HONG KONG INTERNATIONAL AIRPORT

PROJECT CHARTER
18TH OCTOBER 2016

Assignment 1 Group 8

HONG KONG INTERNATIONAL AIRPORT

TABLE OF CONTENTS
1 INTRODUCTION......................................................................................................................3
1.1
Purpose of Project Charter....................................................................................3
2 SYNOPSIS................................................................................................................................3
3 JUSTIFICATION.......................................................................................................................3
3.1
Business Need.........................................................................................................3
4 PROJECT SCOPE...................................................................................................................4
4.1
Objectives.................................................................................................................4
4.2
Major Deliverables...................................................................................................4
5 DURATION................................................................................................................................5
5.1
Timeline.....................................................................................................................5
5.2
PROJECT Milestones.............................................................................................6
6 HKIA PROJECT COST...........................................................................................................6
6.1
Funding Source.......................................................................................................6
6.2
PROJECT COST.....................................................................................................7
7 ASSUMPTIONS, CONSTRAINTS AND RISKS.................................................................7
7.1
Assumptions.............................................................................................................7
7.2
Constraints................................................................................................................8
7.3
Risks..........................................................................................................................8
7.3.1 FORSEEN RISKS..............................................................................................8
7.3.2 UNFORSEEN RISKS........................................................................................8
8 PROJECT ORGANIZATION..................................................................................................8
8.1
HUMAN RESOURCES*.........................................................................................8
8.2
MATERIALS AND SERVICES RESOURCES*...................................................9
8.3
FINANCIAL RESOURCES*...................................................................................9
8.4
Stakeholders (Internal and External)....................................................................9
9 PROJECT CHARTER APPROVAL....................................................................................10
10INPUTS & RECOMMENDATIONS......................................................................................11

Page 2 of 14

HONG KONG INTERNATIONAL AIRPORT

1 INTRODUCTION
1.1

PURPOSE OF PROJECT CHARTER

The Hong Kong International Airport (HKIA) project charter documents and tracks
the necessary information required by decision makers to approve the project for
funding. The project charter includes the needs, scope, justification, and resource
commitment as well as the projects sponsors decision to proceed or not to
proceed with the project. It provides information regarding various roles and
responsibilities, outlines objectives of the project and identifies the sponsors as
well as the major stakeholders. The HKIA project charter serves as a reference of
authority for the future development of the project.
The intended audiences of HKIA project charter are the project sponsors and
senior leadership members.

2 SYNOPSIS
The former Hong Kong International Airport known more commonly as Kai Tak
Airport, was originally built in 1925. Located on the west side of Kowloon Bay in
Kowloon, Hong Kong, the airport was surrounded by rugged mountains and
skyscrapers while functioning with only a single runway, it made landings at Kai
Tak a daunting experience and technically demanding for the pilots. The
expansion of the airport and residential areas resulted in Kai Tak functioning very
close to residential areas. This led to severe noise pollution in the area. As a
result, the Hong Kong Government, in the late 1980s, had begun to search for
alternative locations for a new airport to replace the airport. After considering many
options, the government decided to build the airport on the island of Chek Lap
Kok. With the completion period estimated to be 7 years from now, will enhance
Hong Kongs business reliability and reform the islands outlook in international
trade scene.

3 JUSTIFICATION
3.1

BUSINESS NEED
Hong Kong has enjoyed a position of being a center for commerce in the world. It
is also a destination that acts a gateway to the mainland China. This benefit that it
enjoys has been threatened due to the over crowding, less safety of the Kai Tek
Airport with several accidents being reported over the years. Kai Tek Airport,
located in the middle of the city amongst skyscrapers was posing huge risks to the
citizens. With just 1 runway, it was also hampering import and export activities.
Page 3 of 14

HONG KONG INTERNATIONAL AIRPORT

The new airport will thus assure Hong Kong of its superior presence in the world
market. Its projected capacity will help boost the economy of the country. It will
fulfill the need to accommodate heavy passenger and cargo traffic. The project will
further help in acquiring safety for residents of Hong Kong and the passengers as
well.

