ENG-2003 — Page 329

TRANSPORT

The new Airport-Mainland Coach Station, opened in February, has a waiting lounge for passengers and sheltered bays for 10 coaches. Some 100 buses daily transport passengers between the HKIA and 18 destinations in the PRD.

The HKIA's links to the PRD were further strengthened by the opening of the SkyPier in September, providing people in the delta region the opportunity of direct access to the airport for overseas travel. Under arrangements agreed by the relevant government authorities, PRD transit passengers arriving at the SkyPier by high-speed ferries are able to proceed by bonded buses directly to the passenger terminal for onward flights. Similar procedures apply for arriving air transit passengers en route home to the PRD. Like other transit passengers, these passengers have to stay within the airport's restricted area and are not subject to Customs and Immigration clearance. The arrangements reduce by up to half the usual four hours' transit time for PRD passengers to take connecting flights at the HKIA. At year-end, four PRD ports Shenzhen, Shekou, Dongguan and Macau were served by ferries operating from the SkyPier, and efforts were being made to extend the ferry service to more PRD ports.

To meet air passengers' requests for more retail and dining outlets, the East Hall of the Passenger Terminal Building was reconfigured during the year to accommodate a wider variety of retail shops and restaurants.

Construction of the Express Cargo Terminal at the HKIA began during the year. When completed in 2004, the terminal will be able to handle approximately 440 tonnes of express cargo a day. This dedicated facility will further enhance the airport's capability in handling express cargo.

In August, the Government, the AA and a private consortium signed a joint venture agreement for the construction of an international exhibition centre at the HKIA. Named the AsiaWorld-Expo, the easily accessible facility will be a major exhibition venue in Hong Kong, and will increase the flow of people through the HKIA. Phase 1 of the development, comprising 66 000 square metres of net usable area, will be completed for full operation by the first quarter of 2006.

To further enhance the competitiveness of the HKIA as well as expand its catchment area, the AA is fostering closer cooperation with other PRD airports through the PRD A5 Forum in areas such as emergency coordination, services promotion and joint studies to promote smooth passenger and cargo processing. Apart from the HKIA, airports in Guangzhou, Shenzhen, Zhuhai and Macau also participate in the Forum. Besides this, the AA engages in discussion with individual PRD airports on proposals for cooperation.

Privatisation of Airport Authority

In August, the Government announced its plan to commence work in preparation for the partial privatisation of the AA. A financial adviser was subsequently appointed to provide professional services and assistance. Privatisation will reinforce the airport's first-class operations, and bring about more commercial opportunities. It will enhance the AA's access to the capital market, and introduce an additional quality stock to add diversity to the local financial markets. In addition, it will offer an opportunity for Hong Kong people to participate in the success of a well-managed company with strong growth potential. Proceeds from privatisation will help strengthen the Government's finances in the short to medium term. The Government will devise a

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