April 27, 2008

Big Bang Theory Applied to Beijing's Infrastructure Growth

Real Concepts' China Series

Just a few final notes on China's infrastructure and then, I'll drop it. I promise.


Automobile traffic has doubled in Beijing over the last three years in the city's two prime business districts. One thousand cars are joining the road race daily (should we assume all new drivers?) The Chinese are moving to the urban centers at a breakneck pace, all searching for a piece of the newfound wealth of their nation. Beijing is bearing up under the pressure of moving the growing masses with an impressive transporation system.

The transportation infrastructure being put in place now for the Olympics is needed as part of Beijing's overall long-term development.

The new highways all over China and particularly Beijing (52 new roads around various Olympic venues) will be eaten up quickly with the staggering rate that cars are being added to the urban landscape. Not enough road bandwidth for a new generation of road warriors.

Knowing the value of transport-related infrastructure, not only for the Olympics but for the people-moving business required by commerce, Beijing pressed the same "GO" button on the following projects that got the job done on the airport and the Olympic venues:

  • Seven Metro Lines.

  • A new subway line linking the downtown business district with the airport which incorporates the Capital International Airport into the general Metro system.

  • Light-rail transit system.

  • Beijing-Shanghai Express Railway line (high-speed passenger and cargo heavy-load line) which will cut the rail transport from 10 to 5 hours.

  • Beijing-Tianjim high-speed rail link representing another 50% reduction in travel time between the two cities.

  • Rail link between Beijing and Shenzhen.

A side benefit - the transportation infrastructure development is spurring office and retail adjacent to new subway stations, not related to the Olympics.


Big Bang Theory

So what happens when all this new infrastructure and new construction reach their critical maintenance points? Much of it will mature at the same time. Will there be plans in place to secure the future of all these structures, airports, and rails?

Facing our own aging infrastructure woes in the U.S. makes this a poignant question. When the money is flowing freely the building continues. It is a future generation and government administration that will have to deal with the question of aging rail systems and roadways. But for now they're bright and shiny, a gleaming example of the best of high tech engineering.

Maybe "Big Bang" is too strong a term. Perhaps the most realistic expectation is a slow burn. But who wants to think about that when everything is so fresh, rich, and ready for the coming out party? Would the press give any coverage to a reserve fund for infrastructure maintenance? Get out of town!

Related Real Concepts Blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai

April 25, 2008

Tourism and Touring In China

Real Concepts' China Series

Above: Forbidden City Imperial Residences


Before arriving in mainland China, I had not considered the many things that would be necessarily new to an emerging and exploding world economic power. As a current powerhouse that spent many of its recent sixty-year history in a cocoon state, if not a literal Dark Age, China is evolving as a new player in the tourism industry. It is a subject very much top-of-mind for the Chinese government and people and is now a favorite major in the universities.

China is so immersed in its business activities that tourism seemed to take a back seat to the pursuit of the next deal. The Olympics is likely to change that and to also change the tourism mix. The lack of visible western tourists, particularly women, in Beijing was striking and surprising. When I related this observation to someone back in the U.S., I got a look that clearly conveyed I had just lost any credibility I ever possessed.

There were plenty of businessmen obviously from all over the world – the Russians, British, and Americans seemed to make up the majority of the suit population outside of the Chinese themselves. But the tourists at the most popular sites in Beijing, were mostly Chinese.

Domestic tourists account for 95 percent of all Chinese tourists – as compared to the U.S. where the local/foreigner tourist split is 50/50. And domestic tourism is growing by 10 percent per year. This information from the Urban Land Institute quoted in a recent article entitled Beijing Beyond the Olympics (subscription required) supported what I saw in person - mostly Chinese people at the tourist locales and shopping venues.

Farming family from Southern China visiting The Forbidden City

Now on to the matter at hand and a personal story of touring in China. This true account is meant as another warning and as a travel tip. If you’re traveling to China and not touring with a group, you might want to consider the services of a driver and a guide if you are visiting outside of the Olympic venues and activities. Remember if you choose a taxi you must have your destinations at all points clearly translated into Chinese. If you are an intrepid foreign tourist and looking for an extreme adventure, if you have boundless energy and patience, and if you don’t mind a few blind-alley experiences, you can pass on assistance, otherwise have your hotel book a licensed guide and driver.

The operative word here is licensed. I am not entirely clear what licensed means in China and whether it gives you any level of protection in the event of an accident, but it has to be better than our non-licensed experience. The large hotels wield a great deal of power over the tourist companies they use and their ongoing livelihood depends on their satisfied customers.

For our stay in Beijing we contacted a business associate, not the hotel, for a connection to a tourist guide company. All was arranged in advance and we would be contacted at our Beijing hotel on our arrival. A woman by the name of “Tiki” called and said she would meet us at the hotel first thing the next morning with our guide and driver. At our appointed hotel rendezvous we were introduced to William, our guide. The driver was dutifully waiting outside with the car. After a few minutes discussing the first of our three-day plans, we follow William out for a day of Beijing highlights.

