WEDNESDAY, JULY 31, 1991

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EXCO APPROVES CESSATION OF FERRY SERVICES

THE EXECUTIVE COUNCIL HAS APPROVED AN APPLICATION FROM THE HONG KONG AND YAUMATI FERRY COMPANY (HYF) TO CEASE OPERATING FOUR FRANCHISED FERRY SERVICES LATER THIS YEAR.

THEY INCLUDED THE VEHICULAR FERRY SERVICE BETWEEN SAI WAN Ho AND KWUN TONG; AND PASSENGER SERVICES BETWEEN SAI WAN HO AND KWUN TONG, BETWEEN SAI WAN HO AND SAM KA TSUEN, AND BETWEEN MA LIU SHUI AND TAP MUN.

SINCE THE HYF VESSEL PROVIDING DAILY SERVICE TO TAP MUN IS ALSO USED TO OPERATE A WEEKEND SERVICE FOR TUNG PING CHAU, HYF WILL RELINQUISH THE LICENSED SERVICE BETWEEN MA LIU SHUÍ AND TUNG PING CHAU SIMULTANEOUSLY.

A GOVERNMENT SPOKESMAN SAID TODAY (WEDNESDAY) THAT IN HYF LOST $13 MILLION IN THE OPERATION OF THESE SERVICES.

1990,

THE SPOKESMAN EXPLAINED THAT THE WITHDRAWAL OF THESE LOSS-INCURRING ROUTES, FOR WHICH ADEQUATE ALTERNATIVE PUBLIC TRANSPORT SERVICES ARE OR WILL BE MADE AVAILABLE, WAS CONTEMPLATED TO HELP PRESERVE THE COMPANY'S OVERALL FINANCIAL VIABILITY, AVOID EXCESSIVE CROSS-SUBSIDISATION, AND RELIEVE UPWARD PRESSURE ON HYF FARES.

COMMENTING ON THE AVAILABILITY OF ALTERNATIVE TRANSPORT, THE SPOKESMAN STRESSED THAT EXISTING CROSS HARBOUR BUS AND MTR SERVICES ALREADY PROVIDED A REASONABLE ALTERNATIVE FOR THE 3,400 PASSENGERS CURRENTLY USING THE FERRY SERVICE BETWEEN SAI WAN HO AND KWUN TONG DAILY.

"THE EASTERN HARBOUR CROSSING CAN COMFORTABLY ABSORB THE 300 VEHICLES CURRENTLY USING THE VEHICULAR FERRY SERVICE BETWEEN SAI WAN HO AND KWUN TONG DAILY, HE SAID.

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REPLACEMENT BY A LICENSED OPERATOR USING SMALLER VESSELS 13 PROPOSED FOR THE SAI WAN HO TO SAM KA TSUEN SERVICE.

TO TUNG

SIMILARLY, THE MA LIU SHUI TO TAP MUN AND MA LIU SHUI PING CHAU PASSENGER FERRY SERVICES WILL GO TO LICENSED OPERATORS.

"A BETTER MATCH BETWEEN DEMAND AND VESSEL CAPACITY, RESULTING IN REDUCED OPERATING COSTS, IS EXPECTED ΤΟ ENABLE THE SERVICES TO ACHIEVE FINANCIAL BREAKEVEN," THE SPOKESMAN SAID.

HE ADDED THAT SELECTION OF THE REPLACEMENT OPERATORS WOULD BE DONE THROUGH OPEN TENDER. HYF WILL CONTINUE TO PROVIDE THE SERVİCES UNTIL THE NEW OPERATORS ARE SELECTED AND READY TO PROVIDE SERVICE.

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