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Following is a question by the Hon Leung Fu-wah and a written reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, at the Legislative Council meeting today (April 9) :

Question:

It has been reported that, immediately following the announcement by Shun Tak-China Travel Ship Management Limited to cease operating the ferry service between Macau and China Ferry Terminal at Tsim Sha Tsui, Kowloon with effect from 11th last month, the remaining sole operator of the route raised its fares for the service, leaving the consumers no other choice but to bear the higher fares. It is learnt that operators concerned need not apply for any licence or sign any contract with the Government for operating the ferry service. All they have to do is to apply to the Marine Department for permission to use the terminal facilities. Regarding this arrangement, will the Government inform this Council:

(a) of the criteria adopted for setting this arrangement;

(b) whether the same arrangement applies to other cross-boundary ferry services; if not, of the reasons for the difference in arrangement; and

(c) whether the Administration will review the relevant arrangement; if not, of the reasons for that?

Reply

Madam President,

All cross boundary passenger ferry services to/from Macau and Mainland cities are operated by private companies on commercial principles at the Macau Ferry Terminal in Sheung Wan and China Ferry Terminal in Tsim Sha Tsui. The operators determine the destination, operating hours, service frequency and fares for their routes in the light of market demand and apply to Marine Department for use of terminal facilities such as berthing slots.

According to the Shipping and Port Control Ordinance (Cap.313), Marine Department is responsible for monitoring vessel and passenger safety as well as safe operation of vessels in the terminals. Upon receiving applications from the operators, Marine Department will vet the applications according to the following principles -

* the vessels to be used will operate safely in the berths and will not affect other vessels and passenger safety;

* the availability of berthing slots;

* should there be more than one application for the same berthing slot, Marine Department will try to strike a compromise amongst the applicants. Failing which, the applications will be processed on a first-come-first-served basis; and

* supporting document showing permission given by the relevant authorities outside Hong Kong for the proposed ferry service.

Cross boundary ferry services have always been operated on a free market basis with the Government ensuring vessel and passenger safety through monitoring by the Marine Department. Adjustments to routes, frequency of services and fares are commercial decisions of the operators. Competition exists between the different companies offering similar services from different terminals. Such an arrangement has been working well. It is able to meet the traffic demand to/from Macau and Mainland cities and provides flexibility for business operations.

End/Wednesday, April 9, 2003

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