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Hong Kong's logistics industry has to strengthen its immediate re-export services, including building a third runway at the airport, or it would lose its status as an international logistics centre to a mainland city.

This is the gist of a Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) study on promoting sustainable logistics development.

Denmark's Maersk Sealand, a global sea transportation logistics company, plans to move its customer service department from Hong Kong to Shenzhen, it was reported yesterday. The company could cut down 200 of its Hong Kong staff in March, too.

"The Maersk decision is a wake-up call to Hong Kong that its once-flourishing logistics industry is in crisis in the face of immense competition from the Pearl River Delta (PRD) region," legislator and DAB spokesperson for financial affairs and economic services Chan Kam-lam said yesterday.

Not only is the freight-handling capacity of other PRD cities expected to surpass that of Hong Kong, but also mainland products would not need to stop over at Hong Kong with the maturing of neighbouring ports, Chan said.

To save the Hong Kong logistics industry from withering away, the government should make strengthening of its immediate re-export services a long-term priority.

DAB suggests setting up a CIQ (customs, immigration and quarantine) point at Hong Kong airport, the party's central and standing committee member Albert Lam said.

Lam, who has 40 years' experience in aviation, said that after planes flying to the mainland through Hong Kong complete the CIQ at the city airport, they wouldn't need to go through the same process at their destinations.

"The simplified Customs process can increase the efficiency and competitiveness of Hong Kong's logistics industry," he said.

DAB has suggested increasing the volume of air freight in Hong Kong, too. The most direct way to increase immediate re-exports will be to increase the number of landings and take-offs at the airport from 53 to 60 an hour in a couple of years, he said.

"The industry feels the need to increase the number of flights in two years, and the government should set up a working group to discuss the issue with the industry," Lam said.

In ten years from now, the government has to build a third runway, 2,200m to 2,500m long, that is, 1,000m shorter than the existing ones, for inland flights of one to three hours, he said.

"If a third-runway is not built as soon as possible, it will affect Hong Kong's ability to handle freight, and create a great obstacle for immediate re-exports," he said.

The other suggestions of the DAB study include strengthening Hong Kong's ability to handle immediate re-exports, that is, beginning construction of "Container Terminal No 10" as soon as possible to maintain the city's efficiency. A logistics park on Lantau Island was part of the suggestions.

"The GDP of the PRD cities will grow 10 to 20 per cent in the next 10 to 20 years, which is definitely going to exceed Hong Kong's economic development," Chan said.

"Given the mainland's rapid economic development, the Hong Kong government should improve its basic infrastructure and logistics services to meet new challenges," he said.