SECTION 5 - PUBLIC TRANSPORT

Hong Kong has a diverse multi-modal public transport system, comprising an electrified Kowloon-Canton Railway, a Mass Transit Railway, an Airport Railway, a Light Rail Transit, a tramway, franchised buses, public light buses, taxis, residents' services, a funicular cable tramway and ferry services, extending to almost every part of the territory.

As the economy recovered, public transport patronage increased in 1999 by 0.6% over 1998 to 10.65 million passengers per day. The biggest increase of 2.8% was recorded on the franchised buses, while patronage on the railways decreased slightly by 0.5%. During the year, there were continuing improvements in the quality of franchised bus services, (e.g. more air-conditioned buses of Euro II standard and with Octopus equipment). In the cross harbour sector, Route 3 and West Harbour Crossing substantially shortened bus journey time such that bus routes offered an attractive alternative to the railways. More competition was injected into the bus market by the selection of New World First Bus Services Limited, which was previously an operator based on Hong Kong Island, to operate in the New Territories new town of Tseung Kwan O. The decrease in rail patronage was mainly due to the keen competition from the franchised buses combined with increased public sensitivity to prices during slow economic times.

The franchise of the Hongkong and Yaumati Ferry Company Limited (HYF) expired on 31 March 1999. The ferry services operated by HYF were grouped into eight packages and tendered out as licensed services at the end of 1998. Three-year licences in respect of these route packages were granted to HYF, Star Ferry Company Limited, Hong Kong and Kowloon Ferry Limited; Shun Tak Ferries Limited and Discovery Bay Transportation Services Limited which commenced services on 1 April 1999. With the approval of the Commissioner for Transport, the HYF licences were subsequently transferred to New World First Ferry Services Limited, which took over the operation of these services from 15 January 2000.

In October 1999, the Government announced A Transport Strategy for the Future. Under this strategy, railways were promoted as the backbone of Hong Kong's transport system, with other modes playing a supplementary although still very important role to ensure that commuters would continue to have choice of services.