Speech at Panel on Economic Development

Proposed granting of second ten-year operating right to Peak Tramways Company Limited (“PTC”) under Peak Tramway Ordinance (Cap. 265) and the granting of additional land requested by PTC for the purpose of its upgrading plan in relation to the grant of the second ten-year operating right; and proposed amendments to Peak Tramway Ordinance (Cap. 265) and Peak Tramway (Safety) Regulations (Cap. 265A)

Second ten-year operating right of the peak tramway

Mr CHAN Chun-ying expressed support for the granting of the second ten-year operating right of the peak tramway to PTC which would encourage PTC to improve the peak tram service. As regards PTC’s request for additional government land for implementing the upgrading plan, he asked what instrument would be used by the Government for granting such land. He also asked if PTC would be charged a premium for the additional land granted and the expected financial benefits brought to PTC after the upgrade.

operating right of the peak tramway, PTC had to pay the Government a consideration calculated at 12% of the total annual revenue of peak tramway operation in the year for the occupation and use of government land for the operation of the peak tramway. Given that the additional land requested by PTC was essential to cater for its operational needs in relation to using larger tramcars and platforms, no additional consideration would be charged on PTC in this regard. If PTC generated extra income as a result of the additional land granted by the Government, such income would also be counted towards PTC’s total annual revenue of which the Government would receive 12%.

Arrangements during service suspensions

Mr CHAN Chun-ying enquired if PTC had already reached consensus with other road-based public transport operators to ensure that alternative public transport services would be sufficiently available.

Mr Martyn SAWYER of HSH advised that PTC had always maintained a close liaison with relevant road transport operators. During the suspension periods arising from the upgrading works, existing bus and minibus services would be strengthened.

SCED supplemented that the Government noted members’ concern about the service suspensions of the peak tram and the resultant impact on passengers. The Government would closely monitor PTC’s liaison with relevant parties in this regard. He was confident that as a commercial enterprise, PTC would strive to compress the suspension periods as far as practicable to reduce loss. Meanwhile, the suspension of peak tramway, which was an iconic tourism facility in Hong Kong, might inevitably reduce the number of visitors going to the Peak.