As rising costs lead to increasing losses for ferry operators, the government is running out of options for making the business viable
Anita Lam
Updated on Mar 21, 2008
In the early hours at Central's outlying islands pier No6, several late-shift workers are waiting to catch the 3am ferry home to Peng Chau, flanked by another handful of Mui Wo-bound commuters. The first sailing of the day for the triple-decker vessel attracted fewer than 20 passengers.
The scene reflects the fact that Hong Kong's island ferries have long been a loss-making business. Amid dwindling patronage, surging operational costs and the government's transport policy with the emphasis on railways, ferry operators are left to face the tough choice of either cutting costs - which might lead to a reduction in services - or enhancing service quality in the face of vigorous competition from other forms of public transport.
But the decision was never entirely that of the businessmen or the government.
Click the title to view the full article (You will need to log into the online edition of SCMP)
Friday, March 21, 2008
Ferry Operators show little enthusiasm for new tender (SCMP, March 21, 2008)
Manager of Hong Kong & Kowloon Ferry, Nelson Ng Siu-yuen, says his company is still considering the updated tender.
High fuel prices, low profit margins discourage companies
Anita Lam
Updated on Mar 21, 2008
A fresh tender on the four ferry routes to outlying islands has aroused little interest among small ferry operators, despite government efforts to encourage more competition.
At least five of the 11 ferry operators said yesterday that they would not bid for the four routes between Central and Mui Wo, Peng Chau, Sok Kwu Wan and Yung Shue Wan because of high fuel prices and low profit margins.
Two kaito ferry service operators that the industry had believed were potential bidders also ruled out the option for similar reasons.
Click title to view the full article (you will need to log in to the online edition of SCMP)
Thursday, March 20, 2008
High resolution digital photos of the HKKF fleet
http://www.Naviads.com require high resolution digital photos of the HKKF fleet.
Interested parties please submit for review to: gneale@HeliAds.com.hk
Commissioned work is paid, terms are negotiable.
Interested parties please submit for review to: gneale@HeliAds.com.hk
Commissioned work is paid, terms are negotiable.
Tuesday, March 18, 2008
Business giants combine to fight global warming
SCMP today:
Business giants combine to fight global warming
Forum to study risks and openings resulting from climate change
Cheung Chi-fai
Mar 18, 2008
A climate change forum set up by businesses in Hong Kong will commission studies to gauge the impact of global warming on their operations and how they can cut carbon emissions.
But forum leaders said it was too early to talk about whether they would back mandatory targets and they needed to complete their own research to identify the potential for emission reductions in different sectors.
The Climate Change Business Forum, comprising 13 businesses and a consulate, was formally launched yesterday, days after the Observatory forecast that winters in Hong Kong could disappear by 2020 if carbon emissions continued to grow unchecked.
The forum will provide a platform for businesses to share experiences on best practices, learn about the risks and opportunities resulting from climate changes, and assist the government in policy making.
The founding forum members were HSBC (SEHK: 0005, announcements, news) , Cathay Pacific (SEHK: 0293), Sino Land and Standard Chartered, which are joined by CLP Holdings (SEHK: 0002), DTZ, Hongkong Electric (SEHK: 0006), Hong Kong Land, Swire Pacific (SEHK: 0019), MTR Corporation (SEHK: 0066), Lai Sun Group, Towngas (SEHK: 0003), Bank of East Asia (SEHK: 0023) and the British consulate.
With initial funding of about HK$2.5 million provided by the members, research will be carried out to find the best ways for various businesses to cut their emissions.
The forum's best-practice committee, with a pool of 30 experts, is identifying possible sectors to be studied, but priorities will probably be in the building, transportation and manufacturing sectors.
Leung Chun-ying, convenor of the Executive Council and chairman of the forum, said businesses should take up the responsibility and leadership in fighting climate change which might have huge repercussions on their operations.
He said the forum would, for the moment, focus on "short-term achievable targets" with "discernible results", while they would in parallel study emission scenarios from different sectors and potential areas for reduction.
"We need to know how much they are emitting now and to what extent they can make reductions and how long it will take before we can sit down to see if targets can be set."
