Our Suggested Pricing Strategy

 

Revising the toll charge has long been a controversial issue. Some may doubt the feasibility of the suggested toll fee. Here is the argument for the suggestion (private cars only):

 

Eastern Cross Harbor Tunnel (EHT): $ 30

Western Cross Harbor Tunnel (WHT): $ 40

Central Cross Harbor Tunnel (CHT): $ 30

 

First, CHT belongs to the government, increasing its toll fee require only the acceptance of the LegCo. As this increase will bring into a more desirable traffic flow, we are confident that the member of LegCo will accept this increase.

 

Secondly, although EHC will be transferred to MTRC in 2016, MTRC will not object to the increase in toll fee as profit will be higher.

 

The biggest crux concerns with WHC, but it is still solvable:

 

The revenue in 2 hours interval before toll charge is revised

= 5355 x 55 = $294 525

 

The revenue in 2 hours interval after toll charge is revised

= 6133 x 40 = $245 320

 

There will be an average reduction in revenue of 16.7% which a private company will hardly accept. To facilitate, we suggest to first, extend the private company’s ownership over WHC and second propose in Legco to subsidy the private company in exchange of betterment of the whole society in terms of traffic conditions.

 

Under our suggested pricing strategy, a better traffic condition will be achieved. It doesn’t mean only shorter travel time but providing a better environment for investor, government, citizen and the whole society. We believe an effective transportation will make Hong Kong a “Smarter City” and help to remains Hong Kong’s prosperity under the Global Environment.