Gaining strength in numbers

s Chairman of the Hong Kong Maritime and Port Board, it is my great pleasure to welcome Ayou all to the first Hong Kong Maritime Industry Week.

As a body representing the views and aspirations of everybody involved in marine-related business in Hong Kong, the HKMPB organises this extraordinary week of exchange, networking, talent enrichment, and sheer fun for two reasons —

First, through the wide range of maritime services Hong Kong provides to the world every day, there runs a rich seam of world-class expertise and experience, supported by a peerless infrastructure. This has given Hong Kong an advantage that has served it well for many years. We recognise that in an increasingly competitive world, we have always to stay ahead of the curve and in search of excellence. Not only do we seek to impress our overseas business partners of our high performance, we must also foster greater collaboration and solidarity ndustry Wee k 2016 Hong Kong Mariti m e I ndustry among our maritime community, so that we may continue to work towards our goals with pride and energy.

Secondly, and perhaps most importantly, it is a fact that shipping, and the businesses that serve it are facing stiff challenges arising from an increasingly difficult and complex global economic environment. In hard times it is often tempting to stick to the old tried and tested ways of doing business. But while we may learn from history, in an environment that changes with the speed of light, we should not rely upon it. Instead we must assiduously seek out new solutions through the adoption of new thinking and cutting-edge technology that address the here and now.

The Hong Kong Maritime Industry Week seeks to demonstrate that, by gathering together and pooling our expertise from home and abroad, ways may be found to profitably adapt to the new matrix of regulatory, economic and operational environments. The Asian Logistics and Maritime Conference during November 22-23, is expected to attract more than 2 000 delegates from home and abroad, and will form the centrepiece of the Hong Kong Maritime Industry Week. In addition, throughout the week, there will be more than 20 specialist and general interest briefings, seminars and talks held across the city.

Through these interactive activities, Hong Kong hopes to play its part in advancing knowledge, creating lasting friendships and providing insight that will serve the maritime industry this year and beyond.

Finally, I would ask you to view the following pages as something of a curtain raiser to what promises to be a spectacular showcasing of the best of Hong Kong maritime, and the many attractions of Asia’s World City.

Professor Anthony Cheung Bing-leung Chairman of the Hong Kong Maritime and Port Board Secretary for Transport and Housing

For details of how to register for Hong Kong Maritime Industry Week events please go to www.hkmiw.hk 2 Front Cover Vessel: Courtesy Pacific Basin 3 2,000 delegates. Deputy executive HKMPB’s chairman of the Promotion and External Relations Committee, director at HKTDC, Raymond Yip David Cheng elaborates:

“ALMC has made concerted efforts to promote Hong Kong’s maritime cluster in the global arena. Being an anchor event of the Hong Kong Maritime Industry Week 2016 will help to raise the profile of ALMC and its work in fostering business opportunities.