Mr Leung said any targets needed to be realistic as it was primarily the private sector taking up the responsibility to cut emissions.
He stressed that the forum was by no means challenging the government's role, though he believed voluntary efforts by the businesses were generally more effective than mandatory legislation.
"We are not an opponent [of the government]; we are indeed a partnership with the government," he said.
Tony Tyler, chief operating officer of Cathay Pacific and the forum's executive committee chairman, said the research would also look at how international rules such as the Kyoto Protocol would affect operations.
Business giants combine to fight global warming
Forum to study risks and openings resulting from climate change
Cheung Chi-fai
Mar 18, 2008
A climate change forum set up by businesses in Hong Kong will commission studies to gauge the impact of global warming on their operations and how they can cut carbon emissions.
But forum leaders said it was too early to talk about whether they would back mandatory targets and they needed to complete their own research to identify the potential for emission reductions in different sectors.
The Climate Change Business Forum, comprising 13 businesses and a consulate, was formally launched yesterday, days after the Observatory forecast that winters in Hong Kong could disappear by 2020 if carbon emissions continued to grow unchecked.
The forum will provide a platform for businesses to share experiences on best practices, learn about the risks and opportunities resulting from climate changes, and assist the government in policy making.
The founding forum members were HSBC (SEHK: 0005, announcements, news) , Cathay Pacific (SEHK: 0293), Sino Land and Standard Chartered, which are joined by CLP Holdings (SEHK: 0002), DTZ, Hongkong Electric (SEHK: 0006), Hong Kong Land, Swire Pacific (SEHK: 0019), MTR Corporation (SEHK: 0066), Lai Sun Group, Towngas (SEHK: 0003), Bank of East Asia (SEHK: 0023) and the British consulate.
With initial funding of about HK$2.5 million provided by the members, research will be carried out to find the best ways for various businesses to cut their emissions.
The forum's best-practice committee, with a pool of 30 experts, is identifying possible sectors to be studied, but priorities will probably be in the building, transportation and manufacturing sectors.
Leung Chun-ying, convenor of the Executive Council and chairman of the forum, said businesses should take up the responsibility and leadership in fighting climate change which might have huge repercussions on their operations.
He said the forum would, for the moment, focus on "short-term achievable targets" with "discernible results", while they would in parallel study emission scenarios from different sectors and potential areas for reduction.
"We need to know how much they are emitting now and to what extent they can make reductions and how long it will take before we can sit down to see if targets can be set."
Mr Leung said any targets needed to be realistic as it was primarily the private sector taking up the responsibility to cut emissions.
He stressed that the forum was by no means challenging the government's role, though he believed voluntary efforts by the businesses were generally more effective than mandatory legislation.
"We are not an opponent [of the government]; we are indeed a partnership with the government," he said.
Tony Tyler, chief operating officer of Cathay Pacific and the forum's executive committee chairman, said the research would also look at how international rules such as the Kyoto Protocol would affect operations.
Monday, March 17, 2008
Is there a gap in the market?
Hong Kong's Victoria Harbour has remained an iconic symbol for the city for over a decade, with advertising slogans and billboards adorning the city's harbourfront skyline. Reclamation projects abound, yet little advertising is permitted in the diminishing harbour. Is there a gap in the market?
Saturday, March 15, 2008
"Innovative ideas for funding ferries needed" SCMP today
Mar 15, 2008
Our city's public transport systems are the envy of the world. Their efficiency, cleanliness, safety record and reasonable fares compare favourably with services anywhere else. Commuters can look forward to consistently improving and cheaper services, such as with the MTR Corporation (SEHK: 0066), mostly because the services operate on healthy and growing profits. In this, however, the outlying ferry services are an exception because there is constant pressure to reduce services.
Of the five major routes from Central, only that to Cheung Chau is profitable. The other four routes - to Mui Wo, Peng Chau, Yung Shue Wan and Sok Kwu Wan - have all failed to sustain profits. A sixth route travels between the islands. The rising cost of fuel adds more cost-cutting pressure on operators. The previous open bid for those four unprofitable routes failed because the only bidder demanded a fare increase of up to 40 per cent.
