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Old January 31st, 2013, 05:00 PM   #1181
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Old February 6th, 2013, 07:49 PM   #1182
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Old February 8th, 2013, 06:09 PM   #1183
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Old February 15th, 2013, 09:50 PM   #1184
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Old February 19th, 2013, 02:40 PM   #1185
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Executive Council approves KMB's bus fare increase
Government Press Release
Tuesday, February 19, 2013

The Executive Council today (February 19) considered the fare increase application from the Kowloon Motor Bus Company (1933) Limited (KMB) and approved an overall average fare increase rate of 4.9 per cent for KMB. The new fares will take effect on March 17.

The approved rate of fare increase is lower than the 8.5 per cent as put forth by KMB. It is also lower than the magnitude of changes in the Composite Consumer Price Index (CCPI) (+6.31 per cent) and the Median Monthly Household Income (+7.14 per cent) as well as the formula outcome of the supportable fare adjustment rate (+5.81 per cent) under the Fare Adjustment Arrangement (FAA) for franchised buses. The formula is 0.5 x Change in Wage Index for the Transportation Section + 0.5 x Change in CCPI - 0.5 x Productivity Gain.

In its deliberations, the Executive Council has fully considered the basket of factors under the FAA, which include:

(a) changes in operating costs and revenue since the bus company's last fare increase in May 2011;

(b) forecasts of future costs, revenues and returns;

(c) the need to provide the bus company with a reasonable rate of return;

(d) public acceptability and affordability;

(e) the quality and quantity of service provided; and

(f) the outcome of the formula for a supportable fare adjustment rate. The formula is for reference only. The fare level will not be adjusted automatically according to the formula outcome.

The Executive Council has also fully considered the views of the Panel on Transport of the Legislative Council and the Transport Advisory Committee.

A Government spokesman said, "We understand that the general public is very concerned about bus fares. We have therefore carefully taken into account public affordability and acceptability in our assessment of the fare increase application.

"KMB will likely run a deficit in 2012 after settling its accounts. Even with the fare increase of 4.9 per cent, the overall financial situation of KMB would not be completely improved immediately. It is expected that its operation would continue to be challenging in the coming two years. In addition to staff costs, the factors that affect the operating costs include the fluctuation in fuel prices and cost benefits of bus routes."

KMB submitted an application on November 29, 2012, for an average fare increase of 8.5 per cent in order to achieve break-even in 2013.

The Government spokesman stressed that the approved fare increase had struck a balance amongst different considerations. On the one hand, it minimises the impact of bus fare increase on passengers as far as possible. On the other hand, it enables the bus company to maintain financial stability to continue to render and develop a proper and efficient public bus service.

Under the new fares, about three-quarters of KMB passengers will either not be affected or will need to pay not more than 40 cents extra per trip. About one-quarter of passengers will need to pay 50 cents to 70 cents more per trip. Passengers who will need to pay $1.1 to $3.0 more per trip are only those taking racecourse services.

There will be no fare increase for cross-harbour routes jointly operated by KMB and another franchised bus operator to avoid confusing the public.

The Government spokesman said that KMB and the Transport Department were working earnestly to rationalise bus routes, with a view to redirecting resources from underutilised or duplicated bus routes to those with higher demand.

"Successful route rationalisation will increase the efficiency of the bus network, thereby benefiting passengers and relieving the pressure of fare increase," the Government spokesman said.

"To enhance the efficiency of the bus network, reduce roadside emission and alleviate the pressure of future fare increases, we hope members of the public and the community will support the bus route rationalisation in view of the long-term and overall public transport and environmental benefits that it can bring."
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Old February 20th, 2013, 04:36 PM   #1186
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Old February 21st, 2013, 07:19 PM   #1187
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New routes to explore on fare hikes
The Standard
Wednesday, February 20, 2013

Kowloon Motor Bus said it was "extremely regrettable" that its application to increase fares by 8.5 percent was reduced to just under 5 percent.

Yes, it's extremely regrettable, except perhaps not as much as others. For ask passengers and they'd likely say it's regrettable that they'll have to dig deeper to pay for bus trips from March 17.

The reason for the disappointment all round is understandable - inflation is a vicious circle.

And adding to that vicious circle is Towngas, for example, which is planning to raise tariffs by more than 4 percent.

There's little doubt that KMB is finding it increasingly tough to operate in the current business environment. First, international oil prices are persistently high, and second, its system of routes is bitterly outdated. A large part of its coverage is served by the MTR.

