AA signs contract with International Consortium

(HONG KONG, 21 February 2001) - The Airport Authority (AA) today signed a development agreement with Tradeport Hong Kong Limited, an international consortium with Asian and European partners, to build and operate a logistics centre at Hong Kong International Airport (HKIA).

Tradeport Hong Kong Limited will design, construct, operate and manage the logistics centre to be built on a 1.38-hectare site in the South Commercial District of the airport island. Initially the building will have three floors with a total gross floor area of 28,200 sqm. The developers have the option to add another floor, bringing the total gross floor area to 41,400 sqm. Capital investment for building and equipment will be HK$530 million. The lease is for 25 years plus two years for construction.

Tradeport Hong Kong Limited was founded by the following partners :

Hongkong Land Holdings Limited and Jardine Logistics Services (HKG) Limited - 37.5%

Schiphol Group and Fraport AG - Frankfurt Airport Services Worldwide - 37.5%

China National Aviation Company Ltd - 25%

Speaking at today's signing ceremony, AA Chief Executive Officer Dr David J Pang welcomed the agreement. "We're extremely glad to have Tradeport Hong Kong Limited joining us as a business partner," Dr Pang said. "Tradeport Hong Kong offers international expertise in logistics management as well as a strategic alliance that encompasses all of China."

"This exciting development has a major significance for the airport as logistics is a vital new value-added industry for Hong Kong," Dr Pang said.

"Tradeport dovetails with other strategic developments at the airport, such as the two cargo terminals, Hactl and AAT as well as the Marine Cargo Terminal. With the development of logistics centres, coupled with the excellent facilities of HKIA, Hong Kong can enhance its cargo-transportation industries and become an important centre of Asia-Pacific's distribution network."

Tradeport Hong Kong's spokesperson, Mr Nicholas Sallnow-Smith, Chief Executive of Hongkong Land, also expressed excitement in the new partnership. "Tradeport Hong Kong aims to make Hong Kong the leading logistics centre in Asia. The consortium has the operational expertise and the local, regional and international connections necessary to achieve this. It will build on the excellent geographical location and the superb services and support industries of Hong Kong to establish a world-class facility."

He further added that the new logistics centre will generate increased activity at the airport both in the throughput of cargo and passengers, and it will create more work for the services industry and increase jobs."

Ref. PR-553