1 Work to begin on Shenzhen side of rail link in 2011
Fiona Tam in Shenzhen, SCMP, Feb 29, 2008
Xu Zongheng
The Shenzhen section of a rail link connecting the mainland city's airport with Chek Lap Kok will not start until 2011, Shenzhen Mayor Xu Zongheng said yesterday.
Shenzhen authorities would start a feasibility study on the link between Hong Kong International Airport and Shenzhen Baoan International Airport this year as part of efforts to boost the integration of the two cities.
Mr Xu told a work meeting yesterday that the feasibility study was on the Shenzhen planning bureau's annual agenda and the mainland city would "actively communicate with Hong Kong authorities over the rail link's blueprint".
Mr Xu said the proposed 30km cross-border airport railway would have a constructive and far-reaching impact on the neighbouring cities and the delta's economic development. The feasibility study would focus on the proposed railway's Shenzhen section and the line's construction would not start until 2011, when the city had completed 155km of subway tracks.
Excluding passenger check-in time and handling time for luggage, the trip should take only 20 minutes.
That would be less than half the present travelling time of 45 minutes between the two airports on the Skypier ferry service, which carries transit passengers to and from Hong Kong International Airport and the Shenzhen airport. Shenzhen planning officials said it had not been decided whether the proposed rail link would be underground or elevated.
"The possible intercity railway would combine Hong Kong airport's frequent international flights with Shenzhen airport's mainland flights, which has a significant meaning for a future mega-city," the bureau said in its annual work plan.
Mainland experts said Hong Kong travellers could gain from the cheaper airfares on the frequent flights to more mainland cities from Shenzhen airport.
The Shenzhen and Hong Kong governments agreed last month to commission two expert groups to conduct research on the project. Their report is expected by the end of the year, but no cost estimates or decisions on stops en route have been made.
Addressing the same meeting yesterday, Shenzhen Vice-Mayor Zhang Siping said the National Development and Reform Commission had not yet approved plans for phase two of the city's No4 metro line, which is due to be built by Hong Kong's MTR Corporation (SEHK: 0066).
Mr Zhang said the 15km project had run into problems with land requisition.
"The No4 line project has met the strongest resistance on land requisitions among the five metro lines under construction," he said.
The 6 billion yuan (HK$6.55 billion) project will be funded by the MTR Corp and is expected to be completed by September 2010. Phase one of the project, linking the Huanggang checkpoint and the Children's Palace, came on line last year.
The Bauhinia Foundation Research Centre think-tank last year released a report on turning Hong Kong and Shenzhen into a "world-class metropolis".
Asked if the company would be interested in becoming involved in the Hong Kong part of the airport rail project, the MTR Corp said yesterday it welcomed any opportunity in railway development.
But a company spokesman said he could only comment on any difficulties Shenzhen faced in building its metro line after obtaining more information.
2 HK$860m renewal planned for Ma Tau Kok
Staff reporters, SCMP, Feb 29, 2008
The Urban Renewal Authority on Friday said it planned to implement two re-development projects a the cost of about HK$860 million at Ma Tau Kok to regenerate the district.
About 450 residents in 175 households will be affected.
The area to be redeveloped is at the junctions of Chi Kiang Street and Ha Heung Road, and Pak Tai Street and Mok Cheong Street. The projects involve 10 buildings and 121 property interests. All the buildings date to the 1950s and are in a dilapidated condition.
The two project sites, occupying about 1,700 square metres, will be redeveloped to provide about 210 residential units and 2,560 square metres of commercial floor area, scheduled for completion by 2014.
URA executive director Iris Tam Siu-ying said: "This is expected to affect a total of 121 property interests and about 175 households comprising about 450 residents in the two sites."
Ms Tam said it would have been difficult to maintain the old buildings because most had structural problems.
"The buildings were built in the 1950s and were in poor condition. Most buildings are served by single staircases with no lifts and there are unauthorised structures causing concerns on safety and environmental hygiene. There are many illegal structures as well," she explained.