Our driver was obviously a very young fellow, dressed in a comfy jogging suit, and proudly standing by his no-dent white compact Nissan. Maybe this is how they do things in Beijing … when in Rome … so we climb in the back seat, fold our legs up and off we go. The two amigos in the front seat, William and Driver, immediately crank their CD player up and are laughing and singing and occasionally William is chatting with us.

William and Driver’s (we never knew his name – he didn’t speak English, didn’t like English we were told – no problem) story gradually unfolded. They live in the same college dorm and William had to do some pretty fast talking to convince Tiki that Driver should be at the wheel. As we were leaving the hotel we found out why some fast talk was necessary. He drove as only someone newly arrived at the wheel can drive – with little of the confidence that comes with the lifetime benefit of the family driving experience. We’re exiting at about 10 mph and all of a sudden Driver slams on the brakes, HARD, and we go flying against the front seats. Turns out Driver’s driving experience was only with a stick shift and we were in an automatic. This brake action happened at regular but lengthening intervals as Driver settled into the automatic transmission. I don’t know how we avoided a rear-end collision in Beijing traffic.

At this point we’re still optimistic as we crawl through traffic and pollution to Tiananmen Square and the Forbidden City. We are not dropped off at the Square but consulted, we go with driver to find a parking place. We pass several pay-lots and go many blocks into a neighborhood where we park on a back street (three attempts at a straight-on curb park). William tells me to watch my purse and keep it close. It’s early and I still have some patience in tact. We trudge to Tiananmen Square in all its gray glory. William pulls out his notes and commences to educate us.

Tiananmen Square looking towards the Forbidden City

We take several wrong turns in underground tunnels to get to the other side of a very busy highway separating Tiananmen Square from the Forbidden City. William does his introduction to the famous palace, which is only standing today because Mao lacked the funds to tear it down (my notes, not William’s). It is 11:30 now and William announces that we are going to walk back to the car, go to lunch (Peking Duck), and then come back to the Forbidden City. DO WHAT? We are standing in front of the entrance to the Forbidden City and you want us to backtrack 2 miles that we just traversed and then do it all over again. I don’t think so.

But William had his orders and he was not supposed to vary from "the plan". “William, no offense, but that doesn’t make any sense. We’re going into the Forbidden City.” William had no choice so all four of us press on. Never had a driver stayed so close. Probably another mile or so within the Forbidden City and a couple of hour’s tour. It was fascinating but I bought “the book” because I knew there was a lot of information missing from our tour. The book was a grand idea.
Click here for additional photos of the Forbidden City.

The Imperial Gardens at the Forbidden City

By now we knew to question William’s tour plans. What next boss? The Temple of Heaven Park. OK William, where and how far. William insists it's a short walk through a residential area. We ask William to send Driver the long trek back to the car and to meet us at the entrance to the Park. On the way, we see a restaurant on a corner and by now it is 3:00. We want to stop in and have a tea and a cup of soup – anything. William has panic attack and so we trudge on. It was not a short walk and it was not scenic, so I hailed a cab. By now we’re thirsty, hungry, and our feet ache. The park is absolutely beautiful but not so large and we did the tour in short order. There are few parks in Beijing so the people are understandably proud of this gem. You won’t be surprised to learn we had a long wait for Driver.

Local musicians entertaining visitors to the Temple of Heaven Park

William had further plans for us but we pull the plug for the day. “Back to the hotel!” He is shocked. His plans were to take us God knows where else and then we were going to dinner and bar hopping. We barely contained an “ARE YOU CRAZY? BAR HOPPING???” His favorite restaurant was Kentucky Fried Chicken!

On the way back, Driver gets pulled over by the police and gets a traffic ticket for an illegal left turn. Like I said, China is new to driving so the police just stand at an intersection and pull drivers over one behind the other – just like fishing from a barrel. We were eternally grateful to finally reach our hotel. Here's our cop:

At this point we’re not completely suspect and we really want to see the Great Wall so we plan to regroup the next day for the 1.5-hour drive outside the city.

By Day Two, Driver is doing better without a clutch and we doze most of the way to the Great Wall, then we suddenly realize we’re getting pulled over by the police again. This time Driver panics because he can’t find his driver’s license, but finally locates it. William gets out too and immediately comes back and says, “This is serious! Stay put … don’t get out of the car!” and rushes off again. We look out the back window and the police are marching a group of men down the road en masse, obviously to give them a group driving lesson on traffic circles (something new to the Chinese apparently – we were going the wrong way in the traffic circle). William soon comes back to reiterate the seriousness of "our" situation. “We can go to prison for two years!! And they're going to confiscate the car!” What's this "we" stuff? And he runs off again completely wild-eyed. We figure we’ll just get a taxi, but we’re in the middle of nowhere and couldn't beg, borrow, or steal a taxi.


