Through comprehensive medium- and long-term development plans for HKIA, AAHK contributes to Hong Kong s economic growth.

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1 The development of HKIA is the cornerstone of Hong Kong s future growth and prosperity. Through comprehensive medium- and long-term development plans for HKIA, AAHK contributes to Hong Kong s economic growth. 74

2 Looking Forward Annual Report 2016/17 75

3 Looking Forward THE THREE-RUNWAY SYSTEM The three-runway system (3RS) is crucial in supporting air traffic growth at Hong Kong International Airport (HKIA) and Hong Kong s long-term development. The project reached a major milestone when construction began in August The 3RS requires the reclamation of approximately 650 hectares of land north of the existing airport island. Non-dredge methods, including deep cement mixing (DCM), are being used for the reclamation. DCM is a technique that slowly injects and mixes cement into the soft mud in the contaminated mud pits in the reclamation area. The technique was tested and proved effective in preventing the release of pollutants and strengthening soft ground. More than 25 DCM barges are now operating at the reclamation site, representing the largest marine DCM operation in the world. 76 All major 3RS design works, including those for the expansion of Terminal 2, the third runway passenger building, the airfield, and the associated infrastructure, are on schedule. Tendering for the design-and-build contracts for the Automated People Mover and Baggage Handling System is in progress. Advance works for the 3RS are also under way. During the year, 5.2-kilometre-long pilot holes for diversion of the existing aviation fuel pipes were successfully completed using the state-of-the-art horizontal directional drilling technique. We also began diverting the undersea power cables that serve HKIA. This work is scheduled for completion in 2017/18. As the project moves ahead, we continue to fulfil the commitments made in the Environmental Impact Assessment Report and comply with the conditions in the Environmental Permit (EP) for the 3RS. Conducting a comprehensive monitoring and audit programme that covers air and water quality, Chinese White Dolphins, noise, waste management, etc., we established environmental baselines before construction started and are now monitoring the impact of the construction. This ensures a balance between development and environmental conservation. As prescribed in the EP, in 2016/17 we established a Marine Ecology Enhancement Fund and a Fisheries Enhancement Fund and formed management committees for both funds. A steering committee was established to guide the funds operation. The funds began inviting applications in December 2016 and the first batch of successful applications will be announced in mid In addition, the Environmental Protection Department approved our proposed Marine Ecology Conservation Plan, Fisheries Management Plan and marine park during the year.

4 10 BUSIEST AIRPORTS IN 2016 INTERNATIONAL PASSENGER THROUGHPUT* (millions of passengers) 0 10 DXB Dubai LHR Heathrow HKG Hong Kong AMS Schiphol CDG Charles de Gaulle SIN Changi ICN Incheon FRA Rhein/Main BKK Suvarnabhumi TPE Taoyuan * International passenger throughput includes originating, terminating and transfer (counted twice) passengers travelling between the designated airport and an airport in another country. Transit passengers are not included. Source: Preliminary figures from Airports Council International in April 2017 STAKEHOLDER ENGAGEMENT Throughout the year, we maintained an active dialogue with stakeholders including environmental groups, unions, students and professional bodies to better understand their views and to explain our development plans. We also held regular meetings with our Community Liaison Groups and our Professional Liaison Group to communicate developments at the airport. In 2016/17, we organised and participated in more than 280 events, including briefings, seminars, exhibitions and airport tours. SKYCITY In October 2016, Airport Authority Hong Kong (AAHK) unveiled plans for SKYCITY, a 25-hectare integrated development located next to HKIA that will comprise retail, dining and entertainment facilities, plus offices and hotels. With its strategic location, SKYCITY will benefit from traffic flows from the 3RS, the Tuen Mun Chek Lap Kok Link and the Hong Kong Zhuhai Macao Bridge. In addition to being a venue where tourists can discover Hong Kong s vibrant culture, SKYCITY will be a lifestyle and entertainment hub for Hong Kong residents. The first phase of SKYCITY comprises a multi-storey hotel and retail, dining and entertainment facilities. The hotel development, with its contract awarded in February 2017, is scheduled to open in 2020/21. Tendering exercise for the retail, dining and entertainment development will take place in 2017/18. Annual Report 2016/17 77

5 Looking Forward Terminal 1 is being expanded to add more passenger and recreational facilities. TERMINAL 1 CAPACITY ENHANCEMENT In mid-2016, we began expanding Terminal 1 (T1) to introduce new facilities that will make the airport experience smoother and more efficient. This project includes the construction of the T1 Annex Building on a site north of T1. The annex will offer additional check-in, baggage reclaim and security and immigration facilities plus a variety of dining outlets. Next to the annex, a new mixed-use building will include a 5,500-square-metre home for Hong Kong International Aviation Academy (HKIAA), which is expected to open in 2019/20. The building will also offer more parking spaces and a range of staff amenities. In addition, T1 s East Hall in the restricted area will be expanded to provide more recreational facilities. HONG KONG INTERNATIONAL AVIATION ACADEMY Established during the year, HKIAA is Hong Kong s first civil aviation academy. HKIAA aims to attract and nurture talent to support the development of the local industry and make Hong Kong an aviation training hub. Operating in partnership with local and international educational and vocational training institutions, AAHK s business partners and other organisations, HKIAA offers a range of courses and gives airport employees career advancement opportunities through on-the-job coaching and onsite training. The first batch of courses was introduced in April In July 2017, HKIAA will launch a series of summer youth camps and job placement programmes, allowing young people to experience different aspects of the industry. Meanwhile, AAHK is developing a virtual reality based training system for airport drills. The system, which provides realistic airport environments, will be available at HKIAA in 2019/20. 78