Discussion on Brownfield Development Strategy

August 28, 2020

1 Part 1 An overview on the 8 brownfield clusters identified by the Planning Department

2 The Government intends to resume some brownfields for public housing development

Brownfields refer to some former agricultural lands which are now occupied by industrial, warehousing, logistics and car parking operations. They have a relatively low land utilization efficiency and may cause environmental and traffic problems, despite providing support to the development of the construction, logistics, port backup, recycling and many other related industries. Besides those brownfields which were already included in the New Development Areas (NDAs), some relatively sizeable brownfield clusters are now being considered for public housing development.

The Planning Department (PlanD) commissioned their consultant to kickstart the Brownfield Total Area: 1,579 ha With low PlanD published the report of Nov 2019 potential 250 ha PlanD published the results of Mar 2020

Shortlisted brownfield Adjoining estimated to provide With medium 8 brownfield clusters With development In the first phase land parcels development plans confirmed 63 ha >20,000 units Shortlisted for 36 ha 27 ha （based on plot ratio 3.6） potential 803 ha public housing 290 ha development The Civil Engineering and Development Department (CEDD) started the (36 ha ) Project Feasibility Study for the With high development Within PlanD expects to complete the study of (290 ha) Q4 2020 convervation (160 ha) area CEDD expects to complete the First Phase Project Feasibility Study 76 ha

Source: (2019), (2019) Locations of the 8 brownfield clusters

According to Gov papers Selection criteria on the 8 brownfield clusters: submitted to the LegCo- The 8 brownfield clusters may produce >20,000 public housing units Proximity to Transport linkage Land area existing new towns Govt. expects to 8 Tai Hang transform them into 4 Sha Po “spade-ready” sites 1 North in about 6 years (versus >8 years now in general)

2 Tai Kei Ling Govt. aims at 3 Shap compressing the time 5 Ping Shan South needed for production of certain housing units to within ten 6 North Estimated study boundary of years approximately the 8 brownfield clusters* 7 from the New Territories brownfields commencement of EFS

Source: Development Bureau, PlanD, CEDD, OHKF *Based on the locations published by the PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters 4 Cross comparison of the 8 brownfield clusters 1 2 3 4 5 6 7 8 Ping Shan Tai Kei Shap Pat Sha Po Ping Shan Lam Tei Nai Wai Tai Hang North Ling Heung South North Easy/Good

Average

Hard/Bad

Study area (ha) 18 2 4 17 8 7 5 3 Estimated public housing units# 6,600 600 1,300 6,000 3,300 2,000 1,300 600 Transport

Community facilities Environmental compatibility Technical Feasibility Resettlement

*Based on the locations published by PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis Results only applicable to comparison within the 8 brownfield clusters Source: Development Bureau, PlanD, CEDD, Google Map, OHKF 5 Ping Shan North Cluster: Advantages and Limitations

Next to an elevated railway. Estimated study boundary* Study area ~18 ha Requires building setback. Ping Shan Brownfield distribution Brownfield area ~ 9 ha North involved Tin Yau Estimated (Site A) Public ~ 6,600 units# Court GB Light Rail Transit public housing units Estate GIC Long Ping CDA Project Advantages ~300 m GB Station CDA • Large site area allowing production of plentiful CDA ~1,000 m Station housing units and comprehensive planning Station Yuen Long • Mature transport ancillary facilities (WRL, LRT) Ping Shan Downtown • Next to developed communities (YL, TSW) North • Next to public housing estate projects (Site B) Long Bin Limitations Ping Shan Public • Next to an elevated railway, which will require Stop Estate building setback and reduce the developable Project area. Mitigation measures such as noise barrier also required • Sizable brownfield operations intermingled with residential dwellings, making resettlement a challenge Recommendations • To assess transport and community ancillary facilities from a regional perspective and incorporate nearby housing projects for more comprehensive planning Source: Development Bureau, PlanD, CEDD, Google Map, OHKF *Based on the locations published by PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis 6 Ping Shan North Cluster: Advantages and Limitations

Next to an elevated railway, which will require building setback WRL Elevated Railway Ping Shan North

