LCQ16: Public transport services in Park Island
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Question:
It has been reported that after reviewing the patronage and demand of its existing services, the Park Island Transport Company Limited (PITCL) has implemented temporary arrangements with effect from April 8 this year, including the cancellation of two ferry trips between Park Island and Tsuen Wan, as well as four weekday ferry trips between Park Island and Central, and replacing the relevant services by residents' bus services instead. There are views pointing out that residents' bus services do not allow the carriage of bicycles and pets, and are susceptible to road traffic conditions, which have in effect weakened the commuting choices of Park Island residents. Moreover, the PITCL has in the past resorted to substituting ferry services with bus services temporarily by reasons such as the pandemic and crew shortage. There are concerns that the PITCL may regularise the temporary arrangements in the long run, and it is considered that the Government should strengthen its regulatory efforts. In this connection, will the Government inform this Council:
(1) whether the Transport Department (TD) is aware that, apart from the reason of crew shortage which the PITCL claims, the recent surge in diesel prices leading to increased operating costs is also one of the reasons for the PITCL's current reduction of ferry trips;
(2) since 2019, (i) of the respective frequencies and average daily patronage of the ferry routes and residents' bus services operated by the PITCL; (ii) the changes (whether temporary or permanent) in frequencies of those ferry routes and residents' bus service routes, and whether the TD has ever rejected any applications from the PITCL for changes in frequencies; (iii) the numbers of complaints received by the TD each year about the PITCL's services (including frequency arrangements) and the number of follow-up actions taken;
(3) of the regulatory mechanism put in place by the TD regarding the temporary changes to service arrangements by non-franchised bus and ferry companies such as the PITCL; the measures put in place by the TD to ensure that applications for frequency changes will not be abused while safeguarding the commuting convenience of residents;
(4) of the respective amounts of (i) subsidies provided under the Anti-epidemic Fund, (ii) reimbursement of differential fares under the $2 Scheme and (iii) other subsidies received by the PITCL from the Government each year since 2019; the criteria for calculating or disbursing the aforesaid subsidy amounts (e.g. number of trips operated, a certain percentage of operating expenses on an accountable basis or a one-off subsidy); and
(5) whether the authorities have entered into any agreements or other legally binding documents with the PITCL, stipulating the minimum service levels for the various ferry routes and residents' bus service routes it operates as a pre-condition for receiving the subsidies mentioned in (4); if so, of the details; whether the PITCL has ever had its subsidies reduced or subject to any fines for breaching such agreements; if not, the reasons for that?
Reply:
President,
The Transport Department (TD) has been closely monitoring Ma Wan ferry services and actively following up on issues such as staff shortage and suspension of sailings of the operator (i.e. Park Island Transport Company Limited (PITCL)). The TD has also maintained close communication with local residents' representatives and District Council Members, and required the operator to expedite recruitment with a view to resuming normal ferry services as soon as possible and strengthen non-franchised public bus services (i.e. Residents' Services (RS)) during peak hours so as to minimise the impact on residents. The reply to the question raised by the Hon Joephy Chan is as follows:
(1) The PITCL advised that it could not maintain normal ferry services due to staff shortage. Since April 8, 2026, a total of six weekday sailings of the two "Ma Wan - Central" and "Ma Wan - Tsuen Wan" licensed ferry routes have been temporarily suspended. Upon noting the situation, the TD immediately issued a written request to the PITCL on the same day, requesting a detailed explanation for the suspension of sailings; subsequently the TD met with the PITCL multiple times to closely monitor the situation. The TD has required the PITCL to expedite recruitment with a view to resuming normal ferry services as soon as possible. To minimise the impact on residents' commute, the TD required the PITCL to provide corresponding RS. According to the TD's observations, the strengthened RS were sufficient to meet passenger demand.
In addition, the PITCL also indicated that the sharp rise in fuel costs in recent months has put pressure on the operation of ferry services. To alleviate the impact of surging oil prices driven up by conflicts in the Middle East on the relevant trades, the Government provides public or commercial vessels and vehicles that use diesel as fuel (including ferries and non-franchised public buses of the PITCL) with diesel price subsidy for two months starting from April 30. In addition, the Government has established the Working Group on Public Transport Service Special Applications to assist, in an expedited manner, public transport operators in their applications to respond flexibly to rising fuel costs.
(2) At present, the PITCL operates two licensed ferry routes plying between Park Island and Central and Tsuen Wan respectively, and five RS routes plying between Park Island and Tsing Yi, Kwai Fong, the Airport and Central respectively. In addition, Park Island residents may also take the two RS routes plying between Ma Wan and Tsuen Wan and Tsuen Wan West respectively operated by Sun Bus Limited, or urban taxis to travel to various districts.
