The second half of 2003 promises to be a busy and fruitful period for logistics industry players, Secretary for Economic Development & Labour Stephen Ip says.

Speaking at the sixth meeting of the HK Logistics Development Council today, Mr Ip said the improvements are on the horizon thanks to Hong Kong's removal from the list of SARS-affected areas and the signing of the Closer Economic Partnership Arrangement with the Mainland.

He congratulated council members and their organisations for having overcome the challenge posed by the SARS outbreak.

"With concerted efforts, the logistics industry has successfully weathered the storm and sustained its strong performance. Such resilience reinforces our confidence in the logistics sector as one of Hong Kong's economic pillars," Mr Ip said.

Speaking on CEPA, Mr Ip said Hong Kong companies providing logistics, storage and warehousing, freight forwarding, road freight transport and maritime transport services will be allowed to set up wholly-owned enterprises to operate on the Mainland from January 1.

This will allow Hong Kong companies greater flexibility and business opportunities on the Mainland.

To ensure that the trade can reap the full benefits of the CEPA offers, the Government is soliciting the views of the industry through the council, and will take them into account in discussing the implementation details with Mainland authorities.

A seminar will also be held on July 23 to brief logistics small and medium-sized enterprises on the CEPA offers and obtain their views.