Hong Kong Transport Department: Proposed to expand the "Air Cargo Transshipment Exemption Scheme" to other multimodal transportations.

On March 27, Hong Kong Secretary for Transport and Logistics, Chen Meibao, spoke at the Legislative Council on the facilitation of freight transfer. She mentioned that one factor contributing to the success of Hong Kong's air cargo transportation is the introduction of the "Air Cargo Transshipment Exemption Scheme" in 2000. This scheme allows various goods to be transshipped in the restricted area of Hong Kong airport in an "air-to-air" transfer mode without the need for import and export permits. To enhance logistics development in Hong Kong, she suggested further expanding the relevant exemption scheme. Chen Meibao stated that Hong Kong is a leading logistics hub in Asia, connecting with Mainland China and the rest of the world through the transit of goods as a hub. Hong Kong's strong competitive advantages lie in its strategic location, connectivity with the world, advanced infrastructure, sound legal system, high-quality service providers, and competitive tax regime. Hong Kong is competitive as an international financial and business center, with its airport and port ranking among the busiest globally. The recently published "Outline of the Fifteenth Five-Year Plan" by the country explicitly supports Hong Kong as an international shipping center and aviation hub. In recent years, Hong Kong has actively developed a multimodal transportation network with the Guangdong-Hong Kong-Macao Greater Bay Area and is committed to building a "rail-sea-land-water" network to connect Hong Kong with the vast hinterland market of the country. These multimodal transportation systems can further expand Hong Kong's source hinterland and enhance its competitiveness. Other cities in the Greater Bay Area are significant sources of goods for Hong Kong. Leveraging Hong Kong's excellent multimodal transportation network with these cities and international air and sea routes, Hong Kong has a particular advantage in goods transshipment. However, in maritime, air transport, and logistics, Hong Kong also faces severe challenges, including intense competition from nearby airports and ports, as well as the impact of unstable international political situations, especially recent turbulence in the Middle East, causing some instability and challenges in the logistics and supply chains. Hong Kong must seize opportunities, weather challenges, and consolidate its position as a transshipment hub, supply hub, and timely hub. The documents submitted today propose optimization and deregulation measures to enhance Hong Kong's competitiveness as a leading transshipment hub. In terms of air-sea and sea-air intermodal transportation, the Hong Kong Airport Authority has established the Hong Kong International Airport Dongguan Air Cargo Center in Dongguan, transporting goods to the airport for export in a sea-air multimodal transportation mode. By 2025, the Hong Kong International Airport Dongguan Air Cargo Center is expected to handle over 32,000 tons of cargo, an 84% increase compared to previous years, with a cargo value of 35 billion Hong Kong dollars. Hong Kong is planning to commence commercial trial operation in the first phase by April 1, 2027, and officially start operation by June 1, increasing capacity at that time. To strengthen Hong Kong's competitiveness in transshipment, it is noted that sea transport transshipment has become the largest source of cargo for Hong Kong ports now, contributing to over 80% of cargo container throughput at Hong Kong ports last year. Due to Hong Kong ports' fast customs clearance and high efficiency, shipping companies have increasingly chosen to conduct "ship-to-ship" operations in the port in recent years, estimating that such operations bring thousands of tons of throughput to Hong Kong ports each time. In the 2024 Policy Address, the Chief Executive proposed extending the exemption scheme to other multimodal transportation modes, including sea-air and air-sea intermodals and sea transport intermodals, to ensure that transshipped goods do not enter the market and comply with relevant international conventions. The government aims to submit relevant legislative proposals to the Legislative Council for deliberation within the year after hearing member opinions today.