Government contracting model for public bus industry
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Originally posted by SBST163:
Since all the bus assets are gonna be owned by the government from 2016 onwards, meaning SBST and SMRT may soon go into history.
The companies will still be there, but there will be a unified LTA livery if im not wrong. Which means to say, whether it is SBS or SMRT buses, depending on tender, you may see the current SBS buses doing SMRT services and vice versa.
Correct me if im wrong here.
Actually, if u take a closer look about it, isn't this very much like nationalising public transport?
In short, yes. It is possible for current SBS Transit buses to run on current SMRT Buses routes in future, and vice-versa.
There is indeed a lot of comment from the public that this looks like a nationalisation of public transport, and the timing is too coincidental (election year).
On a related (or unrelated) note, SMRT intends to sell its rail assets of the two oldest MRT lines back to government:
http://www.channelnewsasia.com/news/singapore/smrt-says-proposal-for/1092512.html
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Originally posted by sgbuses:
For bus enthuasists, this is effectively GAME OVER. This is almost similar to the Transperth model.
In Perth, Public Transport Authority has secured a contract to buy Volvo buses with Volgren bodywork exclusively for a decade (taking over from Mercedes-Benz). If LTA also decides to take up only one supplier as PTA does, tough luck.
The Australian cities in which the government order buses for the bus network are Adelaide (Scania) and Perth (Volvo). Melbourne and Sydney allow operators to choose the buses they want to use.
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so i guess we'd be seeing SBS,TIB,SMB rego buses operated by others soon. would there be 1 common uniform for bus captains? salary issued by LTA?; since LTA collects all the revenue. hopefully LTA can further raise their salaries comparable to average taxi driver earnings to attract more locals to join. hope LTA buy more bendies for SBST operated feeder routes.
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I tink it would be wise for us all to read the article properli...
SBST/SMRT wld still be around... Their pple will wear their own uniform n there is no common bus livery but it is considered...
Till 2022 80% of bus routes wld still be under the two incumbents...
SBST / SMRT can set up their sister coy like LWB belonging to KMB...
These contracts are timed to coincide w election yr 2016,2022...
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Folks still unclear pls read the Tfl bus contract pdf file in the prev page, it is veri similar w minor tweaks...
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I wld like to point out again, nothing much is going change maybe some existing routes switch run by SBST/SMRT...
If you change too much n pple lose jobs you will lose votes, no sane government will do tt...
Its a repackaging of existing ground rules...
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Originally posted by Acx1688:
I tink it would be wise for us all to read the article properli...
SBST/SMRT wld still be around... Their pple will wear their own uniform n there is no common bus livery but it is considered...
Till 2022 80% of bus routes wld still be under the two incumbents...
SBST / SMRT can set up their sister coy like LWB belonging to KMB...
These contracts are timed to coincide w election yr 2016,2022...
nope. i read the newspapers today and i saw that they might adopt the london system where common livery across all buses. that is also the reason why the downtown line was not painted SBS Transit livery in the first place, although operated by SBS Transit.
Hence, i think the livery will all be changed to common LTA livery.
80% of the routes will be under sbs/smrt until 2022, as first 3 packages(20% of the routes) of bus services will be tendered out from 2016, and these bus services may or may not stay under sbs or smrt.
Well, i see this as a positive change actually.
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Originally posted by SBST163:
nope. i read the newspapers today and i saw that they might adopt the london system where common livery across all buses. that is also the reason why the downtown line was not painted SBS Transit livery in the first place, although operated by SBS Transit.
Hence, i think the livery will all be changed to common LTA livery.
80% of the routes will be under sbs/smrt until 2022, as first 3 packages(20% of the routes) of bus services will be tendered out from 2016, and these bus services may or may not stay under sbs or smrt.
Well, i see this as a positive change actually.
Apparently, proper reading is required
Today page one, a common bus livery,much like the iconic red london bus is being explored so pls dun jump the gun and assume...
Do not link
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Originally posted by Acx1688:
Apparently, proper reading is required
Today page one, a common bus livery,much like the iconic red london bus is being explored so pls dun jump the gun and assume...
Do not link
just to let you know that im not jumping to conclusions. of course, in the near future, sbs and smrt will still stay. but my interpretations from all these articles that ive read is that the government wants a standardisation in the bus assets in Singapore, and that possibly includes common livery across all assets.
Well there are no definite confirmation for this, this is just my interpretation and opinion. Proper reading, yes, i have done that and these are my conclusions after proper reading.
You have your own interpretation and opinion I respect that. =)
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SBST163, did u read the Tfl bus route tendering pdf in the prev page, if u have yet to, reading it would allow you to have a clearer picture of how bus contracting works...
No FOREIGN operator dare enter a market solely by themselves, it is suicide n shareholders will not allow it, they will always be tieups...
Private operators also need to look at their bottom line, does being a player allow better returns? CDS,PPSS are time frame services, if they participate in full day ops, they will lose out on the lucrative tourists bus service n with SG shifting to a service economy w emphasis on tourism receipts, private operators are more willing to grab these than money losing public bus ops...
Stagecoach entered HK mkt but left due to the inability to get their ROA
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Originally posted by SBST163:
just to let you know that im not jumping to conclusions. of course, in the near future, sbs and smrt will still stay. but my interpretations from all these articles that ive read is that the government wants a standardisation in the bus assets in Singapore, and that possibly includes common livery across all assets.
Well there are no definite confirmation for this, this is just my interpretation and opinion. Proper reading, yes, i have done that and these are my conclusions after proper reading.
You have your own interpretation and opinion I respect that. =)
Thank you i will post the HK bus franchise terms soon, go read it n do a comparison bet uk,hk...
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Originally posted by SBS3688Y:
so i guess we’d be seeing SBS,TIB,SMB rego buses operated by others soon.
would there be 1 common uniform for bus captains? salary issued by LTA?; since LTA collects all the revenue. hopefully LTA can further raise their salaries comparable to average taxi driver earnings to attract more locals to join. hope LTA buy more bendies for SBST operated feeder routes.No, payroll is still under operators. The operators will receive a sum for the contract from LTA, and the operator will sort out the HR.
It is unlikely that they will have a common uniform because that is a visible method to differentate between operators. You must remember that Transperth and London Buses come from the other direction (from a nationalised entity to a privatised industry), and Transperth's common uniform is actually a legacy component. Their staff badges are prominently different and large to reflect this operator differentation.
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Originally posted by Acx1688:
I wld like to point out again, nothing much is going change maybe some existing routes switch run by SBST/SMRT...
If you change too much n pple lose jobs you will lose votes, no sane government will do tt...
Its a repackaging of existing ground rules...
The government did point out that in these contracts, employees cannot be worse off than what they currently are.
If the shortage of drivers is severe, the operators will have to raise pay or they won't have enough drivers to operate the routes. This is especially true if there are many players.
The one thing that probably won't change significiantly is packaging by area, as it is done in Transperth. Therefore, if you land yourself with one bad operator in your neighourhoood you are stuck with it for at least 5 years (in Perth the situation is worse at 10 years, effectively no competition until they are up for re-tender)
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Originally posted by sgbuses:
The government did point out that in these contracts, employees cannot be worse off than what they currently are.
If the shortage of drivers is severe, the operators will have to raise pay or they won't have enough drivers to operate the routes. This is especially true if there are many players.
The one thing that probably won't change significiantly is packaging by area, as it is done in Transperth. Therefore, if you land yourself with one bad operator in your neighourhoood you are stuck with it for at least 5 years (in Perth the situation is worse at 10 years, effectively no competition until they are up for re-tender)
i dun tink LTA is tt ignorant to stick w a bus coy if service level is not up to standards... If QoS fails or standards nt met, LTA has probably inserted a clause that allows a time frame for service provider to buck up, failing to do so would result in termination of contract and earlier contract up for grabs again...
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Originally posted by Acx1688:
i dun tink LTA is tt ignorant to stick w a bus coy if service level is not up to standards... If QoS fails or standards nt met, LTA has probably inserted a clause that allows a time frame for service provider to buck up, failing to do so would result in termination of contract and earlier contract up for grabs again...
We won't know unless it is in the actual contract. And unless LTA tells us publicly it is unlikely we will ever know. This definitely needs to be included.
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Originally posted by sgbuses:
We won't know unless it is in the actual contract. And unless LTA tells us publicly it is unlikely we will ever know. This definitely needs to be included.
Swan Transit is Perth's version of SMRT in my area, and ST indicated that they are interested in bidding (listed as Tower Transit).
Transdev should be interested as well (listed as Veolia, ST isn't up to date). Transdev is doing very well, especially given that they won the biggest contract in Melbourne as a new entrant in the city.
