The answer
Reply: Madam President, The consultancy study to develop a Competitive Strategy and Master Plan for Hong Kong to maintain its position as the preferred international and regional transportation and logistics hub (the Master Plan Study), completed in September 2001, identified the development of logistics parks as one of the key initiatives to maintain and enhance Hong Kong’ s logistics competitiveness. A Bridging Project was then conducted to further define the characteristics, costs and economic benefits of the physical logistics projects recommended in the Master Plan Study. Completed in December 2002, the Bridging Study recommended a number of initiatives with significant benefits to be further pursued, including the development of a logistics park at Siu Ho Wan. The Scoping Study on the Lantau Logistics Park (LLP) completed in August 2004 further confirmed the demand for logistics space in Hong Kong. The proposed LLP is intended to provide a purpose-built operating environment for the efficient delivery of individually customised and integrated services, which may not be available in traditional industrial buildings or container terminals. It will embrace a full range of logistics services from conventional transportation and freight forwarding activities, to value-added services such as labelling, returns management, pick and pack operations, etc. It is an important infrastructure to promote service integration, and enable logistics enterprises to enjoy economies of scale. It will enhance the overall competitiveness of Hong Kong’ s logistics industry, which accounts for over 5% of our GDP and provides about 200,000 jobs for the local labour force. The proposed LLP site at Siu Ho Wan has the support of the Hong Kong Logistics Development Council as it is strategically located close to the Hong Kong International Airport and Kwai Tsing container terminals. With its proximity to the proposed Hong Kong landing point of the Hong Kong-Zhuhai-Macao Bridge, the LLP will benefit from the opportunities presented by links to the Pearl River Delta region. This view is consistent with the conclusion of the Bridging Study that the Siu Ho Wan site was more attractive than an alternative site at Kwai Chung-Tsing Yi especially in terms of multi-modal transportation potential. Through an Expression of Interest (EOI) exercise conducted in December 2004, we invited logistics enterprises to express views on the proposed planning parameters and activities to be undertaken in the LLP. The EOI document was also publicly available on line and anyone interested could send in their views. In addition, the LLP project also featured in the Concept Plan for Lantau, for which a 3-month public consultation exercise was conducted by the Lantau Development Task Force. We will consider the views received to ensure that the LLP, when developed, will meet the needs of the industry and enhance Hong Kong’ s logistics competitiveness. To take forward the LLP project, the Civil Engineering and Development Department has commissioned a detailed feasibility study for the LLP. It covers necessary impact assessment studies to meet the statutory requirements for subsequent reclamation and zoning of the site, including an Environmental Impact Assessment (EIA) study. According to the EIA study brief issued by the Director of Environmental Protection under the Environmental Impact Assessment Ordinance (EIAO) in November 2004, the EIA study report will present the reasons for locating the LLP at Siu Ho Wan. Similar to other major infrastructure developments in Hong Kong, the LLP project will follow all the relevant statutory procedures. The public will be consulted again in accordance with these procedures. Ends/Wednesday, June 1, 2005