Source: Google Map 7 Tai Kei Ling Cluster: Advantages and Limitations

Yuen Long Study area ~ 2 ha Brownfield area ~ 1 ha Station involved Yuen Long Road Estimated # Downtown ~ 600 units Stop public housing units Advantages • Involves a smaller percentage of Tso Tong Lands, which may make the resumption process less challenging Limitations • The two roundabouts of are traffic bottlenecks The two roundabouts of • Small site area, low estimate of housing units Yuen Long Highway are • Mix of brownfield operations and squatters, traffic bottlenecks which could make resettlement more difficult • Local road network is underdeveloped relying AGR on one-way roads, and does not have sufficient interchanges connecting to Yuen Long Highway Estimated study boundary* Brownfield • Distant from major mass transport Brownfield distribution R(B) O Cluster • Distant from developed communities and does not have sufficient ancillary facilities West Rail line Local road network is underdeveloped relying on Light Rail Transit one-way roads, and does not have sufficient Recommendations Tai Kei Ling • To develop with the agricultural lands around Route 9 interchanges connecting to Yuen Long Highway Shap Pat Heung to improve local transport, Source: Development Bureau, PlanD, CEDD, Google Map, OHKF *Based on the locations published by PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters community facilities and land efficiency #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis 8 Tai Kei Ling Cluster: Advantages and Limitations

Mix of brownfield operations and squatters

Local road network is underdeveloped relying on one-way roads, and does not have sufficient interchanges connecting to Yuen Long Highway

Source：Google Map 9 Shap Pat Heung Cluster: Advantages and Limitations

Yuen Long Study area ~ 4 ha Long Ping Station Brownfield area ~ 2 ha Station involved Yuen Long Estimated Downtown ~ 1,300 units# public housing units

Advantages • Concentrated brownfield cluster distribution

The two roundabouts of Yuen Long Highway are Limitations traffic bottlenecks • The two roundabouts of Yuen Long Highway are traffic bottlenecks • Small site area, low estimate of housing units • Mix of brownfield operations and squatters, Local road network is underdeveloped relying which could make resettlement more difficult on one-way roads, and does not have sufficient • Distant from major mass transport interchanges connecting to Yuen Long Highway • Distant from developed communities and does not have sufficient ancillary facilities Tai Kei Ling AGR Brownfield Cluster Estimated study boundary* Brownfield distribution Recommendations • To develop with the agricultural lands around West Rail line Shap Pat Shap Pat Heung to improve local transport, Light Rail Transit Heung community facilities and land efficiency Route 9 Source: Development Bureau, PlanD, CEDD, Google Map, OHKF *Based on the locations published by PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis 10 Shap Pat Heung Cluster: Advantages and Limitations

Local road network is underdeveloped relying on one-way roads, and does not have sufficient interchanges connecting to Yuen Long Highway

Source：Google Map 11 Sha Po Cluster: Advantages and Limitations

Estimated study boundary* Study area ~ 17 ha Brownfield area Brownfield distribution ~ 13 ha involved West Rail line Wetland Conservation Area Estimated ~ 6,000 units# Northern Link (Planning) public housing units Light Rail Transit Advantages Route 9 Sha Po • Sizable site area, higher estimate of housing units, and allows more comprehensive planning • Next to the planned NOL Station

I(D) • Next to Highway AGR Limitations Wetland • Involves large-scale brownfield operations Local road network Buffer Area (international logistics companies etc.), which is underdeveloped may require strategic resettlement • Project status of the NOL Au Tau Station Au Tau remains unclear Long Ping Station • Distant from developed communities and Station (Planning) does not have sufficient ancillary facilities Yuen Long • Local road network is underdeveloped Station Recommendations • To accelerate the NOL project to release the full potential of the surrounding lands • To adopt the brownfield consolidation strategy recommended by the OHKF, and to resettle Source: Development Bureau, PlanD, CEDD, Google Map, OHKF *Based on the locations published by PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters brownfield operations into logistics nodes #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis 12 Sha Po Cluster: Advantages and Limitations

