Logistics subsidy to be launched

September 28, 2020

The Pilot Subsidy Scheme for Third-party Logistics Service Providers will be launched on October 12, the Government announced today.


Secretary for Transport & Housing Frank Chan said the trading and logistics industry is one of the four pillar industries in Hong Kong and has brought significant contributions to the city’s economic development.


He said the Government attaches great importance to the continuing development of the logistics industry and Hong Kong's role as the regional logistics hub, adding the application of technology enables the provision of different types of high value-added services by the logistics sector.


Mr Chan pointed out the pilot scheme can provide support to the industry and enable it to enhance operational efficiency and to better meet its clients' needs.


The $300 million pilot scheme will provide financial assistance to third-party logistics service providers to encourage the industry to enhance productivity through the application of technology.


The subsidy will be provided on a one-to-one matching basis. The Government will cover a maximum of 50% of the total approved project cost, while the enterprise has to contribute no less than 50% of the total approved project cost.


Each enterprise may obtain the subsidy for a maximum of four approved projects with the cumulative subsidy ceiling per enterprise set at $1 million. Each subsidised project should be completed within 24 months.


The pilot scheme will also cover the new X-ray machines purchased between October 30, 2018, and June 30, 2021, to set up Regulated Air Cargo Screening Facilities. This will help the trade meet the new policy of the International Civil Aviation Organization.


About 300 logistics enterprises will benefit from the scheme.


All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance with substantive business operations in the city in providing third-party logistics services related to either inbound or outbound cargo are eligible to apply.


Enterprises may call 2788 6077 to contact the Hong Kong Productivity Council, the pilot scheme’s implementation partner, for enquiries and submission of applications.

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