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CILTHK Newsletter issue 9 10 shenzhen western corridor, deep bay link and route 10 Response to LegCo Panel on Transport’s Call for a Special Meeting on December 17, 2001 Thank you for inviting the Chartered Institute of Logistics and Transport in Hong Kong (CILTHK) to the Panel’s special meeting to be held on December 17 to present our views on the Shenzhen Western Corridor, Deep Bay Link and Route 10. Our Institute’s Transport Policy Committee met on December 12 to discuss the Transport Bureau’s paper “For discussion on 23 November 2001 to the Legislative Council on Transport: Shenzhen Western Corridor, Deep Bay Link and Route 10”. After much discussion, we feel that the Government’s objectives are met and the overall planning of the ventures generally fine. The completion of the projects would help heighten the status of Hong Kong as a business-trade-logistics hub in the Greater China region. We are pleased to see the Crosslinks Further Study reported the estimated net benefit figures for the Shenzhen Western Corridor of $175 billion (1998 prices) over a 20 year planning horizon from 2000 to 2020. While we are cognizant of the need for the three projects and are supportive of them, we wonder whether the Bureau could provide us with comparable figures for the Deep Bay Link and Route 10. It would be helpful to separate out the benefit and cost figures for each project over the planning horizon, enabling us to come up with benefitcost ratio figures. We fully support the Chief Executive’s imperative to pull Hong Kong out of the recession doldrums as presented in the Policy Address of October 10. Doing so via infrastructure investment, for instance, would still necessitate selecting and implementing the most worthwhile projects and not pursue uneconomic projects. We are glad to see the urgent attention paid to the provision of the Tsing Lung Bridge, whose construction date is set for 2003. When completed in five years’ time, the bridge would dovetail with the opening of Route 10 in 2008. After all, Disneyland is due to come on board in 2004. In view of the advent of the Shenzhen Western Corridor thoroughfare in 2005 - a mutually agreed-upon date with authorities of our neighboring Guangdong province - the launch of the Tsing Lung Bridge would serve as a crucial link and alternative overland route to the airport in emergency situations. We would appreciate it very much if this important alternative bridge route to Tsing Ma Bridge could be expedited as far as possible for safety reasons. The completion of all three projects - if demonstrated to yield high net benefit figures - would maintain and buttress Hong Kong’s position as a regional transportation and logistics hub by expediting high-valued air freight, sapping up unemployed human resources in the process. We are very concerned with the likely traffic snarls arising from the already congested Tuen Mun Highway upon completion of the Shenzhen Western Corridor and Deep Bay Link in 2005/2006, a couple of years before Route 10 and Tsing Lung Bridge are completed. We hope that Government would find ways to deal with this problem as soon as possible before the Shenzhen Western Corridor is completed. Timothy Hau, Ph.D. Chair, Transport Policy Committee Chartered Institute of Logistics and Transport in Hong Kong

