Hong Kong’s government has given a crucial ‘in principal’ green light for the plan to build an HK$86.2 billion (US$11 billion) third runway at the world’s busiest cargo and Asia’s third busiest passenger airport. The airport’s two existing runways are forecast to reach capacity by 2020.
“The executive council has approved in principal the airport authority’s recommendation to adopt the threerunway system as the future development option for its next stage of planning,” Secretary for Transport and Housing, Eva Cheng said. The government-owned airport authority is now clear to start work on detailed design, financing, and an environment impact assessment, tasks which are expected to take about two years, she said.
Completing the assessment may take up to two years and the ultimate decision will probably happen in 2015, she said. The HK$86.2 billion cost for the third-runway is in 2010 dollars and the final number may be HK$136.2 billion at “money-of-the-day prices”
by the time it’s built, according to the airport operator’s website.
The airport operator, Cathay Pacific Airways and a host of other companies and associations have favored a third runway over a more-limited and cheaper alternative. Hong Kong Air Cargo Terminals Limited (Hactl) – the major air cargo handler at the world’s largest air cargo hub, handling 70 per cent of air cargo movements or nearly three million tonnes annually – has welcomed the in-principle approval.
Hactl managing director, Mark Whitehead said: “The global airfreight market, and the market in this region in particular, is expected to grow in leaps and bounds in the next two decades.
HKIA needs to grow to meet the increases in volumes, otherwise its status as the world’s No. 1 air cargo hub will be under threat.”
Cathay Pacific Airways also lauded the decision with the carrier’s chief executive John Slosar saying: “We firmly believe the third runway is of critical importance to the sustainability of the Hong Kong economy and, therefore, to the long-term prosperity and well-being of Hong Kong’s people. Connectivity with the rest of the world has made Hong Kong what it is today so we must be clear on how we can maintain and grow these links to our future.
“A third runway is the only viable option to ensure the long-term
competitiveness of Hong Kong as an important international financial centre, trading and logistics hub, tourism destination and professional services capital.”
Slosar went on to highlight that the carrier is currently making
significant investments to underscore its commitment to its home hub in Hong Kong, including more than 90 new aircraft on order for delivery up to the end of the decade with a list price of some HK$190 billion (US$24.5 billion), a HK$5.7 billion cargo terminal
that is scheduled to open in early 2013 and more than HK$3 billion on new products in the air and on the ground.
Both Cathay and Hactl also welcomed the government’s direction
to proceed with the Environmental Impact Assessment (EIA) for the third runway. Slosar added: “We at Cathay Pacific are confident that with the authorities, conservancy groups, the airline industry, the community at large and all other interested parties working closely together, we can have a third runway that offers the best balance of environmental, social and economic benefits for the people of Hong Kong. ” Environmental groups have opposed
the third runway because of concerns about the effect of land-reclamation work on marine wildlife, including endangered Pink Dolphins. About 650 hectares of land will be added to the northern edge of the existing airport island under the construction plans.
