Secretary Mable Chan Highlights PCS as Key to Hong Kong's Logistics Future at LSCM Summit 2025

Opening remarks by STL at LSCM Logistics Summit 2025

Following are the opening remarks by the Secretary for Transport and Logistics, Ms Mable Chan, at the LSCM Logistics Summit 2025 today (October 10):

Alan (Chairman of the Board of Directors of the Logistics and Supply Chain MultiTech R&D Centre (LSCM), Professor Alan Lam), Simon (Chief Executive Officer of the LSCM, Mr Simon Wong), Frankie (Legislative Council member Mr Frankie Yick), distinguished guests, ladies and gentlemen, friends,

We have so many friends and partners with us here today, current, past and future, who have contributed to logistics, to technology, and in particular to the PCS (Port Community System). I wish I would not miss key messages in my speech that my team would like me to deliver. Alan just mentioned inviting me to join this Summit; it is indeed my great honour and privilege to be able to participate among you, to witness the ceremony today. I also vividly remember that I came to this venue back in 2023, in my days as the Permanent Secretary of the Transport and Logistics Bureau. Throughout these past few years, the passion and dedication demonstrated by various partners and stakeholders in the logistics sector have remained the same, if not higher. I am really impressed by all the friendship, collaboration and relationship that we have built among ourselves over all these years.

Today's theme is particularly topical, and not only embraces the term PCS. I think naming is very important. On the Mainland, when we go to visit different provinces and ports, they have big screens showing data platforms, and it is really a daunting task. In Hong Kong, we seem to start in a very humble manner: we call it PCS, Port Community System. Nobody else on the Mainland or overseas knows what we are talking about. Port, community, system - those three words cannot relate to them, and they are not familiar to them. When I just hear what Professor Alan Lam said, port community system means different things to me. Port, P - I think we can brand it as "platform", 平台. Community - we should brand it as "collaboration". System, S - we should brand it as "smart". I think PCS really embraces all these three concepts, that is, platform, collaboration, and the need to work smart. We need to build a smart system.

Reflecting on our progress, it seems like just yesterday that we gathered for the PCS launching ceremony in May. I think the momentum we have gathered and maintained has been truly remarkable. It is not just a demonstration or promulgation of an action plan, but it means a lot of actions by you all and also by my team. I am really thrilled to witness all the substantial achievements and advancements made in just this past five months or so. This rapid progress underscores our unwavering commitment in our logistic sector. This is also articulated in both the 2024 and 2025 Policy Addresses. Without clear leadership and very deep commitment by our senior echelon of the Government, I do not think the community can unite so quickly and rapidly together. By now, I can see that we have already created a synergy and awareness, so we can unite together and then we can move even faster ahead. At the HKMA Data Summit in July, I emphasised that "whoever masters data defines the future". Data is power. Today, I am very proud to say that through the PCS, we are not just mastering data; we are harnessing it to redefine what is possible for Hong Kong's future, in particular for the maritime, port and logistics industry. I am very confident that we have a very bright future for our industry and for our young generations ahead.

The PCS represents not just a technological upgrade, but it is also the cornerstone of our Action Plan on Maritime and Port Development Strategy. It is a very fundamental piece of digital infrastructure nowadays for our city. Thanks to the ITF (Innovation and Technology Fund), Ivan (Commissioner for Innovation and Technology, Mr Ivan Lee), and also to the Commissioner for Customs and Excise, our bureau has been working very closely with all the policy bureaux and departments to work ahead for logistics development and technological upgrade. As a government-funded and government-led initiative scheduled for launch in January 2026, which is just two months ahead, the PCS is designed to be a transformative force. It will provide a comprehensive, real-time cargo tracking function, creating a seamless digital thread that connects sea, land, and air networks like never before. I think for Hong Kong's future roadmap, we need to harness and build on our advantage of intermodal logistics and cargo transportation and transshipment. So PCS, you were born at the right moment. This digital backbone is poised to significantly bolster trade and capital flows, directly enhancing Hong Kong's competitiveness as an international trade, finance, and logistics hub. As Simon always says, and I am sure all of you present here are very well familiar with, we would like to highlight three points. It is easier to hammer into our audience's heads. If I can summarise or highlight three fundamental cornerstones or pillars that underpin the PCS:

