Review of the Use of Cross-boundary Ferry Terminals

Report

Transport and Housing Bureau Marine Department

May 2008

REVIEW OF THE USE OF CROSS-BOUNDARY FERRY TERMINALS

Contents

Paragraphs Executive Summary i - xii Chapter 1 : Introduction - Government’s Policy Objectives 1-2 - Need for Review 3-4 - Purpose of the Review 5 Chapter 2 : Overview of Cross-boundary Ferry Services

and Terminals

- Introduction 6 Macau Ferry Terminal and China Ferry Terminal 7-10 Tuen Mun Ferry Terminal 11-12 SkyPier 13-14

- Summary 15 - Scope of the Review 16 Chapter 3 : Future Demand for Cross-boundary Ferry

Services

- The General Trend 17 - Cross-boundary Ferry Services: Macau 18

Trips by Hong Kong residents 19-24 Trips by visitors 25-27 Forecast of demand 28

- Cross-Boundary Ferry Services: the Mainland 29 The decline factors 30-31 Forecast of demand 32

- Forecast of Total Demand 33 - Meeting the Demand 34

Chapter 4 : Passenger Processing Capacity - General Considerations 35

Terminal facilities 36 Weekly pattern 37 Daily pattern 38-39

- Projected Passenger Throughput 40 - CIQ Processing Capacity 41-43 - Conclusion 44-45

Chapter 5 : Holding Capacity - Overview 46-47

Optimisation measures 48 - Conclusion 49

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Paragraphs Chapter 6 : Berthing Capacity - Overview 50 - Requirement for Berthing Slots

Working assumptions 51-54 Total Requirements 55

- Provision of berthing Slots 56 Berths for high speed crafts 57-59 Berths for larger vessels 60-63

- Conclusion 64

Chapter 7 : Assessment of Demand for Cross-Boundary Ferry Terminals

- Overview 65 - Continuing Improvement measures 66 - Operating Hours at the China Ferry Terminal 67-68 - Tuen Mun Ferry Terminal 69 - Skypier 70

Chapter 8 : Enhancement of Berthing Slot Allocation

Mechanism

- Overview 71-72 - Existing Allocation Mechanism 73-76 - Enhanced Allocation Mechanism 77-78

Submission of Sailing Schedules 79 Consideration of Quarterly Schedules 80-82 Priority for Consideration of Quarterly Schedules 83-85 Procedures for Schedule Submission 86-88 Oversubscribed Berthing Slots 89

- Regular Review of Enhanced Mechanism 90 - Implementation Timetable 91 - Procedural Guidelines for Staff 92

Chapter 9 : Management of Terminal Facilities - Overview 93-94 - Projects in Pipeline 95 - Future Upgrading Plan 96 - Strengthening of Function of Management Committees 97-98

Glossary of Terms Appendix I : Layout Plan of the Hong Kong-Macau Ferry Terminal Appendix II : Layout Plan of the China Ferry Terminal

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Executive Summary

The Secretary for Transport and Housing announced on 14 November 2007 that the Government would embark on a review on the use of cross-boundary ferry terminals. The purpose of the review is to: (a) Further improve the operation of the cross-boundary ferry terminals (CBFTs); (b) Enhance the existing mechanism for allocating berthing slots and terminal

facilities to ensure fair and efficient allocation of public resources; and (c) Assess the future demand for berthing and terminal facilities for services to ports

in the Mainland and to Macau, having particular regard to the need to maintain a high standard of passenger safety and comfort.

ii. The Government’s policy objective is to enhance the connectivity between Hong Kong and the Pearl River Delta region to maintain Hong Kong’s position as a transport and maritime hub. The past few years have witnessed a significant increase in the number of passengers using CBFTs. The level of patronage of the Hong Kong-Macau Ferry Terminal (MFT) and the China Ferry Terminal (CFT), the two multi-user public facilities managed by the Marine Department, increased respectively from 10.1 million to 14.3 million, and from 8.7 million to 9.2 million, between 2002 to 2007. The increasing number of ferry operators and demand for terminal, notably berthing, facilities, and the types of ferry the operators deploy for services, all have implications on the planning, management and operation of terminal facilities, particularly in the allocation of limited public resources. Major Findings of the Review Capacity of the Terminals to Cope with Projected Demand iii. While we project that the number of ferry passengers to and from the Mainland ports will remain constant (at 6.59 million per year) in the coming years, it is expected that the patronage of the Macau trade will increase by about 1.66 million annually up to 25.15 million in 2012, representing an average annual growth rate of around 8.3%. This is largely attributed to the newly completed tourist attractions and the increased number of work and business trips between Hong Kong and Macau. iv. Taking into account the existing travelling pattern of cross-boundary ferry passengers, we project that the annual, normal day daily and peak day daily passenger throughput in 2012 is as follows –

MFT CFT Projected Throughput Macau Mainland Sub-total Macau Mainland Sub-total

Annual 18.74M 1.71M 20.45M 6.41M 4.89M 11.3M

Normal day – Daily 50,100 4,600 54,700 17,000 13,000 30,000

Peak day – Daily 101,000 9,200 110,200 38,200 29,100 67,300

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v. The critical factor of the terminals handling capacity is the processing capacity of the Immigration Department (ImmD). The daily processing capacity of ImmD at MFT and CFT can reach 177,000 and 113,000 respectively on the basis of full utilisation of the counters and e-channels under the current maximum staffing level, and even and continuous passenger distribution. In practical terms, the existing capacity can cope with the projected annual and daily throughput as set out in paragraph iv above, as well as the demands during peak hours on peak days of the year. At the same time, the physical space within the two terminals has not posed particular constraints on the passenger handling capacity, in terms of passenger circulation, waiting for embarkation and movements in connection with immigration clearance. vi. At present, services to the Mainland and Macau are provided at both MFT and CFT, at which some berths are allocated for use by operators providing services to the Mainland. This arrangement is for operational reasons and for the convenience of passengers, as well as to strengthen connectivity with the PRD region. This arrangement will continue for the same reasons. vii. As regards the berthing slots requirement, taking into account the current situation at the terminals, our projection is :

MFT CFT

Macau Mainland Sub- total Macau Mainland Sub-

total Normal day – Daily 139 19 158 38 54 92 Peak day – Daily 210 31 241 64 97 161 viii. Based generally on the present practice, we assume allocation on a 30-minute basis for high speed crafts and one hour for larger vessels. As such, the total numbers of berthing slots available at MFT and CFT are 480 and 330 respectively on normal days, while the total numbers of slots available on peak days are 528 and 360 respectively. This is because one of the berths at each of the terminals is closed on a rotation basis for regular maintenance on normal days. As set against the figures in paragraph vii, in overall terms, the provision of berthing slots is able to meet the requirements for such slots. Extension of CFT’s Operating Hours ix. As revealed by the existing Pilot Scheme to extend CFT’s operating hours by four hours from 2200 hours to 0200 hours on the next day on Saturdays, Sundays and public holidays, around 70% of the passengers using CFT during the extended hours arrive at / depart from the terminal in the first two hours. Around 10% of the passengers using MFT during the extended hours are diverted to CFT. Taking into account our projection of annual growth rate of 8.3% for trips to and from Macau, the increasing number of trips for employment and business and the need to provide greater convenience for passengers from Kowloon and the New Territories, and more choices to cross-boundary ferry passengers, our conclusion is that we should extend