Everything unravels at this point. William practically screams that they can’t prove who the car belongs to and why we are all out joyriding in this car none of us owns. He says the car belongs to Tiki’s mother and that he doesn’t know Tiki’s last name and can’t get her on her cell phone (she can’t answer because she’s at work). “This is really serious. Don’t get out of the car!!!” We ask “Who do you work for?” now more suspicious about what is going on. “I work for you,” cries young William contemplating how he’ll look in prison garb. We realize just how tenuous our employment relationship is since we have no idea who any of these people are and that we are not under the aegis of any licensed agency.

So we call our “business connection” that got the ball rolling for the tour. He didn’t seem to be in the least bit concerned and William put him on the phone with the police. I don’t know what he said, but it did the trick and we were soon on our way sans a roadside-issued prison sentence a second traffic ticket in as many days.

Note: Chinese officials including the police are very foreign tourist friendly. They are very hard on their own Chinese population but they have been carefully groomed for the Olympic coming-out party. No need to fear the police as a tourist - they're the good guys.

I’m sure you see the transparency of the scam now. We later learned that we really did have a tour guide arranged through a licensed agency but he cancelled the day before. Tiki being an enterprising young Chinese woman, decided to handle this on her own outside her employer. She came up with two college students to provide services as guide and driver and her Mom contributed the car for three days. William and Driver are paid a pittance and Tiki pockets a very handsome profit charging us retail tour prices.

Nevertheless we were not too bothered by all this, but rather thought it pretty funny and shame on us. Insurance matters are such a gray area in China that we don’t think there would have been anything in the way of liability insurance even with a licensed agency. (We never verified the insurance question, the horse was already out of the barn at this point.) We managed to see the Great Wall and we saw the Olympic venues and then, we were done, not with China or Beijing but with our tour trifecta!!!

We thanked the two young entrepreneurs (after all it was not their fault) but explained that we did not need their services for the next day. Undaunted, William and Driver show up the next morning for day three of “services contracted for”. We could see where this was going. Yeap, that’s an E for Effort. Tiki hunted us down after she got “off work” to collect her hard-earned money. When confronted with the situation she looked duly shamed and repentant. Needless to say we settled on a price less than retail and she considered herself very lucky. She said, “ I learn a very big lesson” as we stood in the hotel lobby in the shadow of a massive security force for the Olympic Committee conference. But she had the nerve to ask us about the guides she had booked for us in Shanghai. I guess there really was no shame.

After the fact, we wouldn’t give anything for this experience and all the insights we gleamed from William on what it is like to be a 24-year old college student in China - preparing to launch the rest of his life. We didn’t have the kind of in-depth knowledge we’re used to in a guide, but it wasn’t dull, we obviously didn't die, we saw our most sought after sights, and we had a one-of-a-kind experience.

But we were lucky. Things could have been different, which is why I am relating this story. In Shanghai we had a very, very good guide and probably the best driver I’ve ever had anywhere, and a very comfortable car. I’ll share a few photos, but no one-of-a-kind stories like touring in Beijing with William and Driver. (I defer from including their photos here for obvious reasons, but they'll be in our personal photo albums for all eternity.)

Caveat Emptor.

Related Real Concept blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai



April 24, 2008

Olympic Preparedness and Beijing's Astounding Boom

Real Concepts' China Series

The Olympics have never before been hosted by a city under so much unprecedented growth and development. The effect of such a powerful explosion has placed a great deal of stress on air quality in Beijing in advance of the Olympics. Weather is just the luck of the draw, but if the Olympic Committee is expecting Colorado blue skies in August, they better go to Colorado. Postcard blue skies are a rarity in Beijing.

Part of the Olympic Village:


Although not the final tally, Beijing's earlier estimate of the cost to host the Games stood at $36 billion - double the initial estimate and 32 times the cost of the Los Angeles 1984 Olympics. Beijing tops the list of Olympic host cities as far as the size of the building spree surrounding the Games. But then no other city has been in middle of such a massive construction and development boom as Beijing has been for the last 15 years. (ULI source, sorry members only).

During our recent visit to Beijing, we happened to stay in the same hotel hosting the Olympic Committee pre-games
conference. That was an interesting twist. Several days prior to the official conference there was a host of Committee members meeting in small groups around the hotel and we were fortunate to have overhead some innocuous conversations in the elevators and over cocktails.