Transdev, Veolia, Arriva
Doing well in terms of ROA?! -
If anyone had saw Talking point about buses, most interviewed say paying 10 to 20 more for improved level of service is ok, little do they know they will regret saying that years down the road...
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It is all about money. It is because SBS Transit and SMRT are suffering monetary losses in the current model, that's why the Government wants to replace it with the Bus Contracts Model.
Actually, if Comfort Delgro wants to merge SBS Transit's bus business with its other subsidiary (comfortdelgro bus) or with itself (the main company), to make it more financially viable to the comfortdelgro company, it would have done it long ago, since SBS Transit's bus business has all along been suffering losses. But somehow, it does not want to do it. Likewise, SMRT could have already sold off its bus business to other companies, but it did not. I guess this is because both SBS Transit and SMRT know that the losses they suffer now in their bus business is only for now, and that their bus business will soon make profits when the current model is replaced with the new Bus Contracts Model.
Therefore, I shall take back my opinions that both SBS Transit and SMRT may wind down and merge with other companies. Nope, I doubt they will close down. Instead, SBS Transit will simply scale down its business to reduce costs and make profits, while SMRT may follow suit, and perhaps improve the service standards at the remainder of its business - including bus. I do not think SMRT will give up its bus business. Rather, I think it will only scale down. - before making a comeback in future by bidding for more bus routes (and if it wins the bus contracts).
Personally, I feel that through buying the vehicles (probably at net book value/costs price after depreciation, to ensure that this is fair to the people paying tax money) from SBS Transit and SMRT, the government is actually reimbursing money to the two companies, which would help the two companies reduce their losses and accelerate their loss-recovery process, so that they can quickly turnover and make profits, to push for service improvements.
Well, it may seem that the government is giving our tax money away to SBS Transit and SMRT to buy their buses, but if you think about it, this way is actually cheaper than if the government buys its own buses as a start-up to this bus contracts model. (in fact, who is one having majority shares in SBS Transit and SMRT, and has all along been contributing most to the funding of bus purchases?)(so isn't this just a transfer of money from one pocket to another, which would have no impact on our tax money?) The actual costs is actually just the money spent on re-painting buses, re-fitting bus interiors, etc. - which can be recovered through other aspects such as making more spaces available for advertising, instead of tax.
Anyway, moving on in this bus contracts model, the government will be the one paying for the new buses in future, using the tax we pay. So since we would be the one paying for the buses (through tax), I believe the government will only charge us bus fares to pay for the petrol/diesel, electricity and wages, among the other costs besides those spent on buying the buses. Thus, we can somehow expect lower bus fares in future.
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Originally posted by Acx1688:
If anyone had saw Talking point about buses, most interviewed say paying 10 to 20 more for improved level of service is ok, little do they know they will regret saying that years down the road...
Veolia sold its share, left everything to Transdev. Transdev expanded in Australia.
London Buses £1.45 minimum, cash fare to be abolished later this year.
Transperth fare minimum $2 cash to travel, $2.80 for one zone.
Melbourne is $3.58 minimum, does not accept cash fares either; a Myki must be purchased which is annoying to many.
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Originally posted by Pervertedboy:
It is all about money. It is because SBS Transit and SMRT are suffering monetary losses in the current model, that's why the Government wants to replace it with the Bus Contracts Model.
Actually, if Comfort Delgro wants to merge SBS Transit's bus business with its other subsidiary (comfortdelgro bus) or with itself (the main company), to make it more financially viable to the comfortdelgro company, it would have done it long ago, since SBS Transit's bus business has all along been suffering losses. But somehow, it does not want to do it. Likewise, SMRT could have already sold off its bus business to other companies, but it did not. I guess this is because both SBS Transit and SMRT know that the losses they suffer now in their bus business is only for now, and that their bus business will soon make profits when the current model is replaced with the new Bus Contracts Model.
Therefore, I shall take back my opinions that both SBS Transit and SMRT may wind down and merge with other companies. Nope, I doubt they will close down. Instead, SBS Transit will simply scale down its business to reduce costs and make profits, while SMRT may follow suit, and perhaps improve the service standards at the remainder of its business - including bus. I do not think SMRT will give up its bus business. Rather, I think it will only scale down. - before making a comeback in future by bidding for more bus routes (and if it wins the bus contracts).
Personally, I feel that through buying the vehicles (probably at net book value/costs price after depreciation, to ensure that this is fair to the people paying tax money) from SBS Transit and SMRT, the government is actually reimbursing money to the two companies, which would help the two companies reduce their losses and accelerate their loss-recovery process, so that they can quickly turnover and make profits, to push for service improvements.
Well, it may seem that the government is giving our tax money away to SBS Transit and SMRT to buy their buses, but if you think about it, this way is actually cheaper than if the government buys its own buses as a start-up to this bus contracts model. (in fact, who is one having majority shares in SBS Transit and SMRT, and has all along been contributing most to the funding of bus purchases?)(so isn't this just a transfer of money from one pocket to another, which would have no impact on our tax money?) The actual costs is actually just the money spent on re-painting buses, re-fitting bus interiors, etc. - which can be recovered through other aspects such as making more spaces available for advertising, instead of tax.
Anyway, moving on in this bus contracts model, the government will be the one paying for the new buses in future, using the tax we pay. So since we would be the one paying for the buses (through tax), I believe the government will only charge us bus fares to pay for the petrol/diesel, electricity and wages, among the other costs besides those spent on buying the buses. Thus, we can somehow expect lower bus fares in future.
Haha I agree. SBS Transit and SMRT could have find other alternatives themselves way back already as they are making losses year after year. I think they are just waiting for the government to take this step so that they can be relieved from these losses and can answer to the shareholders.
However, as much as i think the government is making a good move, it comes way too late. It seems like the BSEP spendings are unnecessary now and wasted money. They could have acquired all bus operations in 2011 and start doing their own bus planning and resources allocation from there then and things may not have escalated so much. While I understand the bus routes are currently binded by contracts still Aug 2016. Well, in anyway, its all about timing, elections coming, really. And the implementation of the this contract system is gonna happen in 2016, coincidentally, the election year. While I dont want to speculate if this has anything to do about elections, you guys judge yourself.
Regarding fares, i highly doubt it will be lower. You know, fares will only go up or stay the same. =D
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The government also has to be vary of the sustainability of the operators bidding for these packages.
Bus companies did went bust in London and bus services grind to a halt (the same effects of a full strike or MRT disruption). TfL had to step in to keep the services running.
Details of the first package may be out as early as next week, according to ST. If the tendering move is indeed lined up for the elections, the first package should be in SMRT's current territory.
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Originally posted by Pervertedboy:
It is all about money. It is because SBS Transit and SMRT are suffering monetary losses in the current model, that's why the Government wants to replace it with the Bus Contracts Model.
Actually, if Comfort Delgro wants to merge SBS Transit's bus business with its other subsidiary (comfortdelgro bus) or with itself (the main company), to make it more financially viable to the comfortdelgro company, it would have done it long ago, since SBS Transit's bus business has all along been suffering losses. But somehow, it does not want to do it. Likewise, SMRT could have already sold off its bus business to other companies, but it did not. I guess this is because both SBS Transit and SMRT know that the losses they suffer now in their bus business is only for now, and that their bus business will soon make profits when the current model is replaced with the new Bus Contracts Model.
Therefore, I shall take back my opinions that both SBS Transit and SMRT may wind down and merge with other companies. Nope, I doubt they will close down. Instead, SBS Transit will simply scale down its business to reduce costs and make profits, while SMRT may follow suit, and perhaps improve the service standards at the remainder of its business - including bus. I do not think SMRT will give up its bus business. Rather, I think it will only scale down. - before making a comeback in future by bidding for more bus routes (and if it wins the bus contracts).
Personally, I feel that through buying the vehicles (probably at net book value/costs price after depreciation, to ensure that this is fair to the people paying tax money) from SBS Transit and SMRT, the government is actually reimbursing money to the two companies, which would help the two companies reduce their losses and accelerate their loss-recovery process, so that they can quickly turnover and make profits, to push for service improvements.
Well, it may seem that the government is giving our tax money away to SBS Transit and SMRT to buy their buses, but if you think about it, this way is actually cheaper than if the government buys its own buses as a start-up to this bus contracts model. (in fact, who is one having majority shares in SBS Transit and SMRT, and has all along been contributing most to the funding of bus purchases?)(so isn't this just a transfer of money from one pocket to another, which would have no impact on our tax money?) The actual costs is actually just the money spent on re-painting buses, re-fitting bus interiors, etc. - which can be recovered through other aspects such as making more spaces available for advertising, instead of tax.
