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Wednesday, June 27, 2018, 11:05
Shipping industry needs sound, comprehensive strategy
By Edward Liu
Wednesday, June 27, 2018, 11:05 By Edward Liu

Chief Executive Carrie Lam Cheng Yuet-ngor noted in her maiden policy address that the Hong Kong Maritime and Port Board (HKMPB) has been formulating comprehensive strategies to promote development of Hong Kong’s maritime and high-end shipping services industry. This is to consolidate the city’s status as a diversified international shipping hub. The HKMPB is an advisory body for the Hong Kong Special Administrative Region Government comprising mainly representatives from various sectors, including the shipping, port and maritime sectors. It was established on April 1, 2016. It has now completed its first two-year term of office; the HKMPB appointed its second term of board members on April 6 this year. The board has not been endorsed as a statutory body but the industry hopes it may serve as a platform to foster closer cooperation between the government and industry. It also wants to draw up a long-term development plan and strategies and policies for the port and maritime sector. This is aimed at enhancing Hong Kong’s international shipping center status.

Over the past two years HKMPB has made the local port and maritime sector more coherent through activities during the Hong Kong Maritime Week and visits to the Chinese mainland and foreign cities. Members of the sector can now express views more effectively. However, it is slightly disappointing that the so-called “comprehensive strategy” has been all talk but no action. Therefore, the way forward is to design and implement policies to accommodate the immediate needs for the industry’s development. Constructive strategies are also needed soon to lead the industry to long-term development. Only then can HKMPB truly leverage its role to consolidate and boost Hong Kong’s status as an international shipping center. 

The main wish of the shipping industry is for the HKMPB to transform itself into a statutory body that has executive power — similar to the Hong Kong Trade Development Council, the Hong Kong Tourism Board and the Airport Authority Hong Kong. Industry insiders including the Chairman of Wah Kwong Maritime Transport Holdings Sabrina Chao, Chairman and Chief Executive of Orient Overseas (International) Tung Chee-chen, Executive Director of the Hong Kong Shippers’ Council Sunny Ho and Hong Kong Shipowners Association Chairman Jack Hsu have repeatedly suggested the government consider transforming the current consulting body into a statutory one. 

The success of Singapore’s maritime sector in the past decade illustrates the importance of a statutory body governing maritime development. The Maritime and Port Authority of Singapore was established in 1996. According to the International Maritime Centre 2030 Strategic Review formulated and issued by authority in September last year, Singapore has achieved significant growth in multiple areas relating to maritime services.

The 2017 Xinhua-Baltic International Shipping Centre Development Index ranked Singapore first on the overall index for four consecutive years since the report was first published in 2014. 

The Strategic Review attributes the positive results to many factors including the strategic geographical location of its ports, a strong rule of law, cultivation of the necessary talents and good infrastructure. 

It is never too late for Hong Kong to catch up with Singapore. If the HKMPB is transformed into a statutory body soon and can seize opportunities created by the Belt and Road Initiative and Guangdong-Hong Kong-Macao Greater Bay Area development, it is not impossible for Hong Kong to regain a leading position as an international shipping hub in the Asia-Pacific.

The government clearly has many urgent social and economic issues to tackle. The shipping industry understands that transforming HKMPB into a statutory body within a short period is a demanding task. That said, formulating comprehensive goals, strategies and measures for maritime and high-end shipping services development should not be delayed. Therefore, effective action should be taken during this transition period. It should start the relevant work with available resources from HKMPB soon. 

The HKMPB has made lots of progress over the past two years. This is not only because of immense efforts from the Secretary for Transport and Housing as the chairman of HKMPB and other members of the board, but also because of the government acting as a“facilitator” and “promoter”. However, one material problem exists — a lack of full-time experts from the industry who work in the HKMPB. This results in delays in commencing and carrying out relevant policy research and devising suitable measures. By comparison, Singapore’s Maritime and Port Authority has more than 500 employees — with 200 professional members. This includes 29 full-time staff from the industry and civil service. They are responsible for the operation of its international shipping department. This is also why Singapore can develop a long-term plan while allocating resources to boost the development of the industry in a short period of time.

Under such circumstances, a statutory body cannot be set up in the short term. It is recommended that the government should recruit those who are capable and willing to work full-time for the HKMPB within the industry to conduct research. It should push for progress for development strategies and policies for maritime and high-end shipping services industry. 

To speed up progress on formulating and implementing comprehensive strategies, HKMPB should form a task force. It should be led by industry players who can conduct research on different areas including sustainability of the industry, the business environment, talent cultivation, marketing, promotion and the development of smart technology. The task force should have a clear vision for the industry’s development over the next 10 to 20 years

 It is now or never. The central government has made it clear that the mainland will open up even more to foreign investors. As the nation’s reform and liberalization gains pace, Hong Kong’s shipping industry must strengthen cooperation with other Bay Area cities. It must adapt to development of the Belt and Road in order to seize new opportunities as they arise.

The author is a senior associate with a law firm and also a vice-president of the Hong Kong and Mainland Legal Professional Association.

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