This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

The Chinese Central Government announced in Year 2010 its twelfth 5-year plan for 2011-2015, to include the development of the Pearl River Delta (PRD) region in southern China. The National Development and Reform Commission (NDRC) has mapped out plans for cooperation with Hong Kong and Macau with an emphasis on transportation infrastructure projects, expecting to achieve greater economic integration in the PRD region by 2020. Several transportation infrastructure works are underway. In the thirteenth 5-year plan, one of the focus were Greater Bay Area. Aim is to create three-way (Guangdong, Macau and Hong Kong) economic cooperation and to promote free flow of goods and services, people and capital among the Greater Bay Area.

To ensure seamless physical integration, there are Hong Kong International Airport Master Plan 2030, multiple extensions and new lines on Mass Transit Railway, Hong Kong-Shenzhen-Guangzhou Express Rail, the Hong Kong-Zhuhai-Macau Bridge, and Macau Light
Rapid Transit System.

Sub-Sector Best Prospects

Hong Kong
Hong Kong International Airport Master Plan 2030. Airport Authority Hong Kong (AA) has been planning to build a third runway to meet Hong Kong International Airport’s long-term growth demand. The three-runway system (3RS) project was approved by the Executive Council in March 2015, and is estimated to cost US$18 billion and is expected to be completed by 2023. The 3RS is expected to increase maximum runway capacity by 48% to accommodate 607,000 aircraft movements per year, handle 102 million passengers and 8.9 million tons of cargo. Development of this three-runway system will involve land reclamation, construction of related taxiway systems and airfield facilities, construction of new aprons, passenger concourses, as well as the expansion of the existing Terminal 2.
Mass Transit Railway. With the merger of MTR and KCRC in 2007, MTRC is committed in future railway projects to increase their network coverage. The Railway Development Strategy 2014 was revealed with new and extended routes planned by 2026, investing over US$25 billion.

Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL). The XRL is part of the MTR’s Railway Development Strategy on an express rail that links Guangzhou, Shenzhen and Hong Kong together. It is in partial operation with Shenzhen-Guangzhou section commenced operation in December 2011. For the Hong Kong-Shenzhen section, it is target completion by Q3 of 2018, investing US$10.9 billion.

Hong Kong-Zhuhai-Macau Bridge (HKZMB). HKZMB is a 50km-link that connects three major cities: Hong Kong, Macau and Zhuhai together in the Pearl River Delta of Southern China. Construction began in December 2009 and is due for completion by Q3 of 2018. It is expected to cost US$10.6 billion. Several link roads are being built to connect the traffic towards HKZMB, include Hong Kong Link Road, Tuen Mun Western Bypass and Tuen Mun-Check Lap Lok Link.

Macau
Light Rapid Transit System (LRTS). Macau Light Rapid Transit System was proposed in 2003 and only began construction works in 2012. The LRT initially (Phase 1 construction) will consist of two lines with 21 stations spreading across the Macau Peninsula, with Taipa and Cotai serving as major waypoints. Phase 1 – Cotai Line is 9.3km with 11 stations cover both residential and tourists’ areas, and all ports of entries on Cotai. The construction works is estimated to cost US$1.8 billion and due for completion by end of 2018.

Opportunities

Infrastructure projects in Hong Kong and Macau will require a wide range of equipment, technologies, and consultancy services, including logistics and transportation management, waste and environmental management, experience in land reclamation, and related engineering fields. Equipment such as power supply systems, rail tracks, overhead wiring, escalators and lifts, signaling systems, rail station platforms and building services will be needed. U.S. companies may wish to consider promoting products or services to these contractors or joint partnership with them.

Web Resources

Trade Shows, Exhibitions, and Conferences

Industry Contacts

Airport Authority Hong Kong (Three-Runway System)(www.threerunwaysystem.com)
Mass Transit Railway Corporation (www.mtr.com.hk)
Macau Light Rapid Transit System (www.git.gov.mo/en/history.aspx)

For more information about this industry sector, please contact the U.S. Commercial Service in Hong Kong:
Ms. Kimmy Lee, Commercial Specialist
Email: kimmy.lee@trade.gov

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Hong Kong Macau Design and Construction Services Trade Development and Promotion