XN000022-1990-07-24 — Page 11

TUESDAY, JULY 24, 1990

10

WITH THE LAUNCHING OF TWO NEW VESSELS IN 1989, STAR FERRY NOW OWNED A FLEET OF 13 VESSELS.

BY THE END OF THE 1990/91 FINANCIAL YEAR, THE FERRY COMPANY WOULD HAVE RE-ENGINED ITS TEN 20-YEAR-OLD VESSELS. IN ADDITION, STAR FERRY HAD BUDGETTED FOR BRIDGE CONTROL AUTOMATION ΤΟ SAVE ON STAFF COSTS; AND AIR-CONDITIONING ON ITS VESSELS AND THE PASSENGER WAITING AREA AT ITS PIERS.

THE TAC ALSO EXAMINED PROPOSALS то RATIONALISE LOSS-MAKING ROUTES TO STABILISE THE COMPANY'S ASSET BASE.

KMB'S

OF THE NETWORK OF 269 ROUTES KMB OPERATED AS AT MARCH THIS YEAR, MEMBERS NOTED THAT MORE THAN HALF WERE SUSTAINING LOSSES.

THE LARGE NUMBER OF LOSS-MAKING SERVICES STEMMED FROM HISTORICAL, SOCIAL AND OTHER REASONS. THE SUSTAINED RE-DISTRIBUTION OF POPULATION FROM THE URBAN AREAS TO THE NEW TOWNS OVER THE PAST DECADE HAD CREATED NEW DISPERSED TRAVELLING PATTERNS WHICH KMB FOUND DIFFICULT TO SERVE EFFICIENTLY.

TO AVOID EXCESSIVE CROSS-SUBSIDISATION, TAC HAD SUGGESTED TO THE TRANSPORT DEPARTMENT TO MAKE CONSCIOUS EFFORTS TO RATIONALISE BUS ROUTES.

24

MEMBERS WERE INFORMED THAT A COST ECONOMY PROGRAMME FOR ROUTES WHICH INCURRED HEAVY LOSSES HAD BERN DEVELOPED BASED ON A COMPREHENSIVE STUDY CONDUCTED EARLIER THIS YEAR.

ROUTES WHOSE PERFORMANCE WERE EXPECTED ΤΟ IMPROVE SOON, OR WHERE SERIOUS DIFFICULTIES MIGHT BE CAUSED TO THE PASSENGERS AFFECTED, HAD NOT BEEN INCLUDED.

UNDER THE COST ECONOMY PROPOSALS, 13 ROUTES HAD BEEN IDENTIFIED FOR CANCELLATION AND WOULD EITHER BE REPLACED BY NEW GREEN MINIBUS ROUTES OR SUBSTITUTED BY IMPROVEMENT TO EXISTING PARALLEL GMB OR KMB SERVICES. PEAK FREQUENCY REDUCTIONS WERE RECOMMENDED FOR SIX ROUTES OPERATING IN AREAS WELL SERVED BY OTHER MODES.

OTHER SERVICE RATIONALISATION MEASURES DISCUSSED INCLUDED CONVERTING WHOLE-DAY SERVICE ΤΟ PEAK ONLY OPERATION AND MIXED OPERATION OF AIR-CONDITIONED SMALL COACHES AND CONVENTIONAL DOUBLE DECK BUSES ON SELECTED ROUTES,

HOWEVER, NO ROUTE SO FAR ASSESSED WAS CONSIDERED CONVERSION TO PEAK-ONLY SERVICE.

SUITABLE FOR

KMB CONSIDERED THAT THE INTRODUCTION OF MIXED OPERATION WOULD HELP ENSURE ADEQUATE CAPACITY TO SATISFY PEAK DEMAND AS WELL AS ATTRACTIVE FREQUENCIES DURING OFF-PEAK PERIODS. IT WOULD ALSO GIVE

AN OPPORTUNITY TO EVALUATE PASSENGERS' REACTION TO MORE COMFORTABLE COACH SERVICES AT HIGHER FARES.

/ON THE

44