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7. Considerable difficulty was experienced in handling this heavy passenger traffic owing to the shortage of rolling stock, and the inadequate booking facilities at Kowloon Station. The latter inconvenience was remedied by the building of a new Booking Office which was opened in August, 1947, and enabled crowds to be booked in a much shorter period than hitherto.
It was, however, not possible to alleviate the discomfort and inconvenience caused by the shortage of rolling stock, and it is feared that very little improvement can be expected until the arrival of new coaches from Great Britain which were ordered in 1946.
The
8. There was marked improvement in running costs per train kilometre for both coal and oil burning locomotives during the year as the statistics at statement 10 of this report show. cost of coal not only declined but the quality was better and more uniform than during the previous year. In addition, the main- tenance of locomotives greatly improved and the increased train service resulted in a more intensive use of engines.
There was a rise in the price of fuel oil, but improved maintenance and greater use of engines caused a reduction in running costs.
9. This rise, however, reached a stage when it became necessary to consider whether it would be more economical to continue to use this fuel in place of coal, particularly as the price of the latter commodity decreased. In consequence no further conversions of locomotives from coal to oil fuel took place.
In addition, the delivery charges for fuel oil were considered excessive and it was decided that savings would accrue if the oil was collected direct from the installations. With the co-operation of the Marine Department, a Phoenix barge was converted by the Yaumati Slipway for the carriage of bunker fuel and the necessary pump and starting motor were installed by the Railway Workshops. The barge was placed in service on December 10th, and by the end of the year, savings effected had more than covered the capital value of the barge, plus all conversion and operating costs.
10. Negotiations which had been in progress over a period of two years achieved fruition when this section secured the recognition of its ownership of three locomotives, one 65-ton break-down crane, 14 machines, 27 coaches and 63 wagons which had been moved to the interior during the Japanese occupation. All were returned before the end of the year except six coaches and one locomotive on the Canton Hankow Railway. The six coaches were sold to the latter administration and negotiations were in progress, when the year ended, for the sale of the locomotive. Unfortunately, the return of the rolling stock did not alleviate the overcrowding between Kowloon and Canton, as the 21 coaches returned had been operating between the two terminals under ('hinese ownership throughout the year.
11. An agreement was also reached regarding the hire and demurrage of rolling stock. The British Section agreed to supply a quota for the through service of 20% of the coaches and wagons,
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the ratio being the same as the division of through receipts. Coaches and wagons in excess of the quota were paid for at the rate of $50.00 per coach day, and 50 cents per ton capacity of the wagon per day increasing to $1.00 per ton for delays above certain periods. This arrangement commenced from March 1st, 1948. The balance accruing to the British Section for that month was $12,860.
It was
12. In some respects the year was disappointing. hoped that the link established with the C.II.R. in July, 1946, would have resulted in a steadily increasing volume of goods traffic between the Colony and the interior. Unfortunately, these hopes failed to materialise owing to the continuous restrictions which were placed on imports and exports from China by the Chinese Government while the decline in the value of the Chinese dollar made normal trading difficult. In consequence there was a decline in the quantity of through goods traffic, the drop in revenue from this source being $103,667.
13. A further cause for disappointment was the absence of a Working Agreement with the Chinese Section. Joint traffic working between the two Sections was carried out by adhering as closely as possible, so far as changed circumstances would permit, to the basis of the former Working Agreement. This method necessitated an increase in correspondence and meetings between the officials of the two Sections in order to arrive at a settlement of the various difficulties which arose from time to time. An agreement was reached on most problems, but considerable time was often wasted owing to the absence of a recognised formula for dealing with situations, and the frequent necessity for referring matters to headquarters at Hengyang before a final decision could be made.
14. The outlook for the future is difficult to forecast. The Railway suffered heavily during the occupation and orders already placed in Great Britain for the replacement of worn-out and looted rolling stock and machinery, and materials for re-railing the To track involve a capital expenditure of several million dollars. maintain the present level of revenue may be difficult as there will undoubtedly be increased competition from river shipping resulting in a possible reduction in fares, and consequently in passenger train revenue. Air travel has already caused a decrease in the number of first class passengers, but it is hoped to speed up the passenger train service within the next few months, and this may stimulate passenger travel and off-set to a certain extent the competition from river and air.
in
Freight traffic would undoubtedly move considerable quantities to and from the interior were the present restrictions removed, Chinese currency stabilised and economic conditions become more settled. There are, however, no indications of this at the moment, and the immediate prospects cannot therefore be viewed with optimism.
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