Anyway, moving on in this bus contracts model, the government will be the one paying for the new buses in future, using the tax we pay. So since we would be the one paying for the buses (through tax), I believe the government will only charge us bus fares to pay for the petrol/diesel, electricity and wages, among the other costs besides those spent on buying the buses. Thus, we can somehow expect lower bus fares in future.
SBS Transit and SMRT won't go away; they still have a sizable rail business they can and should focus on.
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In the press release, LTA say that under the Bus Contracts Model, the bus companies "will be paid fees to operate the services, while fare revenue will be retained by the Government". In today's edition of The Straits Times, there are two articles which mentioned that "the revenue, however, is likely to fall short" (page A1) as taking reference from City Direct, "the LTA has been able to recover only 50 per cent to 60 per cent of the contract cost throguh fare collection" (page A6), thus the government may "have to increase the amount of subsidies it currently puts into public bus services" (page A1).
Personally, I feel that there are other ways the government can do to recover the contract costs that is not recovered in fare collection. For instance, since LTA will be taking over the bus interchanges, terminals and depots, it can lease the retail spaces in the facilities to collect rental, and create spaces in the facilities (walls, floor, exterior, etc.) for advertising to collect advertising fees. It can also allow people to paste advertisements on the public buses, then collect advertising fees from them, since LTA will own the buses. Collecting/Increasing subsidies is not the only way to recover whatever that is not recovered in fare collection. In fact, I feel that collecting/increasing subsidies (and increasing bus fares) should be done only at last resort, if after it has tried all other means to recover whatever that is not recovered in fare collection the costs is still not recovered. #justsaying
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Hong Kong Cap 230 Public Bus services ordinance
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 1
Chapter: 230 PUBLIC BUS SERVICES ORDINANCE Gazette Number Version Date
Long title 30/06/1997
To provide for the granting of franchises to operate public bus services on specified routes, the regulation of the
operation and maintenance of such services and for matters ancillary thereto and connected therewith.
[1 September 1975]
(Originally 59 of 1975)
Part: I PRELIMINARY 30/06/1997
Section: 1 Short title 30/06/1997
This Ordinance may be cited as the Public Bus Services Ordinance.
(Amended 75 of 1982 s. 114)
Section: 2 Interpretation 30/06/1997
In this Ordinance, unless the context otherwise requires-
"bus" (巴士) has the same meaning as in the Road Traffic Ordinance (Cap374); (Replaced 75 of 1982 s. 114)
"Commissioner" (署長) means the Commissioner for Transport;
"franchise" (專營權) means the right to operate a public bus service granted under section 5;
"franchise period" (專營期) means the period for which a franchise is granted under section 6(1) and any period for
which the franchise is extended under section 6(2) or (3);
"grantee" (專營公�) means a company to which a franchise has been granted;
"North-west Transit Service Area" (西北�路�務範�) means the North-west Transit Service Area within the
meaning of the Kowloon-Canton Railway Corporation Ordinance (Cap 372); (Added 56 of 1986 s. 22)
"passenger" (乘客) in relation to a bus means any person carried in or on it other than the driver or conductor or any
other employee of the grantee who is in uniform and on duty; (Added 88 of 1988 s. 2)
"profit control scheme" (利潤管制計劃) means the profit control scheme provided for by Part V;
"programme" (計劃) means a programme in force under section 12A; (Added 44 of 1984 s. 2)
"proper and efficient service" (�當而有效率的�務) means a proper and efficient public bus service within the
meaning of section 12; (Added 44 of 1984 s. 2)
"public bus service" (公共巴士�務) means a bus service for the carriage of passengers for reward at separate fares;
"Schedule of Routes order" (路綫表令) means an order under section 5(1);
"specified route" (指明路綫) means a route specified in the Schedule of Routes order applying in the case of a
grantee and any new route on which a public bus service is operated by that grantee in accordance with a
requirement under section 14 or 15, or an approval under section 16A. (Amended 44 of 1984 s. 2)
Section: 2A Construction of references to the Ordinance in a franchise,
programme or agreement
30/06/1997
Unless the context otherwise requires, any reference to this Ordinance (whether as the Public Omnibus Services
Ordinance 1975 (59 of 1975) or otherwise), or to any provision thereof, franchise, programme, agreement or other
document under or in pursuance of this Ordinance shall be deemed to be a reference to this Ordinance or such
provision thereof as amended from time to time.
(Added 44 of 1984 s. 3)
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 2
Section: 3 Power of Chief Executive to give directions to a public
officer
62 of 1999 01/07/1997
Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3
(1) The Chief Executive may give to a public officer such directions as he thinks fit with respect to the exercise
or performance of his powers, functions and duties under this Ordinance, either generally or in any particular case.
(2) A public officer shall, in the exercise or performance of his powers, functions and duties under this
Ordinance, comply with any direction given by the Chief Executive under subsection (1).
(Amended 44 of 1984 s. 4; 62 of 1999 s. 3)
Part: II PUBLIC BUS SERVICE FRANCHISES 30/06/1997
Section: 4 Prohibition of operation of public bus service except under
franchise
30/06/1997
(1) A public bus service shall not be operated except under a franchise granted under this Ordinance or another
enactment.
(2) Any person who-
(a) operates, or manages or assists in the management of, a public bus service, or
(b) uses, or causes or permits to be used, a bus in the operation of a public bus service,
which is operated in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a
fine of $100000.
(3) This section does not apply to a public bus service which is-
(a) a tour service, that is to say, a service-
(i) for the carriage of passengers at separate fares;
(ii) entitling the passengers to travel together on a journey, with or without breaks, from the place or
places at which they are taken up (being the same place or 2 or more places in the same vicinity)
to one or more other places and back to the place or places at which they were taken up;
(iii) in which all the passengers are carried for the greater part of the journey; and
(iv) in which no passenger is a person who frequently, or as a matter of routine, travels, at or about
the time of day at which the journey is made, to or to the vicinity of a place from or through
which the journey is made; (Replaced 72 of 1976 s. 2)
(b) an international passenger service, that is to say, a service for the carriage of passengers in either
direction between any one or more of the following places, that is to say, the Hong Kong International
Airport, Hung Hom Railway Station, Macau Ferry Pier or any other pier, any Hong Kong border
crossing, any hotel, airline office or ferry or similar terminal, where the passengers on the service
consist only of-
(i) persons arriving in or intending to leave Hong Kong by aircraft, railway, ferry vessel, ship or
motor vehicle;
(ii) persons meeting or accompanying the persons referred to in sub-paragraph (i); or
(iii) persons employed by an airline or the agent of an airline, or by any travel, shipping or railway
agent; (Replaced 44 of 1984 s. 5)
(c) an hotel service, that is to say, a service for the carriage of passengers residing at an hotel where every
passenger is taken up or set down at the hotel;
(d) a student service, that is to say, a service for the carriage to or from a school, university or other
educational establishment of students thereof, persons accompanying or in charge of such students or
who teach at the school, university or other educational establishment;
(e) an employees' service, that is to say, a service provided by an employer for the carriage to or from their
place of work of passengers who are persons employed by him; (Amended 44 of 1984 s. 5)
(f) a residents' service, that is to say, a service approved by the Commissioner, after considering the
interests of any grantee franchised to operate over any part of the route to be covered by the service
and any other relevant matter, and provided by or on behalf of the management, residents or owners of
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 3
any residential development for the carriage of passengers to or from the residential development;
(Added 44 of 1984 s. 5)
(g) a multiple transport service, that is to say, a service (other than a service provided mainly for the
carriage of passengers to or from a residential development) in which no passenger is a person who
frequently or as a matter of routine travels, at or about the time of day at which the journey is to be
made, to or to the vicinity of a place from or through which the journey is made, approved by the
Commissioner, after considering the interests of any grantee franchised to operate over any part of the
route to be covered by the service and any other relevant matter, for the carriage of passengers by a
public bus service in combination with carriage by another mode or modes of public transport service
from one departure point to one destination and where a combined fare is paid for the whole journey,
single or return, at a place other than at the boarding point of the bus or on the bus. (Added 44 of 1984
s. 5. Amended 66 of 1984 s. 13)
(4) For the purposes of this Ordinance, a payment made by a person entitling him to be carried as a passenger
in a bus shall be treated as a separate fare notwithstanding that it is made in consideration of other matters in addition
to the journey and irrespective of the person by or to whom it is made.
