Opportunities and Prospects of

Logistics Industry
Presentation by Ir Dr Paul Tsui
Chairman
Federation Asia Pacific Aircargo
Association (FAPAA)
HongKong Association of Freight
Forwarding & Logistics (HAFFA)

September 11, 2013

Agenda

Current Environment

Services specification

Education & Training

Employment Opportunity

Q&A
11 September 2013

Hong Kongs Strengths

World class infrastructure
Multi-modal connectivity
Reliable and efficient workforce
Clean Government
3

Hong Kongs Strengths

Open and business-friendly

environment
Rule of law and independent judiciary
Free flow of capital and information

Level playing field

A simple and low tax regime
Transparent, efficient customs
Free port
4

Support from China

China fully supports Hong Kong to develop its
logistics services and remains an international
maritime centre in its 12th National Five-year
Plan.
In particular, China supports Hong Kong to
develop into a high-value goods inventory
management and regional distribution centre.

Hong Kong Port

Worlds third busiest port in 2011,
handled 24.4 million TEUs
Major modes of operations:

Container terminals;
River Trade Terminal;
Public cargo working areas;
Mid-stream operations

About 440 sailings per week to 500 destinations

worldwide

Current Situation Ocean Freight

Rank

1
2
3
4
5
6

2004 2005 2006 2007 2008 2009 2010 2011 2012

Hong
Kong

Singapo
re

Singapo
re

Singapo
re

Singapo
re

Singapo
re

Shangh
ai

Shangh
ai

Shangh
ai

21 984

23 192

24 792

27 936

29 918

25 867

29 069

31 739

32 529

Singapo
re

Hong
Kong

Hong
Kong

Shangh
ai

Shangh
ai

Shangh
ai

Singapo
re

Singapo
re

Singapo
re

21 329

22 602

23 539

26 152

28 006

25 002

28 431

29 938

31 649

Shangh
ai

Shangh
ai

Shangh
ai

Hong
Kong

Hong
Kong

Hong
Kong

Hong
Kong

Hong
Kong

Hong
Kong

14 554

18 084

21 719

23 998

24 494

21 040

23 699

24 384

23 117

Shenzh
en

Shenzh
en

Shenzh
en

Shenzh
en

Shenzh
en

Shenzh
en

Shenzh
en

Shenzh
en

Shenzh
en

13 659

16 197

18 470

21 099

21 471

18 250

22 510

22 571

22 941

Busan

Busan

Busan

Busan

Busan

Busan

Busan

Busan

Busan

11 492

11 843

12 039

13 261

13 453

11 980

14 194

16 185

17 046

Kaohsiu
ng

Kaohsiu
ng

Kaohsiu
ng

Rotterd
am

Dubai

Guangz
hou

Ningbo

Ningbo

Ningbo

13 147

14 719

16 175

9 714

9 471

9 775

10 791

Rotterd
am

Rotterd
am

Rotterd
am

Dubai

Guangz
hou

Guangz
hou

Guangz
hou

8 292

9 288

9 653

12 546

1 250

14 547

11 827

11 200
Guangz
hou

10 653

Dubai
11 124

11 001

Source: Containerization

Efficient Port Operation

Nine container terminals at Kwai Tsing

A total of 24 berths operating round-the-clock

36-40 crane movements per hour

average turnaround time for

each container vessel at
terminals is estimated to be
around 10 hours
8

Support from HKSAR

Government
Measures to strengthen Hong Kong Port

Actively studying the development of a

new container terminal in Tsing Yi
Dredging the Kwai Tsing Container
Basin and its approach to 17 metres

An Aviation Hub

Worlds #1 airport in terms of

international cargo since
1996

Handled 3.94 million tonnes

of cargoes in 2011 worlds
busiest cargo airport

6 000 flights per week to

about 160 destinations
worldwide, including around
40 cities in China

10

Current Situation Air freight

Source: Airport Council International

11

World Class Air Cargo Terminals

Three air cargo terminals total designed capacity of

about 4.8 million tonnes
per year

A new air cargo terminal with a

designed capacity of 2.6 million
tonnes per year is scheduled
for completion by early 2013
12

Strengthening Hong Kong

as an Aviation Hub
Airport midfield development project
underway to provide additional cargo
stands
Developing a three-runway System at Hong
Kong International Airport

13

Way Forward
HK to maintain its role as the regional logistics
hub and as a supply chain base for high value
products and services

14

BEST LOGISTICS PERFORMERS

2012

2010

2007

Rank

Rank

Rank

SINGAPORE

HONG KONG

13

FINLAND

12

15

GERMANY

NETHERLANDS

DENMARK

16

13

BELGIUM

12

JAPAN

U.S.

15

14

U.K.

10

Source: World Bank, web.worldbank.org

15

Service Customization
Inbound
Inbound Logistic
Logistic

Supply
management
Import
Transport
Gathering
and
consolidation
Receiving

Materials
Materials
management
management
Planning and
replenishment
of raw
materials &
auxiliary
materials
Expediting
Production
line feeding
Order
preparation
Spare parts
management

Production
Production

warehousing
warehousing

Warehouse
management
Packaging
Labeling
Vendor
Management
Inventory

distribution
distribution

International &
domestic
delivery
Custom services
Cross-docking
Spare parts
management
and distribution
Specialized
distribution
Packages
design and
realization
Hub
Distribution 16

Wine Regional Distribution

SZX
Distribution
Centre

EU
Vineyards

EU
Vineyards

EU
Bonded
Warehouse

EU
Vineyards

HKG
Regional
Distribution

SHA
Distribution
Centre

Asia Pacific
countries

17

Services Characteristics
RFID Monitoring from the point of origin till end user
both temperature and humidity
Capability in handle both wine & hard liquor
Temperature Controlled Warehouse
Temperature Controlled Local Delivery
Real Time Inventory Control with electronic data
Interchange capability
Wine Promotion Exhibition, Wine Tasting, & Wine
Dinner

