$380m motorsports project on track to be completed by end-2011
Christopher Tan, Straits Times 14 Dec 10;
CONSTRUCTION of Singapore's first permanent motor racing circuit has begun.
SG Changi, developer of the Changi Motorsports Hub, which costs around $380 million to build but which could spin off much more for the tourism industry and other businesses, got its permit to start work from the authorities last week.
Despite the late start since SG won the bid in March, its managing director Teh Leong is hopeful that the facility can be competed by the original target of end-2011.
It will include a 3.7km track that can host all motor races except Formula One. He expects the first race - a car event - to flag off by March or April 2012.
'We have to work harder to make sure it is ready on time,' he said yesterday . 'If not, it might affect the 2012 airshow which is in February 2012.'
The Singapore Airshow site is next door to the hub's 41ha grounds off Changi Coast Road. If construction is still going on, visitors to the airshow will be inconvenienced by the traffic diversions, noise and dust.
The news of progress being made also puts the brakes on speculation about SG Changi being cash-strapped.
'Rumours about us not having enough money to start are not true,' Mr Teh said.
The site has been left largely idle since SG Changi, a Japanese-led group that includes home-grown Jurong Kart World, beat two other bidders to build and operate the racing facility for 30 years.
This sparked talk that the development could have stalled, fuelled by the sudden resignation of director Genji Hashimoto, a former race driver. He has been replaced by businessman Moto Sakuma.
But since SG received its provisional permit (PP) to begin work, heavy machines have rolled in. 'The truth is, I wish the PP could have come earlier,' Mr Teh said. 'But I understand this is not a condo or shopping mall. There's no precedent here so everybody is extra cautious.'
The star draw at the venue will be MotoGP, the motorcycle equivalent of Formula One which is said to have a worldwide audience of 400 million. It is held in 18 venues globally, including Japan, Australia and Malaysia.
Asked how SG Changi intends to make the hub a viable business given the track record of loss-incurring circuits elsewhere, Mr Teh said: 'Singapore is a unique location. It has safety, security, convenience and ample logistics. We also have a lot of motorsports enthusiasts.'
He added that unlike most other facilities, the project here will rev up with shopping, F&B outlets, a motor museum and a racing academy.
Plans are afoot to build a 250-room hotel on site and develop a 400m stretch of beach fronting the track, after the latter is up and running.
Said Mr Teh: 'It will have a carnival atmosphere. We intend to bring in sumo wrestling, kickboxing and motor shows.'
The venue will be geared towards attracting car companies, with showrooms for rent and a bonded warehouse where 750 vehicles can be stored without paying registration taxes.
The track can be used for R&D work on new models and car launches. Mr Teh said the facility is slated to have 20,000 permanent seats and 10,000 temporary ones but can be expanded to accommodate up to 60,000 spectators.
He said SG Changi is in talks with car clubs on membership schemes for those keen to use the track for private races.
Nevertheless, the main purpose of the hub - which can be operated 24/7 - is competition. Mr Teh aims to hold more than 10 races, both night and day, a year.
Mr Tan Teng Lip, president of the Singapore Motor Sports Association, is relieved the hub is a step closer to reality after years of discussion and planning by the Singapore Sports Council and other parties.
He is optimistic that the builder can meet the December 2011 deadline. 'It is not close to a residential area so they can work round the clock if necessary.'
He said the crucial parts - pit building, grandstands and track - should be finished on time.
