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Master of Public Administration
POLS 7050 Public Administration


The Need of Building the Third Runway
  at Hong Kong International Airport



      Leong Hiu Yan, Stephanie 10431543
         Ng Yu Chun, Elise 10430393
Introduction
—   Hong Kong International Airport (HKIA)
    ◦ Reach its capacity around 2020

—   Two development plans:
    ◦ Two-Runway System
    ◦ Three-Runway System




                                         1
Comparison of Two Options
— Capital Investment
— Airport Layout Plans
— Air connectivity
— Economic Benefits
— Construction Cost
— Funding
— Capacity Constraints for Two-Runway
  System

                                        2
Comparison of Two Options
                               Option 1                             Option 2
                               (Two-Runway)                         (Three-Runway)
Runway Capacity                Able to meet forecast    Able to meet forecast air
                               air traffic demand up to traffic demand up to
                               about 2020 only          about 2030 and possibly
                                                        beyond
Passenger                      74 million                           97 million

Cargo                          6 million tonnes                     8.9 million tonnes

Air traffic                    420,000                              620,000
movements
Investment                     In 2010 dollars:                     In 2010 dollars:
Estimation                     HK$23.4 billion                      HK$86.2 billion
                               At money-of-the-day                  At money-of-the-day
                               prices: HK$42.5 billion              prices: HK$136.2 billion
Estimated          ENVP2: HK$432                                    ENVP: $912 billion(in
Economic Benefits1 billion(in 2009 dollars)                         2009 dollars)
1
 : Under an assumption of 50-year lifespan of infrastructure
2
 : Economic Net Present Value: difference between the present value of the future economic benefits from
                                                                                                         3
an investment and the present value of the investment amount
Our Analysis of Two Options
Economic Contribution and Employment Opportunities
                      2008                      2030
                      Actual       Option 1           Option 2
                                (Two-Runway)       (Three-Runway)
Economic       HK$78 Billion   HK$120 Billion     HK$167 Billion
Contribution
% of GDP       4.6%            3.3%               4.6%

Direct         62,000          101,000            141,000
Employment
Indirect and   124,000         143,000            199,000
Induced
Employment




                                                                    4
The Growth of The Greater Pearl
         River Delta




                              5
Comparison to
Cities Nearby & Local Demand




                               6
Cost/Benefit Analysis




                        7
Cost/Benefit Analysis




                        8
Environmental Concerns
— No concrete solutions provided
— Technical terms are not explained
— Not comprehensive, detailed and
  informative enough




                                      9
Green Concepts...
    Seoul                  Singapore
Incheon Airport          Changi Airport




    Going Green on everything??
Recommendations on
Environmental Concerns




             Carbon Trading
     — Voluntary carbon trading market
    — Compliance carbon trading market
Recommendations on
    Environmental Concerns




—   Reduce carbon emission by buying
            Carbon Credits
Recommendations on
      Environmental Concerns




—   Donation/SpendingàCarbon Offsets ProjectsàReduce
    carbon emission in other areas
Economic and Social Values
The Economic Values:
— Maintain competitive
— Sustainable economic success
— Contribution to local & region’s
  economy
Economic and Social Values
The Social Values:
— Improve living standards
— Enhance connectivity
— Further link up the social connection
Hkbu public administration, hkbu cass
Hkbu public administration, hkbu cass

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Hkbu public administration, hkbu cass

  • 1. Master of Public Administration POLS 7050 Public Administration The Need of Building the Third Runway at Hong Kong International Airport Leong Hiu Yan, Stephanie 10431543 Ng Yu Chun, Elise 10430393
  • 2. Introduction — Hong Kong International Airport (HKIA) ◦ Reach its capacity around 2020 — Two development plans: ◦ Two-Runway System ◦ Three-Runway System 1
  • 3. Comparison of Two Options — Capital Investment — Airport Layout Plans — Air connectivity — Economic Benefits — Construction Cost — Funding — Capacity Constraints for Two-Runway System 2
  • 4. Comparison of Two Options Option 1 Option 2 (Two-Runway) (Three-Runway) Runway Capacity Able to meet forecast Able to meet forecast air air traffic demand up to traffic demand up to about 2020 only about 2030 and possibly beyond Passenger 74 million 97 million Cargo 6 million tonnes 8.9 million tonnes Air traffic 420,000 620,000 movements Investment In 2010 dollars: In 2010 dollars: Estimation HK$23.4 billion HK$86.2 billion At money-of-the-day At money-of-the-day prices: HK$42.5 billion prices: HK$136.2 billion Estimated ENVP2: HK$432 ENVP: $912 billion(in Economic Benefits1 billion(in 2009 dollars) 2009 dollars) 1 : Under an assumption of 50-year lifespan of infrastructure 2 : Economic Net Present Value: difference between the present value of the future economic benefits from 3 an investment and the present value of the investment amount
  • 5. Our Analysis of Two Options Economic Contribution and Employment Opportunities 2008 2030 Actual Option 1 Option 2 (Two-Runway) (Three-Runway) Economic HK$78 Billion HK$120 Billion HK$167 Billion Contribution % of GDP 4.6% 3.3% 4.6% Direct 62,000 101,000 141,000 Employment Indirect and 124,000 143,000 199,000 Induced Employment 4
  • 6. The Growth of The Greater Pearl River Delta 5
  • 7. Comparison to Cities Nearby & Local Demand 6
  • 10. Environmental Concerns — No concrete solutions provided — Technical terms are not explained — Not comprehensive, detailed and informative enough 9
  • 11. Green Concepts... Seoul Singapore Incheon Airport Changi Airport Going Green on everything??
  • 12. Recommendations on Environmental Concerns Carbon Trading — Voluntary carbon trading market — Compliance carbon trading market
  • 13. Recommendations on Environmental Concerns — Reduce carbon emission by buying Carbon Credits
  • 14. Recommendations on Environmental Concerns — Donation/SpendingàCarbon Offsets ProjectsàReduce carbon emission in other areas
  • 15. Economic and Social Values The Economic Values: — Maintain competitive — Sustainable economic success — Contribution to local & region’s economy
  • 16. Economic and Social Values The Social Values: — Improve living standards — Enhance connectivity — Further link up the social connection