CONFIDENTIAL
ANNEX TO XCC (71) 3 3
MEMORANDUM FOR EXECUTIVE COUNCIL
XCC(70)41
Copy No....of 28
NEW AIR CARGO COMPLEX KAI TAK AIRPORT
For discussion
on 28th July 1970
Air cargo has for some years been increasing at a very rapid rate. The Director of Civil Aviation forecast in 1966 that this increase would average 34% per annum from 1966 to 1971 reducing to an average of 25% per annum from 1971 to 1976. In fact as shown by the figures given below, over the five year period up to and including 1969/70 the annual rate of growth has been 36%, in spite of the lower increase registered in 1967/68. Total air freight figures from 1964/65 are as under:
Metric tons/Year
1964/65
10,819
1965/66
15,359
1966/67
23, 267
1967/68
27, 532
1968/69
40,664
1969/70
52, 511
Increase
25.9%
42.0%
51.5%
18.3%
47.7%
•
29.1%
2
Honourable Members may also wish to note that in 1969, the first full year for which figures are available, air freight figures compared with total imports and exports were, by value:
HK $Million
By Air
Total for Hong Kong
% by Air
Imports Exports Re-exports
2,014 2,027
551
14, 893 10, 518 2,679
13.52%
19.27%
20.57%
3
The present freight terminal, which after completion of the modifications carried out in 1969 has a capacity of 70,000 metric tons per annum, is not capable of further expansion. When the modifications were planned it was forecast that capacity would be reached in 1972; however, as can be gauged from the actual figures in paragraph 1 this position may very possibly be reached during 1970/71.
4
So that the best method of providing additional facilities after the capacity of the existing freight terminal had been exceeded could be assessed, the Finance Committee, in 1967, approved the provision of funds to engage consultants to advise on how air cargo handling facilities should be developed to keep pace with the forecast increases in air freight. The consultants' terms of reference are set out at the Annex.
CONFIDENTIAL
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