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Hong Kong's Most Expensive Ferry

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  1. #11

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    Quote Originally Posted by Raccon:
    Especially as they mention the increase will not make them profitable, just decrease the deficit. Why would they run a business that they know to be a lost cause?
    Because it's only one part of the overall business - that of making money by building and selling property in DB. Sure, if you divide up the parts then one bit is profitable and the other bit not - but I assume overall it's worth it or they would not do it. A poor ferry service would drive away residents. So they just squeeze the prices as much as they think the market will bear.....
    Stu79, East_coast and elle like this.

  2. #12

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    Thanks MovingIn07, didn't realize it's the same company.

    @DeletedUser: That might be true, too.

    Last edited by Raccon; 12-04-2013 at 06:24 PM.

  3. #13

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    Original Post Deleted
    As far as I understand it the residents could tender out transport services to 3rd party providers (not the ferry though). Just needs a successful rallying call to get people active.

  4. #14

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    Is it under essential services and gets a government grant? I don't know.

    Anyway is part of the package for DB and they would be unwise to pull it as part of the overall business. People would leave in droves.


  5. #15

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    The SCMP article mentions they are losing $20m a year on the ferry service. To me, thats nothing, The same company running the ferry service runs everything in DB (HKR) and right now they are selling brand new luxury flats called 'Amalfi'. They have full page ads for this in The Standard etc. I am sure that many of these units are selling for more than $20m.

    Im no expert on this and maybe I am overseeing something obvious. But I really think increasing the ferry fares has to be about the dumbest move that HKR could possibly make. If just one person decides not to live in DB because of this, one person moves out of DB because of this, they are already worse off.

    If the ferry was losing hundreds of millions and causing them to go bankrupt, I could possibly understand. But a $20m annual loss is nothing and I think a perfectly justifiable loss considering that this service is the lifeblood of the community and generated far far more benefit for HKR than the $20m loss they are making on it.

    Somebody please tell me what am I missing here? It must be something? I cannot believe my own writing and I cannot believe a company can be this stupid.


  6. #16

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    So how would you determine the "fair" fare then?


  7. #17

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    Quote Originally Posted by bdw:
    The SCMP article mentions they are losing $20m a year on the ferry service. To me, thats nothing, The same company running the ferry service runs everything in DB (HKR) and right now they are selling brand new luxury flats called 'Amalfi'. They have full page ads for this in The Standard etc. I am sure that many of these units are selling for more than $20m.

    Im no expert on this and maybe I am overseeing something obvious. But I really think increasing the ferry fares has to be about the dumbest move that HKR could possibly make. If just one person decides not to live in DB because of this, one person moves out of DB because of this, they are already worse off.

    If the ferry was losing hundreds of millions and causing them to go bankrupt, I could possibly understand. But a $20m annual loss is nothing and I think a perfectly justifiable loss considering that this service is the lifeblood of the community and generated far far more benefit for HKR than the $20m loss they are making on it.

    Somebody please tell me what am I missing here? It must be something? I cannot believe my own writing and I cannot believe a company can be this stupid.
    Any business in their own right should be earning a profit. Just what a capitalist society is about really.

    In this case the other businesses in the group need to subsidise for the greater good of the overall corporation.

  8. #18

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    Quote Originally Posted by bdw:
    Somebody please tell me what am I missing here? It must be something?
    Unfortunately DBTSL or whatever the quasi independent ferry company is called will not open its books to 3rd party review to see the detailed breakdown of revenue and expenditure is not known. It could possibly be making a loss due to fees to other HKRI sister companies such as high docking fees, ticket system maintenance, repairs, management fees etc, The losses could be posted in the ferry business (allowing them to jack up the prices) and profits posted in a different part of the business that are less transparent.

    I seem to remember First Ferry did say they they would tender for the service 5-6 years ago (another double digit hike) but they were never approached by the residents transport committee.
    elle and bdw like this.

  9. #19

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    Since you planned building the most expensive hiking path on earth (tm), you might as well just consider building a road over to Disney instead and take the MTR from there.

    Screw the ferry companies, I don't like ferry rides anyway


  10. #20

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    Quote Originally Posted by East_coast:
    Unfortunately DBTSL or whatever the quasi independent ferry company is called will not open its books to 3rd party review to see the detailed breakdown of revenue and expenditure is not known. It could possibly be making a loss due to fees to other HKRI sister companies such as high docking fees, ticket system maintenance, repairs, management fees etc, The losses could be posted in the ferry business (allowing them to jack up the prices) and profits posted in a different part of the business that are less transparent.

    I seem to remember First Ferry did say they they would tender for the service 5-6 years ago (another double digit hike) but they were never approached by the residents transport committee.

    I would like to see the books as well. There is no apparent reason why the DB ferry should be losing money, with the fees they are charging.

    The MTR corp operates it's transportation systems at a profit, which as a stock holder I appreciate. Some people feel that MTR corp cashes in on all the property and shopping malls located above the rail stations and than uses that money to subsidize the train fares. I suppose they could do that...but they don't.