208Kb - Hong Kong International Airport

PLANNINGANDGROWTH30 AIRPORT AUTHORITY HONG KONG ANNUAL REPORT 2001/02

Business ReviewPlanning and GrowthBuilding Demand to maximise thePotential of Our FacilityMore flights tomore placesThis year has seen HKIA extendits reach to Finland with a directconnection to Helsinki viaFinnair, and to North Africafollowing the inauguration offlights by Ethiopian Airlines. Inaddition, Cathay Pacific starteda non-stop service to Delhi andresumed its Colombo service.Continental started non-stopflights to New York during theyear when it launched a serviceflying to Newark InternationalAirport. HKIA’s reach into theMainland was extended withthe launch of a direct charterservice to Urumqi, the capital ofthe Xinjiang UighurAutonomous Region andgateway to the fast developingnorth west of the country.A vigorous internationalmarketing exercise continues toshow airlines the key position ofHKIA as the dominant hub inAsia. Over the past year, this hasbeen supported by an incentivescheme to encourage airlines tofly to new destinations fromHong Kong. Airlines operating tonew destinations are rebated50% of landing fees in the firstyear of operations and 25% inthe second. The arrangementhas been well received by theairlines.The airport currently offersservices from more than 65airlines to over 130 destinationsof which 90 are internationaland the remainder within themainland of China. Over theyear HKIA’s air network hascontinued to expand in spite ofthe tragic events of September11. We will ensure facilities areadequate to support furtherincreases in runway capacity,the current average for whichhas gone up from 47 to 49movements per hour duringcertain peak hours. As weexpand our reach, so we makeever better use of the asset thatHKIA represents to the peopleand businesses of Hong Kong.Logistic crossroadsof AsiaFrom the cargo point of view,the vision is for logisticsfacilities that will complementthe further development ofHong Kong as an internationaltrade centre and logistics hub.In December 2001, tenderswere invited for an expresscargo terminal, responding tothe rapid growth in expresscargo. In addition, eight newcargo stands had been broughtinto operation by the end of2001, bringing the total to 21.Overall, the year has been adifficult one for our cargobusiness with the doubleimpact of global economicdownturn followed by the tragicevents of September 11. Yearon year, there was a fall incargo throughput of 4.9%.However, 2002 began withpositive double-digit growthleading us to be cautiouslyANNUAL REPORT 2001/02AIRPORT AUTHORITY HONG KONG31

Business ReviewPlanning and GrowthTo speed cargo turnaround and accelerate deliveryAt present, it takes an average of six days for airfreighted goods from the Pearl RiverDelta to reach the shop shelves in Chicago. Considering a non-stop flight from HongKong to Chicago only takes 15 hours, six days for goods delivery sounds excessivelylong. If HKIA can play arole in reducing that timeto five or even four days,then we will be verymuch in business. Wethink such a goal ispractical and achievable.We are already buildingtowards it with many newinitiatives and plans forlogistics facilities.Ten Busiest Airports in Year 2001 – InternationalFreight ThroughputMillion Tonnes2.52.01.51.00.50.0HongKongInt’lNarita Changi Frankfurt Anchorage CharlesdeGaulleMiamiInt’lSchiphol Taipei HeathrowNote: “International Freight Throughput” includes originating, terminating and transshipment (counted twice)freight carried between the designated airport and an airport in another country. Air mail not included.Source: Preliminary figures from Airports Council Internationaloptimistic for the nextfinancial year.Planning for the future isproceeding from the conceptof the airport as the crossroads– the place in every traditionalvillage or town where businessis transacted, deals are doneand money changes hands.Today at HKIA this crossroadsis a crossroads of all sorts oftransport modalities – withspeed and globalisation as thedrivers.Business partners at the airporthave been pushing forward thedevelopment of inter-modaltransport. For example, Hactland AAT have both launchedChina direct services usingsealed trucks from Hong Kongto cities in the mainland ofChina. This service offerssimplified customs clearanceby both companies obviatingthe need for further customsclearance at the boundary. Theservice brings the benefits ofHKIA’s cargo network closer tomanufacturers over theboundary.Traders and manufacturers willbenefit from a number of otherlogistics and transport initiativesunder way at HKIA. During theyear progress has been madewith construction of TradeportHong Kong to develop alogistics centre at the airport forprocessing time-critical aircargo. Operations are due tostart in 2003. The Marine CargoTerminal which links the airportwith 20 river ports in the PearlRiver Delta has been buildingits business since its opening inMarch 2001.32 AIRPORT AUTHORITY HONG KONG ANNUAL REPORT 2001/02