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the operating hours of CFT by two hours, from 2200 hours to midnight round the year on a regular basis using public funds, subject to availability of resources. Enhanced Berthing Slot Allocation Mechanism x. We will build on the existing allocation mechanism and introduce improvements to ensure efficiency in the operation of the terminals and use of public resources. Under the enhanced system, the Marine Department (MD) will introduce a utilisation rate for berthing slots allocated as a factor to be taken into account when according priority on the allocation of future slots. This is to encourage operators to fully utilise the berthing slots they apply for. Further, MD will process the quarterly schedules in accordance with the following order of priority :

(a) utilised slots at the terminals concerned for the previous quarter, i.e. those slots with utilisation rate of at least 85%;

(b) changes to utilised slots allocated in the previous quarter; and (c) berthing slots for operating new or additional regular services with priority

given to new routes or existing services with low frequency of service. xi. When examining applications, MD will continue to have regard to the policy objectives of the Government, operators’ previous usage of berthing slots at the terminals concerned, availability of suitable berths at the time of the proposed scheduled arrivals and departures of the vessels, handling capacity of the terminals, the estimated patronage, availability of supporting facilities at the terminals, passenger flow brought about by the new or additional services, operational requirements and optimal use of public resources as appropriate, plus any other relevant factors. Enhancement of Terminal Facilities xii. To ensure that the terminals can provide a comfortable environment which is commensurate with the nature of cross-boundary ferry services and Hong Kong’s standing as an international city, we will continue to upgrade the facilities of the terminals as on-going measures to enhance their capacities and operations, including signage systems, check-in counters, baggage handling facilities and berthing platforms. The function of the terminals’ management committee will be strengthened to ensure the improvement measures can be implemented in a timely manner to meet the need of the travelling public and the operators.

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Chapter 1: Introduction Government’s Policy Objectives

The Government’s policy objective is to enhance our connectivity with the Pearl River Delta (PRD) region to maintain Hong Kong’s position as a transport and maritime hub. 2. In achieving this policy objective, we take into account the demand for cross-boundary ferry services connecting to different destinations within the PRD (i.e. Macau and other ports in the Mainland), the availability of terminal facilities, the efficient operation of such facilities as public resources, and the importance of a safe, convenient and quality service to passengers. Need for Review 3. The past few years have witnessed a significant increase in the number of passengers using the cross-boundary ferry terminals (CBFTs): the level of patronage of the two government-managed terminals, i.e. Hong Kong-Macau Ferry Terminal at Sheung Wan and China Ferry Terminal at Tsim Sha Tsui, increased from 10.1 million to 14.3 million and from 8.7 million to 9.2 million, respectively, between 2002 to 2007. 4. In particular, the rapid development of Macau in recent years has brought with it new demand for passenger services between Hong Kong and Macau. This has an impact not only on the capacity of our terminal facilities. The increasing number of operators of such services and demand for terminal, notably berthing, facilities, and the types of ferry the operators deploy for services, all have implications on the planning, management and operation of terminal facilities, particularly in the allocation of limited public resources. This increase in demand in respect of Macau as a destination also impacts on the use and availability of facilities for other destinations in the PRD. Purpose of the Review 5. Against this background, it is timely to embark on a review of the use of CBFTs. As announced by the Secretary for Transport and Housing in the Legislative Council on 14 November 2007, the purpose of the review is to:

Further improve the operation of the CBFTs; Enhance the existing mechanism for allocating berthing slots and

terminal facilities to ensure fair and efficient allocation of public resources; and

Assess the future demand for berthing and terminal facilities for services to ports in the Mainland and to Macau, having particular regard to the need to maintain a high standard of passenger safety and comfort.

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Chapter 2: Overview of Cross-boundary Ferry Services and Terminals Introduction 6. At present there are four terminals providing cross boundary ferry services between Hong Kong and Macau, and Hong Kong and the Mainland:

Hong Kong-Macau Ferry Terminal (MFT) at Sheung Wan; China Ferry Terminal (CFT) at Tsim Sha Tsui; Tuen Mun Ferry Terminal (TMFT) at Tuen Mun; and SkyPier of the Hong Kong International Airport (HKIA) at Chek Lap

Kok. MFT and CFT 7. MFT and CFT are multi-user public facilities fully owned by the Government and under the management and control of the Director of Marine (the Director). They were commissioned in October 1985 and November 1988, respectively. The layout plans of MFT and CFT are at Appendix I and Appendix II respectively. In line with the user-pay principle, the Government recovers the costs for providing services through the charging of passenger embarkation fee and vessel berthing fee. 8. Customs, immigration and quarantine (CIQ) facilities are provided at MFT and CFT (also TMFT for that matter). They are terminals declared under the Shipping and Port Control (Ferry Terminals) Regulations (Cap. 313H)(the Regulations). As such, the Director has the legal authority to control and regulate their use, including the regulation and control over vessel movements, entry of persons into restricted areas, passenger embarkation and disembarkation, etc. The legislation also provides the legal basis for the charging of relevant fees. 9. At present, there are five operators at MFT, one of them provides services to both Macau and the Mainland, another one for services to Macau and three for services to Mainland ports. It operates round-the-clock. On the other hand, there are six operators at CFT, with one for services to Macau and five for services to Mainland ports. CFT operates from 0700 hours to 2200 hours daily. 10. In 2002, a ferry operator requested the Government to extend the operating hours of CFT. Given the spare capacity at MFT at the time, we did not support the request. Instead, we introduced a pilot scheme in February 2005 to extend the operating hours of CFT from 2200 hours to 0200 hours the following morning (“the extended hours”) on Saturdays, Sundays and public holidays. Following an expression of interest exercise, the Government signed licence agreements with two operators for the use of three designated areas at CFT to provide cross-boundary ferry services during the extended hours. The two licensees have to pay annual licence fees for using the designated areas to provide such services. TMFT 11. In the early 2000s’, there were suggestions for the Government to set up a third CBFT in Tuen Mun. Given that CBFTs were planned and provided on a

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territory-wide basis and that there was still capacity at MFT and CFT to meet projected demand at the time, the Government did not support these suggestions and commit public funds to implement them. 12. However, having regard to the interests expressed by the private sector and the strong support of the Tuen Mun District Council and the Legislative Council, the Government agreed to lease out part of the pre-existing Tuen Mun Ferry Pier for this purpose. Following an open tender exercise, the Government signed a tenancy agreement in December 2003 with an operator for the occupation, modification and use of part of the Tuen Mun Ferry Pier to operate the TMFT for cross-boundary ferry services. The tenant was responsible for all the capital costs for converting the pier into a CBFT and pays an annual fee to the Government. TMFT was commissioned and designated under the Regulations in November 2006. SkyPier 13. SkyPier is not a terminal designated under the Regulations. But as it falls within the boundary of the land designated under the Airport Authority Ordinance (Cap. 483), the Airport Authority (AA) exercises control over SkyPier. This includes designating the pier as a restricted area to control the movement of passengers. The AA also keeps a list of vessels approved for operating at the SkyPier. 14. No CIQ facilities are provided at the SkyPier, which provides cross-boundary ferry services only to sea-air transit passengers after landing or before taking a flight at HKIA. The priority now is on the construction of SkyPier II to increase capacity to serve growing number of sea-air transit passengers so as to enhance the connectivity and the competitiveness of HKIA. To this end, the Government and AA are also reviewing the case for providing CIQ facilities at SkyPier, which may further enhance the connectivity between the PRD region and HKIA and create synergy for the conference and tourism facilities on Lantau Island. Summary 15. The basic information on these four terminals is set out in Figure 1 below. Figure 1: Facts and performance of the CBFTs MFT CFT TMFT SkyPier Operating Hours 24 hours 0700 – 2200

hours 0715 – 2215 hours

0730 – 2300 hours

Number of operators 5 6 1 2 Number of destinations

7 (Macau + 6 Mainland ports)