4 PROJECT SCOPE
4.1

OBJECTIVES
The scope of the HKIA project covers the construction of a 35 million passenger
capacity world class airport capable of handling next generation aircrafts and ever
growing cargo transport, Lantau Link bridge, North Lantau Expressway, Route 3
highway, Western Harbor crossing under water tunnel and rail networks that
connect the air port to the city that has be completed in a time frame of 7 years.
The venture aims for making new land of 50 acres in between two islands for the
airport and, road and high speed railway network systems that will connect the
airport and Hong Kong.

4.2

MAJOR DELIVERABLES
An airport capable of handling 35 million passengers a year in its first phase. The
HKIA would be connected to the mainland by:
A high-speed rail system
Two tunnels
Two bridges
A six-lane expressway
The following table presents the major deliverables that the HKIA project will have
to in order for the project objectives to be satisfied.
Major Deliverables
Airport Terminal Building
Airport Island
Tung Chung New Town
North Lantau Expressway
Airport Railway
Tsing Ma Bridge
Ma Wan Viaduct & Kap Shui Mun Bridge
Cheung Tsing Tunnel
Elevated Express Highway
Page 4 of 14

HONG KONG INTERNATIONAL AIRPORT

Major Deliverables
West Kowloon Reclamation
West Kowloon Expressway
Western Harbor Crossing
Central Reclamation

5 DURATION
5.1

TIMELINE
The high-level timeline of HKIA project is provided below.

Page 5 of 14

HONG KONG INTERNATIONAL AIRPORT

5.2

OCT 1989

Hong Kong Government announces relocation of airport to

Chek Lap Kok

MAR 1991

Publication of construction feasibility study final report

SEP 1991

THe signing of MOU by the British and Chinese Governments

APR 1992

Proposal of the first financial package

SEP 1992

Proposal of the second financial package

APR 1993

Proposal of the third financial package

FEB 1994

Proposal of the fourth financial package

NOV 1994

Started supplying contracts & HKIA construction began

JUN 1995

Aggreement for financial support was signed

JAN 1998

Government announced to open the new airport HKIA on

July6, 1998 and the airport railway has to be finished by then

JUN 1998

Opening ceremony of Airport Expressway and service

commencement of Tung Chung Line

JUL 1998

HKIA fully opened and operational

PROJECT MILESTONES
The table below lists the high-level milestones of the HKIA project and their
milestone dates.

Page 6 of 14

HONG KONG INTERNATIONAL AIRPORT

Milestone Name

Milestone Description

Milesto
ne Date

First Module at Airport

First module raised at airports

passenger terminal

Jan 1996

First Railway station

First railway station for airport railway

completed and named as Olympic
station

Aug 1996

Western harbor crossing

All 12 units of western harbor

crossing linked up

Sep 1996

Second railway station

Second railway station for airport

railway completed at Tung Chung

Dec 1996

Third railway station

The third railway station for airport

railway has been completed and
named as Lai King station

Jan 1997

West Kowloon
Expressway and Western
harbor crossing

Both West Kowloon Expressway and

Western harbor crossing were
completed and opened

Feb 1997

Lan Tau Link

The Lan Tau link was opened which

completed the 34 kms long passage
to the airport

Apr 1997

Kowloon station

Kowloon station was opened as a

part of airport railway

Sep 1997

Airport railway

Airport railway becomes operational

Jun 1998

HKIA

The HKIA was opened and became

operational

Jul 1998

6 HKIA PROJECT COST

6.1

FUNDING SOURCE
Apart from obtaining funding from the HK Government, a huge number of banks
and financial institutions provided loans or other forms of financial support. More
than 170 institutions were involved in funding the project.

Page 7 of 14

HONG KONG INTERNATIONAL AIRPORT

6.2

PROJECT COST
This section provides a summary of the cost incurred in meeting the objectives of
the HKIA project as described in this project charter.

