World-class services for global ship owners

Hong Kong is an international maritime centre that offers distinct advantages, facilities and services to meet the needs of the global ship-owner, the Secretary for Economic Services, Ms Sandra Lee said today (June 4).

Addressing Greek ship owners at a luncheon in Piraeus, Ms Lee said the range of services generated a synergy to make Hong Kong a truly international maritime centre.

"There are some 1,000 shipping related companies operating in Hong Kong, providing a wide range of maritime services from ship registration, financing, P&I Clubs, marine insurance, ship broking, maritime arbitration, ship management, surveying, repair to ship replenishment," she said.

The Secretary for Economic Services, accompanied by the Chairman of the Hong Kong Port and Maritime Board, Sir Gordon Wu, is leading a Hong Kong delegation to Greece to participate in the Posidonia 2002 International Shipping Exhibition in Piraeus.

She told the luncheon gathering that Hong Kong offered a business-friendly environment and facilities conducive to the development of the shipping industry. These included a low tax regime, efficient banking services, excellent communications, modern infrastructures, a sound legal system, business-friendly policies, a clean and accountable civil service as well as a highly educated and skilled workforce.

Ms Lee noted that over 6% of the world's shipping tonnage, amounting to over 37 million gross tonnes, were owned or controlled by Hong Kong ship owners and companies, making it the world's sixth largest shipping centre.

"The Hong Kong Shipping Register (HKSR) has also continued to attract top quality tonnage, as evidenced by the growing gross tonnage in the last few years, from 6.3 million in 1999 to the present level of 14.5 million. We expect the Register to surpass the 15 million mark by the end of this year," Ms Lee said.

"The success of the Hong Kong Shipping Register is due to a set of measures taken by the Government to enhance the register's competitiveness. First, to minimise the economic burden of ship owners, we have reduced our registration and annual tonnage fee by 85% and 45% respectively.

"And, to make it more user-friendly, we provide a 24-hour hotline for shipping-related matters and a one-stop-shop service for the registration of vessels.

"On maintaining the quality of ships, we provide free-of-charge Flat State Quality Control inspections by a team of well-qualified surveyors. The high quality of the Hong Kong fleet is reflected by its excellent port state inspections records," Ms Lee said.

The Secretary for Economic Services said that Hong Kong had also signed agreements for the avoidance of double taxation on shipping with seven major trading partners and a 'preferential port dues' agreement with mainland China to benefit ship owners and to reduce their tax burden.

These measures and taxation relief incentives, which have been well received by the industry, have further consolidated Hong Kong's status as an international maritime centre.

Echoing Ms Lee's remarks, Sir Gordon Wu pointed out that with its good knowledge and well-established ties with the Mainland, as well as comprehensive shipping services, Hong Kong was the premier choice as a maritime partner in Asia.

Sir Gordon said, "Hong Kong has been playing the crucial role of the middleman for China's foreign trade for decades. Traditionally, this role is focused on the trading of goods. Hong Kong, with its efficient multi-modal links with the outside world, provides the main conduit for movement of cargoes into and out of Southern China, one of the largest manufacturing bases in the world."

"Building on the experience as the middleman of goods, Hong Kong has become a window on China's shipping industry. China has recently emerged as the major supplier of new buildings and seafarers for the maritime world," he said.

Sir Gordon noted that the low labour cost and improved technology in the Mainland have contributed to the building of high quality ships at reduced costs. Hong Kong shipping companies, with a good knowledge of the Chinese ship building market, can advise ship owners to make cost-effective decisions on new buildings.

The Hong Kong delegation will meet the Greek Minister of Mercantile Marine, Mr George Anomeritis, on 5 June to exchange views on maritime matters and to discuss how Hong Kong and Greece can develop closer links on shipping issues.

Other members of the delegation include the Chairman of PMB's Shipping Committee, Mr Frank Tsao; the Chairman of the Hong Kong Shipowners Association, Mr Koo Kou Hwa; the Chairman of the Shipping Registry Sub-Committee, Mr Liang Ming-hang; and Director of Marine, Mr Tsui Shung-yiu.

Ends/Wednesday, June 5, 2002