“We have collaborated with the Maritime and Port Board to create business synergy Hong Kong Maritime and gather senior logistics and maritime industry players from around the globe for Industry Week 2016 this significant event,” he adds. Asked what particular segment of this year’s ALMC he is most anticipating Mr ndustry Wee k 2016 Hong Kong Mariti m e I ndustry Hong Kong is rolling out the red carpet for the maritime Yip says, “The sixth edition of ALMC world at its most spectacular industry event ever covering myriad aspects of maritime the Institute of Chartered Shipbrokers will continue to spotlight China’s Belt business. and the Hong Kong Logistics Management and Road Initiative, Made in China 2025 Staff Association will present a maritime strategy and the development of cross- here is now a palpable sense of “Equally challenging is the fact that Week. It is a show of solidarity, indeed,” Always with an eye on manpower law seminar. On Thursday, the Hong Kong border e-commerce. The Maritime Forums anticipation coursing through Hong because it is the first, we had to work he enthuses. development for the sustainability of International Arbitration Centre will will cover a host of topical issues for TKong’s maritime community in the everything from scratch, such as a premier maritime hub, many of the guide delegates in navigating maritime liners, tankers and dry bulk shippers. We run-up to its first Maritime Industry Week. designing a logo, producing a website From the outset, the HKMPB had programmes will address this important arbitration, presenting its challenges and look forward to bringing new insights to In a remarkably short time the Hong and generating publicity. Despite the three main objectives it felt should be component. To name just a few, the offering practical tips. the participants and helping them expand Kong Maritime and Port Board and the challenges, we have striven to make it achieved in the organising of the first Institute of Seatransport and the Hong their networks in the region,” he says. maritime community have joined together a success in forging a close bond among Hong Kong Maritime Industry Week: it Kong Maritime Law Association will For those keen to see maritime Hong Kong in an unprecedented effort to show off all players of our maritime and port must serve to show that Hong Kong’s offer an interactive workshop on marine at work two visits have been arranged to Hong Kong Maritime Industry Week the region’s premier maritime hub in sectors, and showcasing our industry as maritime sectors are contained within a insurance and average. the port on 21 and 24 November, while will finish as energetically as it began; its brightest colours and extraordinary one strong cluster in all readiness to offer cohesive and highly functional cluster. a visit to Hong Kong’s shipyard on 25 with the annual Hong Kong Shipowners diversity. the global shipping community the quality Secondly, it should provide a means to Three of Hong Kong’s leading technical November will also be of interest to many. Association Annual Yacht Race. The maritime services they are seeking. Such reach out to the wider community and and engineering institutes have joined “Round the Island Race” is organised by HKMPB’s chairman of the Promotion and an achievement would be our greatest lift their awareness of the importance of together to provide a technical seminar This listing of events merely scratches the Royal Hong Kong Yacht Club. External Relations Committee, David reward,” he adds. the port and related maritime industries. in maritime engineering. And the Marine the surface of what is on offer. To find out Cheng, offers some insight into the high- Last but not least, it should be the go-to Department has organised two sessions more please visit www.hkmiw.hk. Let the show begin pressure atmosphere surrounding the Maritime community in show of event for overseas delegates who may visiting the Navigation Simulation Training And now, as the organisers await the organisation of such a large-scale event: solidarity discover why Hong Kong is the preferred Facility. The centrepiece of Hong Kong Maritime arrival of thousands of visitors to Hong Mr Cheng is keen to acknowledge the operating base for maritime business. Industry Week Kong’s most spectacular maritime “The Hong Kong Maritime and Port maritime community as a whole for its And so the race was on to participate, Hong Kong is a highly respected centre The flagship event of Hong Kong Maritime programme ever, Mr Cheng takes a Board was set up not long ago in April willingness to step up to the challenge: promulgate and promote maritime for legal services with one of the busiest Industry Week will be the Asian Logistics moment to reflect on what all the hard 2016. The decision to organise the Hong “The industry’s response has been very Hong Kong. arbitration centres in the region. And this and Maritime Conference at the Hong work has been for. Kong Maritime Week was made later by encouraging. To date, we have recruited is reflected in a number of programmes Kong Convention and Exhibition Centre on the Promotion and External Relations a total of 28 international, diversified and A packed week of knowledge gathering during the week. November 22-23. “A primary objective of the HKMIW is Committee of the Board at its first fun-filled activities, involving 32 maritime- and networking begins to solidify all sectors of our maritime meeting on 28 June 2016. That left us related trade associations, professional In all three main objectives Hong Kong Starting on Monday morning the Asia Jointly organised by the Hong Kong industry as one strong cluster, which can with less than five months to organise bodies and academic institutes. In the Maritime Industry Week looks bound Maritime Breakfast Briefing will tackle Government and the Hong Kong Trade respond to the calls from around the this major maritime event of Hong Kong current depressed market conditions, we to succeed with eight days devoted to the tricky topic of choosing the right Development Council, ALMC celebrates world for ever better maritime services. for the very first time. Time, therefore, are truly grateful for the strong support of an unprecedented range of seminars, form of dispute resolution; legislation, its sixth year in 2016. And this year it is It is the desire for such spirit that we are poses a real challenge for us,” he says. the industry for the Hong Kong Maritime briefings, lectures and industry visits, mediation or arbitration. Also on Monday, looking forward to welcoming a record longing for as the HKMIW legacy.” ~

