AA signs agreement for Pearl River Delta ferry terminal at HKIA

(HONG KONG, 28 June 2002) - The Airport Authority today signed an agreement to make the next step towards realising a cross boundary passenger ferry terminal at Hong Kong International Airport.

Hong Kong International Airport Ferry Terminal Services Ltd, a joint venture of Chu Kong Passenger Transport Co Ltd and Shun Tak-China Travel International Logistics Investment Ltd, will renovate the existing Chek Lap Kok ferry terminal, currently used for commuter services to Tuen Mun. The upgraded facility will serve Pearl River Delta (PRD) ports from the first quarter of 2003 until a permanent ferry terminal opens at the end of 2005.

Chu Kong will have a 60 per cent shareholding in the venture with the remainder held by Shun Tak and China Travel. The venture will invest about HK$15m to upgrade the existing terminal with waiting lounges and other facilities in keeping with an international transport hub.

Chu Kong Passenger Transport and Shun Tak - China Travel operate a total of more 70 high speed passenger vessels, one of the world's largest fleets of luxury high speed vessels. Together they carry more than 15 million passengers between Hong Kong, Macau and ports in Guangdong Province. The venture will initially serve seven destinations in the PRD.

AA Commercial Director Mr Hans Bakker welcomed the agreement. "This is a major step in making HKIA a truly multi-modal international transport hub," he said. "We are all excited because this is an innovative way to extend our local market reach from the 7 million people of Hong Kong to the 26 million people of the PRD and beyond.

"This is a completely new product that will create a new source of passengers. We expect the two-way traffic will initially be one million, about half of them coming from a new market attracted by this new route.

"As the upgraded ferry terminal will in effect be an extension of the Passenger Terminal airside area, these transfer passengers will not need to undergo Hong Kong Customs and Immigration formalities.

"This new service is a great innovation, and we and our joint venture partners are working closely together to fulfil all Government requirements in order to offer seamless, hassle-free procedures for international passengers coming in and out of the major emerging market of the PRD."

Ref. PR-634