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In March, the CAD implemented a Regulated Agent Regime in accordance with the requirements of the ICAO to further enhance air cargo security. The regime specifies requirements for the consignment of cargo for carriage on passenger flights and establishes a system for cargo agents or entities that meet the relevant security requirements of the HKASP to be registered with the CAD as a Regulated Agent. With the support of the industry, the regime has been operating smoothly since implementation.
International Transport and Logistics Hub
Hong Kong is a major international and regional aviation and maritime hub in Asia. In 2000, the airport handled 2.24 million tonnes of international air cargo and the container port sector handled 18.1 million TEUs. That this can be achieved is largely due to the people who run the services and facilities — the investors as well as the efficient workforce. It is also the result of a productive blend of private and public sector co-operation.
The Government is committed to providing a conducive environment and the necessary infrastructure to facilitate the development of the logistics business. The opening up of services auxiliary to distribution as a result of the Mainland's accession to the World Trade Organisation will provide new opportunities for Hong Kong logistics services providers (LSP). As Hong Kong LSP have a strong client base in the Mainland, the expected growth in trade volume and the liberalisation of this sector will enable them to provide even better supply-chain management services to their clients.
Hong Kong has an efficient, reliable and well-connected port and airport to facilitate the future development of the logistics sector. In the case of air cargo, the airport has ranked No. I world-wide in terms of international cargo throughput for four consecutive years since 1996. Each week there are about 3 600 scheduled passenger and all-cargo flights to some 130 destinations. With its dual runways, the airport has the capacity to accept the expected future increases in demands comfortably.
Hong Kong is the world's busiest container port. The HKSAR also has the most productive container terminal in the world, handling double the industry standard, and the biggest private terminal operator in the world. A new Container Terminal 9, with four deep sea berths and two feeder berths, is being constructed on Tsing Yi Island opposite the eight existing terminals at Kwai Chung. When fully developed, the terminal will provide an additional capacity of at least 2.6 million TEUs. Similarly, the river trade and air freight terminals are the largest of their kind in the world.
Logistics Services Development
The Government and the Port and Maritime Board (PMB) regularly carry out cargo forecast updates and review the progress of port development to ensure that the right facilities can come on-line when needed. A Committee on Logistics Service Development has been set up under the PMB to consider measures to develop and to promote the competitiveness of Hong Kong as a logistics centre.
Hong Kong has also set up industrial estates that provide low density land at development cost for industries that meet the prescribed criteria. To strengthen the HKSAR's position as an international air cargo hub, the AA invited investors to