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1IntroductionThe logistics industry is an unsung hero of our economy. It forms the backbone of the trading and logistics industry, which is the largest of the four key industries in Hong Kong, contributing one-fifth of its value-added GDP and total employment. Hong Kong’s natural advantages including geographical positioning, free port status, and simple tax regime helped the city to become an international trading and logistics hub. However, the modern logistics industry is advancing at a stunning pace, moving hand-in-hand with a prospering e-commerce sector. While Hong Kong’s traditional strengths are still there, it is important for the Government of the Hong Kong Special Administrative Region (the Government) to provide sufficient policy support for the industry to catch the next wave of development. However, the Government's support for the logistics industry has been far from adequate. In particular, the development of the industry has long been constrained by the insufficient availability of land, a direct consequence of the Government’s lack of a strategic economic and industrial blueprint. To make the matter worse, there has been a call in recent years for reapportioning all brownfields for residential use. Brownfield sites in Hong Kong are not idle or abandoned land, but are important economic ancillary lands that support an array of economic activities, many of which are run by logistics operators in the city.In this report, we wish to highlight the importance of the logistics industry in Hong Kong, and make policy recommendations that advocate a balanced approach to fostering the sustainable development of the industry.6