Chairman's Statement (Continued)
INLAND LOT 7550, KING'S ROAD, NORTH POINT
On 25th August, 1993 the Company announced that it had reached agreement in principle, subject to contract, with Swire Properties Limited to establish a joint venture company which would be 50 per cent owned by Swire and 50 per cent owned by a wholly owned subsidiary of the Company to purchase from the Company Inland Lot 7550 at King's Road, North Point for a consideration of HK$360 million and to redevelop the property for commercial purposes. The Company will issue a further detailed announcement when the terms of the transaction are agreed and the disposal of the property will be subject to the approval of the Company's shareholders.
FUTURE OUTLOOK
Traffic congestion is a major cause of lost journeys, causing inconvenience to passengers and problems for our scheduling staff. The Company is therefore attempting to persuade Government to devote more efforts to design and implement traffic management schemes to reduce traffic delays and promote bus priority. In the meantime, however, the Company will have to consider re-routing services and eliminating certain bus stops in order to improve journey times and operating efficiency.
To counteract the detrimental effect on our bus operations from the loss of 26 routes from our network under the Company's new franchise from September 1993, a review of bus operations has led to a programme of rationalisation which the Company is now implementing, to achieve optimum operating efficiency. This has included a number of route modifications with additional services being provided from Chi Fu Fa Yuen to Tin Hau, Wah Kwai to Central and Lei Tung to Wah Fu.
Additionally expansion of services to cater for the new and increasing developments on Hong Kong Island, including Yiu Tung Estate, Siu Sai Wan, South Horizons and Chai Wan East, will help offset the loss of routes and increase bus patronage in the future. In October, 1993 the Company joined in the operation of air-conditioned Cross-Harbour Route 300 and is also planning to expand its operation of Cross-Harbour services to the New Territories.
We are continuing to introduce more air-conditioned buses into service to offer a higher quality of service to passengers and future route developments will involve the introduction of yet more air-conditioned services and the implementation of new routes to serve new housing estates.
APPRECIATION
Under the Public Bus Services Ordinance, the persons holding the positions of Commissioner for Transport and Deputy Secretary for Transport (Transport Services) are appointed by the Governor to sit on the Board of the Company. On 12th October, 1992, Mr. PANG Hau-chung, J.P. was appointed by the Governor to replace Mr. Gordon SIU Kwing-chue, J.P. as Commissioner for Transport. On 27th November, 1992, Mr. Rafael HUI Si-yan, J.P. was appointed to replace Mr. Pang Hau-chung, J.P. On 17th November, 1992, Mr. Kevin MAK lu-kwan was appointed by the Governor to replace Mr Andrew LEUNG Kin-pong, J.P. as Deputy Secretary for Transport (Transport Services). On behalf of the shareholders and my fellow Directors I would like to express our appreciation of their participation in the deliberations of the Board.
In conclusion, I would like to thank our loyal staff for their hard work and dedication to serving the travelling public during a very challenging year.
Hong Kong, 10th November, 1993
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NGAN Shing-kwan Chairman
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