The Hong Kong government should give more support to the logistics sector if the city is to thrive as a regional distribution hub, industry trade groups say. Their call comes amid growing industry concern that buildings in Kowloon used for logistics purposes are being demolished and the sites redeveloped as upmarket offices, putting further pressure on supply. Dr Paul Tsui, Chairman of the Hong Kong Association of Freight Forwarding & Logistics, said the logistics industry had urged the government to consider releasing more land dedicated for logistic operations, but only two sites in Kwai Chung had been earmarked and tendered for development. Tsui said both sites were being built as single rather than multiple-user projects, which only put more pressure on small and medium-sized logistics companies because they could not use the buildings. He said that before the administration of Chief Executive Leung Chun-ying took office, the Transport and Housing Bureau was looking at other locations such as Tuen Mun to provide more land to the industry. Sunny Ho, Executive Director of the Hong Kong Shippers’ Council, said shipping and logistics, according to the government, was one of the four pillars of the Hong Kong economy and therefore it should be given adequate support. Ho said there needed to be “commitment at the top and policy support in order to get more land for the industry”, adding that new infrastructure was needed. Meanwhile, Agility Logistics officially opened a new 13,000 square meter logistics center in Tin Shui Wai that will act as a regional distribution center across Asia for high-technology and retail companies. James Gagne, Agility’s Chief Executive for Greater China, said it took more than a year for the company’s logistics team to find a site for the complex. Gagne expects the center, which was about 10% to 15% full since the soft opening last month, to be 70% to 75% full by the first quarter of next year. He also said Hong Kong, as a free port, still offered advantages over the mainland for companies looking to set up a regional distribution center, such as more connectivity to the region and few export restrictions, the South China Morning Post reports.