Project Charter - HKIA

HONG KONG INTERNATIONAL AIRPORT PROJECT CHARTER 18TH OCTOBER 2016

Assignment 1 – Group 8

HONG KONG INTERNATIONAL AIRPORT

TABLE OF CONTENTS 1 INTRODUCTION......................................................................................................................3 1.1 Purpose of Project Charter....................................................................................3 2 SYNOPSIS................................................................................................................................3 3 JUSTIFICATION.......................................................................................................................3 3.1 Business Need.........................................................................................................3 4 PROJECT SCOPE...................................................................................................................4 4.1 Objectives.................................................................................................................4 4.2 Major Deliverables...................................................................................................4 5 DURATION................................................................................................................................5 5.1 Timeline.....................................................................................................................5 5.2 PROJECT Milestones.............................................................................................6 6 HKIA PROJECT COST...........................................................................................................6 6.1 Funding Source.......................................................................................................6 6.2 PROJECT COST.....................................................................................................7 7 ASSUMPTIONS, CONSTRAINTS AND RISKS.................................................................7 7.1 Assumptions.............................................................................................................7 7.2 Constraints................................................................................................................8 7.3 Risks..........................................................................................................................8 7.3.1 FORSEEN RISKS..............................................................................................8 7.3.2 UNFORSEEN RISKS........................................................................................8 8 PROJECT ORGANIZATION..................................................................................................8 8.1 HUMAN RESOURCES*.........................................................................................8 8.2 MATERIALS AND SERVICES RESOURCES*...................................................9 8.3 FINANCIAL RESOURCES*...................................................................................9 8.4 Stakeholders (Internal and External)....................................................................9 9 PROJECT CHARTER APPROVAL....................................................................................10 10INPUTS & RECOMMENDATIONS......................................................................................11

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1 INTRODUCTION 1.1

PURPOSE OF PROJECT CHARTER The Hong Kong International Airport (HKIA) project charter documents and tracks the necessary information required by decision makers to approve the project for funding. The project charter includes the needs, scope, justification, and resource commitment as well as the project’s sponsors decision to proceed or not to proceed with the project. It provides information regarding various roles and responsibilities, outlines objectives of the project and identifies the sponsors as well as the major stakeholders. The HKIA project charter serves as a reference of authority for the future development of the project. The intended audiences of HKIA project charter are the project sponsors and senior leadership members.

2 SYNOPSIS The former Hong Kong International Airport known more commonly as Kai Tak Airport, was originally built in 1925. Located on the west side of Kowloon Bay in Kowloon, Hong Kong, the airport was surrounded by rugged mountains and skyscrapers while functioning with only a single runway, it made landings at Kai Tak a daunting experience and technically demanding for the pilots. The expansion of the airport and residential areas resulted in Kai Tak functioning very close to residential areas. This led to severe noise pollution in the area. As a result, the Hong Kong Government, in the late 1980s, had begun to search for alternative locations for a new airport to replace the airport. After considering many options, the government decided to build the airport on the island of Chek Lap Kok. With the completion period estimated to be 7 years from now, will enhance Hong Kong’s business reliability and reform the islands outlook in international trade scene.

3 JUSTIFICATION 3.1

BUSINESS NEED Hong Kong has enjoyed a position of being a center for commerce in the world. It is also a destination that acts a gateway to the mainland China. This benefit that it enjoys has been threatened due to the over crowding, less safety of the Kai Tek Airport with several accidents being reported over the years. Kai Tek Airport, located in the middle of the city amongst skyscrapers was posing huge risks to the citizens. With just 1 runway, it was also hampering import and export activities. Page 3 of 14


The new airport will thus assure Hong Kong of its superior presence in the world market. Its projected capacity will help boost the economy of the country. It will fulfill the need to accommodate heavy passenger and cargo traffic. The project will further help in acquiring safety for residents of Hong Kong and the passengers as well.

4 PROJECT SCOPE 4.1

OBJECTIVES The scope of the HKIA project covers the construction of a 35 million passenger capacity world class airport capable of handling next generation aircrafts and ever growing cargo transport, Lantau Link bridge, North Lantau Expressway, Route 3 highway, Western Harbor crossing under water tunnel and rail networks that connect the air port to the city that has be completed in a time frame of 7 years. The venture aims for making new land of 50 acres in between two islands for the airport and, road and high speed railway network systems that will connect the airport and Hong Kong.

4.2

MAJOR DELIVERABLES An airport capable of handling 35 million passengers a year in its first phase. The HKIA would be connected to the mainland by:  A high-speed rail system  Two tunnels  Two bridges  A six-lane expressway The following table presents the major deliverables that the HKIA project will have to in order for the project objectives to be satisfied. Major Deliverables Airport Terminal Building Airport Island Tung Chung – New Town North Lantau Expressway Airport Railway Tsing Ma Bridge Ma Wan Viaduct & Kap Shui Mun Bridge Cheung Tsing Tunnel Elevated Express Highway Page 4 of 14


Major Deliverables West Kowloon Reclamation West Kowloon Expressway Western Harbor Crossing Central Reclamation

5 DURATION 5.1

TIMELINE The high-level timeline of HKIA project is provided below.