CILTHK Newsletter issue 9 11 shenzhen western corridor, deep bay link and route 10 Response to LegCo Panel on Transport’s Call for a Special Meeting on January 17, 2002 on Route 10 This paper serves as a supplementary submission to the first response dated December 15, 2001 of our Institute’s Transport Policy Committee to the LegCo Panel on Transport’s December 17 meeting on the Shenzhen Western Corridor, Deep Bay Link and Route 10. As stated in our first submission, we support the three projects conditional on the passage of high net benefit figures. In particular, we had requested that the Transport Bureau provide us with benefit and cost figures for Route 10. We now understand from the Bureau’s paper “For Discussion on 11 January 2002” to the Legislative Council Panel on Transport - CB(1)729/01-02 (01) - that “Route 10 will bring some 20% [economic internal rate of] return on investment per year in terms of economic benefits to the community in the form of savings in travelling time and expenses.” (para. 5) We further understand from the Transport and Highways Departments that the estimated net benefit figures for Route 10 is $120 billion over a 20 year planning horizon on the assumption that the (current) toll levels are the same for both Route 10 and Route 3 (CPS Section), an approach we consider reasonable. We therefore find that the Route 10 project sounds economically attractive. We are made aware of the traffic figures forecasted by the Administration with and without Route 10 up to 2016 in the presentation “Route 10 - North Lantau to Yuen Long Highway” to the LegCo Panel on Transport Meeting of January 11 th . We concur with the focus on peak-hour volume-capacity ratios as a guiding principle on new road construction. (The magnitude of the average daily traffic volume is already accounted for in the net economic benefit figures mentioned above.) Hence it follows that there is an imminent need to proceed with the construction of Route 10, especially for both the Southern Section and Tsing Lung Bridge. Our view is based on Route 10’s effectiveness in relieving foreseeable congestion on Tuen Mun Road, Lantau Link and access to urban area and container ports. Tsing Lung Bridge will also provide a second link to Lantau Island for road system resilience in case of road closure or blockage. With many different views on the urgency of the Northern Section of Route 10, the relatively lower peak-hour volume-capacity ratios forecasted for the northern portion of Tuen Mun Road (vis-à-vis its southern portion) offers a small window of opportunity for further discussion on the suitable timing of constructing the Northern Section of Route 10. Having said that, our Committee fully supports the Chief Executive’s call to pull our economy out of recession as presented in the Policy Address of October 10, 2001 via infrastructure projects - provided they are economically beneficial. Besides, the softness of the economy at this time will mean a lower investment cost for the project. With regard to the Tuen Mun Eastern Bypass - Chek Lap Kok Link, we believe that it should be included in Hong Kong’s long term strategic road development plan. However, this link does not appear to serve as an effective alternative for Route 10 in the medium term because of: i) the divergent views on costs, ii) the lack of environmental impact assessment, and iii) the fact that the location of the future container port has yet to be determined. Timothy Hau, Ph.D. Chair, Transport Policy Committee The Chartered Institute of Logistics and Transport in Hong Kong

CILTHK Newsletter issue 9 10<br />

shenzhen western corridor,<br />

deep bay l<strong>in</strong>k <strong>and</strong> route 10<br />

Response <strong>to</strong> LegCo Panel on <strong>Transport</strong>’s Call<br />

for a Special Meet<strong>in</strong>g on December 17, 2001<br />

Thank you for <strong>in</strong>vit<strong>in</strong>g the <strong>Chartered</strong> <strong>Institute</strong> <strong>of</strong> <strong>Logistics</strong> <strong>and</strong> <strong>Transport</strong> <strong>in</strong> Hong Kong (CILTHK) <strong>to</strong> the Panel’s<br />

special meet<strong>in</strong>g <strong>to</strong> be held on December 17 <strong>to</strong> present our <strong>view</strong>s on the Shenzhen Western Corridor, Deep Bay<br />

L<strong>in</strong>k <strong>and</strong> Route 10.<br />

Our <strong>Institute</strong>’s <strong>Transport</strong> Policy Committee met on December 12 <strong>to</strong> discuss the <strong>Transport</strong> Bureau’s paper<br />

“For discussion on 23 November 2001 <strong>to</strong> the Legislative Council on <strong>Transport</strong>: Shenzhen Western Corridor,<br />

Deep Bay L<strong>in</strong>k <strong>and</strong> Route 10”.<br />

After much discussion, we feel that the Government’s objectives are met <strong>and</strong> the overall plann<strong>in</strong>g <strong>of</strong> the<br />

ventures generally f<strong>in</strong>e. <strong>The</strong> completion <strong>of</strong> the projects would help heighten the status <strong>of</strong> Hong Kong as a<br />

bus<strong>in</strong>ess-trade-logistics hub <strong>in</strong> the Greater Ch<strong>in</strong>a region.<br />

We are pleased <strong>to</strong> see the Crossl<strong>in</strong>ks Further Study reported the estimated net benefit figures for the Shenzhen<br />

