Hong Kong International Airport will invest $1 billion into building a permanent cross-boundary ferry terminal and extend the Automated People Mover system to link the new facility with the passenger terminal.

Set for completion by 2008, the new-look SkyPier will be adjacent to the SkyCity Marriott Hotel.

Constructed with four berths, and capacity to expand to eight, the four-storey pier will have a total floor area of 16,000 square metres - eight times the size of the existing ferry terminal.

SkyPier will also provide passenger check-in and baggage handling facilities, and have a larger handling capacity and more advanced facilities to support the development of new ferry routes.

The existing SkyPier has served 3.7 million passengers since its opening in September 2003. Last year's passenger figure reached 1.5 million, up more than 40% on the year before. The annual passenger volume is expected to reach 3 million in five years.

When the permanent SkyPier begins service, passenger handling capacity will be further enhanced helping the airport maintain its international hub status.