Chen Meibao: Rising oil prices are putting ferry operators under financial pressure. Authorities are closely monitoring financial stability

The Zhitong Finance App learned that the Hong Kong Secretary for Transport and Logistics, Chen Meibao, said that international crude oil prices have continued to fluctuate, and commercial diesel prices used on ferries have risen sharply since March this year. Although they declined slightly at the beginning of the middle of the year, they have risen again to a high level in recent months. The sharp rise in fuel prices has increased the overall cost of ferry services, putting operating pressure on operators. The Transport Department will continue to maintain close ties with all operators and monitor their operating and financial conditions, paying particular attention to the pressure that oil prices may put on the financial situation of operators.

In response to questions from members of the Legislative Council in writing, Chen Meibao said that when considering an operator's fare adjustment application, the Transport Department will carefully consider various factors in accordance with the established mechanism, including the degree of public acceptance and the operator's financial status, service performance, operating data and long-term financial sustainability.

Take the fare adjustments implemented in April of this year for the six major outlying islands ferry routes. After evaluating the application, the Transport Department increased the fare by 15 to 30% of those applied by ferry operators, drastically reducing the fare to 8% for multi-way tickets and 12.5% for one-way tickets, and required operators to introduce more diversified multi-way ticket arrangements. According to the Department's observation, the relevant fare adjustments and service adjustments can generally meet residents' travel needs.

She mentioned that the Hong Kong Government has always encouraged ferry operators to maintain long-term financial stability through a multi-pronged approach while increasing ticketing and non-ticketing revenue. The Transport Department set up an interdepartmental task force in June this year to expedite the approval of ferry operators' commercial activity applications and proposals to improve terminal facilities to help increase non-ticketing revenue.