4 5 Cadets in training at the Maritime Services Training Institute

The new initiatives include the MATF: a lifeline for introduction of the Professional Training and Examination Refund Scheme, with a youth inspired by the sea view to upgrading the professionalism of qualified in-service practitioners of the maritime and aviation sectors. Under the The Maritime and Aviation Training Fund is providing Scheme, qualified in-service practitioners can apply for a refund of 80% of fees after opportunities to hundreds of Hong Kong youngsters completing or passing approved courses/ examinations. Each individual may apply n 2012, there was a large measure “They have all been well received and continuation of the Fund. But before for fee reimbursement for more than one of expectation emanating from the welcomed by the industry. Nearly 440 doing so, we would need to review the course/examination, up to a ceiling of “The pay for a deck officer is attractive Pan Xiuhua from Dalian in Northeast China Imaritime sector as the Chief Executive university undergraduates have been usage and effectiveness of the Fund, and $18,000 per person. and there are good promotion prospects. is typical of the many young students of the Hong Kong Government had made attracted either to work as interns the manpower development needs of the Eventually I could become a shore-based benefitting from the Hong Kong Maritime plain on a number of occasions that in maritime-related companies, or industry.” Internship scheme professional. But for the time being I Law Scholarship Scheme. An enthusiastic maritime specifically had a place in his study a maritime related course in an Furthermore, an internship scheme has find it interesting working on different budding maritime lawyer, she says: plans. In the event he did not disappoint. overseas university. About 830 in-service The industry should also be assured when been in operation since the summer of classes of ships and handling different On April 1, 2014 the Government practitioners in the maritime sector have Mr Koo makes it clear that the Fund will 2014 to enhance the younger generation’s types of cargo.” “I chose maritime law for its announced the launch of the Maritime and also applied for refund of fees,” he adds. not be restricted by the fact that shipping early exposure to the operations and international characteristics and its ndustry Wee k 2016 Hong Kong Mariti m e I ndustry Aviation Training Fund (MATF). is going through one of its periodical career prospects in the maritime and The Sea-going Training Incentive need for expertise. Maritime law is a It is clear that the $100m Fund has downturns: aviation sectors. Scheme provides a monthly subsidy of challenging subject that relies on a The positive MATF effect on Hong Kong become a major support for manpower $6,000 to deck or engineering cadets firm grasp of theory as well as practical youth is tangible. The chairman of the development in the maritime and aviation “Some 80% of international trade is Other new initiatives include a partial on ocean-going vessels for a maximum experience, and I believe it is a good Hong Kong Maritime and Port Board’s sectors, which will do much to expand transported by sea. So, regardless of the tuition refund scheme for the specialised period of 18 months. choice for those with high expectations Manpower Development Committee, Mr the pool of talent for the long-term cyclical up and downs of the industry, aircraft maintenance programme, and for their prospective careers.” Irving Koo says of the response: sustainable development of the two it would remain an integral part of implementing the Local Vessel Trade “I am paid only when I am working on sectors. And there are those close to the the economy. We need to strengthen Training Incentive Scheme to attract ships. This means the Scheme provides MATF has been indispensable in helping “Various new initiatives have been scheme who are already looking hopefully manpower development not only for new recruits to the local vessel trade as solid financial support to me during my Ms Pan pursue her studies. introduced under MATF, including toward its extension. And Mr Koo is short term needs, but for the long- coxswains or engine operators. The MATF leave in Hong Kong, in particular when providing internship opportunities in cautiously optimistic when he says: term sustainable development of the has also supported events to promote preparing myself for the Class 3 Certificate “I would like to thank the MATF for the maritime industry, sponsorship for industry. The building up of a sustainable public awareness of the seafaring of Competency examination and attending its generous financial support, which exchange for students to study maritime “The Fund is to be used for a period talent pool in Hong Kong is of utmost and maritime sectors and the career the mandatory training courses. enabled me to pay full attention to my courses overseas, providing refund of fees of five years until 2018-19. It is being important,” he says. opportunities being offered. studies and successfully finish the one- for in-service practitioners to upgrade used steadily to support the various “The fund under the Scheme has been year study at City University of Hong their professionalism and competency, schemes. So far, the feedback has What is the MATF? Subsidy increase an important factor in encouraging Kong,” she says. and promoting careers in the maritime been most encouraging; it is welcomed MATF aims at attracting new blood In addition, part of the Fund will be me to take up sea-going training and industry to the young generation,” says by both the industry and participants. to the maritime and aviation sectors, used to sustain and enhance the existing develop my career as a marine or shore- “The opportunities as well as the Mr Koo. There is therefore a strong case to seek diversifying expertise to meet manpower schemes. As one of the enhancement based professional in the maritime useful information offered by the demands of the sectors, especially in initiatives, the monthly subsidy provided industry. For this I am immensely MATF will equip me with more career providing high value-added services, for cadets under the existing Sea-going grateful,” Mr Butt concludes. opportunities,” she adds. Mr Irving Koo, chairman of the Hong kong Maritime and Port Board’s Manpower Development Committee (centre) MATF graduate Butt Tsz Fung (left) Recipient of a Hong Kong Maritime Scholarship Pan Xiuha (right) and enhancing the overall competency Training Incentive Scheme was increased and professionalism of the sectors. This from $5,000 to $6,000 with effect from Other existing training schemes and Going forward, the Manpower will in due course build up a vibrant, April 2014. scholarships for the maritime sector Development Committee under the diversified and competitive pool of include two scholarship schemes for Hong Kong Maritime and Port Board will professionals and technical personnel to MATF graduate Butt Tsz Fung, a young master degree programmes, namely monitor and review the implementation support Hong Kong’s future development deck cadet, is typical of those who have the Hong Kong Maritime and Logistics of the initiatives concerning the in the maritime and aviation sectors. It benefitted from the Sea-going Training Scholarship Scheme and the Hong Kong maritime sector. sustains and enhances the five existing Incentive Scheme: Maritime Law Scholarship Scheme. training schemes and scholarships. The scholarships support deserving The Government will review the Since its establishment in 2014, it has “I knew from an early age that a sea- postgraduate students in the pursuit of usage of the Fund and fine-tune the launched a series of new initiatives for going career would provide me with a maritime-related studies, and give them implementation details in the light of the two sectors. good opportunity to travel the world and good exposure to the industry, and in turn practical experience and feedback. ~ experience foreign cultures,” he says. enrich Hong Kong’s maritime workforce.