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5.2

OCT 1989

Hong Kong Government announces relocation of airport to Chek Lap Kok

MAR 1991

Publication of construction feasibility study final report

SEP 1991

THe signing of MOU by the British and Chinese Governments

APR 1992

Proposal of the first financial package

SEP 1992

Proposal of the second financial package

APR 1993

Proposal of the third financial package

FEB 1994

Proposal of the fourth financial package

NOV 1994

Started supplying contracts & HKIA construction began

JUN 1995

Aggreement for financial support was signed

JAN 1998

Government announced to open the new airport HKIA on July6, 1998 and the airport railway has to be finished by then

JUN 1998

Opening ceremony of Airport Expressway and service commencement of Tung Chung Line

JUL 1998

HKIA fully opened and operational

PROJECT MILESTONES The table below lists the high-level milestones of the HKIA project and their milestone dates.

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Milestone Name

Milestone Description

Milesto ne Date

First Module at Airport

First module raised at airport’s passenger terminal

Jan 1996

First Railway station

First railway station for airport railway completed and named as Olympic station

Aug 1996

Western harbor crossing

All 12 units of western harbor crossing linked up

Sep 1996

Second railway station

Second railway station for airport railway completed at Tung Chung

Dec 1996

Third railway station

The third railway station for airport railway has been completed and named as Lai King station

Jan 1997

West Kowloon Expressway and Western harbor crossing

Both West Kowloon Expressway and Western harbor crossing were completed and opened

Feb 1997

Lan Tau Link

The Lan Tau link was opened which completed the 34 kms long passage to the airport

Apr 1997

Kowloon station

Kowloon station was opened as a part of airport railway

Sep 1997

Airport railway

Airport railway becomes operational

Jun 1998

HKIA

The HKIA was opened and became operational

Jul 1998

6 HKIA PROJECT COST 6.1

FUNDING SOURCE Apart from obtaining funding from the HK Government, a huge number of banks and financial institutions provided loans or other forms of financial support. More than 170 institutions were involved in funding the project.

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6.2

PROJECT COST This section provides a summary of the cost incurred in meeting the objectives of the HKIA project as described in this project charter.

Description

Cost (in $ billion)

Airport

28

Formation of island

22

Construction of Terminal

15

Tung Chung – New Town

6

North Lantau Expressway

10

Airport Railway

28

Lantau Fixed Crossing

3.2

Tsing Ma Bridge

7.2

Ma Wan Viaduct & Kap Shui Mun Bridge

1.6

Route 3 – Kwai Tsing Section

7

Cheung Tsing Tunnel

0.8

Elevated Express Highway

2.2

West Kowloon Reclamation

6

West Kowloon Expressway

8

Western Harbor Crossing

6

Central Reclamation

4

TOTAL PROJECT COST

155

*SOURCE - http://research.gsd.harvard.edu/zofnass/files/2013/05/Hong-Kong-International-Airport.pdf

7 ASSUMPTIONS, CONSTRAINTS AND RISKS 7.1

ASSUMPTIONS This section identifies the statements believed to be true and from which the conclusion was drawn to define this project charter.  The constructions practices used is of world standards  There are no natural calamities during the project duration  The Chinese government will let the project continue after its ascension

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7.2

CONSTRAINTS This section identifies all limitations that have been taken into consideration prior to the initiation of the project.  The project is to be completed within a span of seven years while project managers estimate that it could take more than a decade  The functioning of the city should not be disturbed at any cost during the execution of the project  New land has to be identified as there was nothing available in the mainland  The islands identified had to be converted into flat terrains before nay work could start  Bridges and other structures built should withstand heavy crosswinds and other natural forces

7.3

RISKS

7.3.1 FORSEEN RISKS  Since the airport and some of the highways were to be built by land reclamation, there is possibility of erosion  Typhoons from the south china sea might damage the airport  The takeover of Hong Kong by the Chinese government might bring the project to a halt 7.3.2 UNFORSEEN RISKS  Issues with the database resulted in huge aircraft delays, planes taking off with wrong luggage; multiple sub contractors were responsible for this mishap and technical glitch  According to the initial construction plan, two tunnels were supposed to be built, but the high channel depth and possible interferences from ships during construction called for a change of plan  The suspension plan was also a risky alternative as it was susceptible to crosswinds, a computer simulation model proved helpful in finalizing on a double decker suspension bridge giving a dual advantage of stability and increased traffic capacity

8 PROJECT ORGANIZATION 8.1

HUMAN RESOURCES* 

6 Project Managers - Each Manager is responsible for Planning, Communicating, Controlling, Supervising his project



3 Project coordinator – Responsible for Role mappings, control, project execution, arbitrary change management if required, communications



