Despite having the world's largest and most advanced air cargo facilities and one of the busiest container ports, Hong Kong lags behind Singapore in providing sophisticated third party logistics (3PL) services, a study says.
The study, "Economic Impacts of Logistics Center Development in Hong Kong", urged the Hong Kong government to help the private sector in developing Hong Kong's logistics industry to catch up with logistics hubs in the region.
The study said an investment of $603 million per year over five years to develop 3PL services would be necessary for Hong Kong to catch up with hubs such as Singapore. The Singapore government actively supported the logistics industry with land premium concessions, research and development subsidies and by providing relevant education and job training programs, the study said.
It added that Hong Kong, as a regional transport hub close to thriving south China, has a clear advantage in developing its logistics industry by capitalizing on its developed infrastructure, modern airport and seaport facilities.