The principles and functions of the Public Transport Forward Planning Programmes and the Profit Control Scheme used to encourage public transport provision by the private sector in Hong Kong are described. In this paper scheduled public bus operations in Hong Kong are provided by the private companies, without direct public subsidy. In order to provide security to the operators, bus companies are granted exclusive route franchises and operate under a Profit Control Scheme. To protect the public, the Profit Control Schemes provide that the operators' return on investment shall not exceed a mutually-agreed percentage. However they also provide comfort to the operators because if the operators provide a proper and efficient service, the Schemes allow them to achieve the profit margins. The grantees are also required to prepare a 5-year forward development plan which is scrutinised by Government each year. Within this regulatory framework, the bus companies continue to expand their service network, and improve their level of service in an increasingly competitive multi-modal environment where the buses have to compete with ferries, trams, public light buses (minibuses), mass transit railway, suburban railway and taxis. The paper critically examines the principles and characteristics of the forward planning programmes of the franchised bus-companies in Hong Kong, and the usefulness of the Profit Control Schemes.
Abstract