Hong Kong means "fragrant harbor" in Chinese. We should take advantage of the harbor we have and build Hong Kong into a maritime hub, not just a financial center. Such a push will create more jobs and spur economic growth.

While attention is focused on constructing a cruise terminal at the old Kai Tak airport, a more strategic move to develop this city into a maritime hub is needed. Mr CY Leung's team is well-advised to start thinking and planning to achieve this reality.

The government will spend HK$1.8 billion to HK$2.4 billion to build the Kai Tak cruise terminal, which will be completed in mid-2013. The terminal, which can berth alongside two vessels of up to 50,000 tonnes each, will be managed by Worldwide Cruise Terminals Consortium. The government will receive rent and a percentage of the gross income from the operator. The progress has created a lot of excitement.

It's time, however, we looked beyond the cruise terminal. It will be wonderful if Hong Kong can become a world-class financial center as well as a maritime hub.

Hong Kong's main rivals, which surprise nobody, include Singapore and Shanghai. Singapore has been very aggressive about building the city state into a maritime hub. In many aspects, our new government should provide strategic thinking and financial assistance to raise Hong Kong's playing field as high as Singapore's, if not higher.

Currently, about 2,100 ships are flying the Hong Kong flag. To attract shipping firms to register in Hong Kong, we must provide double-taxation protection for them. Disappointingly, we have only signed 20 double-taxation protection agreements with foreign governments, much lower than Singapore's 50. The exposure to a heavy tax burden has forced some shipping firms to uproot their bases here and move to Singapore. These stories are barely reported by the local press because shipping is viewed as a boring beat for journalists.

Mr Leung's government should start planning to offer subsidies and incentives for shipping operators to set up shop in Hong Kong, lest "Asia's world city" sees its status as a global maritime center gradually eroded.

One suggestion is to ask former Chief Executive Mr CH Tung to head a task force to build and strengthen Hong Kong's status as a world-wide maritime hub.

Mr Tung is no stranger to people in the shipping industry. His family owns the Orient Overseas (International) Limited, one of the world's largest integrated operators of container transportation, logistics and terminals. He can work with Mr Helmut Sohmen, son-in-law of the late shipping magnate Sir YK Pao and owner of BW Group Limited, the amalgamated company of World-wide Shipping Co and Oslo-based BW Maritime Group.

It is somewhat disappointing to learn that the BW Group now is headquartered in Singapore, which is Hong Kong' main competitor. Perhaps Mr Tung, if he agrees to head the task force, can convince Mr Sohmen to move BW Group's headquarters back to Hong Kong.

The Hong Kong Maritime Forum, an umbrella group for the city's 24 maritime organizations, has planned to meet with Leung after the Legislative Council Election. It is hoped that Mr Leung (together with Mr Tung perhaps) will provide policies and assistance to our maritime sector to solidify Hong Kong's role as a global maritime center.

The author is a current affairs commentator.

(HK Edition 08/03/2012 page3)