There was one thing on everybody’s lips … the air pollution in Beijing. UNBELIEVABLE! No public discussion on Tibet and human rights (they must have deferred all comments to Richard Gere and Al Sharpton) but the Committee members we observed were like us, absolutely agape at the level of pollution. I can only imagine what the air quality will be like in August. The Chinese are making assurances that all will be well. The
Official Chinese Olympic Committee reports on their official web site the official position on air quality for the Olympics as follows:

"On environmental protection…. Air quality in Beijing has improved in nine successive years. …The 13 waterways in the urban area have been cleaned, and forest coverage has reached 51.6 percent. Beijing is engaged in the 14th phase of its air pollution control efforts and aims to make 70 percent of the year have good or fair air quality… A recent survey by an international air quality monitoring agency has found that the air quality in Beijing in August would be good and would not impact the athletes."

To read in its entirety
click here.


Any visitors with asthma better stay home. The Chinese are capable of incredible feats of action but cleansing this air by August will be a real test of talent. Perhaps the skies over Beijing are Teflon coated and the pollution will be easily shed. We’ll see soon enough. This is a photo taken in downtown Beijing in mid-afternoon on a day with a 5 percent chance of rain:


Beijing is a thousand shades of gray but the government is planting away. Thousands and thousands of trees have been newly planted. The city might take on the established green look of Shanghai in the next decade, but not by August. If the government has forested over 50 percent of the Beijing urban area (see above) I can’t fathom where they found land to accomplish that feat.

From the airport to the city the parade route has been “beautified” with newly planted trees, trees, and more trees. The usual slums that often claim the real estate between major airports and city centers were obviously absent. Perhaps another relocation project. Today the drive from the new Beijing airport to the
Olympic venues and Beijing’s center is almost pretty and hassle-free on a new super highway.

A large number of new subway lines will connect the downtown areas to the stadiums, and after the Games will connect downtown to the suburbs. Beijing will also connect a rail line to the
Capital International Airport and incorporate it into the general metro system.

The trees must still be arriving for the expansive green areas around the Olympic Park because as of last week it looked more akin to a war zone (as most commercial construction sites do) although the
Olympic Stadium, casually known as the “Bird’s Nest”, is a unique and beautiful design:



The Chinese are akin to a force of nature when it comes to completing their intended projects. I don’t think anyone doubted their venues would be ready well in advance. The
Chinese Olympic Committee reports, “On the construction of the Olympic venues, Liu said 36 of the 37 competition venues are already complete, and the National Stadium will be inaugurated this month. Meanwhile, all 45 independent training venues are complete.” I’m a believer.

Here is a photo of the National Aquatics Center, also known as the “Water Cube”, which is across from the “Bird’s Nest”:

You have to look long and hard to find a really old neighborhood in Beijing. It is a controversial subject and the actual numbers are much debated, but some sources claim that as many as 1.5 million people in Beijing were evicted without adequate compensation during the city's redevelopment for the Olympic Games. Much more on this in a forthcoming posting on China's property rights.

China is also very cognizant of the food safety issues and is trying to institute food safety systems for the Olympics. Word of advice on the food and water … be very careful. Drink purified water, don’t eat food from street vendors, and pack lots and lots of Purell in your checked luggage. Never go anywhere without hand sanitizers.

A parting word on Beijing and the Olympics … We hope that the Beijing Olympics will be a solid success, first and foremost for the athletes that have worked so hard to represent their home countries. As an introduction of the world to the new China, I hope that all will acknowledge how far and fast China has come in the last fifty years. All is not perfect, nor will it be by August, but the journey has been a long one and in many ways incredibly successful. In other ways, China has not fully lived up to its commitment to improve human rights. Although all death sentences now have to be reviewed by the highest court in the land, the death penalty can still be given for 68 offences, including non-violent crimes such as fraud, bigamy, and Internet hacking. Amnesty International estimates the actual number of executions in China in 2006 to have been nearly 8,000. China's official reports stand in at 1,010 in executions. Who's right?

I am one of the least likely and least capable of persons to address Chinese political issues, but I want to convey an observation gathered from personal experience and research. Right or wrong, China has gone to great lengths to open its doors to the rest of the world. China is very serious about controlling its own journalists and its own people, while dealing with the world with a completely different set of rules. Governing China must be an unimaginable challenge, so geographically vast and divergent a country with a population of 1.3 billion people. The emerging middle-class will be powerful impetus to change as they become a more effective voice within China. China has created incredible wealth since 1978 when Mao's successor took over. Now they will have to live with the empowerment wealth brings, no matter the degree. But for now it is still a China that does not acknowledge the
Tienanmen Square incident of 1989 in its history books, but does acknowledge Mao as a unequivocal hero.

On our visit we had many, many interesting experiences, some perhaps beyond the comfort level of the Bahamas, but we never had a bad, dangerous, or unpleasant experience.

With thousands of visitors heading to Beijing and other parts of China, in my next post I want to relate a personal story about an experience with a guide and driver (no you can't drive yourself in China). Tourism is a fairly new industry for China and particularly for Beijing where the city sport is business. Blindly assuming that a guide and driver picking you up at your nice hotel (when you haven’t booked through the hotel) are legitimate, is frankly naive. But naive we were … caveat emptor.

