Wednesday, 10 March 1999

SES Promotes Hong Kong to Japanese Shipping Industry

The reduction by over 50 per cent of first ship registration fees and annual tonnage fees announced in the Financial Secretary's Budget last Wednesday will make the charges of Hong Kong's shipping register as competitive as, if not more than, our major competitors.

The Secretary for Economic Services, Mr Stephen Ip, said this today (Wednesday) in a conference in Tokyo, Japan to promote the Hong Kong Shipping Register to Japanese shipowners and shipping companies.

Mr Ip said, "The fee reduction proposal is the latest Hong Kong SAR Government's initiative to enhance the competitiveness of the Hong Kong shipping industry."

"We have set up a Shipping Committee last year to advise the Government on measures to promote Hong Kong as an international shipping centre. We have also introduced a series of improvements to make the Hong Kong shipping register more convenient and attractive to both local and overseas shipowners.

"These include simplifying the ship survey requirements, computerising ship registration procedure, negotiating double tax agreements with overseas countries and territories to reduce the tax burden of Hong Kong shipping companies, and making arrangements for overseas shipowners to register their ships with us through our economic and trade offices in Japan, United States, Singapore, Sydney, London and other places," Mr Ip said.

"We will continue to do more to attract shipowners to Hong Kong. The free and open business environment, efficient infrastructure and excellent supporting services plus the huge amount of shipping activities already taking place here will make Hong Kong even more attractive to international shipping companies," he added.

"Hong Kong is the sixth most important maritime centre in the world after Greece, Japan, Norway, United States and the Mainland of China. There are over 1 000 shipping related companies in Hong Kong and Hong Kong shipowners control more than 31 million tonnes of the world commercial fleet," Mr Ip said.

"Our aim is not only to build up the Hong Kong shipping register tonnage, but to attract shipping companies to come to set up operations in Hong Kong to manage their ships and run their business. This will help promote Hong Kong as an international shipping centre, stimulate the development of related businesses such as financial, banking, insurance and maritime law services, and create new jobs for Hong Kong people."

On developing Hong Kong as a logistic centre, Mr Ip said, "Today shippers want more than an efficient transport service, they want someone to take over the hassle of managing the stocks and organising the shipments, and save money for them in the meantime, i.e. a total logistic service. We would like to build on our strength as a major shipping and aviation centre and to develop Hong Kong into a logistic hub."

"Hong Kong has ships providing services to over 170 ports in 60 countries worldwide. In Asia alone, we have regular services to more than 80 ports. On air services, Hong Kong airport is one of the busiest in the world. There are 63 international airlines providing over 3 000 scheduled flights each week between Hong Kong and 120 destinations worldwide. As Asia, we have direct scheduled passenger and all-cargo services connecting with 82 cities.

"As a gateway to the Mainland of China, Hong Kong has shipping services to all the major Mainland ports and extensive river trade services linking with the numerous river ports in the Pearl River Delta. More than 20 000 container trucks move across the boundary between Hong Kong and Shenzhen each day. Cargo arriving in Hong Kong can reach their destination in the Pearl River Delta within the same day. In addition, Hong Kong has air links with over 40 Mainland cities, providing 360 flights each week," Mr Ip said.

"Hong Kong, with its huge cargo base, comprehensive and efficient links with the Mainland and the outside world, and excellent supporting services, is ideally located to organise the logistics for the numerous manufacturing plants and factories in the Pearl River Delta and the region.

"The reduction of ship registration fees, the building of new container terminal facilities, and the opening of the new airport last year are all part of our effort to provide the best transport and logistic infrastructure to develop Hong Kong into an international transportation hub.

"I strongly encourage Japanese companies and overseas companies to come to take advantage of the ideal geographic location of Hong Kong to provide advanced logistic services to serve the needs of their clients," Mr Ip said.

Mr Ip also took the opportunity to promote Hong Kong to the Japanese visitors.

"Hong Kong is determined to maintain its position as a key tourist destination. I welcome Japanese visitors to come to Hong Kong and I assure you that you will not be discriminated against. Hong Kong is a city full of excitement and variety and Japanese visitors will find their visits to Hong Kong good value for money," he said.

Mr Ip was speaking in a transport conference organised by the Hong Kong Trade Development Council in Osaka and Tokyo to promote Hong Kong to the Japanese shipping and transport industry. He will return to Hong Kong tomorrow (Thursday).