TNAG-0324-FCO40-360-Development-of-Kai-Tak-Airport-at-Hong-Kong-1972 — Page 38

CONFIDENTIAL

- 3 -

Consolidated Terminal Operator, for

all equipment in the Terminal - Airlines:

Consolidators:

Total

XCC(70)41

$39 million

Nil Nil

$51 million

Note: It should be noted that all the estimates of cost given in this paper are comparative rather than absolute as the consultants purposely dis- regarded certain factors which were either common to all schemes or un- important in making comparisons. All figures relate to total investment by 1980 at current costs.

(c)

(d)

to be so designed as to allow maximum expansion without substantial rebuilding, through the gradual introduction of additional mechanical aids to keep abreast of the growing require- ments of the trade, and also, in due course, to be more capable of overall expansion within the confines of available land;

to have the lowest cost per ton throughput and to be the most efficient.

This was the alternate recommended by the consultants.

8

Alternate D

Separate terminals for each major carrier or

cargo handler - could be expected:

(a)

to involve least cost to Government. Estimates of expenditure are as follows:

Government, for Access Taxiways

and Roads, Fabric of Agents Building only -

Airlines, for Aircraft Hardstanding,

Fabric of Airlines Buildings and Equipment therein -

Agents and Consolidators, for

Equipment in their building

$10 million

$39 million

$27 million

Total

$76 million

(b)

to enable the three or four airlines who would have terminals to project their image and be able to provide direct control over their cargo a point to which some of the airlines apparently attach considerable im- portance. The validity of this argument is, however, doubtful as the airlines themselves have stated that presently 85% of all cargo is handled through agents and they expect this percentage to increase;

CONFIDENTIAL