*******************************************************
Following is a speech by the Secretary for Transport and Housing, Ms Eva Cheng, at the opening of the Asian Aerospace Congress 2007 this morning (September 3):
Mr [Kevin] O'Toole, Minister Wang [Changshun], Distinguished Guests, Ladies and Gentlemen,
It is my great pleasure to welcome you all to Hong Kong, and to our first Asian Aerospace Congress.
I would like to congratulate the organisers for making the excellent choice to host the event in Hong Kong. We thank you for this vote of confidence in our city and in our role as an aviation hub for the region.
Over the past decade, our aviation sector has grown significantly - helped no doubt by the fact we opened our magnificent new airport in July, 1998. During the past 10 years air cargo throughput has doubled to 3.58 million tonnes, while passenger throughput has grown by almost 60% to 44.5 million by end-2006. This is the result of a combination of factors.
First, we are blessed with an excellent location at the heart of Asia. We are within five hours' flying time of half the world's population. In addition, we enjoy a prime position at the mouth of the Pearl River Delta - one of the world's most important manufacturing and light industry centres and one of China's most prosperous regions.
Second, our world-class facilities have been designed to provide a hassle-free flow of passengers and cargo. The Hong Kong International Airport is the world's busiest for international air cargo, and fifth busiest for international passengers. Last month, the airport was again named the World's Best by Skytrax - the sixth time in the past seven years we have been honoured with this award. As a major international city on the global crossroads of trade and commerce, we see it as our duty to provide travellers with excellent facilities and the quality service to match.
Third, pragmatic aviation policies and a highly regarded civil aviation regulatory regime have provided the impetus for our domestic aviation industry to grow. It has also helped overseas carriers to operate services to Hong Kong and use Hong Kong as their regional hub. Our aviation sector now includes some 85 airlines providing some 5,600 flights per week to more than 110 international cities and 40 Mainland destinations.
Fourth, and I believe it is something appreciated by those who do business with Hong Kong, our institutional software provides business with the certainty it needs to expand and flourish. A tried and trusted legal system underpinned by an independent judiciary. A clean, efficient and open government. A level playing field for business. The free and unfettered flow of information. Low taxes. And a commitment to making business as friendly and free of red tape as possible.
But, I must stress, that we take none of this for granted. We are constantly looking for ways to improve services and efficiency, and to boost our attractiveness as a regional aviation hub.
For example, the Airport Authority has earmarked about US$1 billion to upgrade infrastructure. This includes the new Terminal 2 building, which opened earlier this year; 10 more cargo parking stands to come on line by the end of the year; a new cross-boundary ferry terminal for sea-air transit passengers to come on line next year; upgrades of the baggage handling system; a north satellite concourse with 10 bridge-served stands for small aircraft; and, widening of the taxiways to take the A380.
The private sector is also investing some US$500 million to enhance airport facilities. These projects include an extension of Asia Air Freight's handling capacity; additional hangar space for HAECO's aircraft maintenance work; the expansion of DHL's express cargo facilities; and a new hangar for China Aircraft Services Limited (CASL) to accommodate a wide-bodied and smaller aircraft at the same time.
Of course, the rapid growth of air transport in the region is not without its challenges. For example, the strong growth of air services within the Pearl River Delta region has led to concerns about airspace congestion. We are working closely with the General Administration of Civil Aviation of China, and the Macao Civil Aviation Authority, to map out holistic and long-term solutions. A tripartite working group is now actively looking at various proposals to optimise airspace management in the region. Likewise, we have a programme to increase runway capacity through management measures and enhancement of our air traffic control system.
To stay competitive, we are working on several other fronts, too. Let me highlight a few important developments. We will continue to progressively liberalise our air services regime in the overall interest of Hong Kong. This will not only expand our aviation network, it will also create more business opportunities for everyone.
The Airport Authority is also working hard under the able Chairmanship of Dr Victor Fung. The authority's new cross-boundary ferry terminal will allow us to expand access to our airport services for major cities in the Pear River Delta. We will also provide more upstream check-in services for passengers at more ports. The Airport Authority has also called tenders for a third air cargo terminal, with a capacity of at least 2.5 million tonnes a year, to meet increasing demand beyond 2010. We expect that terminal to come on stream by 2011. In the longer run, a third runway may be required. A study is now under way to investigate the feasibility of this, with a first phase study due to be completed in early 2008.
Ladies and gentlemen, we are delighted that Hong Kong is hosting this Congress. This is the first one in Hong Kong. We are determined to make it the first of many.
Looking at the list of distinguished speakers, I have no doubt there will be lively and interesting discussions on both the opportunities, and challenges, facing the air transport sector in the region. I wish you all a very productive conference and an enjoyable stay in Hong Kong!
Thank you.
Ends/Monday, September 3, 2007
Issued at HKT 16:20
NNNN