Extremely fragmented ownerships Large-scale brownfield operations

資料來源：Google Map 13 Ping Shan South Cluster: Advantages and Limitations

Hung Shui Kiu Estimated study boundary* Study area ~ 8 ha Station Brownfield distribution Brownfield area ~ 3 ha (Planning) NDA (Planning) involved Estimated # West Rail line ~ 3,300 units Hung Shui Kiu public housing units NDA Light Rail Transit (Planning) Chung Uk Route 9 Advantages Tsuen • Transport ancillary facilities are quite sufficient HK-SZ Western Corridor Stop Ping Shan • Close to the planned Hung Shui Kiu NDA South Limitations • Next to Yuen Long highway, which will require building setback, reduce developable area, and R(D) require mitigation measures such as noise GB barrier CDA • Local road network is underdeveloped relying on one-way road, and does not have sufficient interchanges connecting to Road Lam Tei North Next to Yuen Long Highway, and Yuen Long highway which requires building setback Brownfield Recommendations Cluster • To assess transport and community ancillary Nai Wai Local road network is underdeveloped, relies on one-way roads, and does not have facilities from a regional perspective and Brownfield incorporate nearby brownfield clusters for sufficient interchanges connecting to highways Cluster better comprehensive development planning Improves local road network • To improve local road network

Source: Development Bureau, PlanD, CEDD, Google Map, OHKF *Based on the locations published by PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis 14 Ping Shan South Cluster: Advantages and Limitations

Next to Yuen Long Highway, which will require building setback Yuen Long Highway Ping Shan South

Local road network is underdeveloped relying on one-way road, and does not have sufficient interchanges connecting to highways

資料來源：Google Map 15 Lam Tei North Cluster: Advantages and Limitations

Hung Shui Kiu Hung Shui Kiu Estimated study boundary* Study area ~ 7 ha Station NDA Brownfield distribution Brownfield area (Planning) ~ 2 ha (Planning) Hung Shui Kiu NDA (Planning) involved Estimated Burial Ground ~ 2,000 units# public housing units West Rail line Advantages Light Rail Transit • Transport ancillary facilities are quite sufficient Route 9 • Close to the planned Hung Shui Kiu NDA HK-SZ Western Corridor Limitations • Site surrounds burial grounds, which could Ping Shan South impact developable area and building layout Brownfield Cluster Nai Wai • Next to Yuen Long Highway, which will require Stop Lam Tei building setback, reduce developable area, and require mitigation measures such as noise North Site surrounds burial grounds barrier • Local road network is underdeveloped relying Next to Yuen Long Highway, on one-way road, and does not have sufficient interchanges connecting to R(D) which will require building setback GB and Yuen Long Highway Nai Wai Local road network is underdeveloped, relies on one-way roads, and does not have Recommendations Brownfield Cluster • To assess transport and community ancillary sufficient interchanges connecting to highways facilities from a regional perspective and incorporate nearby brownfield clusters for Recommendation to improve local road network better comprehensive development planning

Source: Development Bureau, PlanD, CEDD, Google Map, OHKF *Based on the locations published by PlanD, OHKF estimated the study boundary of • To improve local road network the shortlisted brownfield clusters #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis 16 Lam Tei North Cluster: Advantages and Limitations

Site includes burial grounds Next to Yuen Long Highway, which will require building setback Yuen Long Lam Tei North Highway

Local road network is underdeveloped relying on one-way roads, and does not have sufficient interchanges connecting to highways

資料來源：Google Map 17 Nai Wai Cluster: Advantages and Limitations

Study area Estimated study boundary* Hung Shui Kiu Hung Shui Kiu ~ 5 ha NDA Brownfield area Brownfield distribution Station ~ 3 ha (Planning) (Planning) Local road network is involved Hung Shui Kiu NDA (Planning) underdeveloped relying Estimated ~ 1,300 units# West Rail line on one-way roads, and public housing units does not have sufficient Light Rail Transit interchanges connecting Advantages Route 9 • Transport ancillary facilities are quite sufficient to highways HK-SZ Western Corridor • Close to the planned Hung Shui Kiu NDA

Ping Shan South Limitations Brownfield Cluster • Next to HK-SZ Western Corridor and Yuen Long Highway, which will require building Nai Wai setback, reduce developable area, and require Stop mitigation measures such as noise barrier • Local road network is underdeveloped relying on one-way road, and does not have sufficient interchanges connecting to Castle Peak Road, Lam Tei North HK-SZ Western Corridor and Yuen Long Highway Brownfield Cluster R(C) Recommendations • To assess transport and community ancillary R(D) facilities from a regional perspective and Next to HK-SZ Western Corridor and Yuen Long Recommendation to Nai Wai incorporate nearby brownfield clusters for Highway, which requires building setback improve local road network better comprehensive development planning Source: Development Bureau, PlanD, CEDD, Google Map, OHKF *Based on the locations published by PlanD, OHKF estimated the study boundary of • To improve local road network the shortlisted brownfield clusters #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis 18 Nai Wai Cluster: Advantages and Limitations

