Hong Kong International Airport is set to undergo a HK $7 billion expansion, according to Airport Authority Hong Kong.

Chief Executive Stanley Hui said the expansion will take place over four years and is needed to keep up with rising air traffic demand in the city. The cost amounts to about US $900 million.

Construction of a new passenger terminal will begin in the third quarter of 2011 and is expected to create about 2,000 jobs and boost passenger capacity by about 10 million annually.

Hui said that the airport will also consider adding a third runway after it consults with the public regarding the economic and environmental impact of such a plan.

The second phase of the project, which will boost capacity by an additional 10 million, will be announced at an appropriate time, Hui said.

Source: Wall Street Journal