The Board of Directors has not yet decided whether the redevelopments should be carried out by the Company or by way of joint-ventures with property developers. The Company may give consideration to selling the sites should your Board consider that this is the best course.
Purchase of Office Space at United Centre, Queensway
The Company has during the year under review purchased office D on the 24th floor of United Centre, Queensway, for office accommodation.
Future Outlook
After a period of uncertainty following the opening of the MTR Island Line, patronage levels on our bus services are stabilizing thus providing the opportunity to rationalise services in areas where patronage has decreased and to divert resources to other areas where demand is increasing.
The persistent traffic congestion in parts of Hong Kong Island, particularly around the approaches to the cross-harbour tunnel in Wan Chai and Causeway Bay, has affected the reliability of some of our services. We have expressed our concern to the Government and have suggested some measures to improve traffic flow. We hope that effective action will be taken in the very near future.
The next significant item of transport infrastructure to affect our bus services will be the Eastern Harbour Tunnel which is expected to open in late-1989. This tunnel will present for our Company both an opportunity, as we will be able to introduce some new cross-harbour bus services, and a threat since there will also be an MTR line through the tunnel. It is too early at present to predict accurately the net effect of the opening of the tunnel on our total patronage but we are confident that the attractiveness of cross-harbour bus services coupled with a general growth in travel and the introduction of new buses into our fleet will help to avoid serious damage to our prospects.
Appreciation
The two Government-appointed Directors Mr. P.F. LEEDS J.P., Commissioner for Transport, and Mr. David LAN Hong-tsung J.P., Deputy Secretary for Transport (Transport Services) retired from the Board on 18th May 1987 and 8th June 1987 respectively. Mr. James SO Yiu-cho J.P., Commissioner for Transport, and Mrs. LAI SIU Po-chun, Deputy Secretary for Transport (Transport Services) were appointed to the Board to replace Mr. Leeds and Mr. Lan respectively. On behalf of the shareholders and my fellow directors I would like to record my appreciation of the participation of the Government-appointed directors in the deliberations of the Board.
I would also like to thank our loyal staff for their dedication and hard work during the year.
Hong Kong, 23rd October 1987
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NGAN Shing-kwan Chairman