TD approves HYF's ferry service licences transfer
The Commissioner for Transport has given approval to an application from the Hongkong & Yaumati Ferry Co. Ltd. (HYF) to transfer its ferry service licences to New World First Ferry Services Limited (NWFF), a wholly-owned subsidiary of New World First Holdings Limited.
The operation of eight licensed ferry services: six serving the outlying islands and two across the harbour will be taken over by NWFF in mid January 2000, allowing the new company a gearing up period of about 10 weeks.
Section 30 of the Ferry Services Ordinance allows a licensee to transfer his licence with the approval of the Commissioner. Under the current transfer, NWFF will assume the responsibilities of HYF to operate the ferry services for the unexpired term until March 31, 2002 subject to the conditions of the existing licences. The transfer does not involve any change in the service conditions or fares which represent the outcome of an open tender exercise concluded less than a year ago.
The factors taken into account in assessing a transfer of licence are similar to those for granting a licence. In considering the application for transfer of HYF's licences to NWFF, the Commissioner has taken into account the suitability of NWFF to operate the licensed ferry services, including its ability to meet the licence requirements, the adequacy of the proposed vessel fleet, the corporate and financial capabilities, and arrangements for gearing up including staffing arrangements. A gearing up committee comprising representatives from HYF, NWFF and relevant Government departments will be set up to monitor the transition.
In the application, NWFF has given its commitment to provide a proper and efficient ferry service to the satisfaction of the Commissioner for Transport, and will invest in refurbishing the existing fleet. The Company will conduct a review of the services taking into account operational requirements, passenger preference and the financial performance of the services.
"The new ferry operator should be allowed time to settle down and identify passenger needs before considering appropriate changes to the ferry services", a Transport Department spokesman said.
In reviewing the services and developing future plans, NWFF will consult local representatives, take into account the results of the passenger opinion surveys to be conducted by Transport Department, and examine the financial and fare implications.
On staff, NWFF will offer employment to all frontline staff currently working on the transferred services on terms having due consideration to their current terms and conditions and in any event no less favourable than those prevailing in the ferry industry, while HYF will provide an ex-gratia payment to the frontline staff. Management staff will be seconded to NWFF to assist the Company during the initial period.
The Labour Department has set up a hotline (2928 7000) for answering enquiries from HYF's staff. HYF's staff may also call on the Labour Department's Labour Relations Division for assistance.
"While the transfer is a commercial transaction between the two companies, our prime concern is continuity of the ferry services and capability of the new operator to comply with the licence requirements. We will work with the new operator to ensure no disruption to the smooth operation of the essential ferry services and the provision of proper and efficient ferry services," the spokesman said.
Tuesday, November 2, 1999