For discussion FCR(95-96)80
on 24 November 1995

ITEM FOR FINANCE COMMITTEE

CAPITAL WORKS RESERVE FUND
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Transport Department
New Subhead “Modernisation of Kowloon Bay Vehicle Examination Centre”

Members are invited to approve a commitment of $11.3 million for the modernisation of vehicle inspection facilities at the Kowloon Bay Vehicle Examination Centre.

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PROBLEM
PROPOSAL
JUSTIFICATION
FINANCIAL IMPLICATIONS
BACKGROUND INFORMATION

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PROBLEM

The existing vehicle inspection facilities at the Kowloon Bay Vehicle Examination Centre (KBVEC) cannot cope with increasing demand.

PROPOSAL

2. We propose to -

1. replace the manually controlled vehicle inspection equipment at four heavy vehicle lanes by computer controlled equipment;
2. provide air-conditioning to the inspection pits; and
3. computerise the vehicle inspection appointment system.

JUSTIFICATION

3. KBVEC has a total of eight vehicle inspection lanes, two for light vehicles, two for urban taxis and four for heavy vehicles. The two taxi lanes were converted into computer-controlled operation in 1993. All the other lanes are manually controlled.

4. There has been an increase in demand for inspection of heavy vehicles. There were 18 620 inspections at KBVEC in 1994-95. As a result of the annual inspection policy which came into effect on 1 January 1995 and the growth in the number of registered goods vehicles, we expect this to increase to about 26 300 in 1995-96. To cope with this, we need to increase the inspection throughput. Due to site limitations, we cannot achieve this by building additional lanes. Nor can we convert the other lanes for inspection of heavy vehicles as the centre will then be unable to cope with the inspection of light vehicles and urban taxis. The Commissioner for Transport (C for T) therefore proposes to install computer-controlled equipment at the four lanes for heavy vehicles in order to increase the inspection throughput.

5. At present, the four heavy vehicle lanes have a combined capacity for inspection of about 24 000 vehicles per year. If the manual system is replaced by a computer-controlled system, C for T estimates that the annual capacity will be increased by 25% to 30 000 inspections. This new capacity will enable the centre to cope with the projected demand up to 1999.

6. The inspection lanes and pits at KBVEC are not air-conditioned. In order to provide a better working environment for the inspection staff and to increase productivity, particularly in summer, we propose to provide air-conditioning in the inspection pit area.

7. At present appointments for inspections are dealt with manually. To improve efficiency, C for T proposes to provide a computerised inspection appointment system at the KBVEC.

FINANCIAL IMPLICATIONS

8. We estimate the capital cost of the proposal to be $11.3 million, made up as follows -

9. As regards paragraph 8(a)(vi), the cost of installation includes the estimated cost for dismantling and removing the old equipment and related builder’s works. It is higher than usual because -

1. works can only be carried out on one inspection lane at a time as the other lanes must remain operational to cope with demand. This lengthens the duration of the works; and
2. in order that dust and noise from the civil works will not affect staff at the centre during normal working hours, the contractor will have to carry out such works outside normal working hours and would incur overtime costs as a result.

10. Subject to approval, we will phase expenditure as follows -

We shall include sufficient provision in the 1996-97 draft Estimates to meet the cost of this proposal.

11. The additional annually recurrent expenditure is about $1.26 million, mainly for repairs and maintenance. There are no additional staffing requirements.

BACKGROUND INFORMATION

12. In 1994, in response to the Director of Audit’s Report No. 22, the Public Accounts Committee recommended, among other things, that C for T should explore the possibility of further modernising the vehicle examination centres with a view to improving their operating efficiency.

Transport Branch
November 1995

¹ This can move the front wheels of a vehicle in several directions to enable the examiner to see wear and slackness in hubs, suspension or steering components.

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