Next to -Shenzhen Western Corridor and Yuen Long Highway, which will require building setback Hong Kong-Shenzhen Nai Wai Western Corridor

Local road network is underdeveloped relying on one-way roads, and does not have sufficient interchanges connecting to highways

資料來源：Google Map 19 Tai Hang Cluster: Advantages and Limitations

Estimated study boundary* Study area ~ 3 ha Fanling Brownfield distribution Station Brownfield area involved ~ 1 ha West Rail line Estimated ~ 600 units# Route 9 public housing units

Advantages • Next to Fanling Highway

Limitations • Distant from major mass transport • Distant from developed communities (Tai Po, Fanling) and does not have sufficient ancillary facilities Next to Fanling Highway, which • Next to Fanling Highway, which will require building setback, Tai Hang will require building setback reduce developable area, and require mitigation measures such as noise barrier AGR • Local road network is underdeveloped and does not have Hong Lok Yuen sufficient interchanges connecting to Fanling Highway • Surrounded by agricultural lands, which includes operating farms, and causes lower environmental conformity

Recommendations Tai Wo • To improve local road network Station • To provide transport feeder services • To provide community ancillary facilities

*Based on the locations published by PlanD, OHKF estimated the study boundary of the shortlisted brownfield clusters Source: Development Bureau, PlanD, CEDD, Google Map, OHKF #Followed PlanD’s recommendation to adopt a 3.6 plot ratio as the calculation basis Tai Hang Cluster: Advantages and Limitations

Next to Fanling Highway, which will require building setback Tai Hang Fanling Highway

資料來源：Google Map 21 Part 2: OHKF recommendations on developing brownfields in the New Territories

22 How to achieve sustainability in brownfield development? Current development strategy for the 8 brownfield clusters：

What is a

Lacking development better way Small site area and synergy with Time-consuming & scatted distribution neighbouring regions inefficient to develop 8 Tai Hang brownfields 1 Ping Shan North 4 Sha Po ？

2 Tai Kei Ling 3 Shap Pat Heung

5 Ping Shan South 6 Lam Tei North 7 Nai Wai

23 Strategic Land Development for Jobs: From Brownfields to Modern Logistics

24 Lack of industry land forced logistics operators to spread onto brownfields in the New Territories

PDAs in NTN

NWNT NENT Within New Development Areas (NDAs) 653 ha 1,170 ha 376 ha Hung Shui Kiu / Ha Tsuen 246 ha (74%) (24%)

New Territories North 243 ha Kwu Tung North and Fanling North Yuen Long South 94 ha Hung Shui Kiu / Ha Tsuen NDA Yuen Long Kwu Tung North and Fanling North 70 ha South Within other development projects 150 ha Within conservation-related zones 76 ha Remaining brownfield sites 700 ha Metro area Total 1,579 ha

SWNT SENT Source: Planning Department 10 ha 24 ha (0.6%) (1.5%)

25 Logistics-related industries occupy over 46% of active brownfield site area

Logistics-related Industries Active Brownfield Site Area

General Workshops 651 ha (46%) Rural Industries Vehicle 2% Scrapping 2% 1%

Waste General Recycling Warehouse 6% / Storage 27% Vehicle Parking 7%

Vehicles Repairing and Related 10%

Logistics 13%

Construction 26% Port Back-up (Container- related) 6%

Source: Planning Department 26 Brownfield operators provide considerable job opportunities to local logistics industry

Employment of logistics-related industries in Hong Kong

15% are working in brownfields

Estimated employment of logistic-related industries on brownfield sites: 26,270

Employed > 180,000 people (approx. 5% of Hong Kong employed population)

Note: Employment of logistics-related industries on brownfield sites includes employment in general warehouse / storage, logistics, and port back-up (container-related) Sources: Census and Statistics Department and Planning Development 27 Planned development of north-west New Territories for port back-up industry in 1990s has not been realized

An assumed development pattern for Scenario B by 2011 (1999) Distant Vision Concepts (1999)

More land for port-related industry was expected in 2011 Distant vision concepts considered developing more land for according to development plan in the Territorial Development container handling and rationalising brownfield in north-west Strategy Review NT

Source: Territorial Development Strategy Review (1999) 28 Brownfield emerges as result of inadequate land-use planning for industrial growth