Yesterday, the government launched a new tender for the four routes, with terms and conditions revised from the last bid. Ferry frequency during non-peak hours will be reduced by only 5 to 10 minutes, much less than originally envisioned. Overnight services for Mui Wo and Peng Chau will be maintained. Slower and smaller ferries will be allowed on three of the four routes, except for Mui Wo, which will maintain both fast and ordinary boats.
The new terms - to be reviewed in three years - may satisfy most parties for now and buy some time for the government, provided that bidders learn from the last tender and do not demand excessive fare rises. But the basic conundrum remains: essentially, better-off islanders are willing to accept higher fares to maintain service standards, but those with lower incomes oppose them. The government, however, will not consider subsidising services. As part of a study to rejuvenate the Central harbourfront, it is thinking about adding an extra floor to the outlying islands pier. This may offer a solution. Ferry operators will be given more space to sublet to third parties and earn rental income to subsidise unprofitable routes. This is likely to be the most practical and acceptable long-term solution.
Our city's public transport systems are the envy of the world. Their efficiency, cleanliness, safety record and reasonable fares compare favourably with services anywhere else. Commuters can look forward to consistently improving and cheaper services, such as with the MTR Corporation (SEHK: 0066), mostly because the services operate on healthy and growing profits. In this, however, the outlying ferry services are an exception because there is constant pressure to reduce services.
Of the five major routes from Central, only that to Cheung Chau is profitable. The other four routes - to Mui Wo, Peng Chau, Yung Shue Wan and Sok Kwu Wan - have all failed to sustain profits. A sixth route travels between the islands. The rising cost of fuel adds more cost-cutting pressure on operators. The previous open bid for those four unprofitable routes failed because the only bidder demanded a fare increase of up to 40 per cent.
Yesterday, the government launched a new tender for the four routes, with terms and conditions revised from the last bid. Ferry frequency during non-peak hours will be reduced by only 5 to 10 minutes, much less than originally envisioned. Overnight services for Mui Wo and Peng Chau will be maintained. Slower and smaller ferries will be allowed on three of the four routes, except for Mui Wo, which will maintain both fast and ordinary boats.
The new terms - to be reviewed in three years - may satisfy most parties for now and buy some time for the government, provided that bidders learn from the last tender and do not demand excessive fare rises. But the basic conundrum remains: essentially, better-off islanders are willing to accept higher fares to maintain service standards, but those with lower incomes oppose them. The government, however, will not consider subsidising services. As part of a study to rejuvenate the Central harbourfront, it is thinking about adding an extra floor to the outlying islands pier. This may offer a solution. Ferry operators will be given more space to sublet to third parties and earn rental income to subsidise unprofitable routes. This is likely to be the most practical and acceptable long-term solution.
Green Ferry Introduced
It is clear that innovative solutions are needed for the long-term. With proper forward-thinking planning by the ferry operator and with support from the government, additional cash flow could be generated from the private sector which would allow ferry companies to explore further initiatives for environment and costs savings. 'The Solar Sailor', which currently sails Sydney Harbour and is being considered for service in New York, San Francisco and other World Class Cities is one example of a private sector initiative which could be employed in Hong Kong's harbour in the medium to long term.
Green Ferry Introduced
WNYC Newsroom
NEW YORK, NY May 28, 2007 —A solar powered ferry is being planned by the Circle Line to carry tourists around Manhattan and to Ellis Island and the Statue of Liberty.
The hybrid ferry would actually combine solar, wind and diesel power. Circle Line President JB Meyer says he's just waiting for the National Park Service to approve the idea of having a hybrid ferry land at the tourist sites. The $8 million vessel would be built by Australia-based Solar Sailor, which has built a similar ferry for Sydney's harbor.
The design features a sail-like, solar-panel-covered wing that can be moved into the best position for catching the sun and wind. The vessel costs about $2 million more than traditional ferries, but uses 1/3 less fuel, saving hundreds of thousands of dollars a year. Also, it would emit only about half as many greenhouse gases than conventional ferries.
Green Ferry Introduced
WNYC Newsroom
NEW YORK, NY May 28, 2007 —A solar powered ferry is being planned by the Circle Line to carry tourists around Manhattan and to Ellis Island and the Statue of Liberty.