14%Air Cargo by MarketYear Ended 31 March 200215%% of CargoSEAsiaMainlandof ChinaTaiwan20%JapanEurope19%12%USA & CanadaOthers6%14%Note: About 70% of the total imported and exported aircargo is originated from or destined for Pearl River Delta.The cargo achievements ofHKIA were recognised when itwas named ‘Cargo Airport ofthe Year – 2002’ by theLondon-based industrymagazine, Air Cargo News.During the year, HKIA handled2.12 million tonnes of air cargoand it has been the world’sbusiest airport for internationalair cargo since 1996. However,it was given the award not forcargo throughput but rather forcommitment to expanding andimproving service to customers.Reaching out tothe marketGlobalisation is redefining theairport industry: no longer canairport managers simply builda facility at a suitable locationand then wait for passengersand cargo to arrive. Our abilityto attract passengers andcargo from further afield isdefined not by distance but bycost, speed and reliability ofaccess. During the year wehave therefore been workinghard at improving our linkswith other airports in the PearlRiver Delta and building up anetwork of inter-modaltransport. Co-operation withthese other airports isdeveloping based on a vision ofthe airports combining theirstrengths to become one of theleading airport systems in theMillions6050403020100Ten Busiest Airports in Year 2001 – InternationalPassenger ThroughputHeathrowCharlesdeGaulleFrankfurt SchipholHongKongInt’lGatwick Changi Narita Bangkok ZurichNote: “International Passenger Throughput” includes originating, terminating and transfer (counted twice)passengers travelled between the designated airport and an airport in another country. Transit passengersare not included.Source: Preliminary figures from Airports Council Internationalworld capable of serving largevolumes of passenger andcargo flows.In planning the expansion ofour market share, we arerelying more than before onmarket intelligence as part ofour forecasting methodology. Insimple terms, this means goingto the market and digging highand low for opportunities thatcan be translated into projectsthat then become airportbusinesses. Through thisprocess we are gaining a betterunderstanding of the needs andproblems of our airlines and ofcargo handlers and shippers.Many new ideas and initiativesare emerging from this processof consultation. One possibleinitiative is the creation of acargo consolidation centre at aconvenient location in the PearlRiver Delta with improved cargoaccess from that point to HKIA.Planning withMaster Plan 2020Measured against the oldairport at Kai Tak, the newHKIA represented asubstantial increase inultimate design capacity byaround the year 2020 to 87million passengers and 9million tonnes of cargoannually. In October 2001, theAuthority published its MasterPlan 2020 which lays out theplans needed to meet increasingdemand over the next 20 years.The new Master Plan viewsthe airport as one of the keyANNUAL REPORT 2001/02AIRPORT AUTHORITY HONG KONG33

