Friday, March 21, 2008

Troubled waters (SCMP, March 21, 2008)

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.

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