17 December, 2001 (Monday)

The "Logistics Hong Kong" initiative, announced by the Chief Executive in this year's Policy Address, is entering another phase of development as the newly-formed Hong Kong Logistics Development Council (LOGSCOUNCIL) met for the first time today (17 December).

"The Government is fully committed to strengthening Hong Kong's status as the preferred international and regional logistics hub," said Mr Antony Leung, the Financial Secretary who attended the first meeting this afternoon.

"I am confident that the LOGSCOUNCIL, with its highly representative and capable membership, will play a very important role in the realisation of our collective vision," Mr Leung emphasised.

The LOGSCOUNCIL comprises 39 members from the government and the logistics community appointed to underpin the work of the Steering Committee on Logistics Development (LOGSCOM). It is the second new institution formed to support the development of logistics industry.

Mr Leung is the chairman of the LOGSCOM which is the first new institution set up with the task to provide policy steer for and to accelerate measures to take forward the logistics initiative.

The LOGSCOUNCIL, chaired by the Secretary for Economic Services, Ms Sandra Lee, will implement directives from the LOGSCOM and carry out joint projects between the public and private sectors. It will also provide a forum for the public and private sectors to discuss and co-ordinate matters concerning "Logistics Hong Kong".

Ms Lee assured members that the Government was committed to providing a conducive environment and the necessary infrastructure to facilitate the development and promotion of Hong Kong as a logistics hub to link the Mainland to the world.

"To take forward the logistics initiative, the LOGSCOUNCIL has agreed to set up five project groups to develop and implement work programmes," Ms Lee said.

"The five project groups will be tasked to deal with different priority areas identified by the LOGSCOUNCIL and support the formulation and implementation of 'Logistics Hong Kong'. Each group will be led by a convener who is also a council member."

The P-logistics Project Group, with Mr C C Tung as the convener, will focus on physical and regulatory infrastructure.

The E-logistics Project Group, with Mr John Hammond as the convener, will deal with cyber and IT infrastructure.

The H-logistics Project Group, with Mr Willy Lin as the convener, will focus on human resources matters.

The M-logistics Project Group, with Mr James Hughes-Hallett as the convener, will focus on marketing and promotion programmes.

The S-logistics Project Group, with Ms Miriam Lau as the convener, will give support to SMEs (small and medium-sized enterprises) to help them embrace the concept of logistics business.

"To further strengthen the involvement of the logistics community in the work of the LOGSCOUNCIL, co-opted members will be invited to participate in the activities of the project groups," Ms Lee added.

The LOGSCOUNCIL at today's meeting discussed the work programmes proposed for the project groups.

Mr Tung said, "The main challenge of the P-logistics Group is to bring various parties which are separately working on proposals to improve connectivity of their logistics facilities with the cargo hinterland together to bring about synergistic benefits to our logistics system."

The group will initially focus on two areas: the "Port Inland Transportation Network" links to cargo source and the need to develop an integrated planning for the logistics system.

Mr Hammond said that the first priority of the E-logistics Group is to work out an implementation plan for the creation of a "Business Process Interconnect Project" to reduce inefficiencies arising from the "digital gap" amongst service providers.

"We also need to develop programme plans in respect of education of SMEs to embrace the use of IT in their supply chain practices and the development of affordable e-logistics solutions to allow SMEs to participate in the supply chain," Mr Hammond said.

Mr Willy Lin said, "To enhance human resources for logistics business, the H-logistics Group will develop an integrated manpower development plan for H-logistics. We will draw on local expertise and overseas practices by promoting education and professional development in logistics."

"We will focus on two areas, namely: qualification development and knowledge building."

Mr Hughes-Hallett said, "The M-logistics Group will join forces with the Airport Authority Hong Kong, Hong Kong Port and Maritime Board, Hong Kong Trade Development Council and the Invest Hong Kong to develop marketing synergies amongst the marketing and promotional programmes for a more effective promotional campaign for Logistics Hong Kong. "

The M-logistics Group will deal with both inward promotion and outward promotion activities.

"SMEs, which account for more than 98% of all local enterprises, have always been a pillar of Hong Kong's economy," Ms Miriam Lau said, "So the target of the S-logistics Group is to assist the SMEs to participate in the global supply chain and the virtual logistics market."

The group will review how the efficiency of trucking and barging operations can be improved.

The project groups are expected to meet in January 2002.