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Transportation providers to be hit by new rail

Updated: 2008-04-23 07:19

By Teddy Ng(HK Edition)

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The Guangzhou-Shenzhen-Hong Kong Express Rail Link will inevitably affect the business of other cross-border transportation providers.

MTR Corporation chief executive officer Chow Chung-kong said yesterday that 37 percent of commuters using the express link will be new travelers, and the remaining 63 percent will be users of other transportation services, including the existing through trains to Guangzhou East and cross-border coaches.

He added that the MTR Corporation may review the service frequencies of the through trains to Guangzhou East after the express link starts to operate.

But he added that the community will still have demand for the existing through train services because the terminus is located in the center of Guangzhou.

Hong Kong Guangdong Boundary Crossing Bus Association secretary general Chow Hing-wong expected that their business will be affected by the express link.

Currently, about 60 percent of commuters using the association's services are business travelers.

Chow estimated that about 30 percent of these business travelers will switch to the express link.

"Our operating conditions will certainly be affected," Chow said.

However, China, Hong Kong and Macao Cross Boundary Coach Association secretary general Alan Chan said bus services will remain competitive.

He said the completion of an expressway linking Guangzhou and Shenzhen in 2010 will shorten traveling time between Hong Kong and Guangzhou to about two hours.

Chan expected each trip using the express link will cost commuters HK$400, given the huge investment involved.

But a bus trip only costs between HK$80 and HK$100.

Another advantage of bus services is that they stop at the center of Guangzhou.

"Therefore, traveling by the express link is not significantly faster than by coaches," Chan said. "And we only charge about one-fourth of the express link fares. I believe commuters will still use our services."

Chan said bus companies?have more flexibility in adjusting service frequencies to meet commuters' needs.

But Chan added that the competitiveness of bus services will be affected should the highway become severely congested.

Transportation providers to be hit by new rail

(HK Edition 04/23/2008 page1)

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