Section: 5 Grant of franchises L.N. 163 of 2013 03/03/2014
(1) Subject to this Ordinance, the Chief Executive in Council may grant to any company registered under the
Companies Ordinance (Cap 622), or under the Companies Ordinance (Cap 32) as in force from time to time before the
commencement date# of section 2 of Schedule 9 to the Companies Ordinance (Cap 622), the right to operate a public
bus service on such routes as he specifies by order. (Amended 28 of 2012 ss. 912 & 920)
(2) A franchise may confer on the grantee the exclusive right to operate a service on any specified route.
(3) A franchise-
(a) may be granted following a public tender or in such other manner as the Chief Executive in Council
thinks fit;
(b) shall, except where the Legislative Council by resolution excludes the application of all or any of the
provisions of the profit control scheme, be subject to the profit control scheme;
(c) shall be subject to such conditions as the Chief Executive in Council specifies; and
(d) shall prescribe whether it may be extended under section 6(2) or (3).
(4) Without prejudice to any other provision of this Ordinance, a franchise may, with the consent of the
grantee, be amended by the Chief Executive in Council.
(5) A franchise may, with or without the consent of the grantee, be amended by the Chief Executive in Council
by order in the Gazette so as to restrict or prohibit the taking up or setting down of passengers within the North-west
Transit Service Area or, where the boundaries of that Area are varied under section 2(3) of the Kowloon-Canton
Railway Corporation Ordinance (Cap 372), to alter such a restriction or prohibition to take account of such variation.
(Added 56 of 1986 s. 22)
(6) Where an amendment to a franchise is made under subsection (5) without the consent of the grantee, the
grantee shall be entitled to compensation for the loss of any permitted return (as defined in Part V) on any investment
which the grantee may reasonably have been expected to make had the franchise not been so amended, subject to the
deduction from that permitted return of any sum required to be deducted under sections 28 and 29. (Added 56 of 1986
s. 22)
(7) In determining any compensation payable under subsection (6) account shall be had of any opportunity
which the grantee may have had to mitigate his loss and to the effect the construction and operation of the North-west
Railway under the Kowloon-Canton Railway Corporation Ordinance (Cap 372) would have had on the operations of
the grantee (being an effect for which no compensation is payable) had his franchise not been amended. (Added 56 of
1986 s. 22)
(8) Compensation payable under subsection (6) shall be in such amount as may be agreed between the
Commissioner and the grantee or, in the event of a failure to agree, as may be determined by arbitration under the
Arbitration Ordinance (Cap 609) and, for the purposes of that Ordinance, the reference in this subsection to arbitration
shall be deemed to be arbitration under that Ordinance with 2 arbitrators, one appointed by the grantee and one by the
Commissioner. (Added 56 of 1986 s. 22. Amended 17 of 2010 s. 112)
(9) The powers conferred on the Chief Executive in Council by subsection (5) shall cease to be exercisable
after a period of 20 years from the commencement* of the Kowloon-Canton Railway Corporation (Amendment)
Ordinance 1986 (56 of 1986) or such further period or periods as may be authorized by resolution of the Legislative
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 4
Council. (Added 56 of 1986 s. 22)
(Amended 62 of 1999 s. 3)
___________________________________________________________________
Notes:
1. The Orders made under section 5(1) of the Ordinance specifying Schedules of routes in respect of the
China Motor Bus Company Limited, the Kowloon Motor Bus Company (1933) Limited, the New Lantao Bus
Company (1973) Limited, the Citybus Limited, Long Win Bus Company Limited and New World First Bus
Services Limited have not been included in this Edition. For details of these Orders see L.N. 353 of 1991, L.N.
117 of 1997, L.N. 119 of 1997, L.N. 70 of 2001, L.N. 71 of 2001, L.N. 72 of 2001, L.N. 73 of 2001, L.N. 74 of 2001,
L.N. 75 of 2001, L.N. 60 of 2003, L.N. 61 of 2003, L.N. 62 of 2003, L.N. 63 of 2003, L.N. 64 of 2003, L.N. 65 of
2003, L.N. 201 of 2004, L.N. 202 of 2004, L.N. 203 of 2004, L.N. 204 of 2004. L.N. 205 of 2004, L.N. 206 of 2004,
L.N. 161 of 2006, L.N. 162 of 2006, L.N. 163 of 2006, L.N. 164 of 2006, L.N. 165 of 2006, L.N. 166 of 2006, L.N. 36
of 2008, L.N. 37 of 2008, L.N. 38 of 2008, L.N. 39 of 2008, L.N. 40 of 2008, L.N. 41 of 2008, L.N. 150 of 2009, L.N.
151 of 2009, L.N. 152 of 2009, L.N. 153 of 2009, L.N. 154 of 2009, L.N. 155 of 2009, L.N. 12 of 2011, L.N. 13 of
2011, L.N. 14 of 2011, L.N. 15 of 2011, L.N. 16 of 2011, L.N. 17 of 2011, L.N. 4 of 2012, L.N. 5 of 2012, L.N. 6 of
2012, L.N. 7 of 2012, L.N. 8 of 2012, L.N. 9 of 2012, L.N. 55 of 2013, L.N. 56 of 2013, L.N. 57 of 2013, L.N. 58 of
2013 and L.N. 59 of 2013 published in the Gazette.
2. Resolutions of the Legislative Council under s. 5(3)(b) of the Ordinance have not been included in this
Edition. For details of these resolutions see L.N. 254 of 1991, L.N. 254 of 1993, L.N. 255 of 1993, L.N. 19 of
1995, L.N. 546 of 1995, L.N. 249 of 1996@, L.N. 70 of 1997@, L.N. 71 of 1997@, L.N. 72 of 1997@, L.N. 425 of
1997, L.N. 284 of 1998, L.N. 20 of 2003, L.N. 21 of 2003, L.N. 22 of 2003, L.N. 45 of 2006, L.N. 46 of 2006, L.N. 47
of 2006, L.N. 41 of 2013, L.N. 42 of 2013 and L.N. 43 of 2013.
@ These resolutions have been amended by the Adaptation of Laws (No. 25) Ordinance 1999 (62 of
1999), Schedule 3, items 21 to 24.
* In operation on 1 November 1986.
# Commencement date : 3 March 2014.
Section: 6 Periods of grants and extensions thereof L.N. 130 of 2007 01/07/2007
Remarks:
For the saving and transitional provisions relating to the amendments made by the Resolution of the Legislative
Council (L.N. 130 of 2007), see paragraph (12) of that Resolution.
(1) A franchise may be granted for a period not exceeding 10 years, and in calculating a franchise period no
account shall be taken of any change from time to time in the specified routes.
(2) If, not less than 15 months before the expiry of the period for which a franchise was granted under
subsection (1), the grantee has by notice in writing to the Chief Secretary for Administration requested an extension of
such period, the Chief Executive in Council may, if he is satisfied that the grantee is capable of maintaining a proper
and efficient service, extend the franchise for a further period not exceeding 5 years. (Amended 44 of 1984 s. 6; 82 of
1995 s. 2; L.N. 362 of 1997)
(2A) Where notice has been given by a grantee under subsection (2), the Secretary for Transport and Housing
shall, not less than 9 months before the expiry of the period for which the franchise was granted under subsection (1),
submit to the Chief Executive in Council a report setting out his recommendation as to whether the franchise should
be extended for a further period under this section. (Added 82 of 1995 s. 2. Amended L.N. 106 of 2002; L.N. 130 of
2007)
(3) The Chief Executive in Council may, at any time during a franchise period-
(a) whenever he considers it appropriate having regard to any circumstances affecting the franchise; and
(b) if he is satisfied that the grantee is capable of maintaining a proper and efficient service, (Replaced 44
of 1984 s. 6)
extend the franchise from time to time for a further period not exceeding 2 years. (Amended 44 of 1984 s. 6)
(Amended 62 of 1999 s. 3)
___________________________________________________________________
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 5
Notes:
1. The application of the amendment to this section under the Public Bus Services (Amendment) Ordinance
1995 (82 of 1995) is affected by section 7 thereof, which is reproduced as follows-
"7. Application
This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".
2. 82 of 1995 commenced operation on 4 August 1995.
Section: 7 Restriction on assignment or other disposition of franchise 62 of 1999 01/07/1997
Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3
A grantee shall not assign or otherwise dispose of its franchise, or any part thereof, without the approval of the
Chief Executive in Council.
