In a concerted effort to make the SAR an international logistics hub, the Government plans to draw up a master plan for Hong Kong's future transport and logistics development. According to Port Maritime Board Secretary, Alex Fong, the results from three current studies will be integrated in the plan. 'We want to create a multi- modal transport platform for Hong Kong,' he said. The first consultancy study to be included in the plan addresses connectivity and focuses on value-added activities, Mr Fong said, adding that the study would be complete in the second half of the year. 'It looks at how to enhance the port and inland distribution resources,' he said. Other issues like maximum use of IT and simplifying customer requirements will also be addressed. In addition to this study, the master plan will incorporate the Port Development Strategy Review - an update of the previous Port and Airport Development Strategy (Pads) study - which is now being carried out following the recent completion of the port cargo forecasts. The study will look at the supply side of the equation and decide what needs to be done for future port planning. The third feature of the master plan will be the Strategic Overview of Major Airport Development (Somad), which will be based on a study by the Asia Pacific Airport Consultants (Apac). A development plan will be devised and strategies will be determined to enhance the airport's existing facilities and provide more capacity to meet projected growth. It is expected that the plan and strategy will provide the Airport Authority with a basis to decide on further development of cargo facilities, the location and capacity of a second passenger terminal, together with additional concourses and aircraft gates in the mid field area between the two runways. One element of the Somad study will focus on the SAR's air cargo industry to determine strategies that can improve Hong Kong International Airport's (HKIA) position as a leading international cargo hub and the prime gateway to the mainland. It will also ensure that HKIA retains its competitive edge among airports in the region. The study will establish short- and long-term forecasts for air cargo traffic at HKIA and formulate the best land use and development strategy to match growth in cargo throughput. The PMB wanted to have a platform which would integrate the western Pearl River Delta where the bulk of the cargo originated, barges or any transportation links that handled goods between southern China and Hong Kong. Answering criticism that Hong Kong port would not be able to compete with neighbouring ports because of its high cargo handling charges, Mr Fong said the port had four times the average productivity of other ports in the world. Like business-class passengers who were willing to pay more to travel in comfort, many shipping lines do not mind paying more for the efficiency, productivity and fast turnaround at Hong Kong port, he said. Mr Fong said the Government was committed to making Hong Kong an international logistics hub and taking steps to meet the various needs of the industry, such as improving cross-border traffic congestion and speedier clearance of pre-declared goods by the Customs and Excise Department. Hong Kong Logistics Association chairman, Raymond Leung, said companies had been repeatedly told they should concentrate on their core competencies, and outsource their non-core businesses to logistics providers to become more cost-effective and competitive. While the bigger companies were already taking this route, most small- and medium-sized companies were hesitant about outsourcing their non- core businesses, he said. He warned that these companies would eventually face problems, and might even be driven out of business if they resisted the change. They would be unable to compete with companies that adapted themselves to the requirements of today's business. SUPP2gsp
