Tag Archives: China

     Following is a question by the Hon Carmen Kan and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (May 14):

Question:

     Regarding the incident handling by the MTR Corporation Limited (MTRCL), will the Government inform this Council:

(1) according to the existing railway incident reporting mechanism (the mechanism), of the follow-up actions taken by the authorities upon receipt of an incident report; MTRCL’s (including the heavy rail and the Light Rail) compliance with the mechanism in each of the past five years, and set out the following information in table form:
(i) the nature, cause, delay time, recovery time, remedial measures taken and number of passengers affected for each incident; and
(ii) the number of incidents of service disruption of 31 minutes or above caused by factors within the control of MTRCL under the Service Performance Rebate, and their percentage of the total number of incidents in that year;

(2) given that the existing service performance rebate mechanism of MTRCL has been enhanced in 2023 (the new arrangement), whether it knows the cumulative number of incidents per year of train service disruptions, including all delays and suspensions, attributable to equipment fault or human error during peak and non-peak hours of MTR services (including the heavy rail and the Light Rail) after the implementation of the new arrangement, and the cumulative amount set aside by MTRCL in this regard, together with a breakdown in table form by disruption time (i) equal to or more than 31 minutes but less than or equal to one hour, (ii) more than one hour but less than or equal to two hours, (iii) more than two hours but less than or equal to three hours, (iv) more than three hours but less than or equal to four hours, and (v) each additional hour (or part thereof) exceeding four hours;

(3) as there are views that it is unreasonable that the new arrangement only requires MTRCL to set aside an equivalent amount for service disruptions of 31 minutes or above caused by factors within its control, and that the maximum amount to be set aside per incident is merely $40 million, coupled with the fact that the peak hour referred to in the new arrangement (i.e. between 8am and 9am and between 6pm and 7pm from Monday to Friday (excluding public holidays and except for the Airport Express)) is inconsistent with that of the road harbour crossings (i.e. between 7.30am and 10.15am and between 4.30pm and 7pm from Monday to Saturday (excluding public holidays)), whether the authorities will request MTRCL to review and enhance the new arrangement (including the definition of peak hour); if so, of the details; if not, the reasons for that;

(4) given that there were engineering train faults at Tai Wo Station and Fo Tan Station on February 5 and the 27th of last month this year respectively, whether it knows the following information about the two faults: (i) the engineering train manufacturers, (ii) the spare parts suppliers, and (iii) the maintenance service providers involved; whether the same faults have occurred in other countries/regions using engineering trains of the same model; if so, of the details; whether the authorities have imposed any regulation on MTRCL to require it to establish a management and performance monitoring mechanism for the procurement of engineering trains and/or the contracts for the engagement of third-party suppliers; if it has, of the details; if not, the reasons for that;

(5) as the Electrical and Mechanical Services Department (EMSD) has indicated that it will initiate a special audit on MTRCL to holistically review its maintenance emergency preparedness concerning engineering trains, whether EMSD has initiated special audits on similar incidents in the past five years; if so, of the details; if not, the reasons for that; and

(6) given that MTRCL has undertaken to put in over $65 billion between 2023 and 2027 in asset renewal and railway facility maintenance, whether it knows the scope of use of the sum and the amount to be put in each year; whether the Transport and Logistics Bureau (TLB) has formulated monitoring programmes to ensure that MTRCL renews and maintains its railway facilities in strict accordance with the plans vetted and approved by TLB; if so, of the details; if not, the reasons for that?

Reply:

President,

     The Government has always attached great importance to railway safety. The relevant government regulatory authorities will maintain close collaboration with the MTR Corporation Limited (MTRCL) to regulate railway services, proactively audit the railway system, and monitor the MTRCL in putting in resources and applying new technologies to improve its asset management and maintenance work. In consultation with the Electrical and Mechanical Services Department (EMSD), the Transport Department (TD), and the MTRCL, my consolidated reply to the questions raised by the Hon Carmen Kan is as follows:

(1) and (2) According to the existing railway incident reporting mechanism, the MTRCL is required to notify the TD of any railway incidents that have caused train service disruption of eight minutes or are expected to cause disruption of eight minutes or more. Upon receiving the notification, the TD will work in close liaison with the MTRCL on train service adjustments, and co-ordinate with other public transport operators to enhance services as appropriate, as well as to disseminate the latest public transport information to the public through the media and various channels as soon as possible. In addition, the MTRCL is required to notify the Government of any occurrences or accidents on the railway under the Mass Transit Railway Regulations (Cap. 556A). The EMSD, as the statutory regulatory authority on railway safety, will immediately deploy personnel to the site for inspection and investigation. It will also follow up with the MTRCL’s investigation and follow-up work, and ensure that the MTRCL implements the improvement measures in an effective and holistic manner to prevent recurrence of similar incidents.

     The MTRCL has been following the relevant requirements on notifying the Government of incidents that cause train service disruptions and accidents. It will also, at its best endeavour, maintain services while carrying out emergency repairs (including deploying additional staff for crowd management, making public announcements, issuing station notices and helping with passengers’ ticketing issues at the concerned stations), so as to reduce the impact on passengers’ travelling.

