Opinion | Challenges in developing drone delivery in HK

By Xing Yin

The 2024 Policy Address has proposed the development of the low-altitude economy. The Hong Kong SRA government will establish the Working Group on Developing Low-altitude Economy. Led by the Deputy Financial Secretary, the Group will formulate development strategies and inter-departmental action plans. Developing a low-altitude economy is a growing trend and a strategic emerging industry for China. The whole world is competing to capture this market, and Hong Kong must seize this opportunity as well.

To promote the low-altitude economy, Hong Kong is taking multiple measures. The Hong Kong SRA government will establish the Working Group on Developing Low-altitude Economy. Led by the Deputy Financial Secretary, it will formulate development strategies and inter-departmental action plans, starting with projects on low-altitude applications. It will designate specific venues for such purposes, draw up regulations and design the institutional set-up, and study and map out plans to develop the required infrastructure and networks.

Benefiting from technological development, in recent years, drone delivery services in the Chinese mainland have developed rapidly. Commercial-grade drone delivery routes have been opened in many places. In Shenzhen, drone delivery is becoming increasingly popular. The food delivery online platform Meituan operates 28 drone routes in 11 business districts in cities such as Shenzhen and Shanghai. Since the beginning of 2021, it has completed a cumulative total of 250,000 orders. A Meituan representative noted that while there is demand for drone deliveries in Hong Kong, the policy has yet to open up. Should there be legal progress, Meituan is willing to explore the Hong Kong market.

Now, platforms like Meituan have received this good news. Deputy Financial Secretary Wong Wai-lun mentioned that the Government will cooperate with the industry and partner institutions to launch pilot projects for the low-altitude economy, focusing primarily on drone cargo transport in the initial phase. Relevant projects will start accepting applications by the end of this year, with the first "supervisory sandbox" expected to roll out early next year. As the low-altitude economy involves the use of drones, some food delivery service operators have already inquired with the Government about the possibility of trial runs on specific routes.

In promoting the development of the low-altitude economy in Hong Kong, the local industry is also taking active actions. The Hong Kong Polytechnic University has independently developed a drone logistics project that enables precise navigation in the complex urban environment, solving the common problem of inaccurate positioning between buildings. The project is expected to undergo pilot testing for drone delivery by the end of this year, which is anticipated to significantly contribute to the development of Hong Kong's low-altitude economy. However, several challenges need to be addressed in the process of developing drone delivery.

First, in places like the Chinese mainland, the UK, and the US, drones have been widely used for logistics transportation, proving that this technology is feasible. When developing drone delivery in Hong Kong, lightweight items such as letters and medicines can be used for testing first. Wong Wai-lun also mentioned that the first-stage project will mainly focus on aerial monitoring and drone cargo delivery, covering different terrains and urban densities, including areas like the Science and Technology Park, Cyberport, Islands District, and the Northern Metropolis.

In fact, various government departments in Hong Kong are already using drones for tasks such as search, inspection, and survey work. As for using drones for delivery services, the Government aims to invite interested partners by the end of this year to propose application scenarios, such as "point-to-point" delivery purposes.

Second, given Hong Kong's dense and complex building layout, some people are concerned whether this will become a barrier to drone deliveries. In fact, system stability is crucial for drone delivery, which involves ensuring accurate positioning between buildings. Typically, drones use satellite positioning, which is more accurate when the drone flies higher. Therefore, in the initial trials of drone logistics in Hong Kong, it may be better to select sparsely populated areas and avoid densely packed urban districts. This would allow for testing of system stability and public acceptance. Once the system's reliability is ensured, it can gradually be expanded to more densely populated areas.

Third, due to the large population, there are numerous Wi-Fi routers in urban areas, which may interfere with drone operations. Additionally, current regulations limit drone flight altitudes to 90 meters, which is not conducive to improving the stability of the drone delivery system. Moreover, there is currently a weight limit of 25 kilograms for drones, but the Government is already studying the regulatory framework for drones heavier than 25 kilograms. It is hoped that through testing, these regulations can be relaxed, allowing more application scenarios for drone deliveries.

Furthermore, it remains to be tested whether Hong Kong's communication base stations can sufficiently cover drone flight routes. The coverage of Hong Kong's 4G, 5G, and future 6G networks is still not as extensive as that of the Mainland. Therefore, pilot projects are needed to assess whether the communication infrastructure can meet the needs of drone logistics and ensure flight safety. Additionally, there has been public concern about the potential impact of "ionospheric scintillation" on drone swarm performances. However, since logistics drones typically operate individually and maintain adequate safety distances, this impact is expected to be minimal.

Finally, the Government hopes to collect data through trials to better understand the stability and safety of drone deliveries, thereby expanding the potential application scenarios. Once these scenarios have been broadened, the Government can also discuss with mainland partners about jointly building cross-boundary air routes and supporting infrastructure, laying the foundation for cross-boundary helicopter and logistics services. Will cross-boundary drone deliveries become a reality in the future? This will involve complex issues such as customs clearance and security, making execution relatively challenging. But with the advancement of technology and the strong support from the Government and various sectors, the future of drone delivery in Hong Kong is promising and full of potential!

Related News:

Policy Address 2024 | Sun Dong: Low-altitude economy to be most effective below 1,000 meters

Policy Address 2024 | Wong Wai-lun: HK to launch low-altitude economy pilot program by year-end