12 Lead Engineers, 2 for each sub project Page 9 of 14


8.2



18 Structural Engineers, 18 Mechanical Engineers, 18 Electrical Engineers to be divided to all sub projects



50 Support Staff, 120 builders and 150 construction workers

Name

Project Role

Alistair Thomas

Airport Construction director

Douglas Oakervee

Airport Project Director

Andrew Beard

Tsing Ma Bridge Engineer

Kevin Dixon

Project Director North Lantau Highway

Russell Black

Project Director Airport Express railroad framework

MATERIALS AND SERVICES RESOURCES* 

Equipment – Earthmovers, Large Underwater-dredges, Trucks, Cranes, Roadrollers, Drilling Machines, Bulldozer, Excavators, Landfill Compactor, Trenchers, Suspension Systems, Barges, Container Ships, Tankers



Materials – Wood, Iron, Steel, Concrete, Huge steel rods and bars, Water

8.3

FINANCIAL RESOURCES* 

Labour cost: $5 Billion



Equipment cost: $4.2 Billion



Materials cost: $5 Billion



Allowances: $2.5 Billion



Additional expenses: $1.8 Billion



Total: $18.5 Billion

8.4

STAKEHOLDERS (INTERNAL AND EXTERNAL) 

Client – Hong Kong Government



Sponsor – Hong Kong Government

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*SOURCES: http://www.legco.gov.hk/yr98-99/english/sc/sc01/papers/chapter8.pdf http://www.gov.hk/en/residents/government/policy/government_reports/reports/docs/new_airport_report.pdf https://www.youtube.com/watch?v=e2_cuDSMMEA

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9 PROJECT CHARTER APPROVAL The undersigned acknowledge they have reviewed the project charter and authorize and fund the Hong Kong International Airport (HKIA) project. Changes to this project charter will be coordinated with and approved by the undersigned or their designated representatives. Signature:

Date:

Name: Title: Role: Signature:

Date:

Name: Title: Role: Signature:

Date:

Name: Title: Role:

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10 INPUTS & RECOMMENDATIONS If you were to do this project, what will you do additionally/what will you avoid/what will you do differently?



Old airport should have been closed once the operations begun at new terminal Old airport was shutdown at 1:17 am on 6 th July before the new airport could start its operations. The Cathay pacific flight from New York was on its route to land in Hong Kong at around 6:30 am on 6 th July and the entire relocation was to be done before that i.e. within 7hrs. This was a huge risk airport authority took.



Weather radar systems should have been in place before the operations began at the new airport The new Infra-red system was installed after they had a major accident at the airport. Nature’s major calamity hit the new airport just after few days after its opening. Typhoons slammed into Hong Kong. Winds gusted over 100km/hr. Right in the middle of the storm there was a flight which was planned to land at the Hong Kong airport. The plane tried to land once but was unable to hence returned back to the sky. Finally it made 2 nd attempt and dipped into the sea, got tossed off.



Huge open terminal structure Glass terminal building is vulnerable. In 2010 typhoons with speed 450 km/hour hit the airport.. Even though building was saved from getting ripped off but the entire glass got shattered.

I.

Focussed more on implementation of comprehensive risk management and contingency plans Malfunctioning of the flight information display system and cargo-handling system, on the first day of opening resulted in cargo and baggage-handling chaos. It shut down the freight operations, leaving many businesses with uninsured losses as goods were delayed and perishables were spoiled. Most of the loses were uninsured. The total estimate of economic losses related to cargo delays were more than $1 billion.

II.

Clear delineation of functions so that each party knows precisely what its responsibility is At one conference ADSCOM chairwoman and chief secretary for Hong Kong's government administration was asked who would be responsible for paying damages resulting from the problems. She said, ”The question of liabilities is not something that I can answer”. Page 13 of 14


III.

Would have delayed the opening of airport by a week or two in order to recheck and test all the processes involved Ample time for testing and commissioning systems involving new and advanced technology should be given. Despite the delays in the construction and testing of systems, the Airport Authority did not pay sufficient heed to the risks involved in using the various systems on the airport's opening day. There was no overall risk assessment, but only sketchy contingency plans. The top management was overconfident in what they could achieve and were too busy to step aside to look at the risks involved. Everyone was blindly moving towards the common goal of opening the airport on July 6. There were other minor problems which arised over time were inoperative public telephones, slippery floors, insufficient signage, a lack of flushing water in toilets, inadequate refuse collection, insufficient air conditioning, and escalator stoppages. All this could have been avoided by postponing the opening date by roughly around two months.

IV.

Expression of independent views should be encouraged, even if they are at variance with the senior management.

V.

User requirements must be clear from the start of a project and there should be a point in time beyond which no further changes should be allowed

VI.

Progress reports should be well prepared, studied and followed up For example, in a paper submitted to the AA Board, it was reported that reliability testing of FIDS was completed on 20 June 1998 with 98.7% reliability. However, in a NAPCO update on New Airport Projects dated 30 June 1998, it was reported that the FIDS host server was down for 9% of the time. Had these reports been analysed more critically, the problems with FIDS (Flight Information Display System) would have been brought up for more vigorous discussion at ADSCOM.

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Project Charter - HKIA

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