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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