Master of Public Administration Master of Public Administration POLS 7050 Public AdministrationPOLS 7050 Public Administration

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

Leong Hiu Yan, Stephanie 10431543Ng Yu Chun, Elise 10430393

IntroductionIntroductionó Hong Kong International Airport (HKIA)

◦ Reach its capacity around 2020

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

1

Comparison of Two OptionsComparison of Two Optionsó Capital Investmentó Airport Layout Plansó Air connectivityó Economic Benefitsó Construction Cost ó Fundingó Capacity Constraints for Two-Runway

System

2

Comparison of Two OptionsComparison of Two OptionsOption 1 (Two-Runway)

Option 2(Three-Runway)

Runway Capacity Able to meet forecast air traffic demand up to about 2020 only

Able to meet forecast air traffic demand up to about 2030 and possibly beyond

Passenger 74 million 97 million

Cargo 6 million tonnes 8.9 million tonnes

Air traffic movements

420,000 620,000

Investment Estimation

In 2010 dollars: HK$23.4 billionAt money-of-the-day prices: HK$42.5 billion

In 2010 dollars: HK$86.2 billionAt money-of-the-day prices: HK$136.2 billion

Estimated Economic Benefits1

ENVP2: HK$432 billion(in 2009 dollars)

ENVP: $912 billion(in2009 dollars)

1: Under an assumption of 50-year lifespan of infrastructure2: Economic Net Present Value: difference between the present value of the future economic benefits from an investment and the present value of the investment amount 3

Our Analysis of Two OptionsOur Analysis of Two OptionsEconomic Contribution and Employment Opportunities

2008 2030Actual Option 1

(Two-Runway)Option 2

(Three-Runway)Economic Contribution

HK$78 Billion HK$120 Billion HK$167 Billion

% of GDP 4.6% 3.3% 4.6%

Direct Employment

62,000 101,000 141,000

Indirect and Induced Employment

124,000 143,000 199,000

4

The Growth of The Greater Pearl The Growth of The Greater Pearl River DeltaRiver Delta

5

Comparison to Comparison to Cities Nearby & Local DemandCities Nearby & Local Demand

6

Cost/Benefit AnalysisCost/Benefit Analysis

7

Cost/Benefit AnalysisCost/Benefit Analysis

8

Environmental ConcernsEnvironmental Concerns

9

ó No concrete solutions providedó Technical terms are not explainedó Not comprehensive, detailed and

informative enough

Green Concepts...Green Concepts...Seoul

Incheon AirportSingapore

Changi Airport

Going Green on everything??Going Green on everything??

Recommendations on Recommendations on Environmental ConcernsEnvironmental Concerns

Carbon TradingCarbon Tradingó Voluntary carbon trading marketVoluntary carbon trading marketó Compliance carbon trading market

Recommendations on Recommendations on Environmental ConcernsEnvironmental Concerns

ó Reduce carbon emission by buying Carbon Credits

Recommendations on Recommendations on Environmental ConcernsEnvironmental Concerns

ó Donation/SpendingàCarbon Offsets ProjectsàReducecarbon emission in other areas

Economic and Social ValuesEconomic and Social ValuesThe Economic Values: óMaintain competitive ó Sustainable economic successó Contribution to local & region’s

economy

Economic and Social ValuesEconomic and Social ValuesThe Social Values: ó Improve living standards ó Enhance connectivity ó Further link up the social connection