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University researchers have been called in by the Hong Kong Association of Freight Forwarding Agents (Haffa) to prepare a blueprint for the freight-forwarding industry after Chek Lap Kok opens next year.

 The aim of the research, being carried out by the Hong Kong University of Science and Technology (HKUST), is to advise freight forwarders on the best locations for their businesses.

 Haffa chairman Anthony Lau Siu-wing said many of the group's 266 members were concerned about the impact the airport would have on freight forwarding.

 Small and medium-sized firms would find it difficult to stay in business and 'further consolidation of freight forwarders' was seen as inevitable.

 'You've seen it more in Europe and the United States - Hong Kong is the last part of the chain. Getting two or three companies together makes it more profitable,' he said.

 Firms faced large cost increases as a result of using Chek Lap Kok, a percentage of which would have to be passed on to customers.

 Last week, freight forwarders were told they would have to pay an average 30 per cent more in handling costs to use Hong Kong Air Cargo Terminals' SuperTerminal 1 airfreight centre.

 Other cost loadings would include staff having to be paid extra allowances to work at the new airport, and there would be additional transport and toll costs associated with travel between Kowloon and Chek Lap Kok, Mr Lau said.

 These additional charges meant firms were uncertain whether to move to Chek Lap Kok or remain where they were and take space at the two air cargo terminals.

 The study would 'work out the most desirable and cost-effective location, depending on the size of the company', he said. Part of this would involve a comparison of office and warehouse costs in Tsuen Wan, Kwai Chung and Chek Lap Kok.

 HKUST staff would produce case studies for various-sized firms and recommend appropriate strategies.

 'By early March we will know exactly what we should do,' Mr Lau said.

 Haffa also is seeking government support to help freight forwarders develop a full range of services to enable Hong Kong to become a regional logistical centre.

 'We have had discussions with the Government, but we may do it in a more organised fashion,' he said. This would include a proper cost-benefit analysis and identification of sites for a logistics complex.

 Because the SAR had lost low-technology manufacturing to the mainland, it made sense to offer added-value services in the tertiary sector to recapture Hong Kong's competitive edge.

 'This would create job opportunities for the whole community,' he said.

 If Haffa was unable to spearhead the SAR as a logistics centre, it was likely that moves would be made to relocate across the border in Guangdong.



Haffa probes airport benefits