Related Real Concepts blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai


April 22, 2008

The Ugliest New Building in China, Perhaps the World

Also check out the CCTV fire: Beijing's New Year Celebrations Torch Mandarin Oriental Tower in office complex.

Real Concept's China Series


Whether the new China Central Television (CCTV) headquarters in Beijing is the most beautiful building (actually it is two towers connected), or the ugliest, depends on whose picture you view and on what day. Make no mistake however, it is a fascinating structure and it definitely makes a bold impression.

Here are two different renderings of what the CCTV headquarters will look like upon completion. The Office of Metropolitan Architecture (OMA) is the architectural firm that designed the entire CCTV development of which the headquarters, pictured here, is only a part. The OMA website details the entire development in its three phases.

This photo shows the two towers rising at angles in August of 2007. (From the Wikipedia listing)

As we were driving into downtown Beijing from the airport I was at a loss at whether to gape at the new bright yellow Maserati weaving in and out of traffic at a dangerous speed amongst the new Chinese drivers and wizened bicylists, or stare at this very weird looking building. My husband choose the Maserati with the very hot looking Asian woman driver: I choose the real estate. I thought it was the ugliest building I had ever seen.

On our arrival day we had a few hours of fairly blue skies but at street level there was still a cloud of pollution. I took the next two photos from the taxi as we're rounding the corner for our hotel, seemingly following the Maserati as closely as possible. She left us in a cloud of pollution. We were to discover that was not a common site on the streets of Beijing - the Maserati that is.

These photos were taken April 4, 2008:

You must admit that from this angle, at this stage it looks a little like the akward child growing into its rapidly developing body structure. Gives a new meaning to the term "corner office".

We arrive at our hotel and I open the curtains and the CCTV headquarters was our view. There is no such thing as a good view in Beijing. Here it is the photo taken from our room the next morning. Any hope of even a postage stamp corner of blue sky was dashed. Lovely isn't it, shrouded in smog. Perhaps one day this will be a coveted view.

April 5, 2008:

So now that I have completely disparaged what will probably be a a lovely building when finished (if Beijing clears the air so the building can reflect a blue sky) I will share some information gleamed from the web on the design of this groundbreaking structure.

  • The China Central Television network expects to be broadcasting from its new headquarters for the Olympics. OMA was awarded the project in 2002 and the groundbreaking was in September, 2004.
  • 755 feet tall, with 51 floors - it's goal was not to be the tallest skyscraper.
  • This structure is one of the first of 300 new buildings planned for the Beijing's new Central Business District.
  • The structure of the building involves two 60° leaning towers that are bent at 90° at the top and bottom.
  • The construction of the building is considered to be a structural challenge, especially because it is in a seismic zone. (Oh great!) The cantilevered portion houses CCTV's management offices.
  • The engineering required that the building be built in two sections and then joined at the apex to complete the "loop". In order not to lock in structural differentials this connection was completed at the last minute at the coldest time of night when the steel in the two towers had cooled to the same temperature.
  • Rem Koolhaas and Ole Scheeren, OMA, are the designers of the building. (Do I detect a certain sarcasm in a design that places management precariously perched over thin air with no safety net below. Seems like an "out on a limb" message.)

The OMA website goes into much detail on the project including virtual profiles of the buildings. The following is an interesting excerpt on the OMA design philosophy for the CCTV project.

"The tragedy of the skyscraper is that it marks a place as significant, which it then occupies and exhausts with banality... This banality is twofold: in spite of their potential to be incubators of new cultures, programs, and ways of life, most towers accommodate merely routine activity, arranged according to predictable patterns. Formally, their expressions of verticality have proven to stunt the imagination: as verticality soars, creativity crashes.

"Instead of competing in the hopeless race for ultimate height - dominance of the skyline can only be achieved for a short period of time, and soon another, even taller buildings will emerge - the project proposes an iconographic constellation of two high-rise structures that actively engage the city space."

The morale of the story...

What started out as a knee-jerk reaction (mine, I'm sorry to say), from the back of a taxi, to a building under construction in a city in which I had just arrived and knew virtually nothing, developed into a fascination and real appreciation of what this very large and complicated project entailed, both in engineering and sheer genius of bold design. I'd love to go back to Beijing one day and see the entire compound finished and shining in the blue skies (one of these days) of China.

Humble kudos ...

Related Real Concept blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas

China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai

April 20, 2008

China Pushes the GO Button: The New Beijing Airport

Real Concept's China Series

Technically, its the new Terminal 3 at the existing Beijing Capital International Airport, but for all practical purposes, it's a new airport as it takes the airport's capacity from 35 to 82 million passengers. I wrote in a February post on China's infrastructure:

"China’s speed-of-light abilities are illustrated by the new Beijing airport. Beijing’s new airport terminal, the world’s largest (for the moment), was planned and built in just four years with an army of 50,000 workers. It is 1.8 miles long and the floor space is 17% bigger than the combined space in all of Heathrow’s terminals including the new Terminal 5. It was meant to be awe-inspiring and by all accounts it will leave many arriving in August for the Olympic Games, positively breathless. The new terminal is part of a $3.8 billion airport project which is opening weeks ahead of schedule."

