Transport Advisory Committee Chairman Jeffrey Lam has urged bus operators to enhance efficiency and improve operations.

Speaking after the committee's meeting today, Mr Lam said future challenges the operators will face include the opening of new railways and fluctuating oil prices. He urged them to improve services as it will be beneficial to both the companies and passengers.

Committee members were briefed on operators' performance last year and noted it was generally satisfactory.

"Despite being hard hit by the impact of SARS last year, franchised bus operators made improvements in a number of areas," Mr Lam said.

The areas included the continuous upgrading of bus fleets with more environmentally-friendly, air-conditioned and wheelchair-accessible buses, and beautification of bus termini.