If the proposed increases are approved, the rate of return on average net fixed assets is predicted to remain low at about 7% and 6% respectively for 1979 and 1980.
25
Table (1) below has been prepared on the basis of
a route-by-route analysis prepared by the company in 1978, those 1978 costs being inflated on a pro-rata basis. In examining the figures in Table (1) it should be borne in mind that:
(a)
The Hong Kong/Tsuen Wan service is included under the heading of "Cross Harbour Services".
(b)
All costs for triple-deck ferries are included in the "Outlying Districts". Accordingly revenue from the Jubilee Street/Kwun Tong Service from weekday Triple Deckers (but not from Hoverferries) is included in Outlying Districts.
Table (1)
1977
1978
1979
1980
$'000
$ '000
$1000
$'000
Contribution to Overheads
Vehicular Ferries
7,348
6,875
8, 597
8, 079
Cross Harbour Ferries
7,841
10,096
10,086
7,424
Outlying District Ferries
4,075
2,933
3,415 6,028
Total
19, 264
19,904
22,099 21, 531
General Overheads
12,313,
10,829
12, 615 13, 738
Profit on Ferry Operations
6,951
9,075
9,483
7,793
====
Contribution to profits by type of service
26
The level of contribution from the Outlying District Services appears high, but it should be borne in mind that in 1980 it is anticipated that at least $2.5 million of the contribution will be earned, not on bona fide Outlying District Services, but from the Night Club, excursions and launch hire services and from the Jubilee Street./ Kwun Tong Service.
G.S. 166
CONFIDENTIAL #B
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