Hong Kong committed to enhancing supply-chain connectivity

More than 160 people attended the November 19 “International Intermodal and its Domestic Connections” seminar in suburban Chicago, where Hong Kong Commissioner for Economic and Trade Affairs, USA Donald Tong delivered the keynote address.

The Hong Kong Special Administrative Region Government is committed to enhancing the city’s position as the preferred regional logistics hub — improving critical infrastructure to enhance connectivity all along the supply chain and facilitating business operations, said Hong Kong Commissioner for Economic and Trade Affairs, USA Donald Tong.

Delivering the keynote address at the “International  Intermodal and its Domestic Connections” seminar in Lombard, Illinois, on November 19, Mr. Tong said Hong Kong’s efforts to tap the region’s enormous growth potential are driven by 10 major infrastructure projects.

Hong Kong Commissioner for Economic and Trade Affairs, USA Donald Tong (third from right) was the keynote speaker at the “International Intermodal and its Domestic Connections” seminar. Also present at the seminar were Louis Ho (far right), regional director of Americas of the Hong Kong Trade Development Council; Lawrence Yip (far left), Chamber of Hong Kong Logistics Industry executive vice chairman; and Willy Lin (second from left), Hong Kong Shippers’ Council chairman.

“The various projects, many directly related to the transport industry, are expected to add US$12.8 billion in value to our economy and create about 250,000 new jobs,” said Mr. Tong.

One of the most notable projects is the 18-mile Hong Kong-Zhuhai-Macao Bridge. At an estimated cost of US$5 billion, the bridge is expected to open by 2016, trimming the travel time from Zhuhai to Hong Kong International Airport (HKIA) from four hours to 30 minutes, significantly reducing transportation costs.

Mr. Tong pointed out that the bridge will also open up the Western Pearl River Delta markets for cargo, as 50 million consumers will now be within a three-hour commuting radius of Hong Kong. 

“The improved connectivity will bring new impetus for Hong Kong’s freight and logistics sector,” he said.

Construction of the Guangzhou-Shenzhen-Hong Kong Express Rail Link is expected to start before year’s end. This rail link will cut the travel time between Guangzhou and Hong Kong from the current 100 minutes to 48 minutes. 

“More importantly, it will put Hong Kong on the map of China’s high-speed railway system. Upon completion, travelers in Hong Kong could choose to visit other Mainland cities by train instead; e.g., the Shanghai–Hong Kong train connection would only take about eight hours,” said the Commissioner.

Mr. Tong added the government is also studying the feasibility of a Hong Kong-Shenzhen Airport Rail Link, which would allow passengers to travel from HKIA to the Shenzhen Airport in approximately 20 minutes.

Hong Kong Commissioner for Economic and Trade Affairs, USA Donald Tong (right) called on Chicago Mayor Richard M. Daley.

Despite the global financial crisis, Hong Kong’s container port, the third-busiest in the world, handled a record 24.5 million TEUs in 2008 — a 2.1% growth over 2007.
In response to regional and global increases in container traffic, Hong Kong is undergoing a feasibility study on developing a 10th container terminal.

With its strategic geographical location — within a five-hour flight from half the world’s population — the government is also pursuing plans  to provide additional aircraft stands and apron facilities at HKIA, as well as studying the feasibility of adding a third runway.

In 2008, HKIA handled more than 3.6 million tons of air cargo, making it the busiest international air cargo hub in the world. In an effort to build up capacity, a new air cargo terminal coming online in 2013 will add 2.6 million tons of cargo-handling capacity. This is in addition to the 10 additional air cargo parking stands that have been completed.

Aside from the physical infrastructure links, Hong Kong also has deepened its economic ties to the Mainland through the Closer Economic Partnership Arrangement (CEPA).

Under CEPA, goods manufactured in Hong Kong are given tariff-free entry into the Mainland market and Hong Kong service suppliers in more than 42 sectors — including logistics, banking and insurance — enjoy preferential access in the Mainland. 

Mr. Tong pointed out that CEPA is nationality-blind and, thus, overseas firms — including U.S. businesses — that are incorporated in Hong Kong can enjoy its full benefits.

“As far as the logistics industry is concerned, CEPA allows freight-forwarding agencies established by Hong Kong companies in the Mainland to open their branches once they have fully injected the registered capital, while other foreign companies are only permitted to do so one year after they have set up the relevant Mainland enterprises,” said Mr. Tong.

Organized by the Hong Kong Economic and Trade Office, New York and the Hong Kong Trade Development Council and in collaboration with the Chicago Traffic Club, the Lombard seminar also featured Willy Lin, Hong Kong Shippers’ Council chairman, and Lawrence Yip, Chamber of Hong Kong Logistics Industry executive vice chairman.

The suburban Chicago seminar was attended by more than 160 people from the logistics and distribution services trade in Chicago and nearby areas.

Mr. Tong also met with Chicago Mayor Richard M. Daley on his trip, where they exchanged views on issues of mutual interests.