Enginineer Economic and Costing - Kai Tak Cruise Terminal
Fall 2012 EEMT 5510 Term Project
Group Number 10
Kai Tak Cruise Terminal
Executive Summary
The HKSAR government announced to the public on 24 October 2006 that the former site of Hong Kong International Airport (Kai Tak Airport) would be redeveloped as an international cruise hub. The whole project included two sub projects, "Site formation" and "Cruise terminal and ancillary facilities building".
In project costing Inflation factor is applied as refer to government inflation index in 2009 (2%) and 2010 (2.7%). As the reason of project postponed, the total cost increased nearly one billion dollars compared to the original plan due to retendering and ASD government requirements. Within project costing considerations, maintenance cost in cash flow out is estimated to be roughly 221.9 Million per year from 2013.
For project revenue, two main factors based on fixed rent from tenant space ($13 million for ten year tenancy) and variable rent from percentages of annual gross receipt. Minimum acceptable rate of return (MARR) was also used and accounted for from Exchange Fund to calculate present worth analysis as well as benefit and cost ratio of proposed development.
Aside from economic and cost based justifications for project analysis, three main factors of social impacts are also considered in competitiveness in the cruise market, employment opportunity, as well as promoting sustainability from an environmental prospective.
Overall, the demand for worldwide passenger levels are ever growing, to promote the international image of Hong Kong, the proposal of building the Kai Tak Cruise terminal is feasible when considerations come into play for combination in socio-economic factors.
1 Background
In analyzing the Kai Tak Cruise Terminal, we analyzed the socioeconomic implications for the development plan. The HKSAR
Group Number 10
Kai Tak Cruise Terminal
Executive Summary
The HKSAR government announced to the public on 24 October 2006 that the former site of Hong Kong International Airport (Kai Tak Airport) would be redeveloped as an international cruise hub. The whole project included two sub projects, "Site formation" and "Cruise terminal and ancillary facilities building".
In project costing Inflation factor is applied as refer to government inflation index in 2009 (2%) and 2010 (2.7%). As the reason of project postponed, the total cost increased nearly one billion dollars compared to the original plan due to retendering and ASD government requirements. Within project costing considerations, maintenance cost in cash flow out is estimated to be roughly 221.9 Million per year from 2013.
For project revenue, two main factors based on fixed rent from tenant space ($13 million for ten year tenancy) and variable rent from percentages of annual gross receipt. Minimum acceptable rate of return (MARR) was also used and accounted for from Exchange Fund to calculate present worth analysis as well as benefit and cost ratio of proposed development.
Aside from economic and cost based justifications for project analysis, three main factors of social impacts are also considered in competitiveness in the cruise market, employment opportunity, as well as promoting sustainability from an environmental prospective.
Overall, the demand for worldwide passenger levels are ever growing, to promote the international image of Hong Kong, the proposal of building the Kai Tak Cruise terminal is feasible when considerations come into play for combination in socio-economic factors.
1 Background
In analyzing the Kai Tak Cruise Terminal, we analyzed the socioeconomic implications for the development plan. The HKSAR
References: HKSAR Database on Particular Policy Issues – Development of a new cruise terminal http://www.legco.gov.hk/database/english/data_es/es-cruise-terminal.htm Hong Kong Monetary Authority http://www.hkma.gov.hk/eng/index.shtml Port Everglades Cruise Terminal Financial Report http://www.porteverglades.net/about-us/annual-report/ ----------------------- [pic]