Airport Authority Hong Kong unveils development options

Hong Kong International Airport Master Plan 2030 (Master Plan 2030) outlines two development options for public consultation. The first option is for maintaining the existing two-runway system, which would help meet Hong Kong's aviation demand in the medium term only. The second option is to build a new runway to increase capacity, which would enable HKIA to meet the city's air traffic demand up to and possibly beyond 2030 while further strengthening its position as a leading regional and international aviation hub.

During a three-month public consultation exercise starting from 3 June 2011, stakeholders and the public are invited to submit their views and comments to the Social Sciences Research Centre (SSRC) of the University of Hong Kong. SSRC is appointed by AAHK to collect and compile public views independently. A series of roving exhibitions, public forums and stakeholder briefings will form a key part of the exercise, which will end on 2 September 2011.

Speaking at the launching ceremony of the Master Plan 2030 Public Consultation, AAHK Chairman Dr Marvin Cheung Kin-tung said, "HKIA is an important asset of Hong Kong. Its expansion is inextricably connected with Hong Kong's continued development as a thriving international business and financial centre.

"With Asia Pacific, and in particular the Mainland, increasingly driving global and regional economic growth, air traffic demand has been experiencing strong growth in the past decade. This trend is expected to continue, and Hong Kong is well positioned to capture the opportunities it presents. The question is how much of such opportunities HKIA is able to capture in future. The current two-runway system is forecast to be saturated by around 2020, and beyond that, HKIA will not be able to meet additional demand. This could irrevocably harm Hong Kong's position as a global aviation hub.

"The rising demand is the reality that we need to confront. We must plan ahead to ensure that Hong Kong can sustain its competitiveness in the wider business sphere and the more specific aviation sector. Master Plan 2030 details our research and assessment of how we can address HKIA's capacity problem and meet future demand. We are totally committed to working together with our stakeholders to implement the option that will serve Hong Kong best in the coming decades."

The Master Plan 2030 study, which commenced in July 2008, is part of AAHK's regular five-year review of the airport's development needs. Nine independent consultants were commissioned to research different strategic aspects of the airport's development. After three years of intensive study and review by the consultants and AAHK management, with inputs from the professionals of the airport community, two different options for HKIA's future expansion are proposed for public consultation.

Option 1: Maintaining the existing two-runway system

• The two-runway option maintains the existing dual-runway system but makes enhancements to the terminal and apron facilities to increase HKIA's capacity.

• This option will enable HKIA to handle a maximum of 420,000 flight movements per year, with annual passenger and cargo throughput increased to 74 million and six million tonnes respectively.

• It is estimated to cost approximately HK$23.4 billion (in 2010 dollars) or HK$42.5 billion (at money-of-the-day prices). It will increase number of direct jobs associated with HKIA to 101,000 by 2030 (from 62,000 in 2008) and generate a total of HK$432 billion (in 2009 dollars) in economic net present value (ENPV) over a 50-year lifespan up to 2061.

• However, this option can only meet the estimated air traffic demand in the medium term, and HKIA will reach its maximum runway capacity sometime around 2020.

Option 2: Expanding into a three-runway system

• The three-runway option envisages the building of a third runway and its associated terminal, airfield and apron facilities, which requires the reclamation of about 650 hectares of land north of the existing airport island.

• With a third runway and its associated facilities, HKIA would be able to handle a maximum of 620,000 flights per year, and meet forecast annual passenger and cargo throughput of about 97 million and 8.9 million tonnes by 2030 respectively.

• It is estimated to cost approximately HK$86.2 billion (in 2010 dollars) or HK$136.2 billion (at money-of-the-day prices). It will increase number of direct jobs associated with HKIA to 141,000 by 2030 and generate an ENPV of HK$912 billion (in 2009 dollars) over a 50-year lifespan up to 2061.

• This option will enable HKIA to meet forecast traffic demand and maintain its extensive air network and connectivity up to and possibly beyond 2030.

(For a comparison of the two options, see Appendix I)

Stanley Hui Hon-chung, AAHK's Chief Executive Officer, said, "As airport development requires a long lead time with considerable advanced planning, we need to decide now on how the airport is going to move forward to avoid a capacity crunch.

"If HKIA does not expand, or fails to expand in a timely manner, to meet our future aviation traffic demand, there will be adverse consequences. The immediate impact would be on HKIA's connectivity with the world, because with constrained capacity, HKIA would have to turn away traffic, possibly resulting in the airport serving fewer destinations."

Mr Hui said AAHK fully appreciates potential concerns about project costs or the environmental impact of the expansion plan. "We will listen carefully to the views of the public and our stakeholders and address them with an open mind. We look forward to working together with the people of Hong Kong to reach a timely decision on the best development option for our future," said Mr Hui.

Mr Hui added that AAHK would follow up on all associated environmental issues and their corresponding mitigation measures in full during the future statutory procedures.

To facilitate public understanding of Master Plan 2030 and encourage participation, a series of events including roving exhibitions and public forums will be rolled out during the consultation period (See Appendix II for details). Copies of Master Plan 2030 in various levels of detail as well as other related information are also available at AAHK's dedicated website www.hkairport2030.com. Members of the public are welcome to express their opinions by filling out the questionnaires available online and in the exhibitions.