13 (Macau + 12 Mainland ports)

1 (Shekou) 6 (Macau + 5 Mainland ports)

Mainland 1,705,329 4,886,167 151,313 1,582,483Macau 12,551,718 4,308,807 - 440,601

Annual Throughput in 2007 Total 14,257,047 9,194,974 151,313 2,023,084

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Scope of the Review 16. It can be seen that AA has been leading the services provided at SkyPier and plans for its expansion. On the other hand, the TMFT is leased out to a tenant to operate on a commercial basis. Given that MFT and CFT are the two terminals that handle the main passenger throughput for cross-boundary ferry services now and in the foreseeable future and that they are under the direct management of the Government through the Marine Department (MD), this review will thus necessarily focus on these two terminals.

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Chapter 3: Future Demand for Cross-boundary Ferry Services

The General Trend 17. The number of ferry trips made by Hong Kong residents and visitors to and from Macau via the two Government-managed CBFTs reached 16.86 million in 2007. The increase was very fast in the past few years, at an average annual growth rate of 12.4% between 2004 and 2007. In contrast, the number of ferry trips to and from Mainland was on a decreasing trend. The number of trips by Hong Kong residents and visitors decreased from 7.06 million in 2004 to 6.59 million in 2007. In the following paragraphs, we seek to assess the future demand for cross-boundary ferry services in the coming five years up to 2012. In the process, we are grateful for the input of the Planning Department. Cross-boundary Ferry Services: Macau 18. In our analysis, we have made a distinction between trips taken by Hong Kong residents and visitors (i.e. those originated from the Mainland, Macau or other parts of the world). Trips by Hong Kong residents The growth factors 19. There is a long tradition of ferry services linking Hong Kong and Macau. The increase in Hong Kong residents visiting Macau in recent years can mainly be attributed to Macau’s newly completed tourist attractions to cater for visitors of all age groups. The number of hotel rooms nearly doubled from 8,600 in January 2004 to 15,600 by the end of 2007. This build-up of facilities will be sustained in the next few years as several large casinos and hotel projects are being built or planned in Zona De Cotai. As an indicator of the scale of these developments, the number of hotel rooms is expected to increase by another 30,000 in the next five years. These developments, coupled with the continuing positive economic outlook in Hong Kong, will contribute to the increasing number of pleasure trips to Macau. 20. A recent phenomenon is the increased number of Hong Kong residents working in Macau, given the boom of the hospitality and construction industries there. This development has resulted in an increase in work trips from Hong Kong. Such trips may be taken on a daily return to weekly return basis. According to the Cross-boundary Travel Surveys conducted by the Planning Department, the total number of work trips to Macau more than doubled from 11,300 in 2003 to 25,700 in 2006 over a two-week survey period conducted in November of the respective years. The share of work trips among all trips by Hong Kong residents to Macau also went up from 4.3% to 7.1% during the corresponding period. While the situation in 2007 is not yet fully known, it is likely that there were even more work trips by Hong Kong residents to Macau in 2007 as job opportunities there increased. 21. The number of business trips to Macau by Hong Kong residents also increased significantly in recent years. Results from the above quoted Cross-Boundary Travel

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Surveys indicated that the number doubled from 34,000 to 68,000 over the same survey periods, and the share among all trips by Hong Kong residents increased from 12.8% to 19.0%. With the booming economic activities and the development of Macau as a conference and exhibition centre, it is likely that this trend will continue. The balancing factors 22. It is difficult to predict when the above situation will reach a more steady state. On one level, it can be argued that from an economic point of view, the completion of major tourist projects in Macau over the next few years, together with rising costs of living and other social costs, such as traffic congestion, may dampen the rising trend somewhat. Fare level represents a clear paradox: higher operating costs due to labour and fuel costs may boost fare and hence impact on same-day visitors who are likely to be price sensitive to ferry fare. However, increased competition with the entry of new operators who are related to the entertainment business in Macau may bring the fare down to attract more visitors and customers. 23. On the other hand, more job opportunities can be found in Hong Kong with the construction of many large-scale infrastructure projects to start in the next few years. These include the new rail projects, other major road projects in the pipeline and the Hong Kong-Zhuhai-Macau Bridge (HZMB) with its link roads and boundary crossing facilities. 24. Taking into account the above factors, our assessment is that the number of trips to Macau by Hong Kong residents will continue to increase in the next few years, albeit possibly at a somewhat reduced pace. Trips by visitors 25. Mainland visitors constitute the main portion of ferry passengers to and from Macau. We will focus on this group in the subsequent analysis. We are aware that Macau is positioning itself as a conference, exhibition and entertainment centre and as such has ambition to attract more international visitors in this endeavour. We will keep this development in view in our monitoring of future patterns of patronage. The growth factors 26. Rising income and continual expansion of the Individual Visit Scheme are both important factors contributing to the increase in trips to Macau by Mainland visitors, by land transport or by ferry services. These positive factors may be further augmented by the new holiday policies of the Mainland, under which there will be five three-day long weekends and two seven-day golden week holidays in a year (compared to three golden week holidays previously) and by the increase of paid annual leave entitlement of workers, from five to 15 days. These arrangements are likely to encourage more short trips to Hong Kong and Macau, particularly for those living in adjacent cities and provinces.

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The balancing factors 27. More Mainland visitors do not necessarily mean that they will go to Macau via Hong Kong, and vice versa. With the improved ferry and road network between Macau and the Mainland, some Mainland visitors may go to, and return from, Macau direct. On the other hand, visits by Mainland visitors are not necessarily two-way: departures outnumbered arrivals as many Mainland visitors (in particular those in groups) come to Hong Kong by land or air, then go to Macau by ferry and return to the Mainland direct from Macau without taking ferries back to Hong Kong. Forecast of demand 28. Having regard to the various growth and balancing factors discussed above, we project that the number of trips to and from Macau by both Hong Kong residents and visitors will increase annually by about 1.66 million. This is equal to the average annual increase between 2004 and 2007. On this basis, the number of trips will increase to 25.15 million in 2012, with an average annual growth rate of 8.3%. Cross-Boundary Ferry Services: the Mainland 29. As stated in paragraph 17 above, the number of ferry trips to and from Mainland has been on a decreasing trend. The number of trips taken by Hong Kong residents and visitors decreased from 7.06 million in 2004 to 6.59 million in 2007. According to the Cross-boundary Travel Surveys of the Planning Department, 20.4% of the Mainland visitors to Hong Kong took ferries in 2003 – the figure dropped significantly to 12.3% in 2006. The decline factors 30. The reduction in ferry patronage is significant in the east bank of the PRD. This decrease can largely be attributed to the improved road network, notably with the availability of an extensive highway network serving the area, enhanced land transport crossing capacity with Hong Kong, and more and better coach services covering wider routes between Hong Kong and this part of the PRD. All these render the reduction in travel time, convenience, and lower cost of traveling more important and consequently ferry services become a less preferred option. 31. In the past few years, the number of Mainland destinations served by ferry operators has decreased from 20 in 2001 to 12 in 2007. This reduction reflects reduced demands and contributes to further reduced total patronage, although the number of passengers using the remaining routes has been quite stable. Indeed, the number of passengers to and from ports in the west bank of the PRD (such as Zhuhai, Zhongshan and Shunde) has some growth in recent years. Forecast of demand 32. In overall terms, our assessment is that ferry patronage of routes that are still operating will remain quite stable. We project that the number of ferry trips, Hong

