We are happy to present you with the Board's newsletter on our website.

In our first issue, we look at the items dealt with by the second Board since appointment in June 2000, including the activities of the Shipping Committee, Port Development Committee and Committee on Logistics Service Development. We also talk about some of the recent research work of the Board.

The port, shipping and logistics sectors are welcome to contribute articles to share their views on the development of shipping, port and logistics service industries in Hong Kong. In the first issue, there is an article contributed by the Hong Kong Container Terminal Operators Association.

Hong Kong has recently signed Avoidance of Double Taxation Agreements on shipping with the United Kingdom and The Netherlands.

These agreements exempt owners of Hong Kong ships from paying tax levied on cargo loaded in the United Kingdom and The Netherlands. The same goes for British and Dutch shipping companies that have goods loaded in Hong Kong.

Hong Kong already has similar agreements on shipping with the U.S. and Mainland China. Similar agreements are under discussion with about 20 other tax administrations, including Germany, Greece, Australia and Denmark.

Hong Kong has also confirmed with the tax authorities of New Zealand and Korea that conditions for reciprocal tax exemption in Hong Kong laws have been met.

The Secretary for Economic Services, Ms Sandra Lee, signed the agreements on behalf of the Government of the Hong Kong Special Administration Region.

Hong Kong will seize the opportunity given by China's entry into the World Trade Organization (WTO) and be the port and shipping hub of Asia, Sir Gordon Wu, Chairman of the Hong Kong Port and Maritime Board (PMB), said during his recent visit to port facilities at Kwai Chung.

Accompanied by Mr Alex Fong, PMB Secretary, Sir Gordon met the container terminal operators including Hongkong International Terminals, COSCO-HIT Terminals, Modern Terminals Ltd, Sea-Land Orient Terminals Ltd and Asia Terminals in Kwai Chung on 1 November. The operators briefed Sir Gordon on the existing and planned port facilities in Hong Kong, including Container Terminal 9, which is now under construction. He was given demonstrations on how the computerized ship management systems worked. Sir Gordon also exchanged views with senior management of the terminal operators on future port development in the Pearl River Delta and how Hong Kong's position could be strengthened to serve the development.

Sir Gordon also visited the River Trade Terminal Company Limited and Mid-stream Holdings (Hong Kong) Limited to better understand their operation and their contribution to the cargo throughput of Hong Kong.

He then went to Marine Department's public cargo working area at Stonecutters Island and the Kwai Chung Marine Traffic Control Station where he was briefed on the marine traffic control operations.

Three working groups will be set up under the Committee on Logistics Services Development (CLSD) to draw up measures to develop "Logistics Hong Kong" and to promote Hong Kong as a regional logistics hub in Asia.

The CLSD at its recent meeting gave the green light to the recommendations of setting up the three working groups to deal with specific areas so as to develop a more conducive environment for "Logistics Hong Kong".

These three working groups focus on physical infrastructure, cyber and regulatory infrastructure for e-logistics, and human resources infrastructure.

It is expected that the working groups will bring about improvements on the co-ordination and integration of various elements in the supply chain which will enhance the logistics infrastructure for Hong Kong.

In order to promote logistics Hong Kong to potential customers both locally and internationally, as well as to enhance the tertiary education students' understanding of logistics