Operational Info

Operational Information

FULL YEAR REPORT on FRANCHISED SERVICE for 2023

Highlights:

1.         Total number of passengers was recovered to 76% of 2018 level, and 99% increase over last year

• Total number of passengers for the year: 14,966,977

Average number of passengers per sailing: 108 (one third of passenger capacity), decreased by 24% compared to 2018

• The East Rail Line of the MTR was extended to Admiralty Station in May 2022, as a result, Passenger volume in Wan Chai dropped by 21% in 2023 compared to 2018

2.         Fare box revenue recovered to nearly HKD 70 million

• Increased by 213% compared to 2022, or 32% compared to 2018
• Yet average revenue per sailing was HKD 446
• Which only covers 56% of total operating costs.

3.         2023 full-year revenue from franchise routes (including non-fare box revenues) was approximately HKD 114 million

• Increased by 18% compared to 2018
• Increased by 40% compared to 2022

4.         Total operating expenses amounted to nearly HKD 125 million in other words,

• To earn every HKD 1 of revenue from franchise routes, it incurs an expenditure of HKD 1.10 to service
• Manpower costs per sailing exceeded HKD 400, manpower costs per passenger served exceeded HKD 4
• Launches expenses increased by nearly 42% a year.

5.         Loss on franchise routes amounted to nearly HKD 11 million

• Loss reduced by HKD 20 million compared to 2022
• A loss of HKD 217,000 on average was recorded every week

6.         Negative equity increased to HKD 95 million

7.         Cash Situation

• A recurring cash drain of aound HKD 180,000 on average was registered every week

8.         Outlook is Bleak

• Uncertainty over visitor arrivals and tourism industry
• Further marginalization of ferry services to and from Wan Chai due to the extension of the MTR's East Rail Line has just begun.
• Non-fare box revenue declined to a lower market rate as earlier contracts reached their expiration.
• Rising maintenance cost

9.         New initiatives

• "Green Ferry" project under study.
• Initiating a study on piers revitalization, starting with the 65-year-old Kowloon City Ferry Pier.
• Exploring opportunities to increase fare box and non-fare box revenue.
• Introduction of electronic payment solutions at piers