hkskyline
June 10th, 2005, 06:08 AM
Exco approves slight increase in Tate's Cairn Tunnel toll
Friday, June 10, 2005
Government Press Release
The Executive Council has approved an application for a toll increase by the Tate's Cairn Tunnel Company Limited, the Government announced today (June 10).
"In making the decision, we note that the Tunnel Company has been suffering losses since the beginning of the franchise in 1988. If no toll increase is allowed, it will achieve an internal rate of return (IRR) of 3.87%. Even with the current toll increase, it will only generate an IRR of 4.9% over the 30-year franchise period. We consider that the toll increase application is justified," a Government spokesman said.
"The toll increase is rather small, ranging from $1 (light goods vehicles) to $2 (private cars and taxis) and $3 (heavy goods vehicles). For buses, the increase would only be $4 to $6. The new tolls will take effect from August 1, 2005. The impact on traffic should be minimal but we will closely monitor the situation," he added.
The Tate's Cairn Tunnel Company Limited, franchisee of the Tate's Cairn Tunnel, applied for an increase in tolls in October 2000. However, noting the poor economic situation in the past few years, the Company agreed to defer its toll increase application. In October 2004, the company resubmitted its toll increase application.
The existing and new tolls are set out in the Annex : http://www.info.gov.hk/gia/general/200506/10/annex1_e.pdf.
Friday, June 10, 2005
Government Press Release
The Executive Council has approved an application for a toll increase by the Tate's Cairn Tunnel Company Limited, the Government announced today (June 10).
"In making the decision, we note that the Tunnel Company has been suffering losses since the beginning of the franchise in 1988. If no toll increase is allowed, it will achieve an internal rate of return (IRR) of 3.87%. Even with the current toll increase, it will only generate an IRR of 4.9% over the 30-year franchise period. We consider that the toll increase application is justified," a Government spokesman said.
"The toll increase is rather small, ranging from $1 (light goods vehicles) to $2 (private cars and taxis) and $3 (heavy goods vehicles). For buses, the increase would only be $4 to $6. The new tolls will take effect from August 1, 2005. The impact on traffic should be minimal but we will closely monitor the situation," he added.
The Tate's Cairn Tunnel Company Limited, franchisee of the Tate's Cairn Tunnel, applied for an increase in tolls in October 2000. However, noting the poor economic situation in the past few years, the Company agreed to defer its toll increase application. In October 2004, the company resubmitted its toll increase application.
The existing and new tolls are set out in the Annex : http://www.info.gov.hk/gia/general/200506/10/annex1_e.pdf.