Description

Cost (in $ billion)

Airport

28

Formation of island

22

Construction of Terminal

15

Tung Chung New Town

North Lantau Expressway

10

Airport Railway

28

Lantau Fixed Crossing

3.2

Tsing Ma Bridge

7.2

Ma Wan Viaduct & Kap Shui Mun Bridge

1.6

Route 3 Kwai Tsing Section

Cheung Tsing Tunnel

0.8

Elevated Express Highway

2.2

West Kowloon Reclamation

West Kowloon Expressway

Western Harbor Crossing

Central Reclamation

TOTAL PROJECT COST

155

*SOURCE - http://research.gsd.harvard.edu/zofnass/files/2013/05/Hong-Kong-International-Airport.pdf

7 ASSUMPTIONS, CONSTRAINTS AND RISKS

7.1

ASSUMPTIONS
This section identifies the statements believed to be true and from which the
conclusion was drawn to define this project charter.
The constructions practices used is of world standards
There are no natural calamities during the project duration
The Chinese government will let the project continue after its ascension

Page 8 of 14

HONG KONG INTERNATIONAL AIRPORT

7.2

CONSTRAINTS
This section identifies all limitations that have been taken into consideration prior
to the initiation of the project.
The project is to be completed within a span of seven years while project
managers estimate that it could take more than a decade
The functioning of the city should not be disturbed at any cost during the
execution of the project
New land has to be identified as there was nothing available in the
mainland
The islands identified had to be converted into flat terrains before nay work
could start
Bridges and other structures built should withstand heavy crosswinds and
other natural forces

7.3

RISKS

7.3.1 FORSEEN RISKS

Since the airport and some of the highways were to be built by land
reclamation, there is possibility of erosion
Typhoons from the south china sea might damage the airport
The takeover of Hong Kong by the Chinese government might bring the
project to a halt
7.3.2 UNFORSEEN RISKS
Issues with the database resulted in huge aircraft delays, planes taking off
with wrong luggage; multiple sub contractors were responsible for this
mishap and technical glitch
According to the initial construction plan, two tunnels were supposed to be
built, but the high channel depth and possible interferences from ships
during construction called for a change of plan
The suspension plan was also a risky alternative as it was susceptible to
crosswinds, a computer simulation model proved helpful in finalizing on a
double decker suspension bridge giving a dual advantage of stability and
increased traffic capacity

8 PROJECT ORGANIZATION
8.1

HUMAN RESOURCES*

6 Project Managers - Each Manager is responsible for Planning,

Communicating, Controlling, Supervising his project

3 Project coordinator Responsible for Role mappings, control, project

execution, arbitrary change management if required, communications

12 Lead Engineers, 2 for each sub project

Page 9 of 14

HONG KONG INTERNATIONAL AIRPORT

8.2

18 Structural Engineers, 18 Mechanical Engineers, 18 Electrical Engineers

to be divided to all sub projects

50 Support Staff, 120 builders and 150 construction workers

Name

Project Role

Alistair Thomas

Airport Construction director

Douglas Oakervee

Airport Project Director

Andrew Beard

Tsing Ma Bridge Engineer

Kevin Dixon

Project Director North Lantau Highway

Russell Black

Project Director Airport Express railroad framework

MATERIALS AND SERVICES RESOURCES*

Equipment Earthmovers, Large Underwater-dredges, Trucks, Cranes, Roadrollers, Drilling Machines, Bulldozer, Excavators, Landfill Compactor, Trenchers,
Suspension Systems, Barges, Container Ships, Tankers

Materials Wood, Iron, Steel, Concrete, Huge steel rods and bars, Water

8.3

FINANCIAL RESOURCES*

Labour cost: $5 Billion

Equipment cost: $4.2 Billion

Materials cost: $5 Billion

Allowances: $2.5 Billion

Additional expenses: $1.8 Billion

Total: $18.5 Billion

8.4

STAKEHOLDERS (INTERNAL AND EXTERNAL)

Client Hong Kong Government

Sponsor Hong Kong Government

Page 10 of 14

HONG KONG INTERNATIONAL AIRPORT

*SOURCES:
http://www.legco.gov.hk/yr98-99/english/sc/sc01/papers/chapter8.pdf
http://www.gov.hk/en/residents/government/policy/government_reports/reports/docs/new_airport_report.pdf
https://www.youtube.com/watch?v=e2_cuDSMMEA

