Call for bus deregulation in Hong Kong

Existing public bus system in Hong Kong SAR is franchise system. Most of the bus services are provided by five franchised bus companies, supplemented by residential bus services by some smaller operators.

The public and pressure groups have criticized this system for several years because it has led to monopolize services in most of the area, inefficient bus services and high fare in some routes.
Moreover, those franchise operators are partially owned by large conglomerates or developers, which were often criticized as profiteers.

Bus routes arrangements by franchise bus operators can be very inflexible because of the strong regulation by Transport Department and opposition of route changes by district councils.
Thus the bus network cannot satisfy the actual demand of passengers and development of highway network.

For example, there was no regular bus services running from Sham Shui Po or Yau Tsim Mong districts to Sha Tin or Tai Po districts even three years after opening of Sha Tin Height and Eagle Nest Tunnels of Route 8.

Furthermore, the expansion of rapid transit and railway company merger, which causing reduction of transfer fares, led to dwindling bus patronage.
Rising oil prices in the past decade and inefficient bus routes have also made bus operation less profitable.

In order to promote the service efficiency and provide routes according to actual passenger demand, partial de-franchising of bus services in HKSAR can be a viable option.

The implementation plan is to allow non-franchise bus operators like coach companies to apply for passenger bus licences under route basis.
They can directly submit applications to Transport Department 3 weeks before the start of service. If operators find the routes unprofitable, they may notify the Transport Department and notify 3 weeks before cancellation.
Those licenced non-franchise bus operators can put no more than 250 buses into such services.

In order to prevent too many buses to enter the downtown, which lead to traffic jam, some limitation of routes should be imposed on those non-franchised routes:
all services within the boundaries of Sai Kung, Ma On Shan, Tai Po(including the Chinese University), Northern, Yuen Long, Tuen Mun districts are firstly deregulated;
on second stage, all services within the limits of areas above and Kwun Tong, Wong Tai Sin, Sha Tin, Tsuen Wan, Kwai Tsing and Island districts are deregulated;
for routes entering downtown,
from Kwai Tsing, Tsuen Wan, Tuen Mun, Yuen Long districts and Lantau Island, the limit of route in downtown is Yen Chow Street;
for routes heading to Olympic Station or Park Avenue, they must pass along Yen Chow Street, Sham Mong Road, Hoi Fai Road to reach terminus.
for routes heading to Kowloon Station, they must pass along as the road sections above and then Ferry Street or Hoi Wan Road, Jordan Road to reach terminus.

from Sha Tin, Tai Po and Northern districts, the limit in downtown is Waterloo Road or Whampoa Garden/Hung Hom Ferry Concourse;
for routes heading to Kowloon Station, they must pass along Ferry Street or Hoi Wan Road, Jordan Road to reach terminus.
for routes passing Route 8 to reach Sham Shui Po district, they must pass along Yen Chow Street, Sham Mong Road, Hoi Fai Road to reach terminus in Olympic or Kowloon Station.

from Sai Kung or Junk Bay, the limit in downtown is Kowloon City Pier or Kai Tak area.

references
bus deregulation in Great Britain: http://www.libertarian.co.uk/lapubs/econn/econn078.pdf
bus deregulation in Republic of Ireland: http://www.compecon.ie/Bus%20Paper.htm

(The original text was distributed on 20 September 2011, 4:30pm)