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Kong residents and visitors included, will remain at the same level as in 2007, i.e. 6.59 million until 2012. Forecast of Total Demand 33. The projected total number of passenger trips is thus 31.74 million by 2012, split between 25.15 million for Macau and 6.59 million for the Mainland. Beyond 2012, the situation will become more fluid as set out in paragraphs 22 to 24 above. The completion of the Hong Kong-Zhuhai-Macau Bridge by 2016 will certainly have an impact on the pattern of travel between Hong Kong and the western bank of PRD, notably Macau, and it is conceivable that the reliance on ferry services will be reduced with this new bridge link. The extent of the impact will depend on a number of factors, such as toll level, facilitation of cross-boundary vehicular traffic, etc.

Meeting the Demand 34. Thus the challenge is whether the passenger handling capacity of the two main CBFTs, viz. MFT and CFT, is able to cope with the projected demand. In this context, our capability is dependent on:

The processing capacity of the CIQ departments; The physical capacity of MFT and CFT to handle passenger circulation; Berthing capacity of our CBFTs; Measures to optimise the operation of the above facilities to meet

demands; The availability of additional capacity where appropriate; and Our ability to maintain the highest safety standards at all times.

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Chapter 4: Passenger Processing Capacity

General Considerations 35. From paragraph 33 above, we have projected that the total number of passenger trips will be 31.74 million by 2012, split between 25.15 million for Macau and 6.59 million for the Mainland. In assessing the capability of our CIQ facilities to process this level of passenger throughput, we need to look at passenger distribution on four levels:

Passenger split between the two terminals, viz. MFT and CFT; Passenger mix between Hong Kong residents and visitors of the two ferry

terminals; Weekly pattern; and Daily pattern.

Terminal facilities 36. The choice between MFT and CFT depends on the availability of routes and services in these two terminals, as well as individual passenger preferences. In 2007 MFT handled 74.4% of the passenger traffic connected with Macau – and CFT 74.1% of the passengers in respect of the Mainland. These percentages were quite stable in the past few years. As no major changes in these two aspects are anticipated, it is assumed that the split of passengers between the two terminals in the next few years will broadly follow the historical pattern. As such, MFT will have 20.45 million passenger trips in 2012, representing an average annual growth rate of 7.5%, whereas CFT will have 11.30 million, with an average annual growth rate of 4.2%. It is also projected that the passenger mix between Hong Kong residents and visitors of the two terminals will remain stable in the next few years. Weekly pattern 37. As expected, historical data reveals two basic patronage patterns. First, in respect of the normal weeks, the number of outbound trips reaches peak on Saturday, dropped slightly on Sunday and rebound on Monday. It remains stable during Tuesday to Thursday and then starts to rise on Friday. Correspondingly, inbound trips remain stable during Monday to Thursday, and start to rise to its peak on Sunday. This pattern applies to both MFT and CFT. Second, in respect of public holidays, such as Chinese New Year, Easter, Christmas and New Year, the number of passengers will clearly be significantly higher compared to the normal week, normal day pattern. Daily pattern 38. On a daily basis, we also observe a pattern. The peak hours for arrivals and departures do not normally overlap. For MFT, the arrivals of Hong Kong residents increase gradually over the day and peak at 2200 hours, whereas the peak of departures for Hong Kong residents at MFT is in the morning. Peak hours of visitor traffic at MFT in both arrival and departure occur at 1000 hours to 1200 hours. For CFT, the peak of arrivals for Hong Kong residents is in the evening while that for

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departures is in the morning. Both arrivals and departures of visitors at CFT peak in the morning, in particular for some weekdays. They then drop slowly in the middle of the day and rise again in the evening. 39. The passenger departure and arrival pattern during peak days (such as Chinese New Year, Easter, National Day and Christmas/New Year holidays) is similar to the daily pattern mentioned in paragraph 38 above. The peak hours for departures of Hong Kong residents are the morning hours on the first couple of days of the holiday period, while the peak of arrivals is in the evening on the last day of the relevant holidays. For visitors, the peak of departures on peak days is in the morning whereas the peak of arrivals on peak days appears both in the morning and afternoon. Projected Passenger Throughput 40. The projected annual, normal day daily and peak day daily passenger throughput in 2012 is shown in Figure 2. Figure 2: Projected Passenger Throughput

MFT CFT Macau Mainland Sub-total Macau Mainland Sub-total

Projected Annual Throughput

18.74M 1.71M 20.45M 6.41M 4.89M 11.3M

Projected Daily Throughput (Normal day)

50,100 4,600 54,700 17,000 13,000 30,000

Projected Daily Throughput (Peak day)

101,000 9,200 110,200 38,200 29,100 67,300

CIQ Processing Capacity 41. In this context, the critical factor is the processing capacity of the Immigration Department (ImmD), as all passengers have to undergo immigration clearance but not all of them are required to undergo checking at the Customs and health counters at the terminals. The number of immigration counters and e-channels in operation at MFT and CFT are set out in Figure 3. Figure 3: Immigration Facilities

MFT CFT Traditional Counters

E-channels

Total Traditional Counters

E-channels

Total

Available 40 42 82 52 18 70 In Operation

Note 23 20 43 28 18 46

Note: The number of counters in operation denotes the number of counters/e-channels in use during the peak hours at the existing manning level.

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42. An estimate of the maximum processing capacity at MFT and CFT under existing manning level is set out in Figure 4 below. In these figures, it is assumed that the traditional counters and e-channels are fully utilised under the current maximum staffing level, and passengers (including Hong Kong residents using e-channels) are evenly and continuously distributed at all times throughout the day. ImmD can flexibly switch its staff to the immigration counters between the departure and arrival halls in accordance with the respective demands, which may not be identical. In general, ImmD takes more time to clear arrival visitors. Figure 4: Immigration Processing Capacity MFT CFT Hourly Capacity (Two-way) 7,375 7,530 Daily Capacity (Two-way) 177,000 113,000 43. In this context, it should be noted, with reference to Figure 3 above, that the availability of immigration facilities exceeds those that are in operation. There is thus scope for further expansion of processing capacity through additional staff if necessary to meet the bunching of passengers or future demand. Conclusion 44. The challenge is with the peak hours, particularly those on peak days. Figure 5 below shows the peak hourly throughput on normal days and peak days at MFT and CFT - Figure 5: Peak Hour Passenger Throughput MFT CFT

Departure 2,700 3,400 Normal Day Arrival 2,100 2,300 Departure 4,100 5,400 Peak Day Arrival 3,800 4,000

45. It should be noted that the distribution of passenger flow between arrival and departure is asymmetrical: the peak hours for departures and arrivals do not normally fall within the same time, hence the two-way peak hour passenger flow is not equal to the sum of the peak hour flow in either direction. Even taking into account further increase in peak hour passenger flow in future, we are confident that the CIQ facilities at the two terminals will be able to cope with future demand, provided that the facilities are fully utilised with adequate provision of additional manpower resources for ImmD. To meet the peak hour traffic demand, ImmD will need to deploy its staff flexibly to man as many immigration counters as possible in accordance with the demand at the time to meet the performance pledge on clearance time.

