The franchise system has been serving Hong Kong well. Today, our public transport network gives a wide range of choices at reasonable fares to match different levels of speed, comfort and convenience. Different modes of public transport have to compete with each other. Healthy competition will have a positive effect on the quality of transport services and will continue to be promoted.
Adequate safeguards exist to protect the public interest.
Policy Other than the railways, scheduled and fixed-route public transport services in Hong Kong are largely regulated by franchises. Our policy is to retain the franchise system. Full deregulation is not practical in Hong Kong. Without the franchises, socially desirable but loss-incurring services cannot be maintained. In terms of franchised bus services, the franchised bus companies face keen competition from other transport modes, including railways and public light buses.