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The following is a speech by the Secretary for Economic Services, Ms Sandra Lee at the Dragonair's ceremony on the launching of All-Cargo Services to Dubai, Amsterdam and Manchester today (July 28):

Mr Wang, Mr Hui, Distinguished Guests, Ladies and Gentlemen,

It gives me great pleasure to join you today to celebrate the launching of Dragonair's all-cargo services to Dubai, Amsterdam and Manchester. I am also delighted to meet so many key players in the civil aviation industry so soon after I have taken up my new job.

Hong Kong is an international and regional air cargo hub. Our airport ranks first in the world in terms of international air cargo throughput. In the 12-month period to May 2000, our throughput increased by 26 per cent from the preceding period, reaching a record of 2.1 million tonnes. Although this represented just 1 per cent of the total volume of our merchandise trade, it accounted for 24 per cent in value terms. Indeed, in 1999 as much as one-third of the value of Hong Kong's merchandise exports were carried by air. Air transport is, therefore, vital to our economic development.

The continued expansion of world trade and the rapid development of e-commerce are generating more demand for air cargo services. Hong Kong is well placed to benefit from this positive development. We have a world class airport, excellent aviation infrastructure such as air cargo handling facilities, and a competitive air freight forwarding industry. Each week over 60 international airlines operate more than 3 300 flights between Hong Kong and nearly 130 destinations worldwide.

However we cannot be complacent. We need to take further measures to strengthen our competitiveness. For this purpose, the Airport Authority is inviting private investors to develop logistics centres and a marine cargo terminal on the airport island. The Government is implementing a liberal policy to expand the air services market progressively. A Committee on Logistics Service Development has also been set up under the Port and Maritime Board to consider the measures required to promote the development of Hong Kong as a logistics centre. It is important that the public and the private sectors will continue to work together to enhance Hong Kong's position as an air cargo hub.

I would like to congratulate Dragonair for launching the all-cargo services. Its new services will bring more competition to the market and more choices for consumers. Moreover, the services to Dubai, Amsterdam and Manchester will be the airline's first ever long haul services. I trust Dragonair will rise up to this challenge.

May I take this opportunity to wish Dragonair every success. Thank you.

End/Friday, July 28, 2000

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