(Amended 62 of 1999 s. 3)
Section: 8 Directors of grantee companies 28 of 1998; 62 of
1999
01/07/1997
Remarks:
Adaptation amendments retroactively made - see 28 of 1998 s. 2(1); 62 of 1999 s. 3
(1) Save where the Chief Executive in Council otherwise permits on the granting of a franchise, a majority of
the directors of a grantee shall be individuals who are ordinarily resident in Hong Kong. (Amended 80 of 1982 s. 2;
28 of 1998 s. 2; 62 of 1999 s. 3)
(2) A majority of the directors required under subsection (1) shall participate actively in the direction of the
grantee.
Section: 9 Chief Executive may appoint additional directors L.N. 163 of 2013 03/03/2014
(1) The Chief Executive may, notwithstanding any provision of the Companies Ordinance (Cap 622), the
Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) or any other law or of any document,
appoint not more than 2 persons to be additional directors of a grantee; and, notwithstanding any such provision as
aforesaid, a person so appointed may not be removed from the board of a grantee except by the Chief Executive.
(Amended 62 of 1999 s. 3; 28 of 2012 ss. 912 & 920)
(2) A person so appointed to be an additional director of a grantee shall represent the Government and for that
purpose shall be entitled to participate at meetings of the grantee and the board of the grantee, to have access to all
material concerning the affairs of the grantee which is available to any other director and require such information
with respect to the grantee's affairs as he may specify to be furnished to him, and, without prejudice to the foregoing
but subject to subsection (3), any such person shall be treated for all purposes as if he had been appointed at a general
meeting of the grantee as a director thereof.
(3) No fee or reward, financial or otherwise, shall be paid by a grantee to a person appointed to be an additional
director of the grantee under this section in respect of his performance of the functions of such a director.
Section: 10 Grantee not to alter memorandum or articles without
Chief Executive's approval
L.N. 163 of 2013 03/03/2014
No alteration shall be made during the franchise period to the memorandum of association (if any) or articles of
association of a grantee without the approval of the Chief Executive.
(Amended 62 of 1999 s. 3; 28 of 2012 ss. 912 & 920)
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 6
Part: III OPERATION AND CONTROL OF SERVICES 30/06/1997
Section: 11 Grantee to operate on specified routes only 30/06/1997
(1) Subject to subsection (2), a grantee shall not operate a public bus service otherwise than on a specified
route.
(2) Whenever circumstances beyond the control of a grantee so require, a grantee may cause a public bus
service to be diverted from a specified route for so long as such circumstances continue to so require.
Section: 12 Grantee to maintain proper service 30/06/1997
(1) A grantee shall, at all times during the franchise period, maintain to the satisfaction of the Commissioner a
proper and efficient public bus service.
(2) Without prejudice to the generality of subsection (1), the grantee shall not be treated for any purpose of this
Ordinance as maintaining a proper and efficient public bus service unless it maintains the service and operates the
same in accordance with its franchise, this Ordinance, any direction or requirement under its franchise or this
Ordinance and any programme or any approval under section 16A. (Amended 44 of 1984 s. 7)
Section: 12A Forward planning programme L.N. 130 of 2007 01/07/2007
Remarks:
For the saving and transitional provisions relating to the amendments made by the Resolution of the Legislative
Council (L.N. 130 of 2007), see paragraph (12) of that Resolution.
(1) With effect from 1 January 1985, a grantee shall in each year, not later than 30 June, prepare a programme
of the operations of the grantee for the following 5 years in respect of the matters specified in the Schedule, and the
grantee and the Commissioner shall, subject to subsection (4), take all reasonable steps to reach agreement on the
programme by 30 September in that year; and the programme as agreed under this subsection or as settled under
subsection (4) shall be submitted to the Secretary for Transport and Housing by the Commissioner.
(2) A programme submitted to the Secretary for Transport and Housing under subsection (1) in any year shall
upon such submission come into force and supersede the programme (if any) so submitted in the immediately
preceding year, but where a programme is not submitted in any year the programme submitted in the previous year
shall, without prejudice to subsection (5), continue in force until it is superseded or it expires, whichever is the earlier.
(3) A programme which is in force under this section may from time to time be altered by mutual consent of
the Commissioner and a grantee and such alterations shall be submitted to the Secretary for Transport and Housing by
the Commissioner and upon such submission the programme shall continue in force as altered.
(4) If the grantee and the Commissioner fail to reach agreement on any point in a programme prepared by a
grantee under subsection (1) in any year, or fail to mutually agree any alterations under subsection (3), the grantee and
the Commissioner shall forward the details of the point in disagreement to the Secretary for Transport and Housing
who shall decide on the point having regard to the submissions of the grantee and the Commissioner and such
decisions of the Secretary for Transport and Housing shall, subject to section 33, be final and shall be incorporated in
the programme and such programme shall be the settled programme.
(5) Where, without reasonable excuse, a grantee fails to prepare a programme in compliance with subsection
(1) it shall be deemed to be incapable of maintaining a proper and efficient service.
(Added 44 of 1984 s. 8. Amended L.N. 106 of 2002; L.N. 130 of 2007)
Section: 12B Relevance of programme and non-compliance in certain
circumstances
62 of 1999 01/07/1997
Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3
(1) In the exercise of any power under this Ordinance, the Chief Executive in Council and the Commissioner
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 7
shall have regard to a programme. (Amended 62 of 1999 s. 3)
(2) Where a grantee fails to comply with a programme by reason of circumstances beyond its control, such
failure shall not be taken as a breach of its franchise or a failure to maintain a proper and efficient services.
(Added 44 of 1984 s. 8)
Section: 13 Fares 62 of 1999 01/07/1997
Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3
(1) The Chief Executive in Council may determine- (Amended 62 of 1999 s. 3)
(a) the scale of fares which may be charged for the carriage of passengers, baggage and goods on any
specified route or group of specified routes; and
(b) the maximum rate of increase which may be permitted by the Commissioner under subsection (3) in
the scale of fares determined under paragraph (a).
(2) Where the Commissioner requires a grantee under section 15, or approves an application by a grantee under
section 16A, to-
(a) alter a specified route temporarily; or
(b) operate a temporary public bus service on a route, not being a specified route,
the Commissioner shall determine the fares which may be charged for the carriage of passengers, baggage and goods
on such altered route or temporary service, and such fares shall be based on the appropriate scale of fares determined
under subsection (1)(a):
Provided that the Commissioner shall not reduce the fares on a specified route under this subsection where the
reason for the temporary alteration arises out of circumstances beyond the control of the grantee. (Replaced 44 of
1984 s. 9)
(3) Where circumstances require a public bus service to be operated on a specified route-
(a) on any day at a frequency greater than that specified in a direction under section 16(1)(a) or in an
application approved under section 16A;
(b) during a period or on a day other than that specified in a direction under section 16(1)(a) or in an
application approved under section 16A; or
(c) with a bus of a carrying capacity or of a type other than that specified in a direction under section
16(1)(b) or in an application approved under section 16A,
the Commissioner may by notice in writing to the grantee permit the grantee to charge an increased fare for the
carriage of passengers, baggage and goods on such route during such operation of a public bus service, and such
increased fare shall be based on the appropriate scale of fares determined under subsection (1)(a) to which may be
added such increase as the Commissioner may think fit at a rate not exceeding the rate of increase determined under
subsection (1)(b). (Replaced 44 of 1984 s. 9)
(4) A grantee shall not charge any passenger-
(a) a fare exceeding the fare determined in accordance with the appropriate scale of fares determined
under subsection (1)(a) or the fare determined under subsection (2) or permitted under subsection (3);
or
(b) except with the prior permission of the Commissioner, a fare lower than that so determined or, where
applicable, the increased fare permitted under subsection (3). (Amended 44 of 1984 s. 9)
Section: 14 Alteration of routes and provision of additional routes 62 of 1999 01/07/1997
Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3
(1) Subject to subsections (4) and (5), the Chief Executive in Council may by notice in writing to the grantee
require it, before the expiry of such period as may be specified in the notice, to-
(a) alter a specified route in the manner specified in the notice, whether by way of extending or curtailing
or otherwise varying the route;
(b) operate a public bus service on such route, not being a specified route, as may be specified in the
notice.
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 8
(2) Where under subsection (1) the Chief Executive in Council requires a grantee to operate a service on a new
route, he may confer on the grantee the exclusive right to operate a public bus service on that route.
(3) The period of notice referred to in subsection (1) shall be-
(a) in the case of a notice served under paragraph (a) thereof, not less than 3 months; and
(b) in the case of a notice served under paragraph (b) thereof, not less than 6 months.