Business ReviewPlanning and GrowthMr Raymond Lai, Finance Director‘‘Amidst globalisationand time-basedcompetition, to stayahead, we must redefinethe airport business. Thenew airport business is inessence an inter-modalflow management,integrating air, sea andland movements. Theairport operator shouldposition itself as anintegrator of theseactivities. In particular,this means improvingour accessibility to andfrom our natural hinterlandin the Pearl River Deltaand farther afield insouthern China.’’economic drivers of HongKong. As high-tech and highvaluemanufacturing insouthern China continues itsrapid growth, Hong Kong’spotential as an internationaland regional logistics hubgrows larger and larger. Torealise this potential, theairport has to keep expandingits logistics facilities.Arrivals Hall ReconfigurationEast Hall ExpansionAdditional Concourse & GatesExpress Cargo TerminalLogistics Park in Tung ChungCargo Consolidation in PRDBusiness & Transportation CentreExhibition CentreCross Boundary Passenger Ferry TerminalStrategic Alliance with PRD AirportsPlanning for logisticsPlanning for the futureincludes off-airport logisticsparks on North Lantau whichwould further develop theposition of Hong Kong as aregional logistics and supplychainmanagement centre. Acargo development strategy willalso be implemented to exploitHKIA as an express cargoshipment hub as well as ageneral air cargo centre. Asthese plans becomeoperational, so Hong Kong willbecome better able to takeadvantage of the tradingopportunities arising fromChina’s accession to the WorldTrade Organisation.Planning for passengersWith passenger numbersexpected to more than doubleover the next 20 years, theMaster Plan also includes plansImplementation Timeline of the Ten Proposed Key Capital Projectsfor the expansion of passengerfacilities to accommodate the87 million passengers capacity,and beyond. Additional aircraftparking will be provided at anelongated “X” shaped satelliteconcourse in the midfield area.This means that the airport canmaintain the present high rateof airbridge embarkation anddisembarkation to ensurecustomer comfort and speedof movement.Such a major expansion willonly be implemented as andwhen it is justified by passengernumbers. In the meantime, theAuthority’s emphasis continuesto be on maximising usage ofits existing asset. For example,the programme to increaseretail and catering facilities inthe Arrivals Hall and East Hallwill ensure that passengershopping and dining needs can2002 2003 2004 2005 200634 AIRPORT AUTHORITY HONG KONG ANNUAL REPORT 2001/02

Air Traffic Demand in Hong Kong*Total PassengersMillions Trips3634323028262422SkyCity Masterplan2018161993 1994 1995 1996 1997 1998 1999 2000 2001For the Year Ended 31 March2002still be satisfied. Other plans forthe future include theconversion of some office spaceinto retail areas upon relocationof some offices to the new60,000 sqm office block nextto the Passenger TerminalBuilding in the year 2005.Overall, there are still manyopportunities forreconfiguration of space tomake sure that existingfacilities can satisfy demandfor some years to come.The world’s interchangewith ChinaPotential partners around theworld are now being sought forthe development of SkyCity asthe economic gateway toChina. SkyCity is to be locatedon 57 hectares of landopposite the existingPassenger Terminal Building.SkyCity will comprise theInternational Exhibition Centre,a trade mart, a transportationcentre with office and retaildevelopments including aWorld Trade Centre, a secondAirport Express terminal, aCross-Boundary FerryTerminal, and other facilities.According to the currentplanning, most of thesefacilities should be in place by2005, in time for the openingof Hong Kong Disneyland.The theming of SkyCity as ‘theworld’s interchange withChina’ could equally beapplied to HKIA as a whole.Equipped as we are with oneof the finest and most modernairports in the world, ourambitions know few boundsas we expand our marketshare and develop ourfacilities to serve everincreasing demand from themainland of China andthrough the region as a whole.“Total Passengers” include originating, terminating, transfer and transit passengers. Transfer and transit passengers arecounted twice.Commerical Cargo TonnageThousands2,6002,4002,2002,0001,8001,6001,4001,2001,0008006001993 1994 1995 1996 1997 1998 1999 2000 2001 2002For the Year Ended 31 March“Commercial Cargoes” include originating, terminating and transshipment (counted twice) cargo. Air mail is excluded.Civil International Aircraft MovementsThousands2001801601401201008019931994 1995 1996 1997 1998 1999 2000 2001 2002For the Year Ended 31 March“Aircraft Movements” include civil international passengers, cargo and non-revenue flights.*Source: Civil Aviation Department of the Hong Kong SAR Government and the Airport Authority.ANNUAL REPORT 2001/02AIRPORT AUTHORITY HONG KONG35