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Takeaway: Infrastructure is a key driver of long term demand in Macau

Update on upcoming infrastructure projects in Macau

2013 will be the start of a transformational three years for Macau and Cotai.  We should see several important infrastructure projects in Macau come online which could bring thousands of additional mass players.  This would particularly benefit the mass-centric operators LVS, SJM, and Galaxy. Year-to-date, mass revenue has grown 33%; this is on top of the 37% growth seen in 2011.  Another 30% growth year in mass may sound far-fetched but several new pieces of infrastructure as described below can help realize that.  While VIP chugs along, Mass should continue to lead the Macau gaming market to new heights.

  • High-speed Rail Beijing-Guangzhou (end of 2012)
  • Phase 1 North Gongbei Gate expansion (early 2013)
    • Will have a daily passenger capacity up to 350,000 (from 300,000 currently).  When the entire project is completed later in 2013, the clearance capacity can be raised to 500,000 people daily.
  • Guangzhou Zhuhai intercity mass rapid transit (early 2013)
    • The high speed intercity railway links between New Guangzhou Station in Panyu, Guangzhou, and Zhuhai Airport in Zhuhai, via Shunde, Zhongshan and Jiangmen, in Guangdong, China.
    • The last four stations of the transit between Zhuhai North and Macau is scheduled to be completed in early 2013
  • Guangzhou-Zhuhai Super Highway- Phase III Western Delta Route (Chinese New Year 2013)
    • Connects Phase II West in Zhongshan at the northern end and extends southwards to Zhuhai. 
  • Taipa Ferry Terminal (currently temporary facility, mid-2013)
    • Full construction is expected to be done by mid-2013.  The Terminal should be open by early 2014.  The terminal will have a capacity of up to 15 million passengers a year and become the main maritime border crossing of Macau.
  • Macau International Airport (early 2013-2017)
    • Planning to add new routes to India, mainland China and other regions.
    • A new hangar for business aircraft will be built by early 2013 to cope with the development of this high-potential sector due to the continuous emergence of new casino-resorts and luxury hotels in Macau. 
    • With the expansion project, the first phase of expansion can meet a volume of 5.6 million passengers in 2015, the second phase will be 7 million in 2020, upgrading to 11 million in 2030 and finally 15 million in 2039.
  • Bridge connecting Hengqin Island and Mainland (February 2014)
    • Hengqin's second bridge is expected to be completed by February 2014.  The bridge will be 6.8 kilometers which incorporates six lanes, becoming the second link between the Hengqin New Area and mainland China which aims to help alleviate the bottleneck congestion.
  • Light Rail Transit (May 2015)
    • The 3.4km Cotai Section consists of four stations covering the major resorts in the Cotai Strip as well as the centre of Taipa village, while the 3.1km Lotus Border Crossing Section has three stations linking the Macau University of Science and Technology, the airport and the Pac On Ferry Terminal.  The 1.9km section with five stations linking Taipa village and the Sai Van Bridge started its construction in February 2012.
  • HK-Zhuhai-Macau bridge (2016)
    • On schedule for 2016.  The bridge will shorten the distance from Hong Kong to Macau and Zhuhai from 60 km to 30 km, and reduce the journey time to within half an hour, for an estimated charge of RMB 100-150 each way.
  • New border checkpoint (TBD)
    • A new border crossing checkpoint connecting Zhuhai and Macau located on a land plot currently hosting the South Guangdong (Nam Yuet) Wholesale Market is currently being considered by the central government in Beijing.  Macau's CEO Chui recently said preparation works for the checkpoint are going as scheduled.  The new checkpoint is expected to run all day.