HK vows to enhance role as connector between mainland, world

Hong Kong will enhance its role as a super-connector linking China's mainland and the rest of the world by speeding up its infrastructure building, talents training as well as extending its markets to both mainland and Association of Southeast Asian Nations (ASEAN), Hong Kong Chief Executive C Y Leung said here Thursday.

Addressing the Third Asian Logistics and Maritime Conference held by Hong Kong government and Hong Kong Trade Development Council, Leung said that as one of China's trade centers, Hong Kong is able to do business with all economic partners around the globe under favorable conditions including shipping management, finance, marine insurance, legal services and arbitration services.

Leung stressed Hong Kong's role as a connector of the mainland and the rest of the world as an international business hub.

"Many overseas banks, trading houses and professional firms have been using Hong Kong as the base for their China operations .. . Now we are welcoming more logistics companies to Hong Kong. The growth of overseas logistics business will enhance our city's role as a super-connector linking the mainland of China and the rest of the world."

More than 600 international transport and transport-related companies have set up regional headquarters or regional offices in Hong Kong. Hong Kong's ship owners own and manage 10 per cent of the world's merchant fleet in terms of deadweight tonnage.

Intra-Asia trade, which has been expanding on the back of strong domestic demand, is expected to grow further as ASEAN economic community takes shape in the next few years, Leung said.

"Here in Hong Kong we are preparing to negotiate a Free Trade Agreement (FTA) with the 10-member ASEAN bloc. The Hong Kong-ASEAN FTA will help to strengthen trade and logistics in our region and add to the competitiveness and efficiency of our supply chains."

Leung noted that ASEAN represents important opportunities for investors to connect with some of the world's most dynamic emerging economies. Massive public sector infrastructure programs in countries such as Thailand and new markets such as Myanmar and Cambodia present exciting opportunities for the logistics and maritime sectors.

"Closer to home, we have the Hong Kong-Zhuhai-Macao Bridge which is scheduled for opening in 2016. Spanning over 40 km, it will be the world's longest bridge-tunnel sea crossing. This megabridge will expand Hong Kong's cargo hinterland deep into the Western Pearl River Delta -- the fastest growing region in southern China -- and bring it within a reachable three-hour commuting radius of Hong Kong."

A recent survey by the Hong Kong Trade Development Council identified Hong Kong's strength in high-value logistics. Leung said Hong Kong is looking forward to responding to growing demand in this region for high-end consumer products ranging from luxury goods to gourmet food.

Hong Kong's seaport and airport are already among the busiest in the world. To cope with anticipated demand, the Hong Kong Airport authority is planning for a third runway at the airport. This project will expand the airport's capacity to handle over 600, 000 flight movements a year by 2030 and double the current amount of cargo and passenger traffic.

"Apart from upgrading physical infrastructure, we are also scaling up efforts to groom more talent with various expertise to help support the growth of our maritime services sector. The government has recently earmarked funding to set up a 100-million (HK dollars) maritime and aviation training fund. The Fund will sustain and expand existing training and scholarship schemes and support the implementation of new initiatives, through the tripartite efforts of the government, industry and education and training institutions," Leung said.

Leung said that in terms of "soft" infrastructure, Hong Kong enjoys preferential access to the vast mainland market under a unique cross-boundary free trade pact called the Mainland and Hong Kong Closer Economic Partnership Arrangement, or CEPA, which gives a first-mover advantage to Hong Kong logistics service providers to enter the mainland market.

"CEPA is nationality-neutral, which means that foreign companies incorporated in Hong Kong can enjoy the full benefits of CEPA. As the mainland of China continues to develop as a major shipping power, Hong Kong's mature maritime cluster will have new opportunities to develop closer cooperation with the mainland shipping industry," Leung said.