New milestone: Chief Executive Donald Tsang and Secretary for Commerce & Economic Development Rita Lau officiate at the Kai Tak Cruise Terminal groundbreaking ceremony.

The launch of site formation works for the Kai Tak Cruise Terminal marks a major step forward in Hong Kong's cruise tourism development, Secretary for Commerce & Economic Development Rita Lau says.

Speaking at the groundbreaking ceremony today Mrs Lau said the terminal will be an iconic building in the region. Upon its commissioning, Hong Kong will have four berths for cruise vessels.

"Passengers will enjoy the beautiful scenery of Victoria Harbour. The terminal facilities will of course be on par with the best of international facilities. The hospitality services Hong Kong is renowned for will be offered in this new cruise terminal building."

Development plan

The Government is developing the terminal through two works contracts. The first is the site formation works contract, which involves the construction of berthing facilities. The second is for the design and construction of the terminal building.

The Civil Engineering & Development Department is implementing the site formation for the terminal. The works include the construction of a sloping seawall of 1,100m, and a 35m-wide and 850m-long apron area to berth cruise vessels of different sizes and capacities, as well as the dredging of 1.38 million cubic metres of marine sediments to allow manoeuvring and berthing of mega cruise vessels.

Mrs Lau said work is being undertaken to proceed with the design and construction of the terminal.

"We are hoping to get our proposal to the Legislative Council for funding support in the middle of next year."

Design, construction

The Government will fund, design and build the terminal, and lease it to a cruise operator, while retaining the site's ownership.

The terminal will have two alongside berths with no air draft limit. Upon completion it will be able to berth the world's largest cruise vessel with a gross tonnage of 220,000 tonnes.

The first berth is expected to start operation in mid-2013 and will be capable of berthing the world's largest cruise vessel. The second will be available in 2014 to berth medium-sized cruise vessels and will begin to accommodate mega cruise vessels after submarine gas mains are relocated.

The Government is assessing tenders for the design-and-build contract for the cruise terminal building. Construction will begin next year for completion in 2014-15.

Software development

The Government has also strengthened liaison with the cruise market and neighbouring ports, and improved service standards to enhance Hong Kong's competitiveness in the regional cruise market.

The Advisory Committee on the Cruise Industry has been established to advise the Government on policies to develop Hong Kong as a regional cruise hub.

Meanwhile, the Central Government introduced a measure in April to allow Mainland tour groups travelling to Taiwan to take cruise vessels home-porting in Hong Kong, bringing the development of cruise tourism between Hong Kong, the Mainland and Taiwan to a new stage.