Transport Sec. shares insights on Kai Tak transit system, ride-hailing

A new smart transport network will be built in Kai Tak. Speaking with TVB News, Secretary for Transport and Logistics Mable Chan says the contract is designed to give the winning bidder financial incentives to prevent construction delays.

On the new ride-hailing regime, she says data will be collected from the licensed platforms to assess needs to adjust the policies accordingly.

Kai Tak's Smart and Green Mass Transit System's model aims to complete construction in 2031 -- faster than projects that require extensive underground excavation or tunnelling with construction costs around 40% lower than conventional heavy rail.

But will there be penalties if construction falls behind schedule? Speaking with TVB News, Secretary for Transport and Logistics Mable Chan says the successful bidder will be responsible for the design, construction and operation of the project.

That means, the earlier construction completes, the sooner the operator can begin generating revenue.

When asked about the Kai Tak Smart and Green Mass Transit System drawing only two bids -- fewer than the 30 expressions of interest received, Chan had this to say.

“From the government's perspective, we are extremely pleased with the result of the tender.On the existing two tenders we received,it actually received the joint effort of consortium, comprising both consultants, contractors, developers and operators. So we find that both the tenders are very solid and could reflect the positive and solid response from the market,” she says.

Chan says the two bidders' proposed initial fares meet the government's requirements. The government will consider affordability for passengers, the system's competitiveness and its long-term financial sustainability with references to the existing MTR fare adjustment mechanisms.

Chan adds after the project's 20-year franchise period, the government will decide whether to take over the project.

Meanwhile, Hong Kong's new ride-hailing regulatory framework came into effect on August 3.

Around 7,500 drivers have applied for the combined taxi and ride-hailing exam with the first batch of exams expected to begin mid-September.

And what if the application number exceeds the 10,000 available quota? “It could be based on ballot system, or we give priority considerations or it could be a combination of both. Our target is to devise a clear, transparent and fair mechanism for the selection of the 10,000 ride-hailing vehicles,” Chan says.

Ride-hailing platforms will be invited over the coming few weeks to register for a licence. The Transport Department plans to conduct a baseline survey by the end of the third quarter on the city's ride-hailing demand.

Once licensing platforms begin operating, the government will collect market data

to gauge the need to adjust the policies accordingly.