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Chapter 5: Holding Capacity

Overview 46. Another important element that determines the throughput of our terminals is their holding capacity for passengers in circulation, waiting for embarkation to ferries, and movements in connection with CIQ clearance. 47. As with domestic ferry services generally, an important human behaviour is that passengers do not spend more time than is necessary at MFT and CFT to go through the required CIQ and checking in (for departure) requirements. And they also normally travel light. This is quite unlike the airport where departing passengers normally check in at least two hours before their flight and where baggage claim is a standard process for arriving passengers. This will dispense with the need for large holding areas. This notwithstanding we need to ensure that the circulation and movement of passengers is efficient and that we have enough holding areas for crowds. Optimisation measures 48. To optimise the use of the physical space in the terminals, MD has implemented a number of measures to ensure a smooth and orderly passenger flow at the terminals. They include:

Provision of clear directional signs by MD and the operators. This is important given the increased number of operators with their own clienteles. To further assist passengers in finding their ways, some operators also provide ushers/customer service assistants at the terminals to direct passengers to the right berth;

Better use of public announcement systems to provide information on the boarding time of individual sailings to help facilitate the passenger flow;

Provision of a baggage handling system at CFT for passengers to check in their luggage so that they can board the vessels at ease;

Facilitation of setting up of help-desks by operators providing baggage- handling service before immigration clearance at MFT. The luggage will then be delivered to the vessels; and

Use of lift or travellators provided at both terminals. Conclusion 49. Our conclusion is that the accommodation within the two terminals has not posed particular constraints on passenger handling capacity. MD will keep in view the situation with a view to introducing and strengthening measures as necessary to ensure a smooth passenger flow and to enhance comfort for the travelling public.

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Chapter 6: Berthing Capacity

Overview 50. We have assessed the projected patronage of cross-boundary ferry services in respect of both Macau and Mainland ports in the PRD region in Figure 2. We need to assess, in addition to the CIQ processing capacity and physical capacity for passenger circulation that we have examined in the last two chapters, whether the berthing facilities at the two government-managed ferry terminals are adequate to cater for demand, in terms of passenger throughput and the operational need to use different types of vessels to provide cross-boundary ferry services. Requirement for Berthing Slots Working assumptions Ferry services to Macau 51. For the purpose of assessing the berthing slots required for services to Macau, we have assumed, taking into account the current situation at the terminals:

The size of the vessels deployed for service is 330 seats at MFT and 410 seats at CFT;

Loading factor is 60% for normal days; and Loading factor is 80% for peak days.

52. To cater for the passenger demand projected in Figure 2 above, we estimate that the number of berthing slots required on normal days will be around 139 per day at MFT, and 38 per day at CFT. On peak days, the requirement will be 210 per day at MFT and 64 per day at CFT. Ferry Services to the Mainland 53. For the purpose of assessing the berthing slots required for services to the Mainland, we have assumed, taking into account the situation at the terminals:

The size of the vessels deployed for service is 330 seats at both MFT and CFT;

Loading factor is 40% for normal days; and Loading factor is 50% for peak days.

54. To cater for the passenger demand projected in Figure 2 above, we estimate that the number of berthing slots required on normal days will be around 19 per day at MFT, and 54 per day at CFT. On peak days, the requirement will be 31 per day at MFT and 97 per day at CFT.

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Total Requirements 55. The total projected berthing slots requirements at the terminals are shown in Figure 6 below: Figure 6: Requirements for Berthing Slots

MFT CFT Macau Mainland Sub-total Macau Mainland Sub-total

Daily (Normal day) 139 19 158 38 54 92 Daily (Peak day) 210 31 241 64 97 161 Methodology Daily berthing slot requirement = Daily throughput for each trade ÷ 2 (for 2-way traffic) ÷

(vessel capacity x loading factor) x 1.1 (to cater for other operational requirements)

Provision of berthing Slots 56. At present, services to the Mainland and Macau are provided at both MFT and CFT. Some berths at MFT and CFT are allocated for use by operators providing ferry services to the Mainland. This arrangement is for operational reasons and in order to ensure the provision of services at the terminals for the convenience of the passengers, as well as to strengthen connectivity with the PRD region. Berths for high speed crafts 57. Basically two types of berths are provided at MFT and CFT. The first are berths for high speed crafts (HSCs) and there are 10 such berths at MFT and 11 at CFT. They are too small for conventional ferries and larger HSCs (e.g. those with 1,200 seats). At a practical level, berthing slots are normally allocated on a 30-minute basis for HSCs to accommodate the standard procedures for passenger disembarkation, embarkation and routine cleansing and maintenance in between sailings. Thus, there are two berthing slots to be allocated at a berth per hour. The actual time required for these procedures varies according to passenger loading, weather, vessel type and crew efficiency.

A Berth for High Speed Crafts at MFT

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58. We have examined the feasibility of shortening the duration (less than 30 minutes) of existing allocations, thereby increasing the turn-around time as a means to increase the berthing capacity, say, to three berthing slots for a berth per hour. We do not, however, recommend this as a general practice. For the efficient and smooth operation of the terminals, we regard that there is a need to keep a buffer to ensure the whole process is completed in an orderly manner. With a shortened berthing slot of say, 20 minutes, any delay or postponement of one sailing would have a more significant impact on subsequent sailings. However, such measures may be implemented on the peak days to alleviate the seasonal surge of demands for travel over long holidays. 59. At present, there are two berths at the outer pier of MFT adjacent to Berths No. 9 and 10 where berthing platforms are not yet installed for passenger embarkation and disembarkation. Subject to availability of funding and actual need, it is possible to install additional berthing platform(s) to enhance the berthing capacity for HSCs at MFT.

The Berths adjacent to Berths No. 9 and 10 of MFT Berths for larger vessels 60. Hence the second type of berths is those for conventional vessels and larger HSCs, and there are two each at MFT and CFT. We are aware of plans by some operators to bring in such larger vessels, up to a capacity of 1,200 passengers. It is more appropriate to allocate berthing slots for longer duration for vessels of this size and capacity (say on an hourly basis).

Berths for Conventional Ferries at MFT

61. There are constraints in the use of these berths:

These larger berths at MFT as they are exposed to the outer stretch of the terminal are not suitable for the smaller HSCs due to strong waves. Only larger HSCs can berth at the berths for conventional ferries at MFT if landing pontoons are installed. On the other hand, the smaller HSCs may also berth at the berths for conventional ferries at CFT if landing pontoons are installed as the waters are less exposed.

Except for the peak days (about 40 days in a year), at least one of the berths for HSCs in either terminal is under maintenance on a rotational basis.