If KMB has to charge higher fares to cover rising operating costs, it would be even more necessary for the company to reorganize its routes to make them more cost-efficient.

Unless that's achieved, the situation will become more shaky after new railway lines start operating over the next few years. Then, service duplications will be more serious than in the past.

The consequence? Passengers will face more frequent fare hikes.

Top KMB executives know this only too well. Perhaps, while voicing disappointment over the reduced increases, this time, they were delighted by transport minister Anthony Cheung Bing-leung's assurances that he would personally try to persuade district councillors to support the revamp of bus routes.

Efforts to win local support had failed in the past two years. In hindsight, the efforts were doomed in view of the District Council election in 2011 and Legislative Council election last year.

It's naive to think pro-establishment politicians would back the streamlining of routes. Nobody will risk antagonizing voters during election years. But there may be a better chance of doing so now.

There's a one to two year window between now and the next District Council election in 2015 for government officials and KMB to win local backing without fearing their supporters would lose votes.

It's in the public interest to make bus routes more cost-effective. As said before, nearly empty buses have been shuttling between Central and Tseung Kwan O - a route serviced much faster by MTR.

This isn't only ineffective in terms of costs, but creates unnecessary road traffic and extra air pollution.

After dealing with the fare hikes, government officials are expected to focus on revamping the bus routes.

KMB said 52 percent of its routes are outdated. Perhaps, this is also part of a strategy similar to the fare hike application in which it aimed high in anticipation of a cut in the end.

The route streamlining exercise isn't going to be easy - it will be necessary to involve all stakeholders, including the paying customers.
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Old February 23rd, 2013, 05:18 PM   #1188
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Old February 25th, 2013, 04:44 PM   #1189
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Old March 2nd, 2013, 08:45 AM   #1190
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Bus operator pledges not to seek fare hikes
The Standard
Wednesday, February 27, 2013

NWS Holdings (0659), operator of two bus companies, said it will not raise fares as it is tackling rising fuel costs with short-term hedging.

"We have also paid close attentions to rising new [vehicle] costs, and other expenses in personnel and toll fees," said executive director Tsang Yam-pui of the two units, New World First Bus and Citybus.

The mainland-focused infrastructure and services firm earned a net profit of HK$2.1 billion in the second hald, down 38 percent from a year earlier.

Earnings per share hit 59 HK cents and the interim dividend was cut 42 percent from a year earlier to 29 HK cents per share.

Total revenue was HK$7.97 billion, up 14.8 percent.

Executive director Brian Cheng Chi- ming said NWS was hurt by Beijing's move to make all highways toll free during the Lunar New Year break.

But he said that "the impact could be offset this year as traffic volumes are turning stable."

Tsang said NWS is interested in acquiring water and energy projects in Europe that offer an annual return of at least 10 percent.

New World Department Store China (0825) - a listed unit - earned HK$331.6 million in the half-year - flat from a year back.

Earnings per share hit 20 HK cents and NWS proposed 9.8 HK cents as interim dividend.
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Old March 5th, 2013, 05:36 PM   #1191
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Old March 8th, 2013, 04:31 PM   #1192
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Big ideas on buses roll out
The Standard
Friday, March 08, 2013

An overall review of bus routes is needed to provide better services, keep fares in check and deliver broader benefits, Secretary for Transport and Housing Anthony Cheung Bing-leung says.

Ideas were offered yesterday at a closed-door meeting that Cheung had with chairmen and vice chairmen of all 18 district councils. Secretary for the Environment Wong Kam-sing was there too, but there were no transport company representatives.

Cheung took the initiative after 30 Yuen Long district councillors snubbed KMB's invitation to its spring reception as a way of opposing fare increases.

He said later that council leaders agreed there was a need to revamp bus routes. But the effort is starting with regional planning rather than route- by-route exercises that have gone previously.

The hope is that "comprehensive consideration" will lead to scrapping, combining or adjusting frequencies on less-used routes so that resources can be allocated to new routes and to improve others.

Other benefits of this rationalization should be a reduction in pollution, less congestion and less pressure on operators to hike fares, Cheng added.

Rerouting has already started in Northern District and it will expand to Yuen Long and other districts by the second half of the year.

The formula discussed yesterday would see an increase of frequency considered if a route has buses full in the busiest 30 minutes of a day or 85 percent full in one hour during peak periods. Frequency would be cut if below 85 percent in the busiest 30 minutes or less than 30 percent in nonpeak hours.