6 7 Maritime Legal Services Building Marine Insurance Hong Kong has a deeply entrenched common law Hong Kong’s importance as a trading system based on English Law where the rule of law is nation has attracted insurers for upheld by an independent judiciary. over 150 years. Currently there are The High Court maintains specialist lists to deal with a Maritime Hub 84 authorised marine insurers in admiralty and commercial disputes. Hong Kong, of which 32 of them are international insurers with a depth Hong Kong is the most popular maritime arbitration A successful maritime hub is a living organism comprising of expertise built up over decades. centre in the region by a nautical mile. In 2015, the Of the 13 member Clubs of the Hong Kong International Arbitration Centre and its many vital elements working in harmony. And Hong Kong is International Group of P&I Clubs, members dealt with 130 arbitration cases involving exemplary. In 2014, Hong Kong recorded a trade surplus of 12 members have an established maritime disputes. presence in Hong Kong. Many of the leading global maritime law firms have a HK$70.8bn in sea transport, reflecting strong international strong presence in Hong Kong. demand for Hong Kong’s shipping services

Ship Finance

ndustry Wee k 2016 Hong Kong Mariti m e I ndustry As Asia’s leading financial centre, Hong Kong offers a myriad of financing A Port resources. Hong Kong has about 60 The Port of Hong Kong is one of the banks providing ship financing. Many Shipping Register busiest container ports in the world. maritime related businesses in Hong The centrepiece of a thriving maritime hub is its fleet of ships. It handled 20.1m TEU in 2015. As a Kong and around the region have listed The Hong Kong Shipping Register is the fourth largest in the world transshipment hub in the region, the their companies on the Hong Kong Stock with a reputation for quality excellence. The detention rate of Port of Hong Kong has a reputation for Exchange. Hong Kong is also home to Hong Kong registered vessels was only 1.13%, as compared with a being one of the most efficient and eco- numerous private equity funds that world average of 3.51% in 2015. friendly, with high frequency and wide have taken a significant interest in the coverage of sailings. maritime sector. In June 2016, the HKSR passed the 105m gross tonnage mark with 2,509 vessels registered. Also, Hong Kong holds Qualship 21 status with the United States Coast Guard.

