Opponents rail at proposed tram fare rises
13 August 2010
The Standard

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Hong Kong Tramways is under fire from activists and political groups for proposing fare rises of up to 30 percent in its first fare adjustment in 12 years.

Adult fares would go up 25 percent to HK$2.50, from HK$2, while children's fare would jump to HK$1.30, from HK$1, a 30 percent rise.

The tram operator said profits in 2009 dropped to HK$8.8 million, with projected losses starting from next year unless the fares are increased due to increasing labor and electricity costs.

But a spokesman for the Coalition to Monitor Public Transport and Utilities, Richard Tsoi Yiu-cheong, said it is not the right time to raise fares.

He warned that the move could lead to similar increases by other transport operators.

The Democratic Party called the increase ``insane,'' being higher than the inflation rate.

It asked the tram operator, owned by French company Veolia Transport, to provide better service by offering more routes, improving trams' punctuality and environment before applying for a fare increase.

The Democratic Alliance for the Betterment and Progress of Hong Kong said the proposed rise is unreasonable, citing a survey done between April and May where 80 percent of the 500 respondents hoped the tram fare would not change.

Around 230,000 passengers take the tram daily _ about 50 percent less than 20 years ago _ and that has decreased by 1.5 percent annually in recent years.

The tram operator is hoping to increase fares in November to fund a multimillion-dollar upgrade.

The extra income is expected to bring HK$20 million to HK$25 million a year.

``We think it would be sufficient to help us to do the investment,'' said Bruno Charrade, managing director of Hong Kong Tramways.

The project includes upgrading of the emergency braking system and improving tram body and interior design.

Hong Kong's tram operator has been urged to increase revenue by selling more advertisements, instead of raising fares. However, the company said tram body and shelter advertisement has almost been fully utilized and is an unstable source of income.

The Transport Department said it would consider the economic situation, citizen's acceptance, the company's performance and the improvement plan before passing the proposal to the Executive Council.

Monthly tickets will rise from HK$170 to HK$210.

Senior citizens' fares will be unchanged until November next year after which they will increase to HK$1.10.

predictably I would suggest greater priority on the roads and perhaps change the route to a people and tramd only Queens road

No fare rise for 4 years: tram firm
20 August 2010
South China Morning Post

Hong Kong Tramways says there will be no more fare increases for at least the next four years if the government approves its proposal to raise fares from HK$2 to HK$2.50.

Company managing director Bruno Charrade made the pledge yesterday, but said the increase could result in daily patronage falling by 6 to 9 per cent.

"The decline in patronage expected at the fare increase implementation is what we called an elasticity impact - part of it can be caught up in the short term, but the impact of the new MTR extension will be much more than that."

Charrade said Tramways, which has seen passenger numbers fall by 1.5 per cent every year, could lose 10 times that number when the MTR's West Island Line begins operation in 2014. But he said the company's plan to improve services could bring some passengers back, depending on how much it is able to achieve.

"If we cannot get the fare increase we asked for, we will not be able to implement all the improvements. And with a reduced speed of implementation, the positive impact will be very limited and it doesn't secure the system's sustainability - which means I might have to come back in two to three years with another request for a fare increase."

A calculation by the South China Morning Post based on public figures found that Tramways would still see a slight jump in fare revenue with a 50 HK cents increase, even if patronage fell by 15 per cent. Revenue would rise more than 13 per cent if patronage dropped by 7.5 per cent.

But if the government only allows an increase of 20 HK cents, Tramways would fall into deficit with a 15 per cent drop in passengers. It would break even with a 7.5 per cent fall.

That means it will take the company decades to recoup its HK$200 million investment to improve services in the next five years. It plans to increase the frequency of services, replace cables with more durable ones, reduce track noise, improve the interior of trams, add more powerful engines that would enable trams to be air-conditioned and provide better information to passengers.

Passengers aged over 65 would be exempted from the fare rise until November next year, when they would pay an extra 10 HK cents. Children would pay HK$1.30 under the plan.

Opinion : Operator should refit trams and revise routes to boost usage
20 August 2010
South China Morning Post

Hong Kong Tramways operates the cheapest form of public transport in the city and has not raised tram fares for 12 years.

Now it wants an increase of 50 cents so it can introduce various upgrades.

I have a number of ideas about what improvements I would like to see.

First of all, there should be greater frequency on some routes. There are certainly problems with frequency, with the trams running in the northern part of Hong Kong Island where the traffic sometimes appears to be one way.

On one occasion, I was waiting to catch a tram from Wan Chai to Causeway Bay, but all I saw were trams bound for Western district.

I think the longer journeys have to be broken down into smaller loops.

For busy areas like Causeway Bay and Wan Chai, additional trams should be provided.