And according to Chinese officials, all $3.8 billion was in budget.

Arrival at the New Beijing Airport – Zen 101
April 4th, 2008:


Landing at the new Terminal 3 of the Beijing Capital International Airport ahead of the Olympic throngs felt like attending the dress rehearsal of the year’s most anticipated Broadway show. The stage lights were on, the actors in their places, and ushers at the ready. Soon the seats would fill, but not today, not before opening night.


We touched down on a sea of empty runways. Could it be that there was a Head of State on board and the airport had been cleared for security? We taxied, and taxied, and taxied some more. We saw the new terminal in the distance, sleek as a tiger but fashioned after a dragon. After 40 minutes we finally approached our gate.


Exiting the plane and alighting in the new Beijing Terminal was like walking into an explosion of light and space. Gleaming surfaces. Quiet, subdued ambiance. It was beautiful all right. And quiet. There were few people.


The new Beijing Terminal is the epitome of “build it and they will come.” Coming from the U.S. where public spaces and infrastructure are built only after there is a crushing need, this huge, beautiful, empty structure seemed very much a luxury.


Walking through the Terminal was like walking through cool water. There were plenty of airport personnel to direct arriving passengers and answer questions. Everyone we encountered spoke enough English to provide assistance, at minimum the ability to smile and point. We headed for Customs and figured it would be payback time. Wrong. Although there was no string quartet playing, the wait was short, the Custom officers very efficient, friendly even, and we gladly pushed the smiley-face button on the electronic counter that recorded our level of satisfaction with our experience.


Trains to Baggage Claim...


OK. Off to Baggage Claim. Surely there would be a slip-up somewhere. Maybe the trains wouldn’t work. But they did, again with the precision of a well-oiled machine.

Baggage Claim….Heathrow, eat your heart out! This was Nirvana. The Zen of baggage handling and the facility was so large I think it could handsomely handle luggage for the entire Chinese population and half the visiting world.


We easily found our appropriate carousel and well, you won’t believe this, but there were our two bags making the rounds, awaiting our retrieval. Big smiles all around. There must be an Asian luggage god and he must live in the Beijing Airport.


Off to the taxi queue ...

Very important tip: Be sure to have your destination written in Chinese for your taxi driver. 99.9% of the public drivers speak no more than a few words of English and certainly don’t read the English language. Imagine arriving in New York and handing the cabby your address written in Chinese characters…you’re obviously not going to leave the airport.

One final word of advice before landing in Beijing...While you’re at 30,000 feet take a good look at the blue sky because it will be the last time you’ll see it until you leave Beijing. More on this later.

On Departing Beijing – The Rest of the Story…

April 8, 2008

We’re at 30,000 feet heading for Shanghai. I’ll have to backtrack to report on Beijing but first a word about flying out of the Beijing airport.

On first arriving in Beijing we overheard a conversation about the required airport arrival times for departing flights – three hours for an international flight. At our hotel we confirmed that was indeed the case. We looked on as a hotel guest tried to make arrangements to catch a 7:00 a.m. flight the next morning. He had to be at the airport at 4:00 a.m. and so needed to leave the hotel by 3:30 or to be on the safe side by 3:00 a.m. The check-in desks for flights are CLOSED one hour prior to departure time. Plan appropriately. The Chinese are taking security to a whole new level as we were to soon find out.

We happened to fly out of Beijing from the old terminal (instead of the new gleaming Terminal 3) on a domestic flight. Going through security was interesting. When we flew out of Macau we were asked if we had any water with us. “No.” O.K., this way please… In Beijing we found a zero tolerance for liquids at the security screening although their web site says you can have verifiable liquid medication and two (2) 500ml bottles of liquid in your carry-on. Don't necessarily rely on the Chinese airport web sites for applicable information. It can and does change on a dime.

Everything including tiny one-application cosmetic samples had to be left. A spare pair of contact lenses had to be opened and sniffed to pass inspection (what do I do with them now – two shriveled up contact lenses - my last pair) and I had to snort my Nasacort allergy spray to demonstrate it was not an explosive disguised as a prescription drug. Anyway, I felt pretty darn helpless at this point. I have no contacts, no solution to clean my only pair of contacts in my eyes and the solution I use is not available in China. I can’t get a pair of glasses because I can’t read the eye chart in Chinese. Enough about me ... consider it a warning.

Reading the Shanghai Daily newspaper the next day at breakfast I better understood their security shakedown. The news reported the discovery of a terrorist plot to kidnap Olympic athletes and disrupt the games. Few other details were forthcoming.