Industry Organisations Supportive Administration A diversified industry, the maritime industry is often When an industry meets the sort of headwinds that regarded as fragmentary. However, every sector in shipping has endured in recent years a premier the industry is interlinked. It is therefore vital to have maritime hub needs a proactive government that strong representative organisations. In Hong Kong is prepared to promote the hub and assist it with there is an organisation to cater for persons involved timely policy initiatives. in any sector of maritime no matter how niche. Some Marine Support and Ship Management In April 2016, the Hong Kong Government will assist in career advancement others lobby the Ancillary Services established the Hong Kong Maritime and Port Hong Kong has everything in the way of The concept of third-party ship industry for change. All offer the chance to network Board, a joint government/industry body offering marine support and ancillary services management originated in Hong and make a career in maritime the best career option policy guidance, with a view to promoting the to ensure that ships sail safely and Kong in the early 1970s. Ever since there is. And with the support of these maritime development of the maritime industry in Hong efficiently. Hong Kong is home to all then Hong Kong has been a ship organisations, no company in Hong Kong stands Kong. The Government’s efforts are also seen in the major international Classification management powerhouse, where alone. Rather they move forward as part of a genuine concluding double taxation relief arrangements Societies. There are excellent ship repair some of the best ship management business community. and the establishment of the HK$100m Maritime yards on hand in Hong Kong and in the companies such as Anglo Eastern- and Aviation Training fund for the building up of a Pearl River Delta. Both international and Univan, Wallem Group, Fleet sustainable talent pool to support the long term local shipbrokers are in abundance. And Management and Bernhard Schulte development of the industry. there are literally hundreds of marine Shipmanagement now dominate global equipment suppliers offering 24/7 ship management. services.

8 9 Hong Kong’s new maritime generation

Hong Kong’s new maritime generation come from all walks of Yvonne Gu Yvonne (25) is an Associate at Hong Kong shipping company Uni-Asia Shipping Ltd. It was in 2009, when Yvonne life, and often from different countries. The one thing they have decided that she would use her interest in law and shipping to study maritime law at Shanghai Maritime in common is a passion for the maritime and port industries University. While still at university Yvonne learned more about shipping through internships at a local law firm and a regional court before moving on to Maersk Line in Shanghai. “After graduating I joined the training programme of the Shanghai branch of a tramp shipping operator, Chan Kin-tung Joe Fung Dampskilbsselskabet Norden. I worked on panamax chartering before being transferred to Copenhagen for a Chan (19) is a Year 1 student of the Higher Diploma in Maritime Joe (29) is an further year’s training,” says Yvonne. Studies at the Maritime Services Training Institute (MSTI). Chan associate broker Through a contact in Copenhagen, Yvonne finally got the opportunity to work in Hong Kong at her current post. “Hong Kong is says he is the kind of person who is keen for a challenge and he at FP Marine Risks. one of the most exciting shipping centres in the world,” she says. “And Hong Kong is such an interesting city, full of rich cultural loves adventure. “I have always dreamed of sailing the world’s He attributes the diversity! oceans and visiting new countries. When I qualify as a seafarer mentorship of one “Looking to the future. I hope, here in Hong Kong, I can continue to learn more about shipping and particularly about commodity I intend to broaden my horizons through learning of the other of his university training.” cultures around the world in the countries I will visit. professors to his ndustry Wee k 2016 Hong Kong Mariti m e I ndustry “The Training I am receiving at MSTI has made me more confident that I can have a good fortune in choosing a career in successful career in the maritime industry and eventually become a ship’s Master.” the marine insurance industry. Joe finds Anthony Tai Patrick Ho David Griffiths the insurance industry interesting and Anthony (30) is a Patrick (30) is a David (34) is appealing because it is a people business, divisional director Year 1 student a protection Edward Liu and he is outgoing and enjoys meeting at shipbroker of the Higher and indemnity Edward (30) is a senior registered foreign lawyer at Reed and working with new people. Clarksons Platou Diploma in Maritime underwriter for the Smith Richards Butler, specialising in shipping litigation Joe started and wants to continue Asia in Hong Kong. Studies at MSTI. West of England, and arbitration. Before moving to Hong Kong, he studied to follow his chosen career in Hong As a shipbroker Before he joined an International law at Shanghai Maritime University and the University of Kong. “Hong Kong is a fascinating and in a truly global the programme Group P&I Club. Southampton, where he respectively obtained his LLB and LLM. international city,” says Joe. As a local business, Anthony he had worked in shipping as a fleet The opportunity to work at the West of With more than six-year experience in Hong Kong, Edward resident, he is proud of what we have in gets the chance to travel and meet people management officer. “This provided me England was rather serendipitous given appreciates every aspect of the city, and believes that it is the terms of a metropolitan financial hub. from all over the world. Anthony says with a wonderful opportunity to learn of that the Club was looking for someone premier centre in Asia for resolving maritime disputes by arbitration or mediation. In “Being a financial centre and bridge that negotiating a vessel that could be the importance of international trading in with a data driven background just as March 2015, Edward was honoured as one of “Ten Outstanding New Hong Kong Young between China and rest of the world, worth from US$1m to US$30m is another daily life, as almost 90% of everything we he landed in Hong Kong more than three Persons”, and in August 2016, Edward was shortlisted for the Next Generation Shipping there will be enormous opportunities element in shipbroking that he finds buy arrives via ship,” he says. years ago. Award, one of the Lloyd’s List Asia Awards in 2016. in Hong Kong and thus, Hong Kong will incredibly exciting. “The shipping industry offers young “Hong Kong has a reputation as a continue to be the place for me in the Anthony is grateful that he is able people a truly international career,” he dynamic and vibrant place to work and foreseeable future,” he adds. to work in a wonderful organisation adds. “I like the multinational working live. And the shipping community here Violet Kwek Looking to the future, Joe hopes that – Clarksons Platou, where a young environment where many of my shipmates is welcoming and supportive. Hong Kong Violet (39) is Deputy Head at Minsheng Banking Corporation Hong Kong continues to develop as an person like him is surrounded by many originate from different countries. This caters to those with lofty ambitions, given Corp Ltd in Hong Kong. “Shipping for me started when I joined insurance hub and that will one day be as experienced hands, showing him the offers a great opportunity to experience the talent in the market and laissez-faire the M&A team of a shipping bank, after which I moved to the famous as the Lloyd’s markets. ropes and helping him to develop lasting different cultures. Working on a ship approach where the fittest have always shipleasing side of the business,” says Violet. “Having entered relationships with hundreds of shipowners. is a challenging job where one must thrived,” says David. ship financing in 2007 when the shipping industry soared to “Hong Kong to me is more than just a be prepared for an emergency at any David is currently involved in the unprecedented heights only to crash dramatically within 12 place to do business; it’s where I grew up moment. But I believe every challenge is Young Professionals Shipping Network, months was a heady experience for me. and I will always call it home. I believe an opportunity for growth. I can’t wait to a successful platform where social and “But while the market can be at times trying, it definitely is not mundane. Moving Hong Kong will continue to maintain its start my first voyage.” networking events bring the industry to Hong Kong in 2010 allowed me to broaden my horizons in this region. I have grown as status as one of the main global maritime together. the industry has grown in China, including the banks, leasing companies and of course centres,” he says. shipowners and shipyards. “I wish to motivate and attract younger people into the shipping industry. It is important especially during this difficult period when the industry may not immediately seem so exciting. Shipping may be volatile but it is definitely here to stay!”