If trams are more frequent, Hong Kong Tramways' revenue will increase.

With more trams on busy routes, the operator can attract a greater number of advertisers who will appreciate the high-profile presentations available to them.

I would also like to see air-conditioning on the upper deck, given that our summers are getting hotter.

On a sunny day, travelling on a tram can be an uncomfortable experience.

However, I know some passengers prefer the fresh air blowing through the windows, which is why air-cons should be restricted to the upper deck, giving people a choice.

The other option would be to have some trams which are all-air-conditioned and some which are not, again offering passengers a choice.

If there is some air-conditioning, I am sure the operator will see an increase in patronage as people will appreciate the added comfort with the promise of a cooler trip.

The fare rise could also finance a mechanical upgrade of the trams to increase their speed.

This will be a real advantage in busy districts on Hong Kong Island such as Causeway Bay and Wan Chai.

This city moves at a fast pace and trams have to reflect that.

If they are faster they can increase their carrying capacity and this will inevitably boost the operators' profits.

There are constant technological changes and improvements to transport systems.

Hong Kong Tramways has to respond to these changes if it wants to remain competitive.

I really hope that with increased fares, we will see a better service.

Tang Chi-chung, Tsz Wan Shan

Executive Council gives consent to increase tramway fares
Government Press Release
Tuesday, May 3, 2011

The Chief Executive in Council today (May 3) has given consent to Hong Kong Tramways Limited ("HKT") to alter the fares, in accordance with Section 51 of the Tramway Ordinance (Cap. 107). The alteration of fares will come into force one month after publication in the Gazette (i.e. June 7, 2011). The revised rates of fares are as follows -

Existing fares Revised fares
(Change)
----------------------------------------------------

Person aged 12 $2.0 $2.3
or above (+$0.3)

Child (aged 3 to 12) $1.0 $1.2
(+$0.2)

Monthly ticket $170.0 $200.0
(+$30.0)

In addition, the fare for elderly people (those aged 65 or above) will increase from $1.0 to $1.1 one year after implementation of the above-mentioned revised fares (i.e. with effect from June 7, 2012). As regards tourist tickets, the fare will remain unchanged at $34.

When assessing HKT's fare increase application, the Administration has taken into account -

(a) the service provided and planned improvements of HKT;

(b) the changes in operating costs and revenue of HKT since the last fare adjustment;

(c) HKT's forecasts of future costs, revenue, profit and return; and

(d) public acceptability.

HKT has not adjusted its fares for more than 13 years, and plans to invest over $200 million to implement a series of improvement projects. HKT therefore submitted an application to the Government last year, asking that the adult fare be increased from $2.0 to $2.5 (i.e. by 25%).

"Although HKT's proposed rates of fare increase may fit the company's business development better, when the Administration received the fare increase application, we were particularly concerned that the tramway provides a low-cost and convenient choice of public transport for travel along the northern shore of Hong Kong Island. The Administration has therefore discussed with HKT and come to a shared view that without compromising the implementation of any proposed improvement projects, the adult fare should be adjusted to $2.3 (i.e. an increase by $0.3), while the fares for other passenger groups should be increased by similar magnitudes," a Government spokesman said.

A Government spokesman said that the Administration needs to ensure that tram passengers can enjoy economical, quality and efficient transport services, and that there is incentive for HKT to continue to invest for service provision and sustainability. Since April last year, HKT has started implementing a series of improvement projects with a view to enhancing the level of service, passenger comfort, safety and operational efficiency.

"The trams have great heritage value and perform a unique and important role in the public transport system serving the northern shore of Hong Kong Island. The Government supports HKT's initiatives to further improve the level and safety of tram services, as they would help maintain a sustainable operation of tramways, which have heritage value and are environmentally friendly. Besides, they can help reduce the recurrent costs on repair and maintenance and electricity of HKT in the long run, thereby enabling HKT to keep offering quality services to the public," a spokesman said.

Given that tram fares only have a tiny 0.02% weighting in the Composite Consumer Price Index, the inflationary impact of the fare increase is insignificant.

HKT last increased its fares in March 1998, with fare for person aged 12 or above increased from $1.6 to $2.0, fare for child and the elderly increased from $0.8 to $1.0, and fare for the monthly ticket increased from $135.0 to $170.0.

Hi I'm new here also from Hong Kong.
I acutally think may be we need a tram line in Kowloon, along the line of Nathan road.

Hi I'm new here also from Hong Kong.
I acutally think may be we need a tram line in Kowloon, along the line of Nathan road.

Cool. But how?

Hi I'm new here also from Hong Kong.
I acutally think may be we need a tram line in Kowloon, along the line of Nathan road.

I think the buses is doing fine. Tram will be very difficiult to implement in Nathan Road.