But Kwai Tsing council vice chairman Law King-shing pointed to problems to come by saying an idea of rerouting between Tsing Yi and Tsuen Wan is opposed by Tsuen Wan councillors. "So I hope officials can facilitate talks between districts."

A KMB spokesman said that as railways have been given the leading place in transport policy for 10 years the company's daily passenger flow has dropped from 3.1 million in 2002 to 2.6 million now.

About 70 percent of 400 routes face deficits, and 55 percent are in an urgent need for a rethink.
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Old March 14th, 2013, 04:02 PM   #1193
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Old March 18th, 2013, 04:04 PM   #1194
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Help for travelers urged after KMB fare rises bite
The Standard
Monday, March 18, 2013

On the day Kowloon Motor Bus raised its fares, a unionist made a call for concessions.

Fares increased an average of 4.9 percent yesterday, from HK$6.30 to HK$6.60, with more than 70 percent of commuters paying up to 40 HK cents more per ride.

Tuen Mun District Council member Leo Chan Manwell described the hikes as unreasonable, saying KMB has been making money, if income from its related TV channel - Roadshow - is included.

"While its bus services cannot keep up with its schedules, how can it ask passengers to pay more?" asked Chan, of the Hong Kong Federation of Trade Unions.

He suggested fare concessions should be in place to lure more people to use the newly installed interchange facility at Siu Lam.

Elsewhere, a Miss Ng who takes the 248X to work each day said: "It's a 40 HK cents difference. I don't think that's too bad. It's a hike, but what can you do?"

Another passenger, surnamed Lam, said KMB should improve its services before raising fares.

"We waste our time waiting when buses do not arrive on schedule, and this problem is getting more and more serious," Lam said.

"I can't see any reason to raise fares when its service has disappointed the commuters."

KMB raised fares by 3.6 percent in May 2011 and 4.5percent in June 2008. But the approved increase this time is much lower than the 8.5 percent which it originally sought.

The company's corporate affairs director, Vivien Chan Pik-kwan, said fuel costs have increased 40 percent and salary expenses 9 percent since the last fare rise two years ago.

The heftiest increase, of 7.5 percent - a fare rise from HK$5.30 to HK$5.70 - is on route 79K from Sheung Shui to Ta Kwu Ling.

The lowest increase of 3 percent involves six short-haul routes, such as 39M in Tsuen Wan and 273 in Fan Ling.

KMB wants to reorganize about 55 percent of its routes to reduce costs, saying 70 of its 400 routes are running at a loss because of competition with the MTR.

KMB recorded a loss of HK$15.2 million in the first half of last year and forecasts a deficit for the whole year.
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Old March 22nd, 2013, 09:07 PM   #1195
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Old March 25th, 2013, 06:37 PM   #1196
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Old April 13th, 2013, 05:47 PM   #1197
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TAC discusses bus route rationalisation and phasing out heavily polluting diesel commercial vehicles
Tuesday, March 26, 2013
Government Press Release

The Transport Advisory Committee (TAC) was briefed today (March 26) on the Administration's more comprehensive and vigorous approach in rationalising bus routes to better meet passenger demand, enhance bus operation efficiency, reduce pressure on fare increase, alleviate traffic congestion, and reduce roadside emissions, noting that this is a policy initiative announced in the Policy Address in January 2013.

"In view of the need for and benefits of rationalising bus services from both transport and environmental perspectives, the TAC supports the Government and franchised bus companies to pursue route rationalisation measures with greater vigour and determination. Members welcome the new "area approach" as well as the enhancement in interchange arrangements in rationalising bus services," the TAC Chairman, Mr Larry Kwok said.

TAC Members were also briefed on the Government's proposal to phase out heavily polluting diesel commercial vehicles by an incentive-cum-regulatory approach and to limit the service life of newly registered diesel commercial vehicles at 15 years as announced in the 2013 Policy Address, in order to improve roadside air quality and protect public health.

Members noted that there are about 86 000 pre-Euro IV diesel commercial vehicles in Hong Kong accounting for 66 per cent of the diesel commercial vehicle fleet. These vehicles together emit about 90 per cent of respirable suspended particulates and 63 per cent of nitrogen oxides from all diesel commercial vehicles.

"Members welcome the Government's plan to phase out heavily polluting diesel commercial vehicles by an incentive-cum-regulatory approach," Mr Kwok said.
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Old April 24th, 2013, 07:24 PM   #1198
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Old April 26th, 2013, 05:28 PM   #1199
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Old April 27th, 2013, 07:41 PM   #1200
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