During Wednesday’s speech introducing Hong Kong’s 2020-2021 budget, Financial Secretary Paul Chan said that he launched a plan in 2019 to set aside HK$5 billion (US$642 million) for redevelopment of the air mail center at Hong Kong International Airport (HKG).
The center supports growing e-commerce traffic through HKG. While 2019 and 2020 airport and carrier cargo operations have been hampered by Hong Kong protests and the outbreak of the novel coronavirus in mainland China and beyond, Chan said investment is needed “to reinforce [Hong Kong’s] leading position in airfreight logistics.”
Initial preparations for the redevelopment have already been completed, with a funding application expected for submission to the Legislative Council of Hong Kong within the year, according to Chan.
The new budget also implements a US$44 million subsidy pilot program, allowing third-party logistics providers to receive subsidies for the launch of up to four projects. Chan expects about 300 companies to benefit from the program.
The major funding of Hong Kong’s logistics industry reflects the investment approach of the larger budget, which represents a record deficit. The funding is intended to stimulate the economy and support citizens during a difficult economic and political environment.
“I believe that only with such a budget can we help our community and local enterprises ride out their difficulties,” Chan said during his introductory remarks.1 - Reader Likes This Post