(4) A requirement shall not be made under subsection (1)(a) unless the Commissioner has consulted the grantee
with respect thereto. (Amended 44 of 1984 s. 10)
(5) Before a requirement under subsection (1)(b) is made, the Commissioner shall consult the grantee on the
proposed service and satisfy himself that the grantee, if he is required to operate a public bus service on a new route,
will-
(a) have available a sufficient number of buses for use on the new route and all existing routes; and
(b) be able to maintain a proper and efficient service on the new route and all existing routes,
and shall submit a report of his findings, and details of any points in disagreement between the grantee and him, to the
Chief Executive in Council. (Added 44 of 1984 s. 10)
(Amended 44 of 1984 s. 10; 62 of 1999 s. 3)
Section: 15 Temporary alteration of routes and provision of additional
routes
30/06/1997
(1) The Commissioner may, after consultation with a grantee, by notice in writing to the grantee, require it,
before the expiry of such period (being not less than 3 months) as may be specified in the notice, to-
(a) alter a specified route temporarily in the manner specified in the notice, whether by way of extending
or curtailing or otherwise varying the route;
(b) operate a temporary public bus service on such route, not being a specified route, as may be specified
in the notice.
(2) A requirement under subsection (1) shall have effect for such period, not exceeding 12 months, as may be
specified in the notice, and may be extended by the Commissioner for a further period not exceeding 12 months.
(3) Before a requirement under subsection (1)(b) is made, the Commissioner shall satisfy himself that the
grantee, if he is required to operate a public bus service on a new route, will-
(a) have available a sufficient number of buses for use on the new route and all existing routes; and
(b) be able to maintain a proper and efficient service on the new route and all existing routes. (Added 44
of 1984 s. 11)
Section: 16 Commissioner to specify frequency of services and
carrying capacity and types of buses
30/06/1997
(1) The Commissioner shall, after consultation with a grantee, from time to time as he thinks necessary, direct
by notice in writing to the grantee-
(a) the frequency at and the period on each day during which a public bus service shall be operated on a
specified route;
(b) the carrying capacity and types of the buses to be used on any such route.
(2) Where the effect of a notice under subsection (1) is to alter the frequency at which a public bus service is
being operated under such a notice in force at the time that the first-mentioned notice is given, such first-mentioned
notice shall take effect on such day as the Commissioner may specify, being not less than 3 months after the service of
the notice.
(3) Subject to subsection (3A), a grantee may, on any specified route in respect of which it has the exclusive
right to operate a public bus service, increase the frequency at which the service is operated on that route in
accordance with a direction under subsection (1) whenever in its opinion circumstances so require. (Amended 44 of
1984 s. 12)
(3A) For the purposes of subsection (3)-
(a) subject to paragraph (b), before a grantee increases the frequency of service on any specified route he
shall give to the Commissioner notice in writing of not less than 14 days or such lesser period as the
Commissioner may allow;
(b) where due to the special circumstances of any case a grantee increases the frequency of service on any
specified route without notice as required under paragraph (a), he shall, within 7 days after the date on
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 9
which the frequency of service is increased, give to the Commissioner notice in writing of such
increase and of the circumstances necessitating it. (Added 44 of 1984 s. 12)
(4) A grantee may, on any specified route in respect of which it does not have the exclusive right to operate a
public bus service, increase the frequency at which the service is operated on that route in accordance with a direction
under subsection (1) whenever in its opinion circumstances so require, if the increase in the frequency is-
(a) agreed between the grantee and any other grantee which operates a public bus service on that route;
and
(b) approved by the Commissioner.
(5) Before a direction under subsection (1) is given, the Commissioner shall satisfy himself that the grantee, if
he is required to operate a public bus service on a route at the frequency required, will-
(a) have available a sufficient number of buses for use on the route and all other routes; and
(b) be able to maintain a proper and efficient service on the route and all other routes. (Added 44 of 1984
s. 12)
Section: 16A Temporary variation of route, frequency of services,
carrying capacity and types of buses on grantee's
application
30/06/1997
(1) A grantee may apply in writing to the Commissioner-
(a) to alter a specified route temporarily by way of extending or curtailing or otherwise varying the route;
(b) to operate a temporary public bus service on a route, not being a specified route, or to suspend a public
bus service on a specified route;
(c) to vary temporarily the frequency at and the period on each day during which a public bus service is
operated on a specified route;
(d) to vary temporarily the carrying capacity and types of buses used on any route, whether specified or
not.
(2) An application under subsection (1) shall be delivered to the Commissioner not less than 14 days prior to
the date upon which the grantee desires to introduce the variation set out in his application:
Provided that, where special circumstances exist, the Commissioner may shorten the period of notice to be given
by the grantee.
(3) The Commissioner may approve, subject to such conditions as he thinks fit, or may refuse any application
under subsection (1), and where the Commissioner refuses any application he shall give the grantee in writing the
reasons for such refusal.
(4) An approval under subsection (3) shall have effect for such period, not exceeding 12 months, as the
Commissioner shall specify.
(5) The requirements of a notice under section 14 or 15 or a direction under section 16 shall, so far as they are
inconsistent with an approval of an application under subsection (3), be suspended during the period of the approval
and shall again take effect on the expiration of the period of the approval.
(Added 44 of 1984 s. 13)
Section: 17 (Repealed 72 of 1984 s. 2) 30/06/1997
Section: 18 Records 30/06/1997
(1) A grantee shall keep, to the satisfaction of the Commissioner, proper records in respect of the following
matters-
(a) the number and capacity of the buses in use on each specified route on each day;
(b) the number of journeys and the total kilometres travelled by each such bus on each day on each such
route; (Amended 75 of 1982 s. 114; L.N. 307 of 1984)
(c) the number of passengers carried by each such bus on each day on each such route; (Amended 75 of
1982 s. 114)
(d) the daily receipts in respect of each such route;
(e) the total kilometres lost each day in relation to each such route due to accidents, breakdowns and
vehicle and staff shortages, respectively; (Amended L.N. 307 of 1984)
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 10
(f) the maintenance of vehicles and stores; (Amended 44 of 1984 s. 14)
(g) the number and types of buses, and their carrying capacity, on order or under construction together
with details of the likely availability of such buses for use in the operation of the public bus service.
(Added 44 of 1984 s. 14)
(2) A grantee shall furnish to the Commissioner, at such times and in such form as he may require, copies of
the records kept by the grantee in accordance with subsection (1).
(3) A grantee shall permit the Commissioner, and any person authorized in writing by him, to inspect at any
reasonable time all such records and all accounts kept by the grantee in connection with its franchise; and the
Commissioner or any such person may make copies of any such records or accounts.
Section: 19 Provision of vehicle maintenance facilities, etc. 30/06/1997
A grantee shall provide and maintain such premises as the Commissioner considers necessary for construction,
repair and maintenance of vehicles used by the grantee in connection with its franchise and for the parking of all such
vehicles when they are not in use.
Section: 20 Restrictions in connection with section 19 30/06/1997
Except with the written permission of the Commissioner, a grantee shall not-
(a) use any premises provided and maintained in accordance with section 19 other than for the
construction, repair, maintenance or parking of vehicles used by the grantee in connection with its
franchise; or
(b) undertake or permit to be undertaken the construction, repair or maintenance of vehicles used by the
grantee in connection with its franchise, or the parking of such vehicles when they are not in use, other
than in premises provided and maintained in accordance with section 19.
(Replaced 82 of 1995 s. 3)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance
1995 (82 of 1995), which section is reproduced as follows-
"7. Application
This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".
2. 82 of 1995 commenced operation on 4 August 1995.
Section: 21 Inspection of premises, maintenance facilities and vehicles 30/06/1997
(1) The Commissioner, and any person authorized in writing by him, may-
(a) at all reasonable times inspect-
(i) any premises used by a grantee in connection with its franchise and all facilities provided by a
grantee for the construction, repair and maintenance of vehicles so used by it;
(ii) any vehicle used by a grantee in connection with its franchise;
(b) require a grantee to carry out in respect of all such vehicles, or such of those vehicles as he may
specify, such repair, maintenance or other works, within such time (being not less than 3 months), as
he may specify; (Amended 44 of 1984 s. 15)
(c) require a grantee to carry out in respect of all or any vehicles used by the grantee in connection with its
franchise any maintenance and servicing in accordance with any programme. (Added 44 of 1984 s.
15)
(2) A grantee shall afford such facilities for the inspections referred to in subsection (1)(a) as may be required
by the Commissioner.
