Legislative Council Panel on Transport
China Motor Bus Company Limited’s Franchise


In July 1995, China Motor Bus Company Limited (CMB) was granted a three-year franchise with effect from 1 September 1995. This franchise will expire on 31 August 1998.

Legal Provisions

2. Under section 6(2) of the Public Bus Services Ordinance (PBSO), a franchisee who seeks a franchise extension has to give at least 15-months’ notice to the Government. If such notice is given, Secretary for Transport will be required to make a recommendation to the Executive Council at least nine months before the expiry of a franchise as to whether the franchise should be extended.

3. Under section 6(3) of the PBSO, the Executive Council, if satisfied that a bus franchisee is capable of maintaining a proper and efficient service, may extend a franchise from time to time for a period not exceeding two years.

Present Position

4. CMB currently operates 123 franchised routes, including 33 cross-harbour services. The Commissioner for Transport is reviewing CMB’s performance during the franchise period against a number of indicators, including its bus availability, the number of lost trips, the number of complaints, depot and maintenance facilities and service improvements. Once this comprehensive review is completed, Government would need to determine in principle whether CMB is able to provide a proper and efficient bus service and whether its franchise should be considered for extension upon expiry.

5. Concurrently, we will be examining whether there is room for further healthy competition in the provision of public bus services on Hong Kong Island, given the constraints relating to the allocation of bus stops, depots and termini. In doing so, we will take into account the interest of the travelling public as well as the interest of some 2,500 staff of CMB.

Transport Branch

June 1997

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