Frankie YickHKSAR Legislative Councillor

(Transport Functional Constituency)

26th February, 2013

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Hong Kong’s Shipping and Logistics Sector – Challenges and Opportunities

Hong Kong’s Shipping and LogisticsOne of the Economic Pillars:

produced HK$105 billion in value added contributed to 6% of GDP Provided about 200,000 jobs (6% of total

employment) In 2012,

total freight movement is about 300 million tonnes.

total container throughput is about 23 million TEUs.

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Strategic LocationHeart of AsiaHalf of the world’s population living

within five hour’s flight of HKSouthern doorstep of Mainland China*

* One of the world’s largest manufacturing bases with strong exports and imports growth

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Gateway to Southern China70% of cargo throughput handled in Hong

Kong is from the Southern China20% of China’s external trade in goods

passes through Hong Kong Four cross-boundary control points

connecting Hong Kong and South China Lok Ma Chau Man Kam To Sha Tau Kok Shenzhen Bay

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Aviation HubHong Kong International Airport (HKIA) is

one of the busiest airports in the world6,700 flights per week 170 destinations

(including 40 destinations in Mainland China)56.5 million passengers4 million tonnes of air cargo

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Shipping HubWorld’s third busiest container port after Shanghai

and SingaporeAbout 410 container liner services per week

reaching 520 destinations worldwideAs at end-December, 2,193 ships with a total gross

tonnage of 78.9 million were registered with the HKSAR

(3rd position in the world in ranking as a place for ship registration)

106, 391 cargo vessels visited Hong Kong in 2012, one-quarter of which were ocean-going vessels

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Competitive AdvantagesFree port Simple and low tax regimeQuick and transparent customs

proceduresReliable security, quality assurance and

intellectual property protectionCEPA - Closer Economic Partnership

Agreement

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Fierce Competition

Shenzhen

2004 2008 2012

Container throughput

13 million TEUs 21 million TEUs 22.9 million TEUs

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Hong Kong

2004 2008 2012

Container throughput

21 million TEUs 24 million TEUs 23.1 million TEUs

Sea Cargo - Hong Kong vs. Shenzhen

Fierce Competition

Guangzhou Baiyun International Airport (3rd busiest cargo airport in China)

2006 2008 2012

(+81%)

Cargo throughput 650,000tonnes

690,000 tonnes

1.25 million tonnes

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Air cargo - Hong Kong vs. Guangzhou

Hong Kong International Airport

2006 2008 2012(+10%)

Cargo throughput 3.58 million tonnes

3.63 million tonnes

4 million tonnes

Global Economic UncertaintiesEuropean sovereign debtSlow recovery in USForecast on global GDP growth 2.4% -

3.6%

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Economic Outlook for AsiaThe economic outlook for the Asian region,

especially Southeast Asia, however, is much brighter, owing to the relatively stable public finance and flexible financial policies.

the Organisation for Economic Co-operation and Development (OECD) suggests that the economic growth of Southeast Asia will return to the pre-financial crisis level within the next five years, as driven by domestic demand growth, particularly private consumption and investment.

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National Support the National 12th Five-Year Plan

continuing to support Hong Kong in developing its financial services, shipping, logistics, tourism, professional services, information and other high-value-added services;

supporting Hong Kong to develop into a high-value goods inventory management and regional distribution centre

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Government’s supportCommitted to consolidating Hong Kong’s

leading position as an international aviation and maritime centre and a regional logistics hub.In the 2013 Policy Address: “… will continue to

improve our aviation, maritime and land transport facilities and their connectivity, and reinforce and enhance Hong Kong’s role as a regional hub for passenger and cargo traffic.”

…cont’d

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Government’s supportEstablished an Economic Development

Commission (EDC) with the Working Group on Transportation to review the policy formulation and institutional arrangements for supporting the maritime and port development

Consultancy Study on Enhancing Hong Kong’s Position as an International Maritime Centre

The Study on the Strategic Development Plan for Hong Kong Port 2030

In-principle approved the construction of the third runway (2023)

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ChallengesGovernment Support

InstitutionalLand supplyPolicy change

Manpower ShortageTalent training and retentionFront line work force

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Thank You!

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