Results of tenders for operation of six outlying islands and three inner harbour ferry routes
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The Transport Department (TD) today (March 25) announced the results of the tenders for operation of six outlying islands and three inner harbour ferry routes.
Regarding the six outlying island ferry routes, after thorough consideration of the tender submissions, the TD decided to award the licences for operation of the Central - Cheung Chau, Inter-islands, and Central - Mui Wo routes to New World First Ferry Services Limited; and the licences for operation of the Central - Peng Chau, Central - Yung Shue Wan, and Central - Sok Kwu Wan routes to three subsidiaries of Hong Kong & Kowloon Ferry Holdings Limited. The new licence for the Central - Mui Wo route will be effective from April 1, 2011, while the new licences for the other five outlying island ferry routes will be effective from July 1, 2011. The validity period of all licences is three years.
As for the inner harbour ferry services, the TD decided to award the licences for operation of the North Point - Hung Hom, North Point - Kowloon City and North Point - Joss House Bay routes to New World First Ferry Services Limited. The new licences will be effective from April 1, 2011, for a period of three years.
The average fare increase rate under the licences awarded to the six outlying island ferry routes is about 10%, whereas the average fare increase rate of monthly tickets is about 7%, as set out below:
Increase
Increase Rate of
Rate of Single
Monthly Journey Effective
Route Ticket Adult Fare Date
------ -------- ---------- ---------
Central- 7% 11.06% to 11.54% April 1,
Mui Wo 2011
Central- 7% 9.33% to 9.63% July 1,
Cheung Chau 2011
Peng Chau- Not 9.91% July 1,
Mui Wo- applicable 2011
Chi Ma Wan-
Cheung Chau
(Inter-islands)
Central- 7.11% 9.39% to 12.5% July 1,
Peng Chau 2011
Central- 7.07% 11.03% to 11.5% July 1,
Yung Shue Wan 2011
Central- 7.09% 11.86% to 12% July 1,
Sok Kwu Wan 2011
The last fare increase of these six major trunk outlying islands ferry routes was in 2008.
In addition, with effect from April 1, 2011, the adult single journey fares of the North Point - Hung Hom and North Point- Kowloon City routes will be adjusted from $4.5 to $5.5. The fare of the North Point - Joss House Bay route will remain unchanged at $30.
The spokesman said, "In handling the tender submissions of outlying islands ferry services, the Government has already made prudent and detailed assessment of the financial information and data as well as the proposed fares submitted by the operators. The Government has also endeavoured to lower the fare increase rates proposed by the bidders through providing a package of helping measures to the ferry companies."
The spokesman added, "To reduce the impact of fare increases on residents of the concerned islands, we have already reduced the fare increase rate of monthly tickets as far as possible. The fare increase rate of monthly tickets is about 7%, which is lower than the overall average fare increase rate. The accumulative inflation rate for the past three years is higher than 7.5%."
The spokesman said that the Government was prepared to subsidise the six routes at an amount of $120 million during the three-year new licence period through providing a package of helping measures including reimbursing the operators for the vessel maintenance costs incurred, waiving the annual vessel survey fees and private mooring fees etc., in order to significantly reduce the fare increase rate.
The spokesman added, "The fuel price hike in recent months has pushed the fuel costs to a high level. In addition, the statutory minimum wage to be effective from May 1 this year will also have significant impact on the staff costs of ferry operators, which have a high proportion of junior staff. These factors coupled with the lack of growth in patronage have led to a great pressure on fares."
The current service levels of the six outlying island ferry routes will be maintained with some service enhancement on individual routes in light of the views collected in the earlier consultation conducted by the TD.
As for the fares of the North Point - Hung Hom and North Point - Kowloon City routes, the spokesman said that taking into account the fact that there had been no fare adjustment on these routes for 11 years since 2000, together with inflation, the increase in fuel prices and the statutory minimum wage, the Government considered that allowing the ferry operator to charge the fares as proposed in its tender submission could enhance the long-term financial viability of the two routes.
The spokesman said, "The Government will continue to ensure the sustainability and stable development of ferry services, while keeping the fares at an affordable level to the members of public."
Ends/Friday, March 25, 2011
Issued at HKT 15:23
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Attachments : New fares of Six Outlying Islands and Three Inner Harbour Ferry Routes