Lack of holistic economic and land use planning

Organic development of brownfield is being fostered

Suboptimal operation on brownfield leads to negative externality

The way forward: Commitment to ensure adequate and timely provision of land and facilities for strategic industries

29 Operating space on brownfield will gradually be phased out…

Brownfield affected by NDAs / About 50% brownfield sites will be affected by New Development Projects PDAs in NTN Development Areas and other Development Projects Brownfield classified as High or Medium Possible Development Potential Areas Affected by New Development 803 ha Remaining Brownfield Areas / Development Projects (Low Possible Development Potential Areas / Conservation Related Zones) Hung Shui Kiu / Ha Tsuen 246 ha New Territories North 243 ha Yuen Long South 94 ha Kwu Tung North Lau Fau Shan and Fanling North Kwu Tung North and Fanling North 70 ha Other development projects[1] 150 ha Ping Shan Sha Po About 28% brownfield sites are classified as high or Hung Shui Kiu / medium[2] possible Development Potential Areas (DPA) Ha Tsuen NDA Shap Pat Possible Development Potential 450 ha Lam Tei Heung Areas (DPA) to be studied

Yuen Long South High DPA—Ping Shan, Lam Tei, Sha Po Tsuen, 160 ha Shap Pat Heung, etc. Medium DPA—Ngau Tam Mei, Lau Fau Shan, 290 ha South, etc. Notes: [1] As the details of the 150 ha development projects have not been announced, the exact Total brownfield area: 1,579 ha locations of these projects are not shown on the map. [2] The Planning Department will study about 700 ha brownfield sites, which are to be classified as Source: Planning Department high, medium and low Development Potential Areas, of which 250 ha brownfield sites are 30 classified as low Development Potential Areas. Potential sites for development of dedicated logistics nodes

New Territories North Roles and Estimated job Logistics Nodes Size (ha) Functions capacity 4 1. Hong Kong Airport Logistics Boundary 30 Consolidation 5,000 – 10,000 Crossing Centre Facilities Island Airport Logistics 2. Lung Kwu Tang Support 450 – 590 50,000 – 70,000 & West 3 Northwest Hinterland New Territories GBA Logistics 3. Northwest New 150 – 160 Gateway 15,000 – 25,000 Territories 2 Lung Kwu Tang & (Western) Tuen Mun West GBA Logistics 4. North New Gateway 110 – 150 10,000 – 20,000 Territories (Eastern) Hong Kong Boundary Crossing 1 Facilities Island Total 740 – 930 80,000 – 125,000

Source: Transport and Housing Bureau 31 1. Topside development at the Hong Kong Boundary Crossing Facilities (HKBCF) Island

The Planning of Topside Logistics Development at Hong Kong Boundary Crossing Facilities (HKBCF) Island should speed up

Proposed routes Planning, Engineering and 2015 Architectural Study for Possible routes Topside Development at Existing routes HKBCF Island of the The HKBCF Island Hong Kong-Zhuhai-Macao Bridge (HZMB), Hong Hong Kong International Airport Kong section Greater Bay Area (GBA) Suspended

2018 Government invited Airport Authority Hong Kong to submit development proposal

No further HKBCF Island HKIA progress 2020 ???

Developable topside area Double Gateway Airport Logistics World 30 ha Consolidation Centre 2. Lung Kwu Tan & Tuen Mun West

Integrated Residential & Logistics Development Phase 1

Air Cargo/ Modern Construction Environmental Total 570–590 ha Logistics Industry Infrastructures 3a. Transform Current River Trade Terminal for interim development 1a. Tuen Mun Area 49 1b. Current Lung Kwu Tan Brownfield Sites 1c. Lung Kwu Tan Reclamation 1b • Open-air logistics Phase 2

