Sub-topic: LogisticsHurdles hindering the development of Hong Kongs logistics industryDate: 2/Nov/2001Hong Kongs logistics industry is facing a lot of problems:1) Late start of Hong Kongs logistics industry:Since Hong Kong has not actively developed its logistics industry until recently, its operation fall short of world standards. Facilities are far from being modernized; personnel and logistics skills are far from being adequate; and high quality training is lacking. Exorbitant warehouse rent, expensive land and high wages all help put companies with limited financial support in the mire. 2) Limited aviation right:Hong Kong has not yet opened up its aviation space and there are no local competitors. As the fifth freedom traffic right(第五航權) is restricted severely, international logistics organizations are discouraged from investing in Hong Kong. Besides, Hong Kong is facing competition from Incheon International Airport (仁川機場) of Korea and Huangtian Airport(黃田機場) of ShenZhen nearby.3) Collaboration between Hong Kong and the Pearl River Delta is not well coordinated:Although Hong Kong and the Mainland belong to one country, they are under two systems. The logistics industries of Hong Kong and the Pearl River Delta are not coordinated smoothly. The timing of boundary clearance on the two sides do not match well, interflow of goods across the borders has been obstructed, thus increasing the capital cost and the risk of delayed delivery.4) No privilege has been given by the Mainland government:When Hong Kong enterprises develops the logistics industry in the Mainland, they are less competitive than their foreign counterparts since they can not reach the international standards. Local governments do not give privileges to Hong Kong investors as pragmatic benefit is their sole consideration.The SAR government has been already aware of the above problems. The Chief Executive Mr. Tung Chee Wah in his Policy address mentioned that a high-level Steering Committee on Logistics Development (物流發展督導委員會) and a Logistics Development Council (物流發展局) would be set up to promote the development of the logistics industry. Discussions/Questions/Main points:（1） What is the fifth freedom traffic right?Answer:1. It is referred to the right of a foreign airline company to transport goods or passengers from and to a third country.End of passage