The hybrid ferry would actually combine solar, wind and diesel power. Circle Line President JB Meyer says he's just waiting for the National Park Service to approve the idea of having a hybrid ferry land at the tourist sites. The $8 million vessel would be built by Australia-based Solar Sailor, which has built a similar ferry for Sydney's harbor.
The design features a sail-like, solar-panel-covered wing that can be moved into the best position for catching the sun and wind. The vessel costs about $2 million more than traditional ferries, but uses 1/3 less fuel, saving hundreds of thousands of dollars a year. Also, it would emit only about half as many greenhouse gases than conventional ferries.
Friday, March 14, 2008
The Concept
NaviAds’ latest product offering provides advertising media for liveried ferry vessels, suitable for display on public ferry vessels and designed to provide ferry and marine vessel operators with an additional source of revenue on their tendered routes.
NaviAds
Since its inception in 2002, the HeliAds group has successfully delivered highly effective advertising media measuring up to 20,000 sq ft in size for some of Hong Kong's leading banks, property developers, sporting events, and trading houses.
NaviAds is the marine-based advertising arm of the HeliAds group which has been the first and only Hong Kong-based aerial advertising company to specialise in helicopter-towed aerial advertising banners.
Where HeliAds employ helicopters as their primary advertising medium, NaviAds employs marine vessels. Both companies bring to the Hong Kong media market a unique form of advertising and promotion medium: a one-of-a-kind and spectacular solution designed to be towed or displayed past, over and through one of the world’s most densely populated and affluent harbour-front audiences.
Thursday, March 13, 2008
Hong Kong is no stranger to innovative marketing concepts:
Calvin Klein towers Victoria Harbor
By: Cass Lam, Hong Kong
Published: Mar 14, 2008
Hong Kong - Calvin Klein has picked Hong Kong to launch its biggest outdoor campaign in the world, a 27-story billboard across the former Ritz Carlton Hotel in Central.
Kennis Chan, Calvin Klein marketing executive, said the main focus for this billboard is to create noise and increase brand awareness in the market.
She said to date, the mega-format poster had received positive feedback from customers and local media including the South China Morning Post.
Calvin Klein, a division of The Warnaco Group, is using its internal ads agency, Calvin Klein Asia, to handle the billboard.
The billboard will be run until 15 April.
HeliAds celebrates the ten year anniversary of the Handover
Finanical Times advertising campaign adorns the IFC
More recently, Chanel has sponsored this mobile art exhibition, which is set up to appear in Hong Kong, London and New York.
More at: http://www.chanel-mobileart.com/?lang=en_eu
Wednesday, March 12, 2008
Ferry livery in HK
Hong Kong's harbour is not new to this idea and already has been witness to various vessels employing the same media message to a harbourfront audience. The examples show advertising campaigns showcased on liveried vessels in Hong Kong harbour.
Existing transport livery in HK:
Hong Kong's oldest public transportation has long been adorned by commercial advertising, and has been utilised to effectively subsidise this mode of transport across the city.
Transport livery has already been employed innovatively and successfully in Hong Kong. In the example of the MTR/Disney train, a meaningful media message is incorporated into the design of the transportation system, which transports the public to an advertised destination where previously there was no link.
Art & Culture
London's Tate Gallery expanded the possibilities of branded media advertising and successfully connected a number of venues via a floating billboard.
Like the MTR/Disney train, the vessel successfully facilitated public transportation between previously unlinked Tate venues.
World renowed artist Damien Hirst was commissioned to produce the artwork for this project, to display the media message to London's resident and tourist audience and the world media.
Interestingly, a recent advertising campaign promoting a joint exhibition by Hongkong Land and Opera Gallery entitled "Art Moderne" utilises the same Damien Hirst theme.
http://www.centralhk.com/centralhk/--/minisite/minisite.xml?ms_id=24598
Background
The concept of marketing liveried public transport vehicles to the advertising media market is not a new one. Here, a well-known Asian budget airline successfully uses popular branding and the revenue that this generates to subsidise its budget with support from the private sector.
Liveried public transport is becoming more and more popular with the international media market. This picture shows this year's first liveried addition to Cathay Pacific's fleet.
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