Logistics is now a buzz word among government officials, although only less than two years ago, that word hardly drew any attention from the authorities.
Logistics is defined as a management science which embraces the efficient movement and storage of goods, and provision of services. Its scope extends from manufacturing through to final delivery, including related aspects of information technology and other control systems, also known as supply chain management.
For years, Hong Kong revelled in its pre-eminent position as the world's busiest air cargo hub and busiest container port, a position envied by many.
'The downturn of the economy in 1997 resulted in Hong Kong losing its title of No 1 container port to Singapore in 1998 and the drop in air freight volume after opening of the new airport shook up the Government,' legislator Miriam Lau Kin-yee said recently.
This forced the Government to re-examine Hong Kong's competitiveness in the light of developments of neighbouring ports and airports. In the course of that exercise, the Government realised the importance of promoting logistics in Hong Kong.
Ms Lau said that although Hong Kong regained lost ground last year by achieving total throughput of two million tonnes in air cargo and 16.2 million teu (20-foot equivalent unit) in container traffic, efforts to promote logistics had to continue.