18

Regional Hub Distribution

Indonesia/
Malaysia

Korea/
Japan

China

Vietnam/
Thailand
19

Regional Distribution Centre

Warehouse Capabilities

Garment on Hangers

Pick & Pack, Sorting,

Labeling

Temperature Controlled
Room

General Storage
Services

20

Standardization & Best Practices in Training

21

HR Reference
Operations

Customer Service

Sales

Administration

Manager

Manager

Manager

Manager

Assistant Manager

Assistant Manager

Assistant Manager

Assistant Manager

Supervisor

Supervisor

Clerk/

Clerk/

Clerk/

Clerk/

Operative Staff

Operative Staff

Operative Staff

Operative Staff

Supervisor

Supervisor

22

Example
121

Manager for Operation

Management

In charge of enforcing the strategies, guidelines and targets in the

operation of the establishment. Jobs/responsibilities/tasks
including part or all (but not limited to) the following:

Evaluate and calculate workload for cargo handling

LOCUCT40
2A

Monitor the performance of contractors

LOCUOM40
1A

Design and prepare tenders

LOCUOM40
2A

Prepare proposals

LOCUOM40
3A

Represent the company to perform obligations in trade

associations and liaise with relevant organizations

LOCUOM40
4A

Settle labour disputes in a company

LOCUOM40
5A

Monitor the performance of suppliers

LOCUOM40
7A

Apply simulation technique to test efficiency of operation

LOCUOM40
8A
23

Education & Training

Vocational Training Program for the Freight Logistics
Sector (VTP) Co-organized by HAFFA & CILTHK &
Sponsor by HK Logistics Development Council
Air freight Module
Module one Introduction
Module two Cargo Documentation
Module three Airfreight Operational Supervisory Training (QF SCS level 4)
July 2012
Module four Airfreight Operational Managerial Training (QF SCS level 4)
Nov 2012
Ocean freight Module
Introduction
NVOCC SOP (Customer Service)
Executive Certificate in Shipping Practice (QF SCS level 4) July 2012
Executive Certificate in Warehouse Distribution (QF SCS level 4) Nov 2012
24

 Module 1 & 2: Summary of Feedback (Airfreight)

Overall comment

Does your employer subsidize your course fee?

25

 Module 1 & 2: Summary of Feedback (oceanfreight)

Overall comment

Does your employer subsidize your course fee?

26

M3 & M4
(both Airfreight & Seafreight Streams)
Sponsorship available from QF (supporting scheme by EDB)
Training Provider (Poly U-MEDC) applied for QF qualifications
for M3 & M4 which would be the first training pgm
under QF Specification of Competency Standards (Level 4)
Some modifications to the syllabi of M3 and M4
were to be made to meet the qualification requirements
of QF SCS
in respect of the logistics industry

27

M3 Executive Certificate in Airfreight

Operational Supervisory Training
Name of Unit of Competency (UoC)

UoC Code

Unit 1:

Establish and maintain relationship with business partners

UoC: LOCUOM414A

Unit 2:

Monitor the performance of contractors

UoC: LOCUOM401A

Unit 3:

Handle and review customer's opinions and complaints about service quality

UoC: LOCUSM312A

Unit 4:

Formulate air freight security standard

UoC: LOAFSS401A

Unit 5: Supplementary topics

1.

Handle freight problems caused by delay or cancellation of flights

UoC: LOAFOM403A

2.

Understand intellectual property and avoid infringement act

UoC: LOCUIL411A

3.
Conduct Electronic Data Interchange (EDI) in the industry and with
customers

UoC: LOCUEL302A

4.

Handle enquiries on air freight rate

UoC: LOAFSM306A

5.

Calculate commission/concession

UoC: LOAFSM307A

6.

Assess sales information of the industry

UoC: LOCUSM406A

7.

Determine suitable aircraft and goods for delivery

UoC: LOAFOM401A

Total

Level

QF

S C S Based

Program

28

M 4 Executive Certificate in Airfreight

Management Training
Name of Unit of Competency (UoC)

UoC Code

Unit 1:

Forecast future cargo volume and handling capacity

UoC : LOAFOM503A

Unit 2:

Handle claims for air cargo damage

UoC : LOAFIL402A

Unit 3:

Conduct quality management audit

UoC : LOCUQM401A

Unit 4:

1.

Design and prepare tenders

UoC: LOCUOM402A

2.

Prepare proposals

UoC: LOCUOM403A

3.

Formulate on-the-job training plans for staff

UoC: LOCUOM504A

4.

Formulate contingency procedures on emergency

UoC: LOCUOM516A

5.

Formulate airfreight standard contract terms

UoC: LOAFOM510A

6.

Formulate environmental management policy

UoC: LOCUQM404A

7.

Handle co-loading market transactions with air freight forwarder

UoC: LOAFSM402A

Total

Level

QF

S C S Based

Program

4 29

M3 Executive Certificate in Shipping Practices

30

M4: Executive Certificate in Warehouse and

Distribution

31

Current Status of Employment Opportunity

Trade & Logistics is one of the four pillars Industries
for Hong Kong supporting more than 200,000
workers.
Job Vacancies for Cargo Terminal Operator alone at
the Hong Kong International Airport after the
completion of Cathay Pacific Cargo Terminal is +
2,000 jobs.
Job functions such as ramp services, warehouse
services, clerical, etc.

32

E-mail enquiry@haffa.com.hk
Website : http://www.haffa.com.hk

Thank You!

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