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Aceline Final Report

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Aceline Final Report 1 Executive Summary Logistics is one of the four Hong Kong’s pillar industries. The high revenue generation, job creation and stable provision for commodity needs of the logistics sector have strived prosperity in Hong Kong in the past decades. The opening up of Mainland China and improvements of regional competitors have posed challenges to the logistics industry of Hong Kong in recent years. A lack of comprehensive study and integrated planning for the industry has hindered its capacity for growth and development. This Study will look into the key trends and issues of the logistics industry in Hong Kong and put forward spatial and policy strategies to maintain a competitive edge. Hong Kong’s position as a regional distribution centre and international trading hub is constituted from its close proximity and well-connected linkages dense connections with the manufacturing bases in the Mainland, simplified custom clearance procedures and a free trade zone status. To further capitalise on these advantages, Hong Kong needs to create capacity for the growth of high value logistics services and reinforce Hong Kong’s status as a global premier logistics hub. The Study has identified a number of key issues hampering the sustainable growth of the industry in long term, which includes the limited capacity to support cargo handling and city logistics activities, the need for enhancement of facilities to fit in latest trends, scattered land- use functions, inadequate government initiatives in facilitating growth, ageing and insufficient labour supply, and the lack integrated of development strategy for logistics industry. To mitigate the abovementioned perils to the industry, the government should plan and implement relevant strategies accordingly together with rising market trends of e-commerce and specialised cargo handling to maintain sustainable growth for the industry. The recommended comprehensive plan, based on the four guiding principles of land allocation for future growth, optimisation of existing functions, well-connected freight movement network and sustainable logistics development, consists of the Aviation Cluster that capitalises on the Hong Kong International Airport, the Maritime Cluster which enhances operational efficiency of port facilities, Tuen Mun West Logistics Cluster that agglomerates diversified logistics activities strategically, Northern Logistics Belt which exploits the proximity to the Boundary Crossing Points and enhancement of road networks. Policies addressing development mechanisms, labour productivity, technological enhancement and regional coopetition will enable the effective implementation of spatial strategies and promote industry development from an institutional and regulatory approach. The proposed strategies can alleviate challenges and capitalise dynamic market trends to enhance the competitiveness of the logistics industry of Hong Kong while maintaining the sustainability of the city. The study ultimately aims to contribute towards the development of Hong Kong as an efficient and competitive logistics hub. 2 Contents Page Executive Summary ........................................................................................................... 2 Contents ............................................................................................................................ 3 List of Figures .................................................................................................................... 5 List of Tables ..................................................................................................................... 7 Abbreviations .................................................................................................................... 8 1 Introduction ............................................................................................................. 11 1.1 Background ............................................................................................................. 11 1.2 Study Goal and Objectives ...................................................................................... 11 1.3 Study Framework ................................................................................................... 12 1.4 Study Methodology ................................................................................................ 13 1.5 Purpose and Structure of the Report ..................................................................... 13 2 Understanding Logistics ........................................................................................... 15 2.1 Understanding Logistics from a Functional Perspective ......................................... 15 2.2 Understanding Logistics from a Spatial Perspective ............................................... 19 2.3 Key Actors and Stakeholders in Urban Logistics ..................................................... 23 2.4 Understanding the Dynamics and Spatial Characteristics of Major Logistics Components ........................................................................................................... 26 3 Development of Logistics Industry in Hong Kong ...................................................... 27 3.1 Positioning and Significance of Logistics Industry in Hong Kong ............................ 27 3.2 Socio-economic Significance of the Industry .......................................................... 29 3.3 Review on Government Initiatives and Policies ..................................................... 34 3.4 Review on Land Supply and Infrastructural Provision ............................................ 45 3.5 Key Trends and Development Direction ................................................................. 65 3.6 Key Issues ............................................................................................................... 69 4 Overall Planning Approach ....................................................................................... 71 4.1 Vision Statement .................................................................................................... 71 4.2 Guiding Principles ................................................................................................... 72 4.3 Spatial Planning Framework ................................................................................... 72 4.4 Spatial Development Strategies ............................................................................. 79 4.5 An Integrated Approach towards Reinforcing Hong Kong’s Current Status and Creating Capacity for Growth ................................................................................. 83 5 Core Development Strategies ................................................................................... 84 5.1 Aviation Cluster - Capitalising on Nearby Mega-infrastructure .............................. 84 5.2 Maritime Cluster - Enhancing Operational Efficiency of Port Facilities .................. 88 3 5.3 Tuen Mun West Logistics Cluster - Strategic Agglomeration of Logistics Activities 92 5.4 Northern Logistics Belt - Exploiting the Proximity to BCPs ..................................... 95 5.5 Road Network Enhancement - Create Capacity for Intensified Freight Movement ............................................................................................................ 101 5.6 Overall Effect of Spatial Strategies in Creating Capacity to Maintain Competitive Edge ...................................................................................................................... 105 6 Overall Institutional and Regulatory Approach ....................................................... 106 6.1 Development Mechanism of Spatial Planning Strategies ..................................... 106 6.2 Fulfilling the Demand in Labour Supply ................................................................ 109 6.3 Meeting the Megatrends of the Industry to Enhance Competitiveness .............. 110 6.4 Cooperating in Regional Dimension to Reinforce Hong Kong’s Global Premier Status .................................................................................................................... 113 6.5 Implications for the Future ................................................................................... 114 7 Implications on Stakeholders ................................................................................. 115 7.1 Overall Implications on Stakeholders ................................................................... 126 8 Implementation Programme .................................................................................. 128 8.1 Priority Setting for Major Development Strategies .............................................. 128 8.2 Recommended Action Plan .................................................................................. 133 8.3 Responsibilities and Obligations of Key Stakeholders .......................................... 133 9 Conclusion ............................................................................................................. 135 9.1 Overview of this Report ........................................................................................ 135 9.2 Key Takeaways ..................................................................................................... 135 9.3 Conclusion ............................................................................................................ 136 References ...................................................................................................................
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