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The Transport Department (TD) today (March 21) announced that fare adjustments for the six major outlying islands ferry routes have been approved.
The spokesman said, "After due consideration of applications for fare adjustment submitted by the New World First Ferry Services Limited and the three subsidiaries of the Hong Kong and Kowloon Ferry Holdings Limited, as well as the views of locals including the Island District Council, the TD has decided to approve the increase of the fares of the six major ferry routes by 5 to 6 per cent."
The fare increase rates of the ferry routes are summarised as follows:
Ferry Ferry Fare Fare
Operator Route Increase Increase
Rate of Rate of
Adult Single Monthly
Journey Fare Ticket
----------- ------ ------------ --------
New World Central - 4.8-5.4% 4.9%
First Ferry Cheung Chau
Services
Limited Peng Chau - 4.9% Not
Mui Wo - applicable
Chi Ma Wan -
Cheung Chau
("Inter-
islands")
Central - 4.8-5.4% 4.8%
Mui Wo
The three Central - 5.8-6.3% 5.9%
subsidiaries Peng Chau
of Hong Kong
and Kowloon Central - 6.2-6.3% 6.0%
Ferry Yung Shue Wan
Holdings
Limited Central - 6.1-6.4% 5.9%
Sok Kwu Wan
The new fares for the Central-Mui Wo route will be effective from April 1, 2014 whereas the new fares of the remaining five routes from July 1, 2014.
The spokesman added, "In handling the fare increase applications of the six major outlying islands ferry routes, the Government has taken into account various factors including the public acceptability of the proposed increase rates and the financial conditions, service performance, operating information and financial data of the ferry operators as well as other measures that could be adopted by the operators to improve their financial conditions. As the ferry operators have had to face persistently high fuel prices and an increase in marine labour remunerations in recent years, the Government considers that the they have a justifiable need to increase the fares to enable them to maintain the existing service level for the ferry routes concerned."
The current fares of the six ferry routes were imposed from mid-2011 as the results of the then public tenders. In the past two and a half years (i.e. from July 2011 to January 2014), the accumulated increase in the Composite Consumer Price Index is 11.1 per cent. On the other hand, there has been an increase of 12.5 per cent in the Median Monthly Household Income of Domestic Households in the past two years (i.e. from Quarter 3 of 2011 to Quarter 3 of 2013). In light of the above, the TD considers that the approved fare increase rates are relatively mild.
Taking the Central - Cheung Chau ferry route as an example, the adult single journey fare on weekdays in respect of the ordinary ferry service will be increased by 60 cents, whereas the cost of a monthly ticket will be increased by $24. Assuming that a monthly ticket holder takes the ordinary ferry service on the ferry route every day except four Sundays in a month to travel between Central and Cheung Chau, the increase in fare per trip would be less than 50 cents.
The spokesman added, "The six major outlying island ferry routes will continue to be provided with special helping measures amounting to $190 million from the Government during the next three-year licence period commencing from mid-2014, which will help maintain the financial viability of the six major outlying island ferry routes and reduce the burden of fare increases on passengers as far as possible."
The TD also announced that the current licences of the six major outlying island ferry routes will be extended for three years. The licence validity of the Central - Mui Wo route will be extended up to March 31, 2017, whereas the validity of the licences of the remaining five routes will be extended to June 30, 2017.
The spokesman said, "The Government will continue to ensure the sustainability and stable development of ferry services, and will make reference to public affordability when handing applications for fare adjustment."
Ends/Friday, March 21, 2014
Issued at HKT 12:00
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