The Transport Department will re-tender four outlying island ferry routes next month. Proposed fares in bids received were so high that most local residents would likely reject them.

The department will consult residents about the re-tendering arrangements, aiming to re-tender the routes in the first week of March so that results can be ready in April for the new services to start in July.

The current operators have agreed to extend their services until the end of June.

Only one bid was received for each of three packages in the tendering exercise conducted from September to October last year. The tenders were for Package 1 (Central-Cheung Chau and inter-island routes), Package 2 (Central-Peng Chau, Central-Mui Wo routes) and Package 3 (Central-Yung Shue Wan, Central-Sok Kwu Wan routes).

The licences for Package 1 will be granted to New World First Ferry and will take effect on July 1.

The bids proposed fare increases for Central-Peng Chau and Central-Mui Wo services of more than 30%, for Central-Yung Shue Wan, 35%, and Central-Sok Kwu Wan, 50%.

Re-tender details

To attract more bids - particularly from operators with fewer vessels - the department intended to re-tender the four routes in separate packages.

To bring down the operating costs of these routes, the department will waive the vessel-related fees during the three-year term of the new licences. As the magnitude of fare hike for these routes could be cut if there are suitable service changes, the department urged the residents to reconsider adjusting ferry services during non-peak hours.

In the long term, the Government will consider the feasibility of taking the opportunity of the proposed development in the Urban Design Study for the New Central Harbourfront to boost the financial viability of these services and keep fares at reasonable levels.

It is proposed that Central Piers Nos 4 to 6 would be given a facelift, with the addition of a new floor to allow outlying island ferry service operators to sublet the rooftop levels for commercial or retail activities.