1 Construction Output for the First Quarter of 2008
Hong Kong Government, 13 June 2008

The total gross value of construction works performed by main contractors in the first quarter of 2008 increased by 8.5% in nominal terms over a year earlier to $24.1 billion, according to the provisional results of the Quarterly Survey of Construction Output released today (June 12) by the Census and Statistics Department (C&SD).

After discounting the effect of price changes, the total gross value of construction works performed by main contractors increased by 5.1% in real terms over the same period.   

Gross value of construction works in real terms is derived by deflating the corresponding nominal value with an appropriate price index to the price level in 2000.

Analysed by type of construction works, the gross value of construction works performed at private sector sites totalled $8.3 billion in the first quarter of 2008, up by 19.2% in nominal terms over a year earlier.  In real terms, it increased by 11.9%.  The increase was mainly associated with the progressive stepping up of works at some large commercial building sites.

The gross value of construction works performed at public sector sites decreased by 9.3% in nominal terms over a year earlier to $3.9 billion in the first quarter of 2008.  In real terms, it decreased by 14.4%.  The decrease was mainly due to completion of works in some large transport projects.

On the other hand, the gross value of construction works performed by main contractors at locations other than construction sites amounted to $11.9 billion in the first quarter of 2008, up by 8.6% in nominal terms over a year earlier.  In real terms, it increased by 8.4%.  Construction works at locations other than construction sites include minor new construction activities and renovation works at erected buildings and structures; and electrical and mechanical fitting works at locations other than construction sites.

Analysed by end-use group, residential building projects accounted for the largest share in the gross value of construction works performed at construction sites.  The gross value of construction works performed for these projects amounted to $4.5 billion in the first quarter of 2008, up by 11.9% in nominal terms over a year earlier.

Commercial building projects constituted the second largest group of construction site works. The gross value of construction works performed for these projects totalled $3.0 billion in the first quarter of 2008, up by 21.8% in nominal terms over a year earlier.

On a seasonally adjusted quarter-to-quarter basis, the gross value of construction works performed by main contractors increased by 0.4% in nominal terms in the first quarter of 2008 as compared with the fourth quarter of 2007, but slightly decreased by 1.1% in real terms.

Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time.  The gross value of construction works performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor.  Nevertheless, sub-contractors' contribution to projects should have been included in the gross value of construction works performed by main contractors for whom they worked.

2 Rail ride to give park tunnel vision
Dennis Eng, SCMP 13 June 2008

A new rail system at Ocean Park is  expected to start transporting up to 10,000 people an hour between different areas of the theme park by the middle of next year.

Dubbed Ocean Express, the funicular system is the same as that used by the Peak Tram. It will run parallel to the cable car that stretches between the lowland and headland sections, and the ride will take three minutes. A 1.2km tunnel has already been dug.

"In the past we only could use the cable car and if there were problems with the weather we had to take people by bus outside the park," chairman Allan Zeman said.

"It won't just be a tunnel, it's going to be a ride. You're going to feel like you're starting underwater and winding up at the top of the ocean."

The cable-driven funicular system involves two carriages running in opposite directions. The middle of the tunnel where they pass each other is double the width of the rest of the tunnel.

The rail is part of an ambitious HK$5.55 billion six-year redevelopment plan. The works will more than double the number of attractions from the present 35 by 2012. Most will be rides for families and children, and exhibits. The park has set a forecast of 5.8 million visitors by 2012/13.

Mr Zeman said he hoped admission prices would not rise as a result of the redevelopment, although much would depend on visitor numbers. There were no plans to increase ticket prices in the near future.

Attendance reached a record 4.96 million visitors in 2006/07 and is expected to top 5 million this year. The year ends on June 30.

"We've had some very, very good months," Mr Zeman said. "If the weather continues to hold out, maybe we can break the record."

Plans for construction of three hotels will be submitted in the next few weeks and work is scheduled to start by the middle of next year.