10 11 The benefits of Hong Kong’s place at W eek 2016 maritime partnership the global maritime regulation table As the largest national flag in the world, Hong Kong has an Cross-border cooperation has brought many advantages important role in ensuring safety at sea

erhaps the most high-profile frequently been amended towards in Hong Kong. This became famous as n May 2009, Hong Kong welcomed ensure Hong Kong has as much input as intergovernmental regulatory bodies example of the ongoing maritime greater liberalisation; in 2014 the the Fair Winds Charter. The Hong Kong 500 delegates from around the world possible. that impact on shipping, including IMO. Pcooperation between Hong Kong Guangdong Agreement was struck, which Government acted quickly to shore up Ito the first International Maritime Hong Kong also has a presence at the and the Mainland occurred when the achieved basic liberalisation of trade industry support for the initiative when Organization diplomatic conference This is the task of Hong Kong’s permanent International Labour Organization as idea of boosting Hong Kong’s maritime in services in Guangdong since March in 2012 it introduced an incentive scheme ever held in Asia. The landmark meeting representative at IMO, currently the part of China. Indeed HKSOA managing industry became part of China’s national 2015. And in December 2015, that discounted port facilities and concluded with the adoption of the “Hong Marine Department’s Mr Chung Siu Man. director, Arthur Bowring, is spokesperson development programme. In its 12th the Agreement on Trade light dues, while it prepared Kong International Convention for the In his role as marine adviser Mr Chung is for the global maritime employers

