LCQ12 : Distribution of traffic among cross harbour tunnels

Following is a question by the Hon Lau Kong-wah and a written reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, at the Legislative Council meeting today (April 27) :

Question :

It has been reported that a commercial group holding a portion of the interests in the Eastern Harbour Crossing and the Western Harbour Crossing put forward a proposal to the Government six years ago to form a holding company jointly with the Government, which would hold interests in the two said tunnels and the government-owned Cross-Harbour Tunnel, thereby facilitating the adoption of a unified mechanism for determining the tolls of the three tunnels.  In this connection, will the Government inform this Council:

(a) of the details of the above proposal; and

(b) whether it has assessed the feasibility of this proposal; if it has and the assessment result is in the negative, of the reasons for that?

Reply :

Madam President,

A few years ago, we had some discussions with the franchisees of the Eastern Harbour Crossing and Western Harbour Crossing about the common ownership approach.  However, there were major differences in some of the fundamental parameters and assumptions including these for valuation of the assets and future traffic projection, and it was difficult to reconcile the different objectives and interests of the parties concerned.  Nonetheless, we maintain an open mind and will continue our dialogue with the tunnel operators on possible measures to achieve a more even distribution of traffic among the three tunnels.

End/Wednesday, April 27, 2005