Thursday, January 27, 2000

A delegation of the Hong Kong Port and Maritime Board completed a successful four-day visit to Tokyo in Japan today (Thursday).

The main purpose of the visit was to update the shipping community in Japan on the latest developments on port and maritime matters in Hong Kong and to impress upon them how such developments would present opportunities and benefits for their operations.

The Secretary for Economic Services, Mr Stephen Ip, gave two keynote addresses at two luncheon seminars attended by key decision-makers from the shipping community in Japan. He also called on the Minister of Transport the Hon Toshihiro Nikai to discuss how Hong Kong and Japan might better co-operate in the area of civil aviation, maritime transport and tourism.

During the seminars, Mr Ip and delegates outlined the benefits of registering ships under the Hong Kong Shipping Registry and encouraged shipping and logistics companies to strengthen their presence in Hong Kong so as to take advantage of the business opportunities arising from an expected increase in shipping activities in Hong Kong as a result of China's imminent entry into the World Trade Organisation.

Mr Ip pointed out that Hong Kong has done well to strengthen its position as both an air and sea cargo hub in 1999. Air cargo throughput for Hong Kong has grown by 20 per cent over the previous year. Port throughput has also registered impressive growth at almost 10 per cent to reach an estimated 16 million TEUs (twenty-foot equivalent units) for 1999.

Mr Ip also pointed out that companies based in Hong Kong would have much to gain from the spurring effect of China's WTO membership on its trade and investment with the rest of the world. The rapid growth of Mainland China's economy, together with its increasing integration of goods, services and people will create many business opportunities.

He said, "To meet the increasing demand, we are building a new Container Terminal 9 which will give Hong Kong an additional capacity of 2.6 million TEUs by 2004. In Hong Kong, with air and sea ports in close proximity, we are developing integrated services between the two to serve customer needs."

Director of Marine Mr Tsui Shung-yiu and delegates also updated the shipping community in Japan on the recent initiatives taken by Hong Kong to increase the attractions of the Hong Kong Shipping Register.

"As a result of these measures, the Hong Kong flag tonnage has increased by 34 per cent in less than one year. This reflects clearly that the shipping community knows very well that the Hong Kong Shipping Register offers value for money," Mr Tsui said.

Many attractions of registering ships under the Hong Kong flag were cited. The latest being the significant tax advantages arising from the Memorandum of Understanding on preferential rates for port dues signed between Hong Kong and the Mainland of China on tonnage dues, which could result in some 30 per cent savings in tonnage dues for ships flying the Hong Kong flag which call on ports in the Mainland. Another important tax advantage can come from Avoidance of Double Taxation Agreement on shipping, such as the Agreement initialled with the Netherlands in December 1999, which exempts owners of Hong Kong ships from paying tax levied on cargo uplifted in the Netherlands and vice versa. Apart from the Netherlands, Hong Kong also has similar arrangements with the US, Mainland China, New Zealand and Korea. Similar discussions are being held with about 20 other tax administrations.

Other benefits included significant savings for ship owners arising from a 80 per cent reduction in the cost of ship registration, flexible and simple "flag-in, flag-out" arrangements, no nationality restrictions for crews working on ships flying the Hong Kong flag, legal security guaranteed by the Basic Law, the common law system, a well-established arbitration system and political stability.

During the visit, the delegation called on leading Japanese shipping lines, shipbuilding companies and trading houses to promote a greater use of Hong Kong as an international shipping center and a leading port in Asia. They also visited a Maritime Museum, the Port of Tokyo and the Japan Maritime Research Institute to draw on their experience to develop initiatives on these fronts in Hong Kong spearheaded by the Hong Kong Port and Maritime Board.

Members of the delegation comprise the Secretary for Economic Services, Mr Stephen Ip; the PMB Chairman, Mr Peter Thompson; Chairman of the PMB Shipping Committee, Mr Frank Tsao; Chairman of the PMB Shipping Register Subcommittee, Mr Liang Ming-hang; PMB Member and Vice Chairman of the Hong Kong Shipowners Association, Mr Dan Bradshaw; PMB Secretary, Mr Alex Fong; Director of Marine, Mr Tsui Shung-yiu; and Chief Assistant Registrar of Marine Department, Mr So Ping-chi.

The Delegation will conclude their programme with a one-day visit to Korea tomorrow.