International transport is crucial to the development of world trade and the logistics sector contributes to a country's gross domestic product. However, transport consumes energy and inevitably produces pollutants including greenhouse gases (GHG). In the past, researchers have focused on the environmental problems associated with the production of goods in factories and in services. Industrial noise, water pollution, air pollution, and land contamination have attracted a great deal of attention and numerous articles have been devoted to these areas of cleaner production. Besides, organizations have adopted environmental management systems such as ISO 14001 to manage environmental issues. Nevertheless, industry and transport, combining with energy supply, constituted the largest growth in GHG emissions between 1970 and 2004 . The environmental externalities associated with distribution operations i.e. logistics services have still been largely overlooked even though a major contributor to the carbon footprint of a supply chain is the total energy consumed in manufacturing and logistics. In cleaner production, researchers have used life cycle approach to identify the resources used and the pollutants generated for a wide range of products manufactured in different parts of the world, transported to the point of sales, and eventually consumed and disposed by consumers since the 1990s. It was found that GHG emissions due to the logistics services ranged from a few percent to over ten percent, depending on the characteristics of goods and the mode of transport. After goods have been produced, they have to be transported from factories to purchasers who are normally not located in the same geographical location. Thus, the logistics sector plays a critical role in supporting and promoting regional and international trade flow. In some economies, such as Hong Kong and Singapore, the logistics sector is one of the economic pillars because a huge amount of manufactured products make use of the city's logistics infrastructure for distribution. Despite its importance, there is a dearth of literature on environmental assessment of the logistics sector as a whole in an economy. Hence, the main purpose of this study is to determine the environmental performance of Hong Kong's logistics sector as a whole and its subsectors i.e. air, sea, and land freight using GHG emissions. As the logistic sector contributes to 3.3 percent of Hong Kong's gross domestic product (GDP) and employs about 183 thousand people i.e. 5 percent of Hong Kong's total workforce, the economic performance of the logistics sector and its subsectors shall also be evaluated. The findings of the study will contribute to the understanding the impact of logistics services on the environmental and economic dimensions, thus providing a more comprehensive and balanced view of the logistics sector. The rest of the paper is structured as follows. The next section presents a brief review of the environmental assessment of production and transport of goods and the development of Hong Kong's logistics sector. Section 3 introduces a ‘bottom-up’ approach so that GHG emissions, environmental effectiveness, and economic performance, from different transport modes are determined, and data sources. Section 4 presents results and analysis and Section 5 concludes the findings of the study.