"After we had examined the buildings, we found it would be far more efficient to rebuild the whole area," Ms Tam explained.
3 Economic gains of redeveloped Ocean Park forecast
Singtao Daily, Feb 29, 2008
Ocean Park, which is undergoing its HK$5.5 billion renovation and expansion, has decided to build three hotels in the park area. Chairman Alan Zeman said the hotel development projects would generate extra income which helps keep admission fees unchanged. He expected the three hotels would create 812 new jobs and attract 36,800 more guests in their first year, while contributing about HK$260 million to local gross domestic product growth by 2030.
4 Hopewell glad to see delta bridge coming true after 25 years
HK Economic Times, Feb 29, 2008
Hopewell Holdings (SEHK: 0054) expressed a resolution in bidding for development rights for the Hong Kong-Zhuhai-Macau Bridge through its subsidiary Hopewell Highway Infrastructure. Hopewell co-managing director Thomas Wu Man-sun said on behalf of his father Gordon Wu Ying-sheung, conceiver of the bridge 25 years ago, that the HK$10 billion cash loan and capital held by the company would be adequate for investment in the project without having to raise funds from shareholders.
5 Viaduct plan an option for new MTR line - Stretch of South Island Line may be designed to offer scenic views
Agnes Lam, SCMP, Feb 29, 2008
The MTR Corporation (SEHK: 0066) has proposed building a viaduct for part of the South Island Line (East) to allow tourists to enjoy scenic views of the Southern District.
Presenting initial planning for construction of the railway line, the senior co-ordinating engineer, Tang Pak-hung, said that since tourism was a major part of the district, building a viaduct for the segment between the Aberdeen Tunnel Toll Plaza and the Ap Lei Chau residential development was a preferred option.
"The view along the South Island Line is magnificent, and it will be a good experience for visitors to Hong Kong to get a glimpse of this scenic vista when they are taking an MTR ride," Mr Tang told Southern District councillors.
Another option was to build an tunnel to connect the toll plaza and Ap Lei Chau - with stops for Ocean Park, Wong Chuk Hang and Lei Tung in between. A bridge will be constructed between Ap Lei Chau and Wong Chuk Hang alongside the existing Ap Lei Chau Bridge.
"If the underground option is chosen, tourists heading to Southern District from Admiralty will miss the chance to enjoy the beautiful overview of the district," Mr Tang said.
The company yesterday also revealed its initial planning for the location of stations and exits for the four stops along the South Island Line (East), which will begin at Admiralty.
It proposes that an exit for Ocean Park would be put at the former site of the Hong Kong School of Motoring. Three exits would be provided for Lei Tung - at Yue On Estate, near Main Street Ap Lei Chau and at Lei Tung Estate. Two exits are planned for Wong Chuk Hang - in Heung Yip Road near Police School Road and another near Nam Long Shan Road.
Two exits are proposed for South Horizons, both along South Horizons Drive.
Mr Tang said consultations would be conducted next month and in April to collect the opinions of residents who lived along the line.
"We will seek their views on train stations, location of exits for all train stops and the method of construction," he said.
"The opinions collected will be used for our reference and consideration."
The first consultation will be held on March 10 at South Horizons.
The rail company plans to invite tenders for the project in 2010 and start construction in 2011. It will complete the project in 2015, according to the proposed timetable.
District councillor Chai Man-hon said the MTR Corp should not wait until 2015 to complete the rail extension because hotel projects at Ocean Park would be completed in 2011.
"Many more tourists will come to Southern District and it is important that we have timely traffic measures for the increasing number of visitors," he said.
District councillor Tsui Yuen-wa said he was disappointed there were no detailed plans for bridges connecting Wong Chuk Hang station and nearby residential areas and hotels. District councillor Fung Wai-kwong expressed concern that the project would cause noise problems for South Horizons residents because the proposed exits were close to residential areas.
6 Cross-delta bridge given green light - Funding arrangements agreed between three governments
Anita Lam in Guangzhou, SCMP, Feb 29, 2008
The green light has finally been given to a bridge linking Hong Kong, Macau and Zhuhai, 25 years after the idea was first proposed.
