About $31.5 million will be sought from the Legislative Council in February to acquire 29.17% of Digital Trade & Transportation Network shares.

Secretary for Economic Development & Labour Stephen Ip said the move will boost the logistics sector's confidence in using the system.

It is in line with the practice to invest in and undertake infrastructure projects that cannot be taken forward entirely by the private sector at the inception stage.

Noting the proposal seeks to enable the launch of the DTTN initiative through minimum Government investment, Mr Ip said the administration will consider selling down its shares to allow more private sector participation after the policy objectives for the investment have been realised.

So far 12 industry players and organisations have reaffirmed support to the DTTN initiative and Government involvement as a DTTNCo shareholder. The industry shows that support for the initiative hinges on Government involvement.

Neutral e-platform 

The DTTN System is an information infrastructure aiming to facilitate trade and enhance the efficiency and productivity of the logistics sector.

It seeks to provide a neutral, open and secure e-platform to connect players along the supply chain using a set of agreed electronic business message standards and communications protocols.

According to a study, the system will bring an estimated tangible benefit of about $11.8 billion to the industry over a 17-year period.

It will also improve the overall effectiveness and efficiency of the logistics industry, promote adoption of information technology and e-commerce by enterprises, enhance their competitiveness, offer new business opportunities and cope with changes arising from global trade trends and developments.