First, it establishes a single, unified platform whereby we can connect all supply chain partners, and most importantly, through this connection, we break the information silos. The silos not only exist within the Government, but also in the trade, in the sector. We are here to serve, to break all the information silos so that we will not overlap; we will not duplicate the efforts, but we can synergise. Second, by its nature, it is government-run, official, so in a way it instils and upholds a high level of confidence in the trade. I think digital system is not new to the trade. Willy (Chairman of Hong Kong Shippers' Council, Mr Willy Lin) always says that to me. In the past, we have different kinds of experimental systems, but this time, it is government-run, government-led. So, in a way, we will try to reduce, if not eliminate, the industry's concern over commercial sensitivity or favouritism. We are open, we are neutral, we are frank. So we are there to open up and attract different people to join and participate in the system. Amy (Deputy Secretary for Transport and Logistics, Miss Amy Chan), my team, recently did a presentation, and we are so amazed and blessed that we win high recognition for the technology software that we use for the PCS, and they said that it is actually among the top in the world. Third, and very crucially, we finally get a taste of how blockchain technology can help and guarantee us a very trusted, immutable, and verifiable record of the cargo flow. This is not just academic or theoretical; we are already seeing several various practical applications. I mentioned just now our collaboration with the Hong Kong Monetary Authority (HKMA). I am very happy to see that through collaboration with the HKMA, they have a Project CargoX Expert Group, in which nearly all banks in Hong Kong are actively using PCS data for robust cargo verification, streamlining their financing verification processes, reducing credit costs for SMEs, and unlocking new opportunities for financial innovation. Henry (President of the Hong Kong E-Commerce Logistics Association, Professor Henry Ko), who is present here, you are the President of the Hong Kong E-Commerce Logistics Association, in which a lot of small and medium enterprises participate. I think trade finance and loan finance are very important to help overcome any cash flow problems in order to unlock a huge amount of potential and opportunities for new entrants to join our logistics centre.

Our ambition, however, extends well beyond Hong Kong's boundaries. To genuinely future-proof our role in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the global supply chain, strategic connectivity is paramount. The Memorandum of Understanding (MOU) we signed with Guangdong e-Port Management Company Limited in May was a critical first step, laying the groundwork for more transformative services like the one we provide with the Guangdong e-Port Management Company, which is the "One-Data-Multiple-Declarations", 一單多報, and the pre-declaration of sea-cargo manifest, 海上船務貨物預報. Such initiatives will dramatically reduce administrative burdens, accelerate customs clearance, and bring tangible efficiency, economic gains to businesses operating across the GBA. We are actively pursuing similar dialogues with other Mainland and international ports and logistics platforms to ensure Hong Kong remains at the heart of the digital shipping world. I would like to emphasise that you did not hear me wrong: Hong Kong will definitely remain at the heart of the world's digital shipping sector.

This naturally brings me to a highlight of today's event, the signing of further MOUs. These partnerships embody the very collaboration highlighted in this summit's theme, collaboration and innovation. Such collaborations are the testament to the spirit of this summit and will be instrumental in further enriching the PCS ecosystem, 生態圈, driving innovation, and building a more vibrant and resilient port community.

Talking about the geopolitical challenges worldwide and also the US tariff war, I think it is of paramount importance that we, the logistics sector, help ourselves among each other, in particular the small ones, the medium ones, who may not afford to diversify their market and business in such a short period of time. So we really need to build the resilience of our ecosystem. Every part of the supply chain counts and works, and we should not lose sight of their sustainability and business viability. I am very grateful to be able to witness the MOUs signing ceremony that will take place later today.

Again, the PCS represents a strategic investment in Hong Kong's high-quality development. It serves as the critical digital link that synergises our status as a financial centre, a trade and industry hub, and a maritime gateway, creating a powerful virtuous cycle for sustainable economic growth. The journey ahead, I assure you, requires a collective effort, and it will involve a very bright future.

(Please also refer to the Chinese portion of the speech.)

