Hong Kong Economic Journal (HKEJ), a leading financial news daily, has featured Egis in an interview about our role in Hong Kong's large-scale infrastructure development through Public-Private Partnership (PPP). The article showcases our strategic vision and innovative solutions for the region.
Hong Kong is set to embark on several large-scale infrastructure projects, attracting significant attention regarding their financing. Egis, a French engineering and construction consultancy, is advocating for the effective utilization of the public-private partnership (PPP) model. The company aims to engage in investment, design, and operational aspects of these initiatives.
Egis has been appointed by Hong Kong's Civil Engineering and Development Department (CEDD) and the Transport Department (TD) to oversee investigation, design, and construction supervision for the smart green mass transit system project in the Hung Shui Kiu/Ha Tsuen New Development Area of Yuen Long. Additionally, Egis is keen to participate in the smart green mass transit systems planned for Kai Tak and East Kowloon, having submitted a letter of intent for these projects.
Interest in Investment
In a recent interview, Dr. James Xiong, Managing Director of Hong Kong and Macau at Egis Group highlighted that, based on available information, both the Kai Tak and East Kowloon green transportation projects are adopting the PPP model. Egis is eager to leverage its international experience in these discussions with stakeholders, contractors, suppliers, technology providers, and real estate developers. Mathieu Croll, Asia CEO at Egis Group, indicated that Egis is considering investing approximately 20% in these projects.
Innovative Transport Solutions
When discussing potential smart transport solutions for Hong Kong, Egis proposed the adoption of a Bus Rapid Transit (BRT) system or an Automated Rail Rapid Transit (ART) system to enhance transport efficiency and flexibility. The company also suggested incorporating electric or hybrid buses to mitigate carbon emissions and minimize environmental impact. A seamless integration with the existing public transportation network is essential to facilitate convenient transfers and overall service connectivity.
Navigating Challenges in the Real Estate Market
The current real estate market in Hong Kong has impacted related sectors. Dr. James Xiong highlighted that there are comparatively fewer private sector construction projects, particularly in the commercial building segment. In response, Egis is focusing on expanding its public infrastructure and construction business. The company provides long-term technical support for the airport's three-runway air traffic control system, engages in public housing projects, and offers energy-efficient maintenance solutions for the West Kowloon Terminus.
Addressing Cost Overruns
The issue of cost overruns in large infrastructure projects has garnered significant public concern. Mathieu Croll, with experience in France, Qatar, and beyond, acknowledged that this challenge is not unique to Hong Kong but a global issue exacerbated by post-pandemic inflation and rising material costs.
Collaborative Bulk Purchasing
Mathieu emphasized that Egis can innovate design approaches and collaborate with contractors to find cost-effective solutions. For instance, optimizing designs to minimize material usage can help control costs amidst rising prices. Moreover, collaborative bulk purchasing across multiple projects and contractors can further reduce expenses. The company aims to work closely with the government to facilitate such initiatives.
Establishing a Project Management Office
Egis is also advocating for the establishment of a Project Management Office (PMO) in Hong Kong. James noted that traditional project management often focuses on individual projects. A PMO could enhance coordination and management across multiple initiatives, drawing on Egis’ proven experience in similar frameworks, such as their successful implementation in Qatar.
Establishing Asia Headquarters in Hong Kong Amid Talent Recruitment Challenges
Egis Group, an international player active in architecture, consulting, and construction engineering based in France, has established its Asia headquarters in Hong Kong since 2021. Mathieu Croll, Asia CEO at Egis Group, highlighted the significant challenges associated with hiring talent in the region. He emphasized that conducting business in Hong Kong necessitates navigating various licensing requirements. To address these challenges, Mathieu indicated that mergers and acquisitions will play a crucial role in the Group's future expansion plans.
Talent Acquisition: A Tough Landscape
Egis currently employs approximately 300 staff members in Hong Kong, with footprints extended to mainland China, the Philippines, Thailand, Singapore, Indonesia and more. Mathieu pointed out that attracting and retaining talent, particularly in the engineering sector, poses a significant hurdle. The soaring market demand has made it increasingly difficult to find management-level professionals willing to remain in Hong Kong. "Once a strong candidate is identified, competitors are quick to make their offers," he noted.
Dr. James Xiong, Managing Director of Hong Kong and Macau at Egis Group, underscored another pressing issue: the recruitment of experienced engineers. With many engineering professionals nearing retirement, the industry faces a shortage of younger talent. The aftermath of recent social movements has also contributed to a wave of emigration, creating a notable gap in mid-level positions, particularly project managers.
Complications in Labor Introduction
In addition to recruitment challenges, Mathieu cited the complexities involved in introducing foreign labor for projects. Drawing from his experience in the Middle East, he illustrated how large-scale projects there can quickly onboard thousands of workers, who subsequently depart upon project completion. In contrast, he noted that Hong Kong's labor introduction procedures are much more intricate, requiring detailed justifications for the need for foreign workers and extensive visa application processes.
Since 2017, Egis has invested and grown in Hong Kong through mergers and acquisitions, including 10 Design, one of the top architects in the world, Inhabit, leading façade and building sustainability consultants, and Sunland (M&E), band 1 building services consultant in Hong Kong. Mathieu revealed plans to continue expanding Egis' business in Hong Kong through acquisitions, which may also help navigate licensing challenges.
Source: Hong Kong Economic Journal
