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LCQ14: Development of Hong Kong's air freight industry
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     Following is a question by the Hon Miriam Lau Kin-yee and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, at the Legislative Council meeting today (June 24):

Question:

     It has been reported that the Guangzhou Municipal authorities are actively pushing ahead with various construction projects in order to complement the implementation of the Framework for Development and Reform Planning for Pearl River Delta Region, including increasing the number of runways at the Baiyun International Airport (BIA) from two at present to five, with the aim of developing it into the biggest airport in the Pearl River Delta (PRD) Region. They will also prepare for the establishment of the Baiyun Airport Comprehensive Bonded Zone, in order to enhance its ability to attract air freight business for cargoes from the PRD Region. In this connection, will the Government inform this Council:

(a) whether it knows how the growth rates in the past three years in air cargo throughput in Hong Kong compare with those of Guangzhou, and whether it has estimated the impact on Hong Kong's air cargo throughput upon the completion of the third runway at BIA next year;

(b) given that the Airport Authority Hong Kong commissioned a study last year on the engineering and environmental feasibility of building the proposed third runway at the airport in Hong Kong, of the progress of the study, and when a final proposal is expected to be made in this regard, as well as the measures to be taken by the authorities before that to raise, before 2015, the current runway capacity to 68 flight movements per hour; and

(c) given that the Guangzhou Municipal authorities are striving for Guangzhou's air freight industry to catch up with its counterpart in Hong Kong by improving the hardware and software (i.e. services) at BIA, in the face of such a menacing threat, of the authorities' medium-term and long-term objectives and plans (especially in terms of logistics and transport infrastructures, increasing the number of international routes, sourcing for more transshipment goods, etc.) to increase the competitiveness of Hong Kong's air freight industry?

Reply:

President,

(a) The cargo throughput of the Hong Kong International Airport (HKIA) in 2008 was 3.63 million tonnes, and the growth rates from 2006 to 2008 were +5.3%, +4.5% and -3% respectively. For Guangzhou Baiyun International Airport, the cargo throughput in 2008 was 690,000 tonnes and the growth rates from 2006 to 2008 were +8.3%, +6.2% and 0% respectively. The HKIA's cargo handling capacity will be more than 6.6 million tonnes per annum upon completion of the new cargo terminal awarded last year which is no later than mid 2013. According to the information published by Guangzhou Baiyun International Airport, its cargo handling capacity will reach 2.17 million tonnes per annum upon completion of airport expansion works. However, the impact of nearby airport developments on the HKIA's cargo throughput depends on the overall comparative competitive advantages of airports. The important factors involved include airport efficiency, the total costs involved in cargo flow, the simplification and efficiency of custom procedures and so on. On the one hand, we will not be complacent, and on the other hand, we will proactively strengthen our competitiveness. It is not comprehensive to assess the impact on the overall competitive advantages purely on the basis of specific increases in the airport handling capacity.

(b) On enhancing the runway capacity, the Civil Aviation Department will continue to recruit manpower, strengthen training and improve air traffic management procedures and facilities. We are confident that on the basis of the current two-runway configuration, we can gradually increase the runway capacity to 68 aircraft movements per hour by 2015. With progress to be made on the use of airspace and coordination of air traffic management in the PRD region by civil aviation authorities of the Mainland, Macau and Hong Kong, we will consider at an appropriate juncture if the target can be further increased. In order to increase the runway capacity in the long term, the Airport Authority (AA) commissioned in August 2008 the engineering and environmental feasibility studies for the third runway, which take about two years to complete.

(c) In view of the keen competition from neighbouring areas, Hong Kong needs to expand its cargo hinterland and enhance its competitive advantages. This includes strengthening the training for logistics professionals, continuing to promote e-logistics, enhancing its ability to provide tailor-made logistics services, as well as providing solutions to complicated tasks. At the same time, we proactively improve the transport links with the PRD region to expand the cargo catchment areas of the HKIA. The Marine Cargo Terminal on the Airport Island now operates 24 hours a day to 17 ports in the PRD region. The completion of the Hong Kong-Zhuhai-Macao Bridge will connect Hong Kong directly to the western part of the Pearl River Delta region by road, expanding Hong Kong's cargo hinterland. On the airport infrastructure front, we will continue to pursue with the AA the midfield expansion project and complete the Airport Master Plan 2030 Study to lay the foundation for the long-term competitiveness of the HKIA in handling air cargo. Moreover, we will continue to proactively expand the bilateral air services arrangements with our aviation partners to support the development of the aviation industry, create opportunities for the industry to develop more market products, and attract more cargo flows to hub at the HKIA.

Ends/Wednesday, June 24, 2009
Issued at HKT 14:33

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