A landing pontoon at CFT 62. The maximum number of berthing slots available per day is shown in Figure 7 below. Figure 7: Availability of Berthing Slots MFT

(24-hour operation) CFT

(15-hour operation) HSCs Conventional

Ferries Total HSCs Conventional

Ferries Total

Normal Days

432 48 480 300 30 330

Peak Days

480 48 528 330 30 360

Note: One of the berths for HSCs at each of the terminals is closed on rotation basis for regular maintenance on normal days. As regards berths for conventional ferries, maintenance can be carried out as required throughout the year as they are less frequently used.

63. At present, less than half of the total number of berthing slots available is allocated to ferry operators, with a higher utilisation rate for the berthing slots during peak hours in the morning and in the evening.

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Conclusion 64. A comparison between Figure 6 and Figure 7 clearly suggests that in overall terms the provision of berthing slots is able to meet the requirements for such slots. The arrangement of providing services to the Mainland and Macau at both MFT and CFT should also continue, as it would provide convenience and more choices to the public. It also provides operational flexibility and helps ensure the continuity of services to different destinations in case one of the terminals cannot perform its normal function due to unforeseen circumstances, say, breakdown of power supply. The challenge is to ensure a fair and efficient allocation of the available berthing slots to all operators. We will deal with this in Chapter 8.

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Chapter 7: Assessment of Demand for Cross-Boundary Ferry Terminals

Overview 65. In the previous chapters, we have concluded that, in general terms, both MFT and CFT should have adequate capacity to cope with the projected passenger throughput under even the more demanding scenarios at peak hours on peak days up to 2012. Continuing Improvement measures 66. To complement this general situation, we should be vigilant in the flexible deployment of resources, particularly in coping with peak passenger traffic. In previous chapters, we have identified such possibilities:

Redeployment of staff to strengthen the CIQ processing capacity; Additional staff to man hitherto unmanned immigration counters, subject

to funding; Shortened turn-around time at berth, hence more berthing slot per hour on

peak days as may be necessary; Installation of additional berthing platforms at MFT, subject to need and

funding available; and Increased versatility of berths normally designated for conventional

ferries to accommodate larger HSCs at MFT. Operating Hours at CFT 67. At present, MFT operates around-the-clock. On the other hand, CFT operates only from 0700 hours to 2200 hours daily, except for Saturdays, Sundays and public holidays when a pilot scheme has been introduced since 2005 extending the hours of operation from 2200 hours to 0200 hours the following morning. We have reviewed the case for extending the operating hours of CFT in the light of this experience, the increase in demand for passenger services and the convenience of the travelling public. 68. Since the launch of the pilot scheme, daily average patronage at CFT during the extended hours is about 2,230 passengers. Around 70% (1,560) use the terminal in the first two hours. Around 10% of the passengers using MFT are diverted to CFT. Our conclusion is that we should extend the operating hours of CFT by two hours, from 2200 hours to midnight round the year on a regular basis using public funds, subject to availability of resources. This takes into account our projection of annual growth rate of 8.3% in the demand for services to and from Macau, the increasing number of trips for employment and business and the need to provide greater convenience for passengers from Kowloon and the New Territories, and more choices to cross-boundary ferry passengers. Subject to demand, we will review the need for further extension at a later stage.

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Tuen Mun Ferry Terminal 69. There is no need to provide an additional terminal in the near future. We will keep in view the overall passenger demand for consideration of the future role of TMFT in the provision of cross-boundary ferry service. Meanwhile, the Government will continue to encourage the tenant of TMFT to explore ways to better utilise TMFT through the introduction of new services to Macau and other PRD destinations, either on its own or in cooperation with other cross-boundary ferry operators. SkyPier 70. Given that the capacity of the existing CBFTs can cope with future demand and the geographical proximity of SkyPier to Tuen Mun where there is already a CBFT, it would not be justifiable by the cross-boundary traffic need alone for the Government to use public funds to turn SkyPier into a CBFT with CIQ facilities. On the other hand, it is recognised that SkyPier serves a strategic function to improve HKIA’s connectivity to enhance its competitiveness and attractiveness vis-à-vis other airports in the PRD region. The provision of CIQ facilities at the terminal may bring additional air service traffic to HKIA and may create synergy with tourism and conference facilities nearby. To this end, we will continue to review the need and desirability of the proposal of providing CIQ facilities at SkyPier having regard to its distinct role and strategic importance to the development of the airport.

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Chapter 8: Enhancement of Berthing Slot Allocation Mechanism

Overview 71. The preceding analysis deals with the capability of our terminals to handle projected increases in demand for cross-boundary ferry services mainly in respect of Macau. We need to go a level down to look critically at the fair and efficient allocation of berthing slots. This is necessitated by the increasing number of operators for such services, the more diversified types of ferries to be used, and the consequential higher demand for terminal facilities, notably in berthing slots. For obvious reasons, this is perhaps the single most critical issue for the operators, as the allocation mechanism will have a direct bearing on their operation. From the Government’s point of view, the importance of a fair and efficient mechanism for the allocation of public resources needs hardly any emphasis. 72. In this endeavour, we have taken a balanced approach that will have regard to pre-existing services and build on the existing allocation mechanism, while we seek to enhance it to accommodate the needs and aspirations of new operators. Existing Allocation Mechanism 73. MFT and CFT are multi-user public facilities and it is open to ferry operators to apply for time slots for using the berths (instead of specific berths per se) at those two terminals for providing cross-boundary ferry services. 74. Under the existing mechanism, ferry operators are required to submit to MD quarterly sailing schedules around one month before the beginning of each quarter. The quarterly schedule sets out the schedules of sailings that an operator plans to operate in that quarter. In addition, operators are required to inform MD of the name of the ferry vessel and the proposed berth for each of the scheduled trips as stated in the proposed quarterly sailing schedules 12 hours (for operators with 24-hour operation)/24 hours (for other operators) before its departure from or arrival at the terminals. As regards additional sailings during major holidays on top of those stated in the quarterly schedules, operators may submit their proposed schedules a few weeks before the holidays for MD’s consideration. 75. In considering the quarterly schedules submitted by existing operators, MD takes into account all relevant factors including but not limited to the previous usage of berthing slots at the terminals by the operators, availability of suitable berths at the time of the proposed scheduled arrivals and departures of the vessels, and operational requirements. As regards applications for provision of cross-boundary ferry services by new operators, they are preliminarily assessed against the peak historical usage of the existing operators in the past year or so to see whether berthing slots are available in principle for the new services. Actual allocation of berthing slots is to be processed by MD having regard to all the relevant considerations upon receipt of the quarterly sailing schedules submitted by the new operators nearer the time of the commencement of their services as with other existing operators.

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76. In other words, under the existing system, only unutilised berthing slots will be considered for allocation for new or additional services, having regard to all the relevant factors. The existing practice serves to ensure continuity and stability of ferry services. Enhanced Allocation Mechanism 77. We have reviewed the existing mechanism with a view to introducing improvements to ensure efficiency in the operation of the terminals and the use of public resources. The enhanced system should be fair and transparent. It should also be conducive to maintaining continuity and stability of ferry services and is simple and user-friendly to the ferry operators and easy to administer by MD. In particular, we regard it is important to involve the operators in the process of developing the enhanced system. 78. The salient features of the enhanced mechanism are set out in the paragraphs below.

