Extending Hong Kong airport

08 March 2017

Hong Kong International Airport is one of the world’s busiest airports. It served more than 68.5 million passengers and 4.38 million tonnes of cargo in 2015.

By 2030, the airport is forecast to handle over 100 million passengers and 8.9 million tonnes of cargo. To cope, it needs a rapid expansion of its capacity to keep pace. 

To solve this, the airport has opted to expand to a three-runway system in an eight-year construction project running from 2016–2024. The estimated cost will be HKD 141.5 billion.

JLT was appointed as sole broker for the project. Kelly Outram, Director at JLT Asia, explains: “Given the scale and complexity of the project, local and international insurers were invited to tender for an owner-controlled insurance placement. This included material damage insurance for the works, third-party liability and workers’ compensation.

“It’s the largest construction insurance placement in Hong Kong, and pushes the boundary in terms of coverage and innovation.” 

The tender was managed in accordance with World Trade Organization Government Procurement guidelines.

The project

The project sees the first major use in Hong Kong of the deep-cement mixing process, which is designed to improve the strength of the sub-seabed. This is being used because part of the site is situated on contaminated mud pits, which prohibits conventional dredging.

Works will include reclamation of approximately 650 hectares of land bounded by around 13.4 kilometres of seawall; the construction of a third runway; and a new concourse with 57 parking positions, connected to the existing Terminal 2. 

Terminal 2 will itself undergo extensive modification and expansion, including the introduction of an automated people mover and baggage handling system.

For further information, please contact Stephen Boddington, Regional Construction Managing Director at JLT Asia on +852 2864 5565