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    China Business
     Jan 28, 2006
Hong Kong airport expansion plan unveiled

BEIJING - Hong Kong's Airport Authority (AA) on Friday announced a HK$4.5 billion (US$580.2 million) expansion plan for Chek Lap Kok (officially Hong Kong International) Airport to capitalize on growth opportunities.

The Hong Kong airport will get a new concourse, more bridge-served stands for aircraft, additional taxiways, widened taxiway



shoulders for the gigantic A380 Airbus and repaved runways. Also, some facilities will be relocated to create more space in the passenger terminal building. AA chief executive officer David Pang said the move was an investment in the future and that he hoped the airport would be integrated with others in the Pearl River Delta (PRD) region within the next 25 years.

Passenger throughput at the airport last year rose to a record 40.74 million, 9.7% up from 2004. And by 2010, Pang said, the throughput could reach 10 million, with a similar percentage increase in cargo handling.

"This is the first time that Hong Kong has broken the 40-million-passengers barrier," Pang said. This year will continue to be strong for the airport, though it might not be as strong as 2005, given the global forecast of a slower economic growth.

The bulk of the investment, about HK$3 billion, will go into airfield revamping, as follows:
  • HK$1 billion for a new two-story satellite concourse equipped with 10 bridges for small aircraft and 11 parking stands. This will be completed by 2009.
  • HK$300 million to equip the cargo apron with 10 additional freighter stands and a taxi lane. The upgrade is expected to be completed by next year.
  • HK$1.7 billion to widen taxiway shoulders and reposition runway holding points for the A380 Airbus. This has to be completed in time for the first landing of the A380 some time this autumn. There will also be two more rapid exit taxiways and one lead-in taxiway. The north and south runways and all taxiway pavements will be resurfaced, and that could take up to five years.

    The rest of the investment will be spent on revamping the passenger terminal building. About HK$200 million will go into the central concourse facelift to create more space and make it more attractive, HK$600 million for merging the two arrivals halls into one to create more space and increasing the number of transfer, immigration and security desks, and HK$700 million for enhancing the baggage-handling system with more advanced X-ray scanners. This part of the work will be completed by 2010.

    AA's HK$4 billion cash flow is more than enough to finance the expansion without affecting its ability to pay dividends to the government, Pang said. In the long run, he said, the community has to reach a consensus on what kind of airport it wants to have in Hong Kong before the AA can charge forward.

    100 million passengers
    AA has already held in-house discussions on having an airport big enough to handle 100 million passengers annually in the next 20-25 years. But that, he said, was bound to carry a dear price. More land would have to be reclaimed and more runways built for a 100-million-passenger airport and the environment would inevitably suffer, he said. Plus, the load capacity of Tsing Ma Bridge (the longest of the three Lantau Link bridges, which connect Hong Kong Island with the island of Lantau, where the airport is located) is not enough to cope with the increased traffic in such an eventuality.

    These questions may seem too distant to the general public, but that's exactly what planners need answers to sooner than later, Pang said. Hong Kong, he thinks, will have integrated with the PRD region by 2025. And citing the examples of London and New York/New Jersey, he said Hong Kong and the other PRD region airports would eventually come under one airport authority.

    Chek Lap Kok has to become one to serve the entire country, he said. A prerequisite for this new role will require a lot of effort to promote domestic flights using Hong Kong. AA has held talks with some airports near Hong Kong to explore the chances of cooperation, he said, refusing to comment further.

    There isn't much service overlap between the airports in Hong Kong and Macau, where the authorities are vigorously promoting the enclave as a hub for budget flights. "This is not a zero-sum game. They have their strength in certain areas and we have our strength in others," Pang said.

    (Asia Pulse/XIC)

  • $1.24bn upgrade for airport (Jan 10, '06)

    Sluggish takeoff for A380 in China
    (Nov 15, '05)

    Hong Kong begins to catch its breath
    (Aug 9, '03)

    Jackhammer breakthrough in Hong Kong
    (Apr 1, '03)

     
     



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