Page 11 of 14

HONG KONG INTERNATIONAL AIRPORT

9 PROJECT CHARTER APPROVAL

The undersigned acknowledge they have reviewed the project charter and
authorize and fund the Hong Kong International Airport (HKIA) project. Changes
to this project charter will be coordinated with and approved by the undersigned or
their designated representatives.
Signature:

Date:

Name:
Title:
Role:
Signature:

Date:

Name:
Title:
Role:
Signature:

Date:

Name:
Title:
Role:

Page 12 of 14

HONG KONG INTERNATIONAL AIRPORT

10 INPUTS & RECOMMENDATIONS

If you were to do this project, what will you do additionally/what will you
avoid/what will you do differently?

Old airport should have been closed once the operations begun at new
terminal
Old airport was shutdown at 1:17 am on 6 th July before the new airport could start
its operations. The Cathay pacific flight from New York was on its route to land in
Hong Kong at around 6:30 am on 6 th July and the entire relocation was to be
done before that i.e. within 7hrs. This was a huge risk airport authority took.

Weather radar systems should have been in place before the operations
began at the new airport
The new Infra-red system was installed after they had a major accident at the
airport. Natures major calamity hit the new airport just after few days after its
opening. Typhoons slammed into Hong Kong. Winds gusted over 100km/hr.
Right in the middle of the storm there was a flight which was planned to land at
the Hong Kong airport. The plane tried to land once but was unable to hence
returned back to the sky. Finally it made 2 nd attempt and dipped into the sea, got
tossed off.

Huge open terminal structure

Glass terminal building is vulnerable. In 2010 typhoons with speed 450 km/hour
hit the airport.. Even though building was saved from getting ripped off but the
entire glass got shattered.

I.

Focussed more on implementation of comprehensive risk management and

contingency plans
Malfunctioning of the flight information display system and cargo-handling
system, on the first day of opening resulted in cargo and baggage-handling
chaos. It shut down the freight operations, leaving many businesses with
uninsured losses as goods were delayed and perishables were spoiled. Most of
the loses were uninsured. The total estimate of economic losses related to cargo
delays were more than $1 billion.

II.

Clear delineation of functions so that each party knows precisely what its
responsibility is
At one conference ADSCOM chairwoman and chief secretary for Hong Kong's
government administration was asked who would be responsible for paying
damages resulting from the problems. She said, The question of liabilities is not
something that I can answer.
Page 13 of 14

HONG KONG INTERNATIONAL AIRPORT

III.

Would have delayed the opening of airport by a week or two in order to

recheck and test all the processes involved
Ample time for testing and commissioning systems involving new and advanced
technology should be given. Despite the delays in the construction and testing of
systems, the Airport Authority did not pay sufficient heed to the risks involved in
using the various systems on the airport's opening day. There was no overall risk
assessment, but only sketchy contingency plans. The top management was
overconfident in what they could achieve and were too busy to step aside to look
at the risks involved. Everyone was blindly moving towards the common goal of
opening the airport on July 6. There were other minor problems which arised
over time were inoperative public telephones, slippery floors, insufficient signage,
a lack of flushing water in toilets, inadequate refuse collection, insufficient air
conditioning, and escalator stoppages. All this could have been avoided by
postponing the opening date by roughly around two months.

IV.

Expression of independent views should be encouraged, even if they are at

variance with the senior management.

V.

User requirements must be clear from the start of a project and there
should be a point in time beyond which no further changes should be
allowed

VI.

Progress reports should be well prepared, studied and followed up

For example, in a paper submitted to the AA Board, it was reported that reliability
testing of FIDS was completed on 20 June 1998 with 98.7% reliability. However,
in a NAPCO update on New Airport Projects dated 30 June 1998, it was reported
that the FIDS host server was down for 9% of the time. Had these reports been
analysed more critically, the problems with FIDS (Flight Information Display
System) would have been brought up for more vigorous discussion at ADSCOM.

Page 14 of 14