In 2025, the PITCL's licensed ferry services and RS carried a daily average of about 17 000 passenger trips, representing a drop of over 10 per cent as compared with the daily average of about 20 000 passenger trips in 2019. Among these, licensed ferry services of the PITCL saw a more significant decline in daily patronage by over 40 per cent as compared with 2019. With regard to the services provided by the PITCL, only approximately 10 per cent of passenger trips on weekdays are made on licensed ferry services, with the demand concentrated on the morning and evening peak of the "Ma Wan - Central" route. According to information provided by the PITCL, for the "Ma Wan - Central" route, the average patronage and occupancy of sailings during the morning and evening peak were approximately 131 passengers and 33 per cent (7am to 9am Central bound) and 82 passengers and 20 per cent (5.30pm to 8.30pm Ma Wan bound) respectively, while the average patronage of sailings during off-peak hours was only about 31 passengers. As for the "Ma Wan - Tsuen Wan" route, the average patronage of sailings was approximately 13 passengers.
Since 2019, the PITCL had applied to the TD for adjustments to the schedules of licensed ferry services for six times, of which four were approved (including two temporary service adjustments lasting about 14 months and two months respectively during the COVID-19 pandemic), while the remaining applications were not approved. Also, the PITCL had, after direct negotiations with passenger representatives (i.e. the management company of Park Island), submitted five applications to the TD for adjustments to RS, all of which were approved.
The TD has all along followed up with all complaints received. Depending on the particulars of the case, the TD will follow up with the operator, including arranging for on-site inspections as necessary to verify service situations, and requesting the operator to provide information and responses.
The schedule arrangements, average daily patronage and complaint figures of the PITCL's licensed ferry services and RS between 2019 and 2025 are provided in Annex.
(3) For licensed ferry services, according to the Ferry Services Ordinance (Cap. 104), unless with a reasonable excuse, a licensee must maintain proper and efficient services, including providing services in accordance with the schedule and capacity set out in the Schedule of Services attached to the licence. Otherwise, the Commissioner for Transport (the Commissioner) may revoke the ferry service licence pursuant to Cap. 104. Generally speaking, if licensed ferry operators (including the PITCL) intend to adjust the schedules, they must submit service adjustment applications to the TD. The TD will handle applications received in accordance with established procedures and, depending on the application details, arrange for local consultation to collect views from residents and local stakeholders to consider whether to approve the applications.
For RS, under the Road Traffic Ordinance (Cap. 374) and relevant subsidiary legislation, an operator must provide services in accordance with its Passenger Service Licence, including the routeings and schedule, etc, as specified in the Schedule of Services. If RS operators (including the PITCL) plan to adjust service details of RS (such as routeings, operating hours and fares, etc), they must obtain the consent of passenger representatives before submitting applications to the TD. If operators breach the aforementioned conditions, the Commissioner may issue warning letters, hold inquiries, or even suspend, cancel, or amend the relevant Passenger Service Licences.
Overall speaking, when considering applications for service adjustments, the TD will examine whether the proposed service adjustments can appropriately meet the changing transport demands of the district, and arrange for local consultations depending on the details of the applications. The TD will also take a holistic view of the operator's operating conditions, including whether the proposed adjustments would facilitate the operator in making better use of resources, as well as enhancing its overall operational efficiency while safeguarding its financial sustainability, with a view to ensuring that the service remains stable.
(4) & (5) To maintain stable ferry services to meet the transport needs of outlying island residents, the Government provides Special Helping Measures for outlying island ferry routes, reimbursing outlying island ferry operators (including the PITCL) for specific operating expenses on an accountable basis, with a view to relieving the pressure of fare increases on passengers. The support provided by the Government to ferry and RS operators also includes waiving vessel licence fees, reimbursing pier rentals, waiving vehicle licence and inspection fees for registered commercial vehicles. From 2019 to 2025, the PITCL received approximately $18 million in subsidies each year on average for the aforementioned measures.
Besides, during the COVID-19 pandemic, the Government provided the local public transport operators with various financial support through several rounds of the Anti-epidemic Fund mainly on an accountable basis, thereby helping them cope with the challenging operating environment.
As for the Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities (the $2 Scheme), it aims to enable the elderly and eligible persons with disabilities to travel on designated public transport services at a concessionary fare. The Government will reimburse participating operators on an accountable basis for the fare revenue forgone as a result of the implementation of the $2 Scheme. Under the $2 Scheme, the PITCL was reimbursed about $6.14 million every year on average between 2019 and 2025 for the difference in bus/ ferry fare.
Before disbursing the subsidies, the Government would comprehensively consider the operators' situations, including verifying their eligibility and the operational information submitted.
Ends/Wednesday, May 27, 2026
Issued at HKT 12:46
Issued at HKT 12:46
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