Mr Pontoppidan, Mr (C. C.) Tung, distinguished guests, ladies and gentlemen:

It is my great pleasure to welcome the Baltic and International Maritime Council (BIMCO) to Hong Kong. The timing of your AGM is especially significant for us. You may have noticed some of the many events and festivities underway around the city to mark the 10th Anniversary of the establishment of the Hong Kong SAR, and we have the weather to go with.

While we may still be relatively new as a Special Administrative Region of China, we are old hands when it comes to the maritime industry. The Hong Kong you see today was founded on the maritime trade. We are very proud of our seafaring history, and our port has constantly ranked among the world's busiest over the past decade.

Victoria Harbour is not just a picture-perfect backdrop for our city, it is the very heart of Hong Kong. You need only look out across the harbour to see just how strong the heart is beating.

Globalisation has brought immense benefits to Hong Kong and, in particular our shipping industry. Transport services to every corner of the world are now in high demand. And the shipping community has responded to this challenge. More advanced navigational technology coupled with a more efficient transport network have improved safety and lowered costs.

As an international trade and maritime centre, we believe Hong Kong has made a positive contribution to the global shipping industry.

By staging your meeting here, the world's senior shipping executives have a chance to explore business opportunities in Hong Kong and the Mainland of China. It is also a perfect chance to see first-hand the development of our shipping and maritime industry over the past decade.

Hong Kong is currently the world's 7th largest maritime centre. Our ship-owners own, manage, or operate more than 1,200 vessels. That accounts for more than 8 per cent of the world's merchant fleet in terms of deadweight tonnage. Hong Kong's naturally deep and sheltered harbour has been a magnet for seafarers since the early days.

Yet, modern-day shipping only took off here some 50 to 60 years ago. That's when ship-owners from Shanghai began arriving in the 1940s and '50s. Since then, and in particular following the opening up of China in the late '70s, our shipping business has steadily expanded and diversified.

Our maritime services today include ship financing and brokering, legal and arbitration services and insurance. Some 900 shipping companies, providing all manner of support services, operate from Hong Kong.

We may be blessed with one of the world's finest natural harbours, but Hong Kong's continued economic success is no accident. It is the result of hard work and an unswerving determination to achieve the best possible trading environment.

For each of the 10 years since Reunification, our economy has been ranked as the freest on the planet. In fact, we have topped the Heritage Foundation's league of free economies for 13 consecutive years now.

More and more overseas companies are setting up headquarters and regional offices here, taking advantage of our level playing field for businesses, simple and competitive tax regime, and efficient logistics sector.

It is also worth noting that we have an agreement with a growing number of trading partners, 13 at the last count, to avoid the burden of double taxation for exporters.

These strong fundamentals have helped Hong Kong's maritime sector to enjoy robust growth over the past decade. Take our freight transport for example. In 2005, receipts topped HK$137 billion, or about US$ 17.5 billion. That's an increase of more than 89 per cent since 1997. Hong Kong is now among the world's top five shipping registers, with the gross tonnage of registered vessels recently topping the 34 million mark. The 1,200 vessels on our register represents a six-fold increase over the past 10 years.

As a responsible player, Hong Kong has long been active in major international organisations. These include the Asian Shipowners Forum, the International Chamber of Shipping, the International Shipping Federation and of course BIMCO - to name just a few.

We thank Mr C C Tung for his leadership of BIMCO last year. This is a prime example of how Hong Kong can contribute to the international maritime community.

So where do we go from here?

Safety and the environment are just two of the major issues facing the maritime industry today. We applaud the work of the International Maritime Organisation (IMO), to both promote safety standards and protect the environment. We are also doing our part.

Since Reunification, the Hong Kong SAR has continued to play a full and active role as an associate member of the IMO. We are particularly proud of our reputation for protecting the lives of those working in the industry.

The Hong Kong Maritime Rescue Co-ordination Centre is responsible for search and rescue efforts spanning more than 450,000 square nautical miles of the South China Sea. Last year, 238 lives were saved as a result of the centre's work.

I am pleased to tell you that our national government fully supports Hong Kong's position as an international maritime centre. China's shipping and shipbuilding industry is also continuing to grow. And Hong Kong is facing growing competition from ports in Shanghai and Shenzhen as well as Singapore.

By constantly improving the quality of service, and upgrading the skills and knowledge of our maritime professionals, we are rising to the challenge.

Hong Kong is also streamlining rules and procedures while maintaining a close partnership with the industry.

Finally, I would like to mention the biggest challenge facing Hong Kong, and perhaps the entire maritime community. That is to nurture new talent.

BIMCO is taking the lead in this very important task, constantly running training programmes and seminars to improve standards and promote excellence.

One such programme was co-organised by the Hong Kong Maritime Industry Council earlier this year. The 'Check Before Fixing' seminar proved to be a great success.

We hope you will organise more similar events here in the future.

As one way of unearthing more talent, and coinciding with the 10th Anniversary of Hong Kong's Reunification, we have established the Hong Kong Maritime Scholarship. The scheme aims to entice the best and brightest individuals from all over China to join the maritime sector. It is just one way we hope to ensure the industry will continue on its course of growth and prosperity, full steam ahead!

I wish the 2007 BIMCO General Meeting every success, and for you all, a fruitful and enjoyable stay in Hong Kong in perfect weather. Thank you very much.