Now, back to Beijing.

Related Real Concepts blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas

China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai





April 18, 2008

Macau: China's New Las Vegas

Real Concept's China Series

Macau, the former Portuguese colony located near Hong Kong on China's southern coast, is the oldest and last European colony in China. Macau, like Hong Kong, enjoys a high degree of autonomy as a special administrative region until at least 2049, 50 years after the turnover.

Traveling from Hong Kong to Macau, China's version of Las Vegas, is a snap. One hour on a jet boat with a first class seat gets you a Pabst Blue Ribbon beer, a sandwich, and a no-hassle passport to luxury with a capital L. Macau has an international airport, but if Hong Kong is your travel origination, the water route is the easiest transport.

As we traveled toward the epicenter of Macau we could only imagine the similarities to the early days of Las Vegas when there was still vast expanses of soon-to-be-developed desert. The new construction here boggles the mind. Property values have doubled in the last four years (doubled in the last year according to some sources, i.e., Steve Wynn) and international-standard properties, formerly thin on the ground, now abound. 2007 was an unprecedented year for Macau. Last year Macau surpassed the Las Vegas Strip in terms of gambling revenues taking in over $10.3 billion US, up 47% from 2006.

We arrived mid-day and the foggy weather followed us from Hong Kong, and although the casinos were not lit up as in Vegas, they were impressive nonetheless. We passed the the Wynn Casino and Hotel and after crossing a long bridge and entered what must have been the old city of Macau. After a few minutes we were sure the taxi driver had misunderstood that we were going to the new Venetian Resort. "Yeah, yeah, yeah...." he assured us, we were indeed headed for the Veneitian. "If you say so." Sure enough after passing construction crane after crane we finally pulled up infront of the very impressive Venetian.

Our mouths dropped open at the extravagance and expanse of The Venetian, owned by the Las Vegas Sands chain. It opened in August of 2007 and at its opening became the world's largest hotel and casino. Have a look at the lobby (or part of the arrival hall)...

And this was our room. You might think that we took advantage of the company's expense account,, but not so. This is not the Presidential Suite but rather a regular room, excuse me, 750 square foot suite. All the rooms are suites and all this for princely sum of $204 US including breakfast and a free jet boat pass to Hong Kong.

The service was pretty over the top, as you would expect from the effort that went into the entire project. We had to wonder where all the beautiful young emplyees came from, where did they live, and how did they train them all with such mannerly precision and grace?

With 3,000 rooms, restaurants of all cuisines too numerous to list, live entertainment, spas, gyms and pools, there was never a reason to step foot off the grounds. The shopping under roof was so huge, and of course high-end luxury, there were guides available just for the shopping.

Below is a promenade by the outside pool area.

The relentless construction, in practically every corner of Macau, was easily evidenced beside the Venetian and it was a 24-hour a day enterprise. Below is a photo taken from The Venetian's pool area of the Four Seasons Casino and Hotel under construction where a lighted crane continues its work throughout the night. Lighted cranes and 24-hour construction seemed the norm on many buildings in Macau and Beijing. No union worries.


The Venetian rightfully grabs your interest by its interiors, not its views. As you can see from our room, we are not there for the view, but this is an interesting look at the infrastructure necessary for such a mammoth operation.



And this view illustrates the construction as far as the eye can see ...

Next stop is Beijing where the construction is almost overwhelming - cranes on every corner.


Related Real Concepts blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas

China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai

April 16, 2008

Hong Kong a Bright Spot in a Red China Awash in Gray

Real Concept's China Series

There is not much left of Mao's Red China. With the passing in all but name of communistic ideology from mainstream thought and action, the "red" in China has been replaced with "gray". Bicycles are being replaced by cars (at least in the cities), the Chinese heritage is being replaced by high-rise capitalism (the only reason the Forbidden City still exists is that Mao ran out of funds to raze it), blue skies have been replaced by gray skies, and clear air has been replaced by pollution of the highest order.

That all sounds a little leftist doesn't it? Which I'm not, but anyone desiring a gulp of clean air and a view of blue sky will thank the environmentalists of decades past for saving us from ourselves. With China as an example, we can realize the value of what we saved. All this from a devoted developer advocate of 30 years, most of which was spent before the glory days of the green movement.

The shades of gray are limitless in China. I did not see the sun for the two week duration of our visit to Hong Kong, Macau, Beijing and Shanghai.

