Hong Kong Infrastructure Report Q1 2012

Includes 3 FREE quarterly updates

BMI View: Hong Kong’s construction sector continues to enjoy the fiscal measures aimed at combating the global recession in 2008 and 2009, with construction activity remaining at record levels for the majority of 2011. However, we believe this is the peak of the construction cycle, with a combination of factors (the weaning of the stimulus measures, the decline in residential construction activity and the weakness in the Chinese economy) to cause a sharp slowdown in construction activity in 2012. We are pencilling construction real growth to reach 1.4% in 2012 and averaging 3.3% per annum between 2013 and 2016.

Key developments contributing to forecasts include:

• In September 2011, a court in Hong Kong had approved the US$11.3bn Hong Kong-Macau- Zhuhai bridge project, overturning a previous decision that stated the environmental impact assessment carried out by the Environmental Protection Department was inadequate. The decision halted construction on 68 related projects for a year, at a cost of US$6.4bn. Construction was expected to restart before the end of 2011.
• In October 2011, a joint venture between Hong Kong-based construction company Gammon Construction and Australia-owned construction company Leighton Asia was awarded a HKD8.9bn (US$1.14bn) contract by Hong Kong's subway operator MTR Corporation to build the West Kowloon Terminus Station North, part of the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL). Construction operations under the contract were scheduled to begin in October 2011, with completion expected in 2015.
• In October 2011, the government of Hong Kong had announced plans to build a HKD12bn (US$1.5bn) monorail network in Kowloon East. The project is part of a HK$100bn (US$12.8bn) investment plan to develop the Kowloon East area into a core business district, according to the China Daily. The 9km elevated monorail will have 12 stations and will link the Kai Tak commercial and business developments with the Kwun Tong waterfront development. The monorail will also provide connections to the future Shatin to Central Link and is expected to be completed by 2023.

Contents

Executive Summary
SWOT Analysis
Hong Kong Infrastructure SWOT
Market Overview
Hong Kong
Building Materials
Industry Trend Analysis - Building Materials: Asia And Latin America Demand Drive EM/Developed Market Divergence
Asia Overview
Industry Forecast
Table: Hong Kong Construction And Infrastructure Industry Data
Table: Hong Kong Construction And Infrastructure Industry Data
Construction And Infrastructure Forecast Scenario
Transport Infrastructure
Transport Infrastructure Overview
Table: Competitiveness Of Hong Kong's Infrastructure
Major Projects Table – Transport
Table: Major Projects - Transport
Energy And Utilities Infrastructure
Energy And Utilities Infrastructure Overview
Major Projects Table – Energy And Utilities
Key Projects
Residential/Non-Residential Construction And Social Infrastructure
Table: Hong Kong Energy and Utilities Infrastructure Industry Data
Table: Hong Kong Energy and Utilities Infrastructure Industry Data
Residential/Non-Residential Construction Forecast Scenario
Residential/Non-Residential Construction And Social Infrastructure Overview
Business Environment
Hong Kong Business Environment
Rewards
Risks
Regional Overview
Asia Pacific Infrastructure Business Environment Ratings
Table: Regional Infrastructure Business Environment Ratings
Company Monitor
Cheung Kong Infrastructure (CKI) Holdings
Table: CKI Global Infrastructure Portfolio
CLP Power Hong Kong Ltd
Global Overview
Infrastructure Finance In 2012: Déjà Vu?
Methodology
Industry Forecasts
Construction Industry
Data Methodology
New Infrastructure Data Sub-sectors
Construction
Capital Investment
Construction Sector Employment
Infrastructure Business Environment Rating
Table: Infrastructure Business Environment Indicators Skip to top