Logistics sector 'losing edge amid land squeeze'

Staff reporters

An absence of long-term development plans and insufficient investment in infrastructure has led to the loss of competitiveness in the SAR's logistics industry, Our Hong Kong Foundation said.

The think tank, founded by former chief executive Tung Chee-hwa, said in a report yesterday that the continual shortage of ancillary land to support the industry has left operators with no choice but to rent vacant New Territories agricultural land, leading to the emergence of the so-called "brownfield" sites.

Ancillary land, it said, only saw a marginal 8 percent increase from 2009 to 2018, while the sector's GDP increased by 51 percent.

Some 46 percent of around 1,414 hectares of brownfield sites are being used for logistics-related activities.

It noted that land supply from many of these sites will gradually run dry due to the housing projects.

"[The foundation] estimates that 390 hectares of brownfield sites will be reapportioned for housing and other uses by 2030," it said.

It urged the creation of dedicated NT logistics nodes at the Hong Kong Boundary Crossing Facilities island, Lung Kwu Tan, Tuen Mun west and NT North near Liantang and Heung Yuen Wai crossings, saying they can provide up to 930 hectares and accommodate around 125,000 jobs."

Also proposed was relocating Kwai Tsing Container Terminals to an artificial island in Cheung Chau South to upgrade and modernize the facility and free up valuable urban sites.

Stephen Wong Yuen-shan, head of the foundation's Public Policy Institute, said: "The government should act in a timely manner in the overall interests of the society and the industry, thus helping Hong Kong to maintain our indispensable role in the global trade and logistics arena."