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 11
Section: 22 Chief Executive in Council may impose financial penalty 62 of 1999 01/07/1997
Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3
(1) The Chief Executive in Council may, by notice in writing to a grantee, require the payment of the financial
penalty specified in such notice. (Amended 62 of 1999 s. 3)
(2) A financial penalty may be imposed in respect of any failure by a grantee to comply with its franchise or
this Ordinance or any direction or requirement under its franchise or this Ordinance, or with any programme or any
approval under section 16A. (Amended 44 of 1984 s. 16; 66 of 1994 s. 2)
(2A) Without affecting the generality of subsection (2), a financial penalty may be imposed under this section in
respect of a failure by the grantee as regards-
(a) a particular route operated by it; or
(b) 2 or more routes so operated. (Added 66 of 1994 s. 2)
(3) A financial penalty imposed under this section shall not exceed $10000 for the first occasion on which a
penalty is imposed, and shall not exceed $20000 for the second occasion on which a penalty is imposed, and shall not
exceed $50000 for any subsequent occasion on which a penalty is imposed. (Amended 66 of 1994 s. 2)
(3A) In determining for the purposes of subsection (3) whether an occasion ("the occasion") is the first, second or
a subsequent occasion on which a financial penalty was imposed, the following shall apply-
(a) a previous occasion on which a financial penalty was imposed and which occurred more than 5 years
prior to the occasion shall not be taken into account; and
(b) a financial penalty previously imposed-
(i) either in respect of the same route or any other route (where the financial penalty being imposed
relates to a failure as regards a route); or
(ii) for any other reason,
shall be taken into account. (Added 66 of 1994 s. 2)
(4) A financial penalty shall not be imposed under this section unless-
(a) the Commissioner is satisfied that the grantee has had a reasonable opportunity of complying with its
franchise or this Ordinance or the direction or requirement, or with any programme or any approval
under section 16A, as the case may be;
(b) the Commissioner has notified the grantee of the failure and the details thereof; and
(c) the grantee has been given an opportunity of showing cause to the Commissioner why the penalty
should not be imposed. (Replaced 44 of 1984 s. 16)
(5) A financial penalty imposed under this section shall be recoverable as a civil debt.
Part: IV EMERGENCY AND REVOCATION 30/06/1997
Section: 23 Emergency 29 of 1998; 62 of
1999
01/07/1997
Remarks:
Adaptation amendments retroactively made - see 29 of 1998 s. 105; 62 of 1999 s. 3
(1) If the Chief Executive in Council considers that an emergency exists he may direct that the franchise of a
grantee be suspended, either altogether or in respect of any specified route he may specify, until the Chief Executive in
Council declares that the emergency no longer exists. (Amended 62 of 1999 s. 3)
(2) Where under subsection (1) a franchise is suspended altogether or in respect of any specified route, the
Government may by written notice served on the company and published in the Gazette require the company to
deliver to the Government possession of the following property, that is to say-
(a) any premises provided and maintained in accordance with section 19;
(b) any property (other than premises mentioned in paragraph (a)) used or kept by the company for the
purposes of or in connection with its franchise,
and may at the time of or as soon as practicable after service of the notice take possession of such property.
(3) Any property taken possession of under subsection (2)-
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 12
(a) may be retained by the Government until such time as the Chief Executive in Council declares that the
emergency no longer exists, and may be so retained notwithstanding that the franchise period of the
grantee has expired during the period of the emergency; and (Amended 62 of 1999 s. 3)
(b) may during its retention be used by the Government or its nominee in the operation of such bus service
as the Commissioner thinks fit.
(4) Subject to subsection (9), where possession is taken under subsection (2) of any property, the person having
for the time being the right to possession over the property during its retention by the Government under subsection
(3) shall be entitled to compensation as provided in subsections (5) to (7).
(5) The compensation payable under subsection (4) shall be an amount equal to the open market rental that a
willing lessor might be expected to realize under a lease of the property on the following terms, that is to say a lease-
(a) which is terminable by either party upon the giving of 1 month's notice;
(b) which is subject to terms and conditions similar to the provisions applying by virtue of section 25A in
respect of possession of the property under this section; and
(c) under which the rental is payable monthly in arrears.
(6) For the purposes of subsection (5)-
(a) in the case of property being a number of motor vehicles, reference to the open market rental shall be
taken to be reference to the open market rental that a lessor might be expected to realize in respect of
that number of vehicles leased as a single lot;
(b) in the case of property being land or buildings on land, reference to a lease of the property shall be
construed as reference to a lease on terms prohibiting the use of the property other than in accordance
with the terms of any Government lease under which the land is held. (Amended 29 of 1998 s. 105)
(7) Notwithstanding subsection (5)-
(a) the compensation payable in respect of property being spare parts and other consumables shall be an
amount equal to the difference in book value of the stock of such consumables taken over the period of
the Government's possession of the property under subsection (3);
(b) the compensation payable in respect of property being the fixed assets of the franchisee (including
plant and machinery) other than motor vehicles and land or buildings on land shall be an amount equal
to the depreciation in the value of the property over the period of the Government's possession of the
property under subsection (3) as calculated at the rate of depreciation applicable in respect of that
property for the purposes of section 30,
and any such compensation shall be payable at the end of that period of possession.
(8) A grantee shall, in addition to any entitlement to compensation under subsection (4), be entitled to
compensation for any loss or damage sustained during the franchise period in consequence of any suspension of its
franchise under subsection (1), but nothing in this subsection shall be construed so as to entitle a grantee to receive
compensation under both this subsection and subsection (4) in respect of the same loss or damage.
(9) The liability of the Government under this section to pay compensation to any person under subsection (4)
shall cease to accrue upon the making of a declaration by the Chief Executive in Council under subsection (1).
(Amended 62 of 1999 s. 3)
(10) Compensation payable under this section shall, unless otherwise stated, be payable monthly in arrears.
(Replaced 82 of 1995 s. 4)
Section: 24 Revocation of right to operate a service on a specified
route or of franchise
62 of 1999 01/07/1997
Remarks:
Adaptation amendments retroactively made - see 62 of 1999 s. 3
(1) If-
(a) it appears to the Chief Executive in Council that without good cause a grantee has failed, or is likely to
fail, to maintain a proper and efficient public bus service, either generally or in respect of any specified
route, in accordance with section 12; or
(b) a grantee has failed to pay any financial penalty imposed under section 22,
the Chief Executive in Council may direct the Commissioner to serve on the grantee a notice requiring the grantee to
show cause in writing, within 28 days after the service of such notice-
(i) why its right to operate a public bus service on such specified routes as are set out in such notice
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 13
should not be revoked; or
(ii) why its franchise should not be revoked altogether,
and any such notice shall specify the ground on which such right or the franchise may be revoked.
(2) If, after the service of a notice under subsection (1)(i)-
(a) the grantee does not show cause why its right to operate a public bus service on the specified routes set
out therein should not be revoked; or
(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the
opinion that the grantee has not shown good cause why such right should not be revoked,
the Chief Executive in Council may, with effect from such date as he may specify, revoke such right.
(3) If, after the service of a notice under subsection (1)(ii)-
(a) the grantee does not show cause why the franchise should not be revoked altogether; or
(b) the Chief Executive in Council, having considered any representations made by the grantee, is of the
opinion that the grantee has not shown good cause why the franchise should not be revoked altogether,
the Chief Executive in Council may, with effect from such date as he may specify, revoke the franchise.
(4) Notice of the revocation of a right or franchise under this section shall be served on the grantee and, as soon
as practicable thereafter, shall be published in the Gazette.
(5) A grantee shall not be entitled to compensation in respect of the revocation of a right or franchise under this
section and where a franchise is revoked altogether the grantee shall be liable to pay to the Government any expense
incurred by the Government in connection with the franchise or the revocation thereof.
(Amended 62 of 1999 s. 3)
Section: 25 Temporary retention by Government of bus assets used by
company whose franchise is revoked or has expired
29 of 1998; 62 of
1999
01/07/1997
Remarks:
Adaptation amendments retroactively made - see 29 of 1998 s. 105; 62 of 1999 s. 3
(1) Where-
(a) a franchise has been revoked under section 24(3); or
(b) a franchise period has expired and no new franchise has been granted under section 5(1) to the
company,
the company shall deliver to the Government possession of such of the following property as may be specified by the
Government in a notice served on the company and published in the Gazette, that is to say-
(i) any premises provided and maintained in accordance with section 19 within the period of 3 months
immediately prior to the service of a notice on the company under section 24(1) or within the period of
3 months ending with the expiry of the franchise period (as the case may be);
(ii) any property (other than premises mentioned in paragraph (i)) used or kept by the company for the
purposes of or in connection with its revoked or expired franchise within that period,
and the Government may take possession of such property as from the time that the notice has effect.
(2) A notice served and published in accordance with subsection (1) shall have effect-
(a) where the notice was served and published prior to the revocation of the franchise or the expiry of the
franchise period, as from such revocation or expiry;
(b) in any other case, as from the time of its service and publication.