Five-Year Plan, in 2011, Beijing expressly in Services extended Hong Kong has pioneered legislation that would mandate Safe and Environmentally Sound Recycling called upon to put Hong Kong’s position group, working closely with Beijing. He ship emissions reduction in showed its support for Hong Kong in the Guangdong the region the fuel switch at berth. In of Ships”. and convey its opinions on maritime is also vice-chairman of the special tri- ndustry Wee k 2016 Hong Kong Mariti m e I ndustry H o n g K M aritime Indu stry consolidating and enhancing its position concept to the rest July 2015 the Air Pollution issues at IMO meetings. He is facilitated partite committee and chairman of the as an international maritime centre, and of the Mainland. The (Ocean Going Vessels) (Fuel The meeting followed an extensive period in this task by being able to access a fund shipowners group within the ILO. has continued to be a source of support agreements came into at Berth) Regulation Cap of lobbying for the diplomatic conference of technical expertise here in Hong Kong. and encouragement ever since. The same effect in June 2016, 311AA came into effect. The to be held in Hong Kong. And both Acting as bridge between Hong Kong and Thus, through the work of the Hong Kong pledge of support was made in the 13th heralding a new era in levels of SOx have dropped government and industry were rightly IMO means Mr Chung is responsible for Government and that of our NGOs, most Five-Year Plan announced earlier this year. cross-border cooperation. 60% since the introduction of the proud that such a significant piece of updating the Marine Department with notably the HKSOA, Hong Kong plays an mandatory scheme. regulation was agreed here and in Hong the latest developments in maritime important role within the ILO where it The most enduring form of cooperation Benefits of cooperation are shared Kong’s name. regulation and advising on the necessary has made a major contribution to the between the two-parties, the Closer Hong Kong has not been the only The speed with which this landmark piece follow up measures on IMO decisions ratification, application and assessment Economic Partnership Agreement (CEPA), beneficiary of the maritime cooperation of legislation was achieved is something Hong Kong deserved its day in the and the correct implementation of IMO of the Maritime Labour Convention is not exclusively of a maritime nature that exists between it and the Mainland. that the industry and government is spotlight. With a total gross tonnage of Conventions. 2006, and regulations in regard to the but it has been immensely beneficial to For many years Mainland shipping rightly proud of. But enforcing such 105m entered the Special Administrative environment at IMO. the sector in Hong Kong. companies have been greatly attracted regulation in isolation from the rest of Region is the world’s fourth largest to the quality of the Hong Kong Shipping the Pearl River Delta would have dealt flag state. And it is the largest national Regionally, Hong Kong continues to CEPA provisions offer Hong Kong maritime Register to the point that Mainland a body blow to the Port of Hong Kong. flag globally. By virtue of this size and Hong Kong International Convention for the champion the Hong Kong Convention on Safe and Environmentally Sound Recycling of services suppliers greater flexibility shipowners’ tonnage accounts for about Instead, it can be said with confidence success, Hong Kong has a responsibility to Ships was adopted in May 2009 Ship Recycling mentioned above. Through to access the massive potential of the one third of the 105m gross tonnes that, through constant communication participate in global shipping regulation its membership of the Asian Shipowners Mainland market. Hong Kong companies entered. It is well known that ships on the and encouragement with the Mainland at the highest level. Association, specifically the latter’s are able to form wholly owned Register have a lower detention rate than authorities, Hong Kong has played an Ship Recycling Committee, Hong Kong subsidiaries offering a wide range of most other flag states ­— 1.13% versus the important role in the PRC’s ambitious Hong Kong has been an associate has been involved in the approval services including but not limited to: worldwide average at 3.51% in 2015. This emission control area regulations that member of the IMO since 1967. This of ship recycling yards in India and • International ship management is borne out by the Register’s inclusion will be fully implemented across 11 key status restricts Hong Kong’s voting rights. working with the European Community services on the white lists of both the Paris MoU ports by 1 January 2019. But, in reality, decisions are rarely Shipowners Association and the ICS to • Port cargo loading and unloading and the Tokyo MoU and its continuing reached on a vote. Instead consensus is persuade the European Commission and services qualification in Qualship 21, an initiative The examples above are the sort or arrived at through the negotiation of the European Union not to impose additional • Container station and depot services of the United States Coastguard. developments that frequently hit working groups. financial requirements with regard to ship • International container leasing, the headlines. Much more low profile recycling. buying and selling and trading of Since 2011, Hong Kong has been the but equally important are the inter- During the larger meetings at IMO there Hong Kong has other ways to get container parts unrivalled regional pioneer in tackling governmental and NGO meetings that may be as many as five or six working the ear of IMO. The Hong Kong Going forward, Hong Kong is encouraging • Ship maintenance and repair services ship borne emissions. It was then that happen without fanfare many times over groups taking place at the same time. Shipowners Association is involved in the ASA to take a leading role in Asian • Non-vessel operating and common 17 local and international shipping the course of a year. These are where It requires deep technical expertise IMO work through association with the maritime affairs by proposing closer links carrying services companies joined forces in a two-year understandings are reached and everyday and considerable energy to keep on top International Chamber of Shipping, which with Asia-Pacific Economic Cooperation voluntary fuel switch scheme committed mutually beneficial objectives are met to of the progress of such gatherings and represents shipowners with the various through the APEC Business Advisory Council. Since its inception CEPA provisions have to 0.5% sulphur diesel when berthing enhance safety at sea. ~