Source: AI-found images

Housing Bureau and Development Bureau accept Independent Investigation Report submitted by Architectural Services Department regarding construction malpractices at three Light Public Housing sites and impose punitive measures on Contractor, Structural Engineer, and Project Management Consultant involved

The Architectural Services Department (ArchSD) submitted the independent investigation report on the construction malpractices at the three Light Public Housing (LPH) sites at Lok On Pai in Siu Lam, Yan Po Road in Tuen Mun, and Sheung On Street in Chai Wan to the Housing Bureau (HB) and the Development Bureau (DEVB) on November 5, 2025. Upon a thorough review, both bureaux today (January 16) accepted the findings of the report and imposed punitive measures on the Contractor, Structural Engineer, and Project Management Consultant (PMC) involved. The ArchSD has also been tasked to continue its strict supervision on the Contractor and PMC in taking forward the remedial works expeditiously, alongside the immediate implementation of the improvement measures as set out in the report.

In light of the investigation results, the DEVB served notices today, in accordance with the regulatory mechanisms, to the companies involved about the following punitive measures to be imposed on them:

(1) The Contractor, i.e. Able Engineering Company Limited (Able), which is responsible for the construction and associated quality assurance: suspension of its eligibility to tender under all relevant categories of the List of Approved Contractors for Public Works and the List of Approved Suppliers of Materials and Specialist Contractors for Public Works for one year. As for Chun Wo Construction and Engineering Company Limited that formed the joint venture with Able, since its major involvement in the projects is to provide strategic advice on construction planning and has neither been involved in the site works nor supervision, it is not subject to the punitive measures;

(2) The Structural Engineer employed by the Contractor, i.e. C M Wong & Associates Limited, which is responsible for providing and managing the resident structural engineer involved: suspension of its eligibility to tender under all relevant categories of the List of Consultants of the Architectural and Associated Consultants Selection Board (AACSB) for one year; and

(3) The PMC employed by the ArchSD, i.e. Wong Tung & Partners Limited, which is responsible for providing project management and managing the resident site supervisors involved: suspension of its eligibility to tender under all relevant categories of the List of Consultants of AACSB for six months. The six-month suspension period was set with due consideration that not all of the project sites under its management were discovered with deficiencies in supervision.

Since the commencement of LPH construction, the ArchSD has always enforced strict quality supervision and proactive inspections, together with reviews on the performance of contractors. The prompt uncovering of malpractices at the three LPH sites during the ArchSD's proactive inspections was a direct reflection of the effectiveness of the supervision mechanism.

The HB has tasked the ArchSD to continue its stern supervision of the Contractor to take forward the remedial works and the remaining construction works and to closely monitor construction quality and progress. Under the premise of adhering to the original completion dates, every effort shall be made to ensure that all projects comply with the relevant safety requirements. As directed by the ArchSD, the Contractor has implemented a host of remedial measures at full speed since early November last year, including shifting and reinstalling the modules involved, and will bear all costs related to the remedial measures.

Moreover, on the works contract level, the ArchSD requested that the Contractor implement a series of remedial measures and bear all the related costs of the remedial works. In addition, should the remedial measures result in any delay in the contract completion dates, the Contractor will be liable for liquidated damages. Moreover, the ArchSD has required the Contractor to replace all site supervision personnel, including site agents, works supervisors, and resident structural engineers. The ArchSD has also concurrently required the PMC to replace all its resident site supervisors. Meanwhile, the ArchSD has immediately strengthened its supervision by deploying full-time government site supervision staff to monitor the sites and has arranged for its structural engineers to conduct additional on-site spot checks and audits to ensure strict quality control for the projects.

Based on preliminary evidence, Able is suspected of serious negligence or misconduct in the construction works. The ArchSD will inform the Building Authority to refer the case to the Registered Contractors' Disciplinary Board under Section 13 of the Buildings Ordinance. As provided in the Ordinance, if, upon hearing, negligence or misconduct in construction works were found to have been committed, the Board may order the removal of Able or its directors, senior personnel, or individuals from the relevant lists, impose fines, or issue a reprimand on Able or its directors, senior personnel, or individuals.

As the investigation revealed that the incident may involve criminal acts of providing false statements, the ArchSD has already reported the case to the Police.

The Government will continue to follow up on the case in a serious manner and step up its site supervision efforts to ensure the overall construction quality, safety and progress are not affected, as well as to ensure each LPH project is completed with high quality and high safety standards, thereby providing decent homes for residents in need as soon as possible.

Source: AI-found images