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Kai Tak cruise terminal, to be constructed at the site of the former Kai Tak Airport, it is set for completion in 2012.

Hong Kong's Secretary for Economic Development & Labour Stephen Ip says the Government will focus on the development of a new cruise terminal at Kai Tak to help Hong Kong become a regional cruise hub. Its first berth is slated to open by 2012.

The annual berth utilisation rate of Ocean Terminal in Tsim Sha Tsui, which offers two berths accommodating vessels of up to 50,000 tonnes, rose to 76% last year from 71% in 2003. Between 2001 and 2005, some 11 cruise vessels had to berth mid-stream and at container terminals because Ocean Terminal could not meet market demand.

Mr Ip said Hong Kong needs an additional berth between 2009 and 2015, and one to two more berths beyond 2015 to capture the growth of the regional cruise market. New cruise terminal facilities could bolster Hong Kong's coffers by up to $2.2 billion a year by 2020, and offer almost 11,000 jobs.

Mr Ip said the six suggestions received in last year's study on whether there are feasible locations other than Kai Tak, could not meet the Government's requirements in full.

Development of the new facilities on the 7.6 hectares of land earmarked at the end of the former airport runway includes:

• berthing facilities - two alongside berths of 800 metres, an apron area, fender system and passenger gangways;

• support facilities - located mainly in the cruise terminal building, such as customs, immigration, quarantine counters, and baggage handling; and,

• a commercial area inside the cruise terminal building with a maximum gross floor area of 50,000 square metres for offices and retail facilities.

The Government will adopt a market-driven approach in the new development. Selected through an open tender exercise, the successful bidder will own the 7.6 hectares of land for a 50-year period and form the site as well as design, build and operate the terminal.

A pre-tender consultation with relevant trades will be conducted in the first half of next year to expedite the pace of development, followed by invitation of tenders in the fourth quarter. The tender will be awarded in the second quarter of 2008. The estimated development cost, excluding that for the commercial area, is about $2.4 billion.

• Hong Kong Government announcement. [1]