12 13 Knowledge and foresight key to Hong Kong’s maritime success

Hong Kong’s research and development capabilities maintain a delicate balancing act by focusing on the here and now while having a clear vision of the future Your Trusted Partner

ow to retain Hong Kong’s repays this generosity by producing Hong Kong’s TCC Group and the position as a premier maritime pioneering research on port productivity, University of Southern California’s Hhub is foremost in the minds of port policy, shipping operations and Viterbi School of Engineering have The Hong Kong Maritime and Port Board was established by government, industry and academia. This management, and in the increasingly entered a partnership to conduct some the Government of the Hong Kong Special Administrative Region in April 2016. preoccupation and the drive to maintain important fields of low carbon logistics. of the most advanced research and and enhance Hong Kong’s status as an development, which aims to reduce, international maritime centre manifests The Logistics Research Centre and reverse and recover harmful emissions in In partnership with the industry, the Board has five main objectives itself best when all three sectors work Shipping Research Centre are both multi- the maritime industry. ndustry Wee k 2016 Hong Kong Mariti m e I ndustry together. Examples of this cooperation disciplinary research units with diverse are found at the Hong Kong Polytechnic and profound expertise in shipping and Begun in 2010, the initiative is two- — Assist the Government in devising maritime and port-related strategies and initiatives — University (Hong Kong PolyU), which logistics management. Both centres pronged. Both utilise a patented — Facilitate collaboration between stakeholders — houses the IMC-Frank Tsao Maritime employ highly qualified researchers technology known as Nano-Second Pulse — Create a maritime business friendly environment — Library and Research & Development to develop state-of-the-art business Power, which employs Transient Plasma Centre, The CY Tung International Centre models, and to promote the adoption in “nanosecond pulse burst”. First, — Foster the long-term development of Hong Kong’s industry and port — for Maritime Studies, The Shipping of innovative management practices in this technology focuses on emissions — Support and promote Hong Kong’s maritime community — Research Centre and the Logistics shipping, logistics and related industries. remediation applying Transient Plasma Research Centre. Emission Remediation to treat harmful Sustainable expertise emissions such as CO2 and NoX prior to The IMC-Frank Tsao All of the above institutes emission from the ship’s funnel stack. Maritime Library have another vital Initial tests have already achieved an and Research & function in grooming unprecedented 90% reduction in NoX Development Centre the next generation emissions from Intermediate Fuel Oil, was established of industry leaders, which, ideally, will negate the need in 2009 through professionals to spend significant capital costs on donations from the and academics to retrofitting scrubbers and chillers. late Dr Frank Tsao, sustain Hong Kong’s once a respected continuing importance Secondly, this cutting-edge development leading figure among as a maritime hub. Hong focuses on combustion efficiency by Hong Kong’s shipping Kong PolyU’s Maritime Ph.D applying Transient Plasma Injection community, the Government Programme is today widely through a nanopulse generator to and the University. In return the acknowledged. improve fuel oil combustion efficiency, centre provides research services to which will ultimately achieve total government, the maritime community R&D in technology combustion. This will result in the as a whole as well as to Hong Kong PolyU In the last ten years or so, shipping has consumption of less fuel oil while faculties and students. begun to match land-based businesses in still achieving optimal engine shaft its deployment of technology to increase power output. Solutions to this second Similarly, the CY Tung International efficiency. In the case of the maritime objective can only be achieved through Centre for Maritime Studies was industry, innovation has also been driven slow steaming or even super slow established by generous donation from by stringent regulation aimed at reducing steaming, a now widely accepted the Tung Foundation. The centre daily ship-borne emissions. industry practice. ~

14 15 Propelling Hong Kong