• Thematic Air Cargo/ Offices Hotel Lung Kwu Tan 3c leisure Modern Logistics village development • Modern logistics / general 2a. Relocation of Current Fill Bank, Recycle Plant, Steel / Cement Plant 1c warehouse 2b. Relocation of Current Power Station • Construction industry • Air cargo / • Re-provision of 1a modern environmental logistics Phase 3 infrastructures Residential Leisure Marine 3a. Replace River Trade Terminal for long-term development 3b. River Trade Terminal Reclamation • Air cargo / modern logistics • Air Cargo / Modern 3c. Tuen Mun Area 40 & 46 2b • Offices and business hotels 3a Logistics (interim 3d. River Trade Terminal Further Reclamation development) • Residential (long- Tuen Mun – Chek Lap Kok Link term development) • Air Cargo / Modern Logistics • TM South MTR Proposed Tuen Mun South MTR Further Extension 2a • Offices and business hotels extended station Planned Tuen Mun Western Bypass • Residential Proposed Road expansion for existing Lung Mun Road development • Marine facilities Proposed New Road to divert heavy vehicles away from Lung Kwu Tan village 3b 3d Buffer area between Lung Kwu Tan village and Logistics Node 33 3. Northwest New Territories Modern Logistics Circle

Total 150–160ha Development Planned by the Government

Yuen Long 1a. Hung Shui Kiu NDA industrial estate 1c Yuen Long Industrial 1b. Yuen Long South development Estate Extensionextension 1c. Yuen Long industrial estate extension

1a Hung Shui Kiu Proposed Development

2. Lam Tei Quarry Site 1b Yuen Long South

Modern Enterprise & Open-air Wholesale Trade & Outlet Logistics Technology Logistics

Planned sites Lam Tei Planned Route 2 Quarry Site Proposed site Existing Road Existing Rail Brownfield 34 4. New Territories North

Planned Development Total 110 –150 ha Liantang / Heung Yuen Wai BCF San Tin / Ma Kam To New Territories North 1 Heung Yuen Wai Development Node Logistic Corridor New Town 1. Heung Yuen Wai Science Park Man Kam To Industrial Estate BCF Proposed Development Lo Wu BCP

2. Ta Kwu Ling E-commerce Enterprise & Lok Ma Chau Modern Logistics Technology BCP Proposed Extension of Northern Link Proposed North-South Corridor and Rail 2 Ta Kwu Ling Proposed Rail Station Planned Route Planned Rail Planned Station

Existing Road Existing Rail Existing Rail Station Kwu Tung North Fanling North New Development Area New Development Area Brownfield Take cues from overseas cases for logistics nodes operations

Two-Envelope Tender System Evaluate only the applicants’ business proposals in the first round, before evaluating their quotations in the second round

Direct Allocation

Qualified enterprises receive lands directly allocated from government The logistics bodies nodes will be 由法定機構管理 managed by a 物流樞紐 Ready-To-Use Facilities statutory body Provide ready-to-use facilities for rental to operators of smaller scale

Co-Management with Private Institution Chambers of commerce and industry associations share professional knowledge with public institutions through participating in management

Source: JTC Corporation, UNIDO, and GIZ

36 Brief Summary

Current Model OHKF Recommendation Brownfield Cluster Logistics Nodes Development Strategy Development Strategy

• Sites are sizable & located in transport- Area & location • Sites are small & scattered • Each site take up an area of 2-8 ha strategic locations • Each site take up an area of >30 ha

Planning goal • Solely targeting on public housing land • Comprehensive planning supply Aim at providing logistics nodes to integrate brownfield operations and thus release spaces for housing and other Land efficiency • Low developments Sites are small and part of site may be used for improving the local road network • High Sites are sizable, thus road improvement works will not take up a large portion of the land

37 Five recommendations to improve Hong Kong’s logistics

competitiveness Hardware Develop dedicated logistics nodes 1 Conduct economic reviews and form Trading industrial policies Reform the site 4 allocation mechanism and 2 Logistics Establish a statutory body for development of strategic industries Relocate Kwai Tsing 5 Container Terminals 3 Software

38 A structural reform in global consumption pattern emerged during the COVID-19 pandemic

Source：HKET, WSJ, HK01 39 Our logistics industry is poised to embrace new opportunities with our world-leading edge

A world-leading aviation logistics industry Opportunities in the logistics age Cargo-carrying robots • Could increase storage space by Second First 180% among all Asian airports in member airport recognized • Could shorten the payback period International Connectivity by IATA CEIV Fresh shortened by 50% to 1.5 years • Its operation requires a ceiling height of 3.5-4 meters IATA certifications & Vaccines & pharmaceuticals community partners logistics • Requires through-and-through cold-chain logistics technology • Only a few airports in the world 120 airlines can accommodate International Cooperation connect to over A new value chain • Logistics real estate as an 220 destinations emerging industry • Upfront investment from the logistics operators could be reduced 40 Thank You

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