Western Corridor <strong>of</strong> $175 billion (1998 prices) over a 20 year plann<strong>in</strong>g horizon from 2000 <strong>to</strong> 2020. While we<br />

are cognizant <strong>of</strong> the need for the three projects <strong>and</strong> are supportive <strong>of</strong> them, we wonder whether the Bureau<br />

could provide us with comparable figures for the Deep Bay L<strong>in</strong>k <strong>and</strong> Route 10. It would be helpful <strong>to</strong> separate<br />

out the benefit <strong>and</strong> cost figures for each project over the plann<strong>in</strong>g horizon, enabl<strong>in</strong>g us <strong>to</strong> come up with benefitcost<br />

ratio figures. We fully support the Chief Executive’s imperative <strong>to</strong> pull Hong Kong out <strong>of</strong> the recession<br />

doldrums as presented <strong>in</strong> the Policy Address <strong>of</strong> Oc<strong>to</strong>ber 10. Do<strong>in</strong>g so via <strong>in</strong>frastructure <strong>in</strong>vestment, for<br />

<strong>in</strong>stance, would still necessitate select<strong>in</strong>g <strong>and</strong> implement<strong>in</strong>g the most worthwhile projects <strong>and</strong> not pursue<br />

uneconomic projects.<br />

We are glad <strong>to</strong> see the urgent attention paid <strong>to</strong> the provision <strong>of</strong> the Ts<strong>in</strong>g Lung Bridge, whose construction date<br />

is set for 2003. When completed <strong>in</strong> five years’ time, the bridge would dovetail with the open<strong>in</strong>g <strong>of</strong> Route 10 <strong>in</strong><br />

2008. After all, Disneyl<strong>and</strong> is due <strong>to</strong> come on board <strong>in</strong> 2004. In <strong>view</strong> <strong>of</strong> the advent <strong>of</strong> the Shenzhen Western<br />

Corridor thoroughfare <strong>in</strong> 2005 - a mutually agreed-upon date with authorities <strong>of</strong> our neighbor<strong>in</strong>g Guangdong<br />

prov<strong>in</strong>ce - the launch <strong>of</strong> the Ts<strong>in</strong>g Lung Bridge would serve as a crucial l<strong>in</strong>k <strong>and</strong> alternative overl<strong>and</strong> route <strong>to</strong> the<br />

airport <strong>in</strong> emergency situations. We would appreciate it very much if this important alternative bridge route <strong>to</strong><br />

Ts<strong>in</strong>g Ma Bridge could be expedited as far as possible for safety reasons. <strong>The</strong> completion <strong>of</strong> all three projects<br />

- if demonstrated <strong>to</strong> yield high net benefit figures - would ma<strong>in</strong>ta<strong>in</strong> <strong>and</strong> buttress Hong Kong’s position as a<br />

regional transportation <strong>and</strong> logistics hub by expedit<strong>in</strong>g high-valued air freight, sapp<strong>in</strong>g up unemployed human<br />

resources <strong>in</strong> the process.<br />

We are very concerned with the likely traffic snarls aris<strong>in</strong>g from the already congested Tuen Mun Highway upon<br />

completion <strong>of</strong> the Shenzhen Western Corridor <strong>and</strong> Deep Bay L<strong>in</strong>k <strong>in</strong> 2005/2006, a couple <strong>of</strong> years before Route<br />

10 <strong>and</strong> Ts<strong>in</strong>g Lung Bridge are completed. We hope that Government would f<strong>in</strong>d ways <strong>to</strong> deal with this problem<br />

as soon as possible before the Shenzhen Western Corridor is completed.<br />

Timothy Hau, Ph.D.<br />

Chair, <strong>Transport</strong> Policy Committee<br />

<strong>Chartered</strong> <strong>Institute</strong> <strong>of</strong> <strong>Logistics</strong> <strong>and</strong> <strong>Transport</strong> <strong>in</strong> Hong Kong

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