Submission of Sailing Schedules

79. Under the enhanced system, MD will as before invite operators to provide their sailing schedules in advance. For higher efficiency, the format, content and timing for submission will be standardised. Consideration of Quarterly Schedules 80. When processing quarterly schedules in future, we will continue to accord first priority to utilised berthing slots by existing operators at the terminals concerned. In other words, operators who have been using a particular berthing slot will be given priority over other operators applying for the same slot. Nevertheless, we will introduce a utilisation rate for berthing slots allocated as a factor to be taken into account to encourage operators to fully utilise the berthing slots they apply for to ensure efficient use of public resources. The utilisation rate will be set at 85%. From our experience, we observe that the majority of the operators are able to achieve a utilisation rate of over 90% for services to Macau and to the Mainland. We therefore consider that a buffer of 15% should be enough to cater for any adjustment to services due to operational need. 81. An operator may wish to exchange a utilised berthing slot for another berthing slot in the next quarter for operational or other reasons. After considering the applications for the use of utilised berthing slots by existing operators, MD will proceed to consider these applications for changes, as we consider that operators with proven record of utilisation should be given higher priority over others on the choice of berthing slots. 82. MD will then process any applications for berthing slots for operating new or additional regular services from existing or new operators. In examining these applications, to achieve the objective of providing the traveling public with diversified services, MD will give priority to new routes, i.e. services to new destination ports, or

existing services with low frequency of service. We suggest to define a ‘low frequency service’ as a service with less than 28 sailings a week or less than two return trips per day. Priority for Consideration of Quarterly Schedules 83. To recap, MD will process the quarterly schedules in accordance with the following order of priority :

(a) utilised slots at the terminals concerned for the previous quarter, i.e. those slots with utilisation rate of at least 85%;

(b) changes to utilised slots allocated in the previous quarter; and

(c) berthing slots for operating new or additional regular services with priority given to new routes or existing services with low frequency of service.

84. When examining applications, MD will continue to have regard to the policy objectives of the Government, operators’ previous usage of berthing slots at the terminals concerned, availability of suitable berths at the time of the proposed scheduled arrivals and departures of the vessels, handling capacity of the terminals, the estimated patronage, availability of supporting facilities at the terminals, passenger flow brought about by the new or additional services, operational requirements and optimal use of public resources as appropriate, plus any other relevant factors. 85. MD shall not be obliged to allocate all the available berthing slots or specific berthing slots requested by the operators. This is to ensure the efficient operation of the terminals and to provide a buffer for situations like adverse weather and maintenance works. Procedures for Schedule Submission Quarterly Schedules 86. Similar to existing practice, ferry operators will submit their proposed quarterly sailing schedules to MD around six weeks before commencement of each quarter of the year. MD will process applications in accordance with paragraphs 83 and 84. Provided that MD is satisfied that the applications have met all the relevant requirements and considerations, MD will complete the allocation process and inform the operators concerned of the results of their applications around three weeks before the commencement of the next quarter. MD will publicise the finalised quarterly schedules on the website accessible to operators only. Subsequent changes to the quarterly schedules by operators will only be considered on a case by case basis at the discretion of MD, who will take into regard all relevant factors including the justifications provided by the operators concerned and availability of vacant berthing slots at the material time.

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Daily Schedules 87. Similar to existing practice, operators will submit the daily sailing schedules to MD by 1500 hours on the preceding day. The schedules should normally reflect the schedules stated in the quarterly schedules. Any changes to the original schedules or applications for additional sailings should be highlighted in the standard proforma. Provided that MD is satisfied that the applications have met all the relevant requirements and considerations, MD will complete the allocation process and inform the operators of the results of their applications. MD will publicise the daily schedules on the website accessible to operators only. To encourage operators to adhere to the original quarterly schedules, usage of berthing slots for changed or additional sailings will not count towards the utilisation rate for the purpose of paragraph 83(a). MD does not encourage operators to make further changes after submission of their daily schedules. However, if such applications are received, MD will process them on a first-come-first-served basis. Having regard to all the relevant considerations, MD will inform the operators concerned of the results as soon as practicable. Additional Sailings for Major Holidays and Special Large-scale Events 88. To facilitate operators’ early planning, MD will set out to the operators the specific dates of the major holidays of the coming year in the last week of November. Operators will submit the proposed sailing schedules for major holidays to MD around six weeks before these holidays on the standard form. MD will process the applications taking into account, among other things, the operators’ usage of berthing slots during the corresponding holiday periods in the preceding year where applicable. Provided that MD is satisfied that the applications have met all the relevant requirements and considerations, MD will complete the allocation process and inform the operators concerned of the results of their applications around three weeks before the commencement of various holidays. MD will publicise the holiday schedule on the website accessible to operators only. Usage of berthing slots for additional services during major holidays will not count towards the utilisation rate for the purpose of paragraph 83(a) as they are not regular services provided at the terminals. MD may also apply the same mechanism for special large-scale events (e.g. trade fairs, motor racing, etc) to meet increased passenger demand at the time. Oversubscribed Berthing Slots 89. In the course of processing the quarterly schedules, daily schedules and applications for additional sailings during major holidays and special large-scale events, when available berthing slots are oversubscribed (i.e. there are competing demands among the operators over the same berthing slots), provided that MD is satisfied that the applications for berthing slots concerned have met all the relevant requirements and considerations, MD will inform the operators of the situation and the operators concerned should consider using alternative vacant berthing slots, if any, as promulgated by MD on the website. The operators concerned will be given time to resolve competing demands among themselves. Failing that, and if MD sees fit after having taken into regard all relevant considerations and requirements, MD may arrange for the drawing of lots in the presence of the representatives of the operators concerned.

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Regular Review of Enhanced Mechanism 90. The berthing slot allocation mechanism will be subject to regular review to ensure that it will remain effective in achieving the Government’s policy objectives, as well as ensuring efficient allocation of public resources and the smooth operation of the terminals and meeting the demand of the market. Implementation Timetable 91. We plan to commence the above enhanced arrangement as from the third quarter of 2008, i.e. operators will submit berthing slot applications using the new forms provided by MD for the third quarter of 2008, and the allocation of berthing slots for the fourth quarter will be processed taking into account the utilisation of the berthing slots in the third quarter and in accordance with the procedures of the enhanced mechanism.F

1F

Procedural Guidelines for Staff 92. At present, berthing slots are allocated by MD’s ferry terminal section in accordance with established practice. To further enhance the efficiency and consistency of the allocation procedures, MD will prepare procedural guidelines for reference of the staff. The procedural guidelines will be reviewed regularly and updated as necessary.

1 For the purpose of computing the utilisation rate in assessing the applications, we will take into

account the utilisation of the relevant berthing slots in the three-month period immediately before the cut-off date, which shall be the last day of the second month of the preceding quarter. Nonetheless, when computing the utilisation rate for the third quarter of 2008 for the purpose of assessing the application for berthing slots in the fourth quarter of 2008, there will be a transitional arrangement under which we will take into account the utilisation of the relevant berthing slots in the first two months of the third quarter in 2008 (i.e. July and August 2008) only. This transitional arrangement will cease when considering the applications for berthing slots for the first quarter of 2009, as we will take into account the utilisation of the relevant slots during the period from 1 September 2008 to 30 November 2008.

