Seminar on Three‐Runway System of y y

Hong Kong International Airport

The Three‐Runway System Project at HKIA

11 December 2015

Wilson Fung, Executive Director, Corporate Development

Need and Urgency of 3RSNeed and Urgency of 3RS

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Global air traffic has been driven by the phenomenal growth in the Mainland in the past 10 yearsg p yTotal pax (million trips)

W ld 4 3%

CAGR 2004‐2014

World = 4.3%

1,000

Mainland = 13.1%

GPRD = 8.0%

Source: ACI, CAAC, AAHK 3

2014 air traffic movements showed that 3RS is urgently requiredg y q

420

460MP2030 forecast = 390,000 (base case)

2014 throughput =  391,000

Air Traffic Movements (ATMs)/ year (’000)

Capacity of 2RS =

340

380

420420,000 ATMs/ year

Over 90% capacity

260

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Actual AAHK estimates MP2030 estimates (base case)

Source: IATA Consulting estimates; AAHK for actual statistics and estimates 4

HKIA’s passenger growth in the past 10 months has not been affected by the major drop in visitor arrivals y j p

YoY Growth (%)YTD 2015 

YoY Growth (%)

HKIA Pax = 8.3%

Visitor Arrivals to HK = – 0.8%HK    0.8%

5Source: AAHK, HKTB

Airports worldwide are expanding aggressively to meet growing demand

London HeathrowPotential

London HeathrowPotential

FrankfurtTerminal 3 (2022)

FrankfurtTerminal 3 (2022)

Beijing (Daxing)New airport (2019)Beijing (Daxing)

New airport (2019)

Guangzhou•3rd Runway (2015)•Terminal 2 (2018)

Guangzhou•3rd Runway (2015)•Terminal 2 (2018)

g g

Los AngelesNew satellite 

concourse (2020)

Los AngelesNew satellite 

concourse (2020)

Potential               3rd Runway (2030)

Potential               3rd Runway (2030)

Terminal 3 (2022)Terminal 3 (2022)

IstanbulNew airport (2018)

IstanbulNew airport (2018)

D hD h

Seoul IncheonTerminal 2 (2017)Seoul Incheon

Terminal 2 (2017)

Shanghai Pudong•4th Runway (2014)Shanghai Pudong

•4th Runway (2014)

p ( )p ( )Terminal 2 (2018)Terminal 2 (2018)

ChengduNew airport (2019)

ChengduNew airport (2019)

Guangzhou (new airports)

•2nd airport•New airport for business aviation

Guangzhou (new airports)

•2nd airport•New airport for business aviation

Beijing4th Runway (2018)

Beijing4th Runway (2018)

Bangkok Suvarnabhumi3rd R (2020)

Bangkok Suvarnabhumi3rd R (2020)

Atlanta6th Runway (2025)

Atlanta6th Runway (2025)

DohaNew airport (2014)

DohaNew airport (2014)

Abu DhabiNew terminal  (2017)

Abu DhabiNew terminal  (2017)

DubaiAirport upgrade(2022)

DubaiAirport upgrade(2022)

•4th Runway (2014)•5th Runway (2017)•New satellite concourse (2018)

•4th Runway (2014)•5th Runway (2017)•New satellite concourse (2018)

Taipei Taoyuan• 4th terminal# (2018)•Terminal 3 (2020)

Taipei Taoyuan• 4th terminal# (2018)•Terminal 3 (2020)

Shenzhen•3rd Runway (2018)•Terminal 4 (2020)

Shenzhen•3rd Runway (2018)•Terminal 4 (2020)

New airport (2019)New airport (2019)

•3rd Runway (2020)•Terminal 2 (2020) •3rd Runway (2020)•Terminal 2 (2020) 

New airport constructionE istin airport onstr tion

SydneyNew airport (2025)

SydneyNew airport (2025)

Singapore•Terminal 4 (2017)•3rd Runway (2020)•Terminal 5 (2025‐28)

Singapore•Terminal 4 (2017)•3rd Runway (2020)•Terminal 5 (2025‐28)

According CAPA, there are currently >1,500 airport construction projects worldwide with investment totalling USD891 billion*

Ho Chi Minh CityNew airport (2023)Ho Chi Minh CityNew airport (2023)

Existing airport constructionp ( )p ( )

* as of Dec 2015, including new airport construction and projects at existing airports# the new 4th terminal announced in 2015 will be completed before the completion of Terminal 3Note: Only key expansion projects are indicatedNote: Only key expansion projects are indicatedSource: CAPA (as of Sep 2015)

6

Major airport developments in Asia

Bangkok Bangkok SuvarnabhumiSuvarnabhumi –– 33rdrd runway runway  Seoul Seoul IncheonIncheon –– 55thth runwayrunway

Taipei Taipei TaoyuanTaoyuan –– 44thth terminalterminal

Singapore Changi – 3rd runway

Ho Chi Minh City Long Ho Chi Minh City Long ThanhThanh ––new airportnew airport

Source: Airport Annual Reports and websites; CAPA news; ACI 7

GPRD airport developmentsGuangzhouGuangzhou –– 55thth runwayrunway

MacaoMacao terminalterminalShenzhenShenzhen –– 33rdrd runwayrunway

MacaoMacao –– terminal terminal expansionexpansion

H K 3rdZhuhaiZhuhai –– 22ndnd runwayrunway Hong Kong – 3rd runway

Source: IATA Consulting PRD Airport Forecasts (Jan 2015), IATA Consulting Research 8

Super hubs in the Middle EastIstanbul, Turkey – new airport with 6 runways

Doha, QatarDoha, Qatar –– new airportnew airport

Dubai Int’l, UAEDubai Int’l, UAE –– No. 1 airport No. 1 airport for int’l for int’l paxpax

ll kkAl Al MaktoumMaktoum UAEUAE –– 5 runways5 runways

9Source: Airport Annual Reports and websites; CAPA news; CNN news; ACI

What is 3RS?What is 3RS?

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3RS is much more than a runway

Third Runway ConcourseThird Runway ConcourseAutomated PeopleAutomated People

Terminal 2 ExpansionTerminal 2 Expansion

Automated People Automated People MoverMover

Terminal 2 ExpansionTerminal 2 Expansion

Seawall (Stone Column and DCM)

Seawall & General Land (Low Headroom DCM)

3RS Reclamation

12Seawall and General Land

(Low Headroom DCM)

(Low Headroom DCM)

Seawall (Stone Column and DCM) Baggage Handling SystemBaggage Handling System

3RS Project Cost (Scheme Design)

Three‐Runway System3RS Scheme Design

(HK$ billion)

Land formation 36.836.8

Runway and taxiway systems 6.5

New passenger concourse and apron 16.8

Expansion of and modifications to Terminal 2 9.5

Automated people mover system 6.1

Baggage handling system 4.5

Road network and transportation facilities 4.3

2010 Dollars HK$ 84.5 bn

MOD HK$ 141.5 bn

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Economic Benefits of 3RSEconomic Benefits of 3RS

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“Airport is not solely a Transport Infrastructure. 

It is an Economic Infrastructure”It is an Economic Infrastructure

15

Airport expansion benefits the people of Hong Kong

• The 3RS will spur the economic growth of Hong Kong and strengthen its status as an international and regional aviation hub

2323

16

Cost of Delay of 3RS Opening: Construction Cost

34 0

(MOD, HK$ Bn)

27.5

34.0

14.1

20.9

7.2

1 Year 2 Years 3 Years 4 Years 5 Years

Source: AA Projects Dept., Dec 2, 2014 17

THANK YOU

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