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

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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 project’s 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 Kong’s 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.
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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

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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.

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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

5.2 PROJECT MILESTONES

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

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Milesto
Milestone Name Milestone Description
ne Date
First module raised at airport’s
First Module at Airport Jan 1996
passenger terminal
First railway station for airport railway
First Railway station completed and named as Olympic Aug 1996
station
All 12 units of western harbor
Western harbor crossing Sep 1996
crossing linked up
Second railway station for airport
Second railway station Dec 1996
railway completed at Tung Chung
The third railway station for airport
Third railway station railway has been completed and Jan 1997
named as Lai King station
West Kowloon Both West Kowloon Expressway and
Expressway and Western Western harbor crossing were Feb 1997
harbor crossing completed and opened
The Lan Tau link was opened which
Lan Tau Link completed the 34 kms long passage Apr 1997
to the airport
Kowloon station was opened as a
Kowloon station Sep 1997
part of airport railway
Airport railway Airport railway becomes operational Jun 1998
The HKIA was opened and became
HKIA Jul 1998
operational

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.

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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 6
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 7
Cheung Tsing Tunnel 0.8
Elevated Express Highway 2.2
West Kowloon Reclamation 6
West Kowloon Expressway 8
Western Harbor Crossing 6
Central Reclamation 4
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

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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

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 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

8.2 MATERIALS AND SERVICES RESOURCES*

 Equipment – Earthmovers, Large Underwater-dredges, Trucks, Cranes, Road-
rollers, 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

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*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

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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:

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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. Nature’s 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”.

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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.

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