Four outlying ferry routes to be re-tendered
The Transport Department announced today (February 14) that it had completed the assessment of bids for the licences of the six outlying island ferry routes.
The department considered that proposed fare levels in the bids for four of the routes - Central-Peng Chau, Central-Mui Wo, Central-Yung Shue Wan and Central-Sok Kwu Wan -were exceedingly high and decided that it would re-tender these four routes.
A department spokesman said that in the tendering exercise conducted in September to October, 2007, for Package 1 (Central-Cheung Chau and Peng Chau-Mui Wo-Chi Ma Wan-Cheung Chau ("Inter-island") routes), Package 2 (Central-Peng Chau, Central-Mui Wo routes) and Package 3 (Central-Yung Shue Wan, Central-Sok Kwu Wan routes), only one bid was received for each package.
He said the proposed fares for the Central-Peng Chau and Central-Mui Wo services were found to be increasing by more than 30%, while the proposed fare increases for Central-Yung Shue Wan and Central-Sok Kwu Wan were up to 35% and 50% respectively.
The department believed that most local residents would unlikely accept the proposed fares in these bids, which were substantially increased.
"We have decided to re-tender these ferry routes. To further help reduce the operating costs of these services, the Government will waive the vessel-related fees for these four routes," the spokesman said. "At the same time, we hope that the residents will reconsider adjusting ferry services during non-peak hours that won't affect their normal trips to and from work and schools, with a moderate change in service frequency from every 45 minutes to every 60 minutes, which will help bring down the operating costs.”
"We would like to appeal for the residents' understanding that the magnitude of fare increases for the four routes could be reduced if suitable service adjustments could be made."
During the local consultation conducted in mid-2007, the department already pointed out that if the routes were to continue to be operated according to the existing service arrangements, residents would probably need to face the risk of substantial fare increases.
"To attract more bids for the Central-Sok Kwu Wan and Central-Peng Chau routes, particularly from operators with fewer vessels, we also intend to tender out the four routes in four separate packages, making the tender process more competitive."
"It is the Government's established policy that public transport services should be run by the private sector or public corporations in accordance with commercial principles and that no direct subsidies will be provided for their daily operating expenses. However, to help reduce the operating costs of the outlying island routes, the Government has already been implementing a series of measures, including taking over pier maintenance responsibility, waiving fuel duty, reimbursing pier rentals and exempting the vessel licence fees for ferry services under the Elderly Concessionary Fares Scheme.
"The Government also allows operators to sub-let premises at piers for commercial and retail activities. Ferry operation is being cross-subsidised from these non-fare box revenues to alleviate pressure for fare increases," the spokesman said.
For the four routes to be re-tendered, the Government has decided to waive the vessel-related fees during the three-year term of the new licences. In the long term, the Government will consider the feasibility of taking the opportunity of the proposed development in the Urban Design Study for the New Central Harbourfront to enhance the financial viability of these services. It is proposed in the study that Central Piers No. 4, 5 and 6 would be given a facelift with the addition of a new floor. In the context of this study, the Government will consider the feasibility of allowing operators of the outlying island ferry routes to sublet the rooftop levels for commercial or retail activities. This measure, if pursued, would help increase the financial viability of these services and help keep passenger fares at reasonable level.
TD will consult the residents about the re-tendering arrangements as soon as possible, aiming to re-tender these routes in the first week of March 2008 so that results can be out by the end of April for the new services to start in July. The current operators have agreed to extend their services until the end of June.
As for the Central-Cheung Chau and Inter-island routes, TD has accepted the bid and decided to grant the licence of these two routes to New World First Ferry Services Limited. The new licence will be effective from 1 July 2008.
Ends/Thursday, February 14, 2008
Issued at HKT 16:05