Lam Sai-hung, Secretary for Transport and Logistics of the Hong Kong Special Administrative Region (HKSAR), said that despite the COVID-19 pandemic, Hong Kong’s airport retained its status as the world’s busiest cargo airport, with 4.2 million tonnes of cargo passing through in 2022, while Hong Kong’s port was among the top 10 container ports, handling nearly 17 million 20-foot equivalent units (TEUs) in the same year.

Hong Kong’s international airport handled 70 million passengers per year or 200,000 per day prior to the pandemic. The three-year pandemic suppressed passenger traffic, according to Lam.

“Despite the challenges brought by the pandemic, Hong Kong International Airport’s passenger traffic is rapidly recovering, now exceeding 60 percent of the pre-pandemic level, and it’s expected to see a full recovery in 2024,” he remarked prior to a business lunch with the Indonesian business community, themed Indonesia - Hong Kong: Partnering for Success, in Jakarta on July 26.

The Hong Kong business delegation, led by John Lee Ka-chiu, the Chief Executive of the HKSAR, paid a two-day visit to Indonesia from July 25 to 26 as part of a series of visits to ASEAN countries to expand its network, and discuss collaborations that take advantage of Hong Kong’s policy of attracting investment and  explore business opportunities.

The delegation comprised 30 members, including business leaders from various organizations, the chamber of commerce and big companies from Hong Kong.

Lam said Indonesia, one of the fastest growing countries in Southeast Asia, and Hong Kong, a special administrative region of the People’s Republic of China, could reap mutual benefits from the latter’s well-connected seaport and airport.

 “I think it is very important to provide the Indonesian communities a picture of the capabilities of our maritime center and aviation hub, and that’s why we’re taking a large Hong Kong delegation, including business operators, to Indonesia to interact with the Indonesian business community,” he stated.

Lam highlighted the competitive edge of the maritime center and aviation hub, which could also be enjoyed by companies from Indonesia and other Southeast Asian countries.

First is Hong Kong’s strategic location. Being in the heart of Asia, south of the manufacturing hubs of Shenzhen and other cities in Guangdong province, with water links with the Pearl River Delta and the South China Sea, Hong Kong has easy access to some of the region’s largest and fastest-growing markets, resulting in a large number of airlines and ships operating in Hong Kong, according to Lam.

He revealed that over 120 airlines were operating at Hong Kong’s airport, carrying passengers and goods to over 150 destinations worldwide in 2022.

“For the seaport, over 240 international container vessels travel to and from Hong Kong per week connecting to over 460 destinations worldwide,” he said.

The Secretary said that other competitive advantages included the infrastructure network, free port status and efficient customs clearance process.

“Hong Kong is a gateway to Mainland China, particularly the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), a megalopolis consisting of 11 cities, including nine Mainland cities plus Hong Kong and Macao,” he explained.

The GBA has a population of 86 million with a combined gross domestic product (GDP) of US$1.9 trillion. “This represents potential customers and producers. So, Indonesian companies can tap into Hong Kong’s potential and seize the immense business opportunities,” he said.

He added that Hong Kong also has the authorisation from the Central Government to negotiate air service agreements on its own with other countries, which gives Hong Kong a distinct advantage over other cities in Mainland China in developing passenger and freight air services. “That is the reason why we have so many international airlines here at Hong Kong airport,” he said.

To maintain the good performance of its aviation and maritime facilities, the HKSAR government is continuously improving them on the back of the Central Government’s support under the 14th Five-Year Plan.

Going smart

The movement of goods, storage and tracking of information are constantly being improved by going smart. “We keep the movement of goods fast and in an efficient manner,” he said.

One of the ways to make it more efficient is by using technology, which enables customers to track the whereabouts of the goods. “In addition, we are also nurturing and scaling up the capacity of talents or people involved in the aviation, port and logistics industries by providing training on related subjects. This will give us an edge over our competitors,” he said.

To make Hong Kong’s port smarter, more facilities have been further developed. These include a new climate-controlled facility, called the “Cool Zone”, to cater for the increasing volume of perishable and temperature-sensitive goods transiting through Hong Kong.

According to him, the facility provides a total climate-controlled handling solution for goods such as fresh fruits and chocolates, speeding up the handling process and avoiding the potential cost and delays of transferring goods to downtown facilities for processing, before delivery to the agent’s warehouse or the end customer.

“We have also set a target to enable vessels to and from Hong Kong to use cleaner fuels,” he said.

In terms of aviation, the HKSAR government is currently developing another runway to increase the airport’s capacity of 120 million of passengers and 10 million tonnes of cargo per year by 2035.

 According to Lam, the entire Three-Runway System will be operational by the end of 2024, which is expected to further cement Hong Kong’s role as an international aviation hub.

Airport City vision

The Secretary also revealed the HKSAR government’s vision of transforming Hong Kong International Airport from a city airport to an Airport City.

The “Airport City” aims to capitalise on Hong Kong International Airport’s proximity to the Hong Kong-Zhuhai-Macao Bridge that connects Hong Kong with the west Pearl River Delta and integrate Hong Kong International Airport’s core functions with cross-boundary business, commercial, tourism, exhibition and conference and other elements through various large-scale infrastructural development projects, so that the airport will become a new engine to power Hong Kong’s economic growth.

“We have the GBA in mind when coming up with the Airport City development, with enhanced connectivity with the area and increased capacity and functionality to serve the demand for passenger and cargo traffic therein being the key of our vision,” he said.

“We expect that with the Airport City development, our airport will not only serve the people of Hong Kong, but also act as a convenient springboard into the GBA and Mainland China as a whole by international business players, including those from Indonesia, who wish to tap into the immense business opportunities in the area,” he said.

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