In a deal struck yesterday, the three governments agreed on funding arrangements to cover any shortfall between construction costs and investment by the private developer that wins the bid to build the bridge.
Hong Kong would cover 50.2 per cent of the shortfall, Guangdong 35.1 per cent and Macau 14.7 per cent.
Secretary for Transport and Housing Eva Cheng said the ratio followed the cost-to-benefits principle.
"The three sides agreed that the three governments would be responsible for the construction and operation of the boundary-crossing facilities and the connecting roads to the bridge within their own territory. We agreed to share the amount of the subsidy under the cost-to-benefit ratio," she said.
Zhang Xiaoqiang, deputy chairman of the National Development and Reform Commission, said earlier that Hong Kong would enjoy 64 per cent of the economic benefits brought by the bridge.
Ms Cheng refused to say how much the bridge would cost and the amount of subsidies provided by the government, fearing it would affect the outcome of the bidding process for the project.
But the head of the Advance Work Co-ordination Group's project office, Zhu Yongling, said earlier the main body of the bridge was expected to cost between HK$30 billion and HK$40 billion, plus another HK$20 billion on infrastructure such as connecting roads and border checkpoints in the three cities.
Talks became bogged down last year by disputes over issues such as the location of checkpoints and the sharing of construction costs.
Successful bidders will form a consortium to construct and operate the bridge for 50 years.
Sir Gordon Wu Ying-sheung, chairman of Hopewell Holdings (SEHK: 0054), who first proposed the project in the early 1980s, has been a passionate advocate of it ever since. Yesterday his son, Thomas Jefferson Wu, co-managing director of Hopewell, said he was happy the longdebated idea would finally become a reality. He said Hopewell, which had about HK$9 billion in cash on hand, would consider lodging a bid.
Other interested companies include the Sun Hung Kai group, New World group and China Communications Construction (SEHK: 1800) Company, which is carrying out a feasibility study on the bridge for the co-ordination group.
Kwan Chuk-fai, general manager of NWS Holdings (SEHK: 0659), which has invested in many mainland infrastructure projects including roads and railways, said the group found the project attractive because use of the bridge was guaranteed by strengthening logistics and tourism between the three cities.
The chairman of the Container Transportation Employees General Union, Tse Long, expected that up to a million container trucks a year would use the bridge, as it would save at least two hours per trip from western parts of the pan delta region compared with shipping cargo.
"If the toll was set at around HK$100 to HK$150, it would be very popular among container trucks."
The main body of the bridge, measuring 29.6km, is expected to run from San Shek Wan in Lantau to Gongbei in Zhuhai and A Perola in Macau. Travelling time between Hong Kong and Macau and Zhuhai will be shortened from an hour to between 15 and 20 minutes.
7 If we pay more, will we get more, critics ask
Cheung Chi-fai, SCMP, Feb 29, 2008
Cross-border authorities have been urged to disclose more information on the estimated economic benefits of the bridge linking Hong Kong, Zhuhai and Macau to show why the city should bear half of the cash subsidy to build it.
The call came as critics questioned whether Hong Kong would be the biggest beneficiary of the 30km bridge.
National People's Congress deputy Cheng Yiu-tong said more data should be released on how experts came to reach the cost-sharing ratio of Hong Kong 50.2 per cent, Guangdong 35.1 per cent and Macau 14.7 per cent.
"It is justified that you pay more if you get more," he said.
Transport officials yesterday said the ratio was decided after considering not just direct economic benefits but other construction costs such as the building of connecting roads. Under the cross-border consensus on financing the bridge, the size of the total subsidy will depend on how much of the building cost the contractor is willing to bear.
Tuan Chyau, from the faculty of business at Chinese University who has conducted a study on the bridge, said the ratio was justified as it had taken account of indirect benefits of the bridge, including the estimated US$20 billion additional foreign investment brought to Guangdong.
Last year, the National Development and Reform Commission said Hong Kong was set to get 64 per cent of the benefits.
