KMB and LRT bus franchises will expire next year; Transport Department says they are considering renewal.

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The Transport and Logistics Bureau submitted a document to the Legislative Council indicating that the current franchise rights for KMB and New Lantau Bus will expire next year. The Legislative Council’s Panel on Transport will discuss this matter on Friday (20th).

Both operators have expressed interest in applying for new franchise rights after the current ones expire. According to past practice, existing operators who can demonstrate the ability to provide appropriate and efficient services and are willing to continue investing in bus operations may be considered for new franchise grants. Operating franchised buses is a capital-intensive industry, requiring long-term, strategic, and multi-faceted investments, including purchasing and replacing buses, enhancing bus safety, introducing new bus technologies, building bus depots, and upgrading bus facilities and equipment.

The government is currently considering the applications from KMB and New Lantau Bus for new franchise rights. The authorities will strive to ensure the stability of franchised bus services, promote operators to improve service quality and safety, and maintain long-term financial sustainability. For example, the government will work with operators to accelerate the adoption of new energy buses in line with the 2050 carbon neutrality goal. It will also promote the provision of more practical passenger information and services, develop mobile applications with features tailored for the elderly, and offer better services for passengers with special needs (such as providing dual wheelchair spaces on low-floor double-decker buses), thereby advancing the concept of accessible transportation.

The government will also encourage operators to explore more diverse fare products to attract more passengers while offering affordable and reasonable ticket prices. This includes providing more transfer discounts, monthly passes, and segmented fare options to benefit passengers.

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