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LCQ18 : Tenant of Tuen Mun Ferry Pier plans to start cross-boundary services in mid-2006
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    Following is a question by the Hon Cheung Hok-ming and a written reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, at the Legislative Council meeting today (February 8):

Question:

     In reply to my question on the cross-boundary ferry terminal in Tuen Mun on April 27 last year, the authorities advised that they would "try to facilitate the tenant's work with a view to enabling the early commissioning of the cross-boundary ferry terminal". The target completion date originally set by the tenant for the modification works of the terminal was December 2004 and was subsequently postponed to late April 2005. Nevertheless, it has been reported that the works have not yet been completed. In this connection, will the Government inform this Council:

(a)  of the details and updated progress of the modification works undertaken by the tenant;

(b)  of the reasons for the Government not specifying, in the tenancy agreement signed with the tenant, the deadline for completing the works and the penalties concerned;

(c)  of the measures taken by the authorities to facilitate the tenant's work with a view to enabling the early commissioning of the terminal;

(d)  whether the authorities have set a target commissioning date for the terminal; if not, of the reasons for that; and

(e)  of the circumstances under which the authorities will consider putting up this project for re-tendering?

Reply:

Madam President,

     The Tuen Mun Pier has been serving as a domestic ferry pier. In order to modify part of the pier for operating cross-boundary ferry services, the tenant has to carry out alteration works and provide building services and related systems as required by the Buildings Ordinance and the operating departments.

     There were some changes in the tenant's shareholding and management structure in early 2005.  The pier modification works re-commenced in June 2005, and the structural and partition works have been substantially completed. Installation of air-conditioning, fire services and electricity equipment is currently in progress, and this will be followed by the installation of lifts, ceiling, floor, water mains and drainage pipes. The tenant has indicated that it would procure vessels shortly and that it plans to start providing cross-boundary ferry services in mid-2006.

     The Government has leased part of the Tuen Mun Pier to the tenant for operating cross-boundary ferry services under a tenancy agreement, which requires the tenant to pay a monthly sum of around $1.35 million. We consider that under this arrangement, the tenant should be allowed to determine the timing for commencing the operation of the terminal, taking into account its own commercial considerations and the progress of its preparation works. The tenancy agreement therefore has neither specified any deadline for completing the pier modification works nor penalties.

     To enable early commissioning of the cross-boundary ferry terminal, relevant Government departments have been facilitating the work of the tenant, including expediting the vetting of its building plans, meeting the tenant regularly, reminding the tenant of the areas that require special attention, and providing advice on the modification works etc. The departments concerned are also making the necessary preparations, including staff arrangement and procurement of equipment, in tandem with the tenant's commissioning programme. We will continue to maintain close liaison with the tenant in all respects.

     Whether or not the terminal has commenced operation, the tenancy agreement requires the tenant to pay around $1.35 million each month with effect from December 2004. From the commercial perspective, we believe the tenant would endeavour to complete the pier modification and other preparation works and launch the cross-boundary ferry services as soon as possible.

     Since the commencement of the tenancy agreement, the tenant has not breached any of its terms. The pier modification works is also in progress.  We have no plans to re-tender the project at this stage.

Ends/Wednesday, February 8, 2006
Issued at HKT 12:40

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