(3) Subject to subsection (8), any property taken possession of under subsection (1)-
(a) may be retained by the Government for such periods not exceeding 3 years in aggregate, and not
exceeding 2 years in the case of any one such period, as the Chief Executive in Council may direct;
and (Amended 62 of 1999 s. 3)
(b) may during its retention be used by the Government or its nominee, or by a third party designated by
the Government for the purposes of this subsection, in the operation of such bus service as the
Commissioner thinks fit.
(4) Subject to subsection (8), where possession is taken under subsection (1) of any property, a person having
for the time being the right to possession over the property during its retention by the Government under subsection
(3) shall be entitled to compensation as provided in subsections (5) to (7).
(5) The compensation payable under subsection (4) shall be an amount equal to the open market rental that a
willing lessor might be expected to realize under a lease of the property on the following terms, that is to say a leaseCap
230 - PUBLIC BUS SERVICES ORDINANCE 14
(a) for the period specified in the notice given under subsection (1) as the period of the Government's
intended possession of the property and terminable by the lessee on giving 3 month's notice;
(b) which is subject to terms and conditions similar to the provisions applying by virtue of section 25A in
respect of possession of the property under this section;
(c) under which the rental is payable monthly in arrears.
(6) For the purposes of subsection (5)-
(a) in the case of property being a number of motor vehicles, reference to the open market rental shall be
taken to be reference to the open market rental that a lessor might be expected to realize in respect of
that number of vehicles leased as a single lot;
(b) in the case of property being land or buildings on land-
(i) no regard shall be had to any improvements made to the property-
(A) after notice has been served on the company under section 24(1); or
(B) within a period of 1 year before the expiry of the franchise period,
as the case may be, except that sub-subparagraph (B) shall not apply as regards any
improvements made with the prior written approval of the Commissioner given for the purposes
of this section; and
(ii) reference to a lease of the property shall be construed as reference to a lease on terms prohibiting
the use of the property other than in accordance with the terms of any Government lease under
which the land is held. (Amended 29 of 1998 s. 105)
(7) Notwithstanding subsection (5)-
(a) the compensation payable in respect of property being spare parts and other consumables shall be an
amount equal to the difference in book value of the stock of such consumables taken over the period of
the Government's possession of the property under subsection (3);
(b) the compensation payable in respect of property being the fixed assets of the franchisee (including
plant and machinery) other than motor vehicles and land or buildings on land shall be an amount equal
to the depreciation in the value of the property over the period of the Government's possession of the
property under subsection (3) as calculated at the rate of depreciation applicable in respect of that
property for the purposes of section 30,
and any such compensation shall be payable at the end of that period of possession.
(8) The liability of the Government under subsection (4) to pay compensation to any person shall cease to
accrue, and its right to retain possession of any property under subsection (3) shall terminate-
(a) at the expiry of the period specified in the notice given under subsection (1) as the period for which the
Government intends to retain possession of the property, or at the expiry of any extension of that
period that the Government may specify by notice under this paragraph published in the Gazette; or
(b) on such earlier date as the Government may specify by notice under this paragraph published in the
Gazette, being a date not earlier than 3 months after the date of publication of the notice.
(9) Compensation payable under this section shall, unless otherwise stated, be payable monthly in arrears.
(10) For the avoidance of doubt it is declared that subsection (4) has effect notwithstanding section 24(5).
(Replaced 82 of 1995 s. 5)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance
1995 (82 of 1995), which section is reproduced as follows-
"7. Application
This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".
2. 82 of 1995 commenced operation on 4 August 1995.
Section: 25A Terms upon which Government takes possession under
section 23 or 25
30/06/1997
(1) Where the Government takes possession of any property under section 23 or 25 (in either case referred to in
this section as "the relevant section") the following provisions shall have effectCap
230 - PUBLIC BUS SERVICES ORDINANCE 15
(a) if the property is land or buildings on land-
(i) the Government shall be liable to pay a fair and reasonable proportion (apportioned in respect of
the period of its possession of the property under the relevant section) of all rates and other
outgoings of a periodically recurring nature incurred in respect of the property during the period
of its possession of the property under the relevant section;
(ii) the Government may replace from time to time any fixtures and fittings on the property which
may be or become beyond repair at any time during the period of its possession of the property
under the relevant section, without any obligation to reinstate the property at the termination of
its right to possession of the property;
(iii) the Government shall be at liberty at any time during the period of its possession of the property
under the relevant section to undertake any works that it may reasonably deem necessary to
render the property safe or to ensure the safety of any person lawfully using the property, without
any obligation to reinstate the property at the termination of its right to possession of the
property, and the reasonable cost of any such work shall be recoverable from the owner of the
property as a civil debt due to the Government;
(iv) subject to subparagraphs (ii) and (iii), at the termination of its right to possession of the property
under the relevant section, the Government shall ensure that the property is left in its original
condition, fair wear and tear excepted and excepting any damage not caused by any act or default
of the Government or anyone on the property with the Government's authority and under the
Government's control;
(b) if the property is property other than land or buildings on land-
(i) the Government may during the period of its possession of the property under the relevant
section fit any such new parts to any item of the property as shall from time to time be necessary,
without any obligation to reinstate the property at the termination of its right to possession of the
property;
(ii) the Government shall be liable to pay a fair and reasonable proportion (apportioned in respect of
the period of its possession under the relevant section) of all outgoings of a periodically recurring
nature incurred in respect of the property during the period of its possession of the property under
the relevant section;
(iii) the Government may at its own expense during the period of its possession of the property under
the relevant section add to or install on any item of the property any safety or other equipment, or
make any alteration or modification to the property, as may be required under any Ordinance,
without any obligation to reinstate the property at the termination of its right to possession of the
property;
(iv) subject to subparagraphs (i) and (iii), at the termination of its right to possession of the property
under the relevant section, the Government shall ensure that the property, other than such
property as may have been acquired by the Government under section 25B, is left in its original
state of repair and working order, fair wear and tear excepted, and excepting any damage not
caused by any act or default of the Government or anyone in possession of the property with the
Government's authority and under the Government's control.
(2) In this section "original condition" (原來狀æ³�) and "original state of repair and working order" (原來的ç¶
修��作狀態) mean, in relation to any property, the condition or state of repair and working order of the property
at the time of the Government's taking possession of it under the relevant section.
(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance
1995 (82 of 1995), which section is reproduced as follows-
"7. Application
This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".
2. 82 of 1995 commenced operation on 4 August 1995.
Cap 230 - PUBLIC BUS SERVICES ORDINANCE 16
Section: 25B Acquisition of bus assets (other than land) used by grantee
whose franchise is revoked or has expired
30/06/1997
(1) Where-
(a) a franchise is revoked under section 24(3); or
(b) a franchise period expires and no new franchise is granted under section 5(1) to the company,
the Government may acquire, in its own name or in the name of a third party designated by the Government for the
purposes of this section, any property (other than land, interests in land or buildings on land) used or kept by the
company for the purposes of or in connection with its franchise within the period of 3 months immediately prior to the
service of a notice on the company under section 24(1) or within the period of 3 months ending with the expiry of the
franchise period (as the case may be).
(2) In respect of any property of which the Government has taken possession under section 25(3), the power
conferred by subsection (1) may be exercised at any time within the period of 1 year from the date of revocation or
expiry of the franchise period, as the case may be.
(3) Where the Government acquires any property under subsection (1), any person having an interest or right in
or over that property shall be entitled to compensation in an amount equal to the open market value that a willing
vendor might be expected to realize on the sale of such interest or right in the property.
(4) In subsection (3), in the case of an interest or right in property being a number of motor vehicles reference
to the open market value shall be taken to be reference to the open market value of the interest in that number of
vehicles when dealt with as a single lot.
(5) Where any property is acquired under this section the owner of the property or any person having an
interest or right in or over the property shall, when called upon to do so by the Government, execute a transfer in
favour of the Government or a third party designated by the Government for the purposes of subsection (1).
(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes:
1. The application of this section is affected by section 7 of the Public Bus Services (Amendment) Ordinance
1995 (82 of 1995), which section is reproduced as follows-
"7. Application
This Ordinance applies to franchises granted before the commencement of this Ordinance as it
applies to franchises granted after such commencement.".
2. 82 of 1995 commenced operation on 4 August 1995.
Section: 25C Power of entry 30/06/1997
The Government or its nominee may, for the purpose of taking possession of property under this Part, enter upon
any land or buildings on land where it is reasonably necessary to do so for that purpose.
(Added 82 of 1995 s. 6)
___________________________________________________________________
Notes: