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Reform the siteallocation mechanismIt is important to ensure that the land in these logistics nodes is allocated fairly to end users, including the vast number of small and medium enterprises (SMEs) and brownfield operators. Our second recommendation is to propose a comprehensive operation model which aims at building a well-balanced ecosystem for SMEs and established logistics property developers. This implies moving away from the traditional land auction model which allocates land purely based on bidding prices.Suggested operation model for future logistics nodes in Hong KongDevelop dedicatedlogistics nodesConduct economic reviews and formulate industrial policiesEstablish a statutory body for the development of strategic industriesRelocate Kwai Tsing Container TerminalsRecommendation 2: Reform the site allocation mechanismTaking reference from the managing of industrial estates by the Hong Kong Science and Technology Parks Corporation (HKSTP) and operation model of the JTC Corporation of Singapore, we propose that the logistics nodes be managed by a dedicated statutory body, whose mission is to spearhead the development of the industry. Rather than targeting the largest profit through land sales, the goal of establishing logistics nodes should focus on assisting the lessees and tenants, in the areas of upgrading their business capacity and maintaining the nodes' flexibility, so the nodes can accommodate new or emerging economic activities in the future. To achieve such policy goals, the operation model of logistics nodes should pay attention to the following (Figure 51):76