Billy Mak Shui-choi, from the department of finance at Baptist University, believed it was fair for Hong Kong to pay more but could not tell if the ratio was fair. "Without all the data it is uncertain," he said.
Dr Mak said the bridge was likely to lead to more cargo flow from western Guangdong and Guangxi region to Hong Kong container terminals, including the proposed terminal No10 and the airport. The bridge could also stimulate the development of North Lantau as a tourist zone.
He said Macau deserved to pay the lowest share since it had no industry and ports and could benefit only from increased people flow.
Cheng Yuk-shing, Dr Mak's colleague from the department of economics, said Hong Kong's benefits would also depend on the transport infrastructure policy in Guangdong.
"On the surface, Hong Kong seems to get a bigger slice of the benefits. But if Guangdong is to build another bridge north of the super bridge, the scenario could be changed," he said.
Economist Charles Li Kui-wai was critical of the lack of a clear-cut criteria in calculating economic benefits which could turn out to be as wrong as in the case of the economic forecast for Disneyland. "It might be simply that Hong Kong has to pay more because it is richer," he said, adding that the bridge should be built with only government funds so that the road toll could be kept at an affordable level.
8 Bridge go-ahead
Bonnie Chen, The Standard, Feb 29, 2008
The governments of Hong Kong, Guangdong, and Macau yesterday endorsed the financing scheme for bridges linking the three places and the massive project will soon proceed to public tenders.
It is expected a number of state- owned enterprises will play a major role in building the bridges.
The Hong Kong listed China Communication Construction Company (1800) and China Railway (0390) have a long history in building infrastructure projects in the mainland, Hong Kong and overseas.
China Railway Construction, which will open its retail sales book in Hong Kong today, is also said to have the capability to handle multi-billion-yuan projects.
However, neither company responded last night to a question from The Standard whether they were interested in bidding for the project.
Hopewell Holdings (0054) co- managing director Thomas Wu Man- sun said Hopewell Highway (0737) could be among the bidders.
He said Hopewell Highway had the financial capability, with around HK$6 billion in cash and a further HK$3 billion in borrowing.
Wu said his company has had discussions with the three state enterprises on the construction of bridges before but refused to say whether they discussed the Hong Kong- Zhuhai-Macau Bridge.
Wu's father, Gordon Wu Ying- sheung, had been advocating the construction of such a bridge since the 1980s.
Shun Tak group chairman Stanley Ho Hung-sun said he too is interested in bidding for the project.
Under the agreement Hong Kong will meet just over hal
f the total cost, at 50.2 percent, with Guangdong chipping in 35.1 percent and Macau 14.7 percent.
The equation takes into account the economic benefits to each side, such as the savings in transport costs and time, as well as the costs to each side in building their own connecting roads.
Mainland officials said last year Hong Kong's economic benefits could reach 64 percent compared with 26 percent for Guangdong and 10 percent for Macau.
Eva Cheng Yu-way, convenor of the Hong Kong-Zhuhai-Macau Bridge Advance Work Co-ordination Group said yesterday the main body of the bridge will go to tender in its entirety.
"The three sides agreed that the three governments would be responsible for the construction and operation of the boundary crossing facilities and the connecting roads to the bridge within their own territory," Cheng said.
She added the connecting roads are about 12.6 kilometers on the Hong Kong side with the mainland responsible for 13.9 kilometers.
Under the proposed construction package, the main body of the bridge will be about 29.6km.
To the west, it lands on the artificial island off Gongbei, and to the east it lands on the eastern artificial island for the tunnel section just west of the Guangdong boundary.
It will be a six-lane expressway allowing for vehicle speeds of 100 kilometers an hour.
To ensure unimpeded sea traffic along the main navigation channels towards the Guangzhou and Shenzhen ports, there will be a tunnel linking up the two artificial islands that provide the bridge/tunnel switching facilities.
National People's Congress local deputy Cheng Yiu-tong warned the future actual economic benefits may be different from what is expected.
He said if vehicles using the bridge have to pay tolls, the profits should be divided along the same percentages as the costs.