Hong Kong was gray for the four days we were there, but that was a temporary state. The cause was only fog - deep, opaque fog:

Last year I witnessed the view from Victoria Peak and even on a cloudy day it is spectacular:The Hong Kong skyline is equally impressive at night. Imagine what it must look like for the Chinese New Year celebration.And high-quality beautiful architecture and parks:
The longest, tallest escalator in the world for the ride up for the top-side apartment dwellers, but you have to walk down. No gyms along the way:But this trip it was hard to see across the Hong Kong harbor, so socked in by fog the city seemed blanketed with fine raw silk. I chose the wrong day to venture outside the city via Hong Kong's très sleek, efficient metro to see the tallest Buddha in the world. Here was the result...So I settled for taking a photo of a billboard of a blue sky and to illustrate that the seemingly universal appetite for bigger and better in housing is alive in Hong Kong. "Pursuing Living". Catchy turn of phrase:
Deserving of blogs of their own: Macau, Beijing, and Shanghai.

Macau was gray. New construction gray – Las Vegas without the lights, gray.

Beijing was a thousand shades of gray. Where do I begin?

Shanghai was green with gray overtones. Twenty million people compressed in one city has to leave a carbon footprint somewhere.

Hang around for the rest of the China story.


Related Real Concepts blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas

China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai

April 15, 2008

On Leaving China ...

Real Concept's China Series

Homeward bound.

Just 19 more hours and I will be on U.S. soil. Sitting on the tarmac in Shanghai heading for Atlanta via Soule, Korea, it seems like an eternity. I’m sitting next to this guy who writes the rule book for and oversees service standards world-wide for many of the big hotel/casinos like Wynn, Venetian, and the like. This should be interesting. I sent my husband on to Taiwan to make some money to support my blogging habit.

When my husband and I headed for China several weeks ago, I had all intentions of posting blogs along the way. Hong Kong, Macau, Beijing and finally Shanghai. But all that resulted was a two-week blog silence across the miles. I apologize to my three loyal readers for abandonment without a word of explanation, but I way over estimated my abilities to produce blog material, deal with China’s internet restrictions, and see China at the same time.

I also have a bone to pick with Blogger. In Shanghai Blogger suddenly decided I could write Chinese and when I tried to sign in I could not do so in English. Outlook would not send emails although I could receive (but not for long)and the connection speed was really slow. Then I read in the newspaper this morning that Shanghai was upgrading its internet speed by 2000%. Electronically Shanghaied in Shanghai. Beijing, by comparison, is techno ready for the Olympics, or so it seemed.

Shanghai, old and new...


I repeatedly heard complaints about blocking and censoring of email transmissions by the Chinese government, including blame lavished by the hotels. I thought these people were a little paranoid, including CNN. After posting three various industry pieces while in Hong Kong, Macau, and Beijing, and sending several China-descriptive emails (which disappeared into thin air without a trace), I was virtually shut down. I could maintain an internet connection for only a short period and my Outlook was completely corrupted. I could not even open the program. Nothing in, nothing out. I was out of business.

I still refuse to fully believe I was a target of censorship in some degree. The adage that when it comes to computers, it’s usually the operator definitely applies to me. But yet…from a recent article on property rights in China (more to come) from the Economist…(China) “still runs a government that does its best to silence most dissenting voices, strictly controls the press, and lavishes resources on the best cyber-censorship money can buy.” I would love to flatter myself that I was so important the Chinese government was censoring me, but I am, if nothing else, an apt realist. Or at least I like to think so.

Beijing new construction at the epicenter of the Olympic area...more to come.


It seems inadequate to describe China as fascinating and amzaing. Both statements are true on so many different levels.

So vast – 3.7 million square miles (US - 3.5 million square miles)…

So crowded – 1.3 billion people or 354 per square mile (US population is 296.4 million or 80 people per square mile). China’s population would be almost 400 million higher without the government’s family-planning policy, introduced in 1979, which restricted couples from having more than one child. This has produced an entire generation of only children. 90% of the Chinese we met were only-children…

So linguistically diverse with five recognized dialects and a written language using two recognized alphabets and a wide range of ethnic and regional variations…

So complicated scholars devote lifetimes to the study of all that is China.

A two week visit does not make me an expert on anything Chinese but I will share some observations and photos from perhaps a naïve but honest and fresh perspective.

China is a gold mine for a blogger and I’ve much I’d like to share from politics to real estate, the upcoming Olympics, and topics beyond my comprehension only two short weeks ago. But for now I have to shut down for take-off.

A few glasses of wine, a hot meal, a transfer in Soule to try the new Delta route directly to Atlanta (hooray for skipping LA this time), a few hours of sleep (hopefully) and I’ll be gladly back on the blogosphere on the other side of jet lag.

Xie xie. Thanks for hanging around.


Related Real Concepts blogs on China:

Planes, Trains & Automobiles: Infrastructure as Asset Class

On Leaving China ...

Hong Kong a Bright Spot in a Red China Awash in Gray

Macau: China's New Las Vegas

China Pushes the GO Button: The New Beijing Airport

The Ugliest New Building in China, Perhaps the World

Olympic Preparedness and Beijing's Astounding Boom

Tourism and Touring In China

Big Bang Theory Applied to Beijing's Infrastructure Growth

China's Property Rights

Last Stop - Shanghai