Transport Department of Hong Kong: Taking multiple measures to enhance Hong Kong's status as an international shipping center and promote the use of smart technology in transportation.

On April 16, the Secretary for Transport and Logistics of Hong Kong, Frank Chan Fan, stated that transportation infrastructure is a crucial engine driving social and economic development. This year's Budget proposed a series of measures to promote the development of Hong Kong's international aviation hub, international shipping center, and cross-border transportation infrastructure. At the same time, the government will accelerate the development of transportation through innovation and technology, including promoting the unmanned and large-scale development of autonomous vehicles, utilizing artificial intelligence to promote smart travel, and building a globally competitive low-altitude economic ecosystem. In the aviation sector, Hong Kong International Airport was ranked as the world's busiest cargo airport by 2025, with a cargo volume reaching 5.07 million metric tons, topping the global cargo airport rankings for the 15th time since 2010. With the operation of the three-runway system at Hong Kong International Airport, the departure facilities at Terminal 2 will be put into use by the end of next month. The airport will actively participate in international civil aviation conferences, visit civil aviation partners, and explore opportunities to strengthen civil aviation links with ten or more partners by 2026, including discussing the establishment of new civil aviation agreements or expanding air rights to support the high-quality development of Hong Kong International Airport's route network. To consolidate Hong Kong's position as an international aviation hub, the government will continue to support the Airport Authority Hong Kong in attracting investment to expand the airport city, including expanding the terminal network in mainland cities and actively promoting the construction of the Dongguan Airport Center. The goal is to have the first phase of the Airport Center's permanent facilities operational by the first half of 2027 to enhance the multimodal transport network in the Guangdong-Hong Kong-Macao Greater Bay Area and reduce the operating costs of the industry in freight transportation. In terms of logistics and shipping, the Budget proposed financial linkage with shipping. Hong Kong will further cooperate with the national shipping strategy to enhance its status as an international shipping center, leveraging financial empowerment to make Hong Kong a global shipping hub and attract more shipping companies to set up operations in Hong Kong. The Financial Services and the Government's collaboration in the CargoX project, the port community system, and the HKIA Cargo data platform has seen over 4,000 companies registered to date. By successfully linking industry and finance, synergies can be harnessed to make Hong Kong a leading global trade finance center and supply chain hub. To enhance Hong Kong's competitiveness, plans are underway to amend the Import and Export Ordinance to expand the current exemption permit system for air transit of goods to include sea-air, air-sea, and sea transport of goods. The goal is to submit revision proposals to the Legislative Council within this year. Furthermore, through the creation of a "Land-Sea-Air-River" integrated transport system to improve multimodal transport, goods can be extended to inland areas, attracting local goods to be exported overseas through Hong Kong. The government will focus on finding solid growth points to increase volume, including transporting goods from Chongqing and Chengdu to Shenzhen Yan Tian Port Holdings or the Beibu Gulf in Guangxi, before transferring them to Kwai Tsing Container Terminals, and expanding into new markets, making use of Hong Kong's advantages as a free port with efficient customs clearance to capitalize on opportunities in the Central and South American markets. Hong Kong's shipping service industry is well-developed, with over 1,200 related companies providing high-end services such as ship management, brokerage, financing, maritime insurance, and legal services by 2025. To further promote the development of high-value-added maritime services, proposals will be submitted to the Legislative Council in the first half of this year to optimize existing tax incentives for activities related to shipping and provide half-tax concessions for bulk commodity trade to stimulate demand for shipping and professional maritime services. Additionally, to maintain Hong Kong's leading position in ship registration, current ship registration arrangements will be revamped by introducing a dual-flag system to accommodate the diversified operating models of international shipping companies, providing greater flexibility to international shipowners and operators. The goal is to submit revised ordinance proposals to the Legislative Council by the second half of this year. In addition, an emphasis on greening is vital, with the introduction of a green ship registration incentive program to encourage the registration of ships using green fuels in Hong Kong, promoting the green transformation of Hong Kong's registered fleet. As Hong Kong develops into an international smart logistics hub, the government will launch the Future Smart Logistics Acceleration Plan later this year to enhance digitalization in the industry, assisting businesses in using logistics data platforms operated by the government or public institutions, with an initial target of benefiting 300 companies. By inviting expressions of interest for the first plot of land in the modern logistics circle at Hung Hom, the government aims to set terms and development models for related land and development this year. In terms of transportation infrastructure, under the new layout of the "Eight Vertical and Eight Horizontal" infrastructure plan, a dual innovation approach of policy innovation and technological innovation will be employed to promote the various railway projects, intelligent and green collective transport systems, and major road projects. On the railway front, the development of the Kooto Station, extension of the Tung Chung Line, extension of the Tuen Mun South Line, and the Hung Hom Station will gradually be completed and put into operation starting next year. The mainline and branch line projects of the Northern Link will be merged and developed simultaneously with new thinking to strive for simultaneous completion before 2034. Efforts are also underway to expedite the exploration and design work of the Hong Kong-Shenzhen Western Railway (Hong Hom to Qianhai), with plans to invite bids for the Hong Kong segment next year. Regarding the Intelligent and Green Collective Transport System projects, contracts for the Kai Tak project were expected to be awarded in October 2025, with plans to issue contracts for the East Kowloon and Hung Hom/Sham Tseng New Development Area projects within the year. At the same time, the MTR Corporation has initiated detailed planning and design for the South Island Line (West). Finally, the Transport and Logistics Bureau will accelerate transportation development through innovation and technology in three aspects: 1. Promoting the unmanned and large-scale development of autonomous vehicles: The Transport Department has approved over 60 autonomous vehicles to shuttle in different areas of Hong Kong, driving technological advancements. Last month, the Director of Transport held the first meeting of the Autonomous Vehicles Application Promotion Task Force; relying on industry collaboration to promote smart transportation, efforts are being made to accelerate the testing and application of autonomous vehicles in Hong Kong and develop roadmaps for commercial operation. 2. Leveraging artificial intelligence to promote smart travel: The Transport Department is actively using big data and artificial intelligence to build a smart transportation management platform, with plans to establish the first pilot area in Aberdeen within the year to provide citizens with real-time traffic information and predictions, preparing for extreme weather or unforeseen accidents affecting public transportation. 3. Building a globally competitive low-altitude economic ecosystem: An upgraded version of the Low-Altitude Economy "Regulatory Sandbox X" pilot project will be launched sequentially, focusing on more complex applications such as cross-border logistics, manned aircraft, multi-scenario/multi-user sharing platforms, and unmanned aerial traffic management systems. A draft of the "Action Plan for the Development of the Low-Altitude Economy" will also be formulated, covering legislation amendments, establishment of standards, and planning of infrastructure to lay a foundation for the long-term standardized development of the low-altitude economy.