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Chapter 9: Management of Terminal Facilities

93. MFT and CFT are essentially used to cater for cross-boundary ferry services, and as such, the quality of services provided at these terminals is primarily connected with efficient and safe handling of passenger flow and convenience for passengers. Passengers will also expect a reasonable commuting environment, in terms of cleanliness, basic comfort and user friendliness, commensurate with the nature of cross-boundary ferry services and Hong Kong’s standing as an international city. 94. To this end, MD has reviewed the terminal facilities with a view to identifying areas for further improvement. Measures being taken and improvements to be implemented are set out in the ensuing paragraphs. Projects in Pipeline 95. Maintenance and improvement works are being carried out regularly by MD to maintain and improve the quality of terminal services being provided to passengers using the terminals. These include refurbishment of the ferry berthing and boarding facilities, upgrading of escalator and lift systems, installation of energy-saving lighting systems, enhancement of ventilation and air-conditioning systems, etc. The following improvement projects are also being undertaken to further enhance passenger convenience and comfort and improve the efficiency of the terminals’ operation :

Upgrading of Sailing Information Display Systems (SIDSs) The existing SIDSs at MFT and CFT were first installed in 1985 and 1988 respectively. To provide clear and timely sailing information to passengers, MD has substantially completed the installation of a new SIDS in MFT and will put up a similar system in CFT by end 2009. In addition to ferry schedules, MD will disseminate information for travellers through the enhanced systems in a timely manner, e.g. weather conditions, typhoon news, important announcements, etc.

Existing Sailing Information Display Systems at MFT and CFT

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Upgrading of Berthing Platforms At present, not all berths at the two terminals are suitable for berthing of vessels of different sizes of HSCs. In order to enhance the versatility of the berths so that they could accommodate most types of HSCs, MD will upgrade the existing berthing platforms at MFT by mid-2008 during the regular refurbishment of the berthing platforms. This will help provide more flexibility to ferry operators and enhance the utilisation of berthing facilities.

Future Upgrading Plans 96. MD plans to implement the following measures at the two terminals :

Signage Systems

At present, most directional signage are provided by the operators. They are of different designs and standards. In order to provide clearer guidance to the traveling public, MD will commission a study to review the signage system at MFT and CFT with a view to introducing a standardised signage system by end-2008.

Check-in Counters at MFT

At present, there are five ticket check-in counters both at the East Bridge and the West Bridge linking Shun Tak Centre and MFT. With the estimated increase of passengers and the number of operators providing services thereat, MD will realign the existing check-in counters with a view to setting up more counters to cater for the operation of new operators and improve passenger flow.

Ticket Check-in Counters at MFT and CFT Centralised Baggage Handling Facilities

At present, a centralised baggage handling system with separate baggage check-in counters is provided at CFT. At MFT, a few operators provide their own baggage-handling counters at different locations. To further facilitate passenger flow inside the terminal, MD will explore with the

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operators the feasibility of introducing a centralised baggage handling and porter services at MFT.

Luggage Check-in Counters at CFT Cleanliness

The usage of common facilities in the terminals such as waiting halls and restrooms will increase with the rise in passenger number. MD will increase the frequency of cleaning service to maintain a high level of cleanliness. MD is also exploring the feasibility of providing additional restrooms inside the terminals to enhance passengers’ convenience.

Renovation

MD and the Architectural Services Department are conducting a study on renovating the MFT and CFT with a view to providing a more pleasant and comfortable environment to passengers. The renovation works will include upgrading the finishing of the ceiling, flooring and wall covering at the terminals and are scheduled for completion by end 2008.

Strengthening of Function of Management Committees

97. At present, management committees are set up at MFT and CFT to coordinate, plan and monitor all matters relating to the management of the respective terminals. The membership of the committees comprises MD, relevant Government departments providing services at the terminals, ferry operators and the property management companies of the premises where the terminals are located. 98. To ensure that improvement measures can be implemented in a timely manner to meet the need of the travelling public and facilitate the operation of ferry operators, MD will strengthen the roles of the two management committees. In future, MD will consult the management committees on major improvement projects, and invite members of the committees to submit improvement proposals. Ad-hoc working groups will be formed as necessary to strengthen the liaison between government departments and the operators or other parties concerned in dealing with the preparation and implementation of improvement works.

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Glossary of Terms AA Airport Authority Hong Kong

Berthing Slot Time slot of a particular berth allocated to a ferry operator for berthing of vessels at that particular berth for the purposes of passenger embarkation and/or disembarkation

Berthing platform Mechanical platform, the level of which can be adjusted according to the tides, installed at a berth of a terminal, to which a vessel is secured for passenger embarkation/disembarkation.

Berthing pontoon Vessel physically secured to a berth to which a ferry vessel is moored for the embarkation/disembarkation of passengers.

CBFT Cross-boundary ferry terminal

CFT China Ferry Terminal, operated and managed by the Marine Department by virtue of the Shipping and Port Control (Ferry Terminals) Regulations (Cap. 313H)

Check-in counter Counter placed near the entrance of a ferry terminal to allow an operator to check the tickets of the passengers before CIQ clearance.

CIQ Customs, Immigration and Quarantine

CIQ departments Customs and Excise Department, Immigration Department and the Department of Health are generally referred to as the CIQ departments

Conventional vessel Vessel with steel hull of round bilge design and with a speed normally below 15 knots.

Daily schedule Schedule submitted by an operator to indicate the sailings, vessel names and proposed berths for the following day

HKIA Hong Kong International Airport

HSC High-speed craft is a craft with a normal operating speed of not less than 25 knots, which is normally deployed for the provision of cross-boundary ferry services.

HZMB Hong Kong – Zhuhai – Macau Bridge

ImmD Immigration Department

Loading rate The number of passengers on board as compared with the capacity of the vessel

MD Marine Department

MFT Hong Kong – Macau Ferry Terminal, operated and managed by the Marine Department by virtue of the Shipping and Port Control (Ferry Terminals) Regulations (Cap. 313H)

Normal days Days other than peak days, including Saturdays and Sundays

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Peak days Periods with high passenger flow, including the days before and after the following holidays: Chinese New Year, Easter, Labour Day, National Day and Christmas/New Year

PRD Pearl River Delta

Quarterly schedule Sailing schedule submitted by an operator to indicate the proposed sailings and the proposed berths in a specified three-month period

SIDS Sailing Information Display System, which informspassengers of the departure/arrival time of vessels.

SkyPier SkyPier of the Hong Kong International Airport, operated by the Hong Kong International Airport Ferry Services Limited and under the control of AA by virtue of the Airport Authority Ordinance (Cap. 483)

TMFT Tuen Mun Ferry Terminal, operated by an operator on a commercial basis and under the control of the Marine Department by virtue of the Shipping and Port Control (Ferry Terminals) Regulations (Cap. 313H)

Utilisation rate The number of times that a particular berthing slot is utilised as compared with the total number of that particular time slot allocated to an operator throughout the quarter. In other words, if a particular time slot on a particular day of a week in respect of a berth is allocated (e.g. the 9am – 9.30am slot at Berth No. 1 on Mondays), all the same slots within a quarter will be taken into account in computing the utilisation rate.

Appendix I

Layout Plan of the Hong Kong-Macau Ferry Terminal

Legend Berths 1 – 10: For high speed crafts Berths 11 – 12: For conventional vessels

Appendix II

Layout Plan of the China Ferry Terminal

10

9

8

1

2

7

6

5

4

3E

11

12 13

Legend Berths 1 – 2: For conventional vessels Berths 3E – 13: For high speed crafts