) to apply for principal moratorium for up to 12 months, and at the same time, offering the partial principal repayment options to new loans under the 80 per cent and 90 per cent guarantee products of the SFGS, so as to alleviate the repayment burden on SMEs, thereby creating more room for them to seize the opportunities brought about by economic recovery.

     Enlarging cargo catchment and increasing cargo throughput is the most practical means to assist logistics enterprises. Hence, the Government will continue to implement various strategies and action measures set out in the Action Plan on Modern Logistics Development promulgated in October 2023, including enhancing intermodal connectivity by implementing the Three-Places-One-Lock Scheme and the dedicated express route for air and land fresh and live products, making good use of HZMB and enhancing promotion of Hong Kong's strengths in logistics development in the Mainland and overseas, with a view to attracting more cargoes to be transshipped through Hong Kong.

     The Government will, through the Hong Kong Logistics Development Council and other platforms, continue to maintain communication with the trade, closely monitor the latest development of the logistics industry and introduce suitable measures at appropriate junctures to support the sustainable development of the logistics sector.

Ends/Wednesday, October 23, 2024
Issued at HKT 12:00

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