     In 2024, the MTRCL operated more than 1.8 million train trips on its heavy rail network, making an average of over five million passenger trips every day. The level of Train Service Delivery and Passenger Journeys On Time maintained at a high standard of 99.9 per cent. Last year, there were five incidents of service disruption of 31 minutes or more on the heavy rail and light rail networks due to factors within the MTRCL’s control. The number of heavy rail and light rail service disruptions (with breakdowns by causes and duration of disruptions) over the past five years, together with the respective amounts set aside by the MTRCL under the Service Performance-Linked Arrangement (SPA) and the enhanced Service Performance Rebate (SPR), are set out at the Annex.

     The MTRCL adopts Passenger Journeys On Time as an indicator for reflecting the proportion of passenger journeys completed on schedule for its railway network. The higher the indicator reading, the lower the number of passenger journeys affected by service disruptions. The Passenger Journeys On Time of the MTRCL reached 99.9 per cent on average over the past five years. In other words, only once would a passenger be unable to complete a journey within five minutes of the scheduled time in every 1 000 train rides.

(3) Under the SPA and the enhanced SPR, the MTRCL is required to set aside an amount for serious service disruptions (defined as disruptions of 31 minutes or more) caused by factors within its control to be given back to passengers through fare concessions. Once the SPR funding pool reaches the pre-defined amount, the MTRCL will arrange a Special Fare Day on a specific weekend for returning the amount to its passengers in the form of half-fare concession to all Octopus or QR code ticket users travelling on all MTR lines during that day. The whole of the amount set aside under the SPR funding pool will be returned to passengers in full through the Special Fare Days.

     The Government and the MTRCL have all along listened carefully and humbly to the views of stakeholders, and will regularly review the Fare Adjustment Mechanism, including the SPR arrangement. For example, in 2023, the Government and the MTRCL further optimised the SPR arrangement having regard the opinions from the public and stakeholders. To respond to public opinions, and to more duly reflect the impact of train service disruptions on passengers, the SPR arrangement was enhanced by increasing the amount to be set aside for incidents that have caused disruptions of more than three hours and the maximum amount to be set aside per incident, as well as introducing a peak hour multiplier.

     When reviewing the relevant mechanism next time, the Government and the MTRCL will, as in the past, take a holistic approach in considering various factors, especially the MTRCL’s service performance, the public’s views and concerns, lessons learnt from past incidents, etc. and carefully explore suitable options with a view to providing more effective impetus for the MTRCL to enhance its service performance and strengthen emergency response in handling incidents. We will also consider as appropriate the impact of an incident on passengers, and the emergency recovery arrangements of frontline railway staff to avoid affecting the emergency recovery work and jeopardising overall railway safety due to time pressure.

(4) According to the information provided by the MTRCL, the crane engineering vehicle and the overhead-line inspection vehicle are supplied by manufacturers in Germany and Italy respectively, and are within the normal asset life. In daily operations, the MTRCL has always made reference to the suppliers’ recommendations in formulating corresponding maintenance regimes, including the provision of suitable spare parts and regular maintenance. The MTRCL also has stringent procurement procedures in place and will ensure that the arrangements and procedures for selecting engineering vehicle suppliers comply with the relevant procurement procedures. In respect of the engineering train incidents, the MTRCL is conducting joint investigations with the respective suppliers to look into the causes of the incidents. 

     The MTRCL has a regular asset management system (AMS), which includes a maintenance management system. The asset management process covers the entire lifecycle of assets, including the procurement, operation, maintenance and renewal of assets. The MTRCL’s AMS has been certified to the ISO 55001 standard, indicating that its maintenance management has attained international recognition. To ensure the effective execution of asset management by the MTRCL, the EMSD will scrutinise the AMS and the maintenance management system of the MTRCL regularly, and conduct random/surprise inspections of its maintenance work.

(5) The EMSD has implemented the Comprehensive and Direct Assessment (C&DA) since 2019, which involves proactively auditing the MTRCL’s AMS of the four major railway assets (namely the permanent way, power distribution, rolling stock and signalling system) as well as the safety management system of all operating railway lines. The EMSD will also conduct special audits as and when necessary on specific items such as trackside equipment and structural buildings, training for train captains, power supply systems, etc. in response to railway incidents. The EMSD completed the C&DAs on the AMS of the MTRCL’s rolling stock in the first quarter of 2025, which also covered all engineering train assets. The EMSD has made a series of recommendations to the MTRCL for strengthening the assessment and monitoring of the service life and component condition of engineering trains. The MTRCL is implementing the relevant measures by phases. The special audit to be conducted by the EMSD this time will cover the maintenance and contingency procedures for engineering trains, as well as the implementation progress of the above recommendations.

(6) The MTRCL completed a comprehensive review of its railway asset management and maintenance regime in June 2023, and was set to enhance the above regime following five key directions, including putting in over $65 billion during the five years from 2023 to 2027 for the renewal and maintenance of railway facilities as well as accelerating the application of innovative technologies in railway services and asset maintenance, with a view to strengthening the railway asset management and maintenance regime. A timeline for implementing each of the recommended follow-up actions has been set out in the MTRCL’s review report. The Government has been closely monitoring the progress and implementation of the follow-up work by the MTRCL, and keep track of the effectiveness of the various recommended measures.

     According to the information provided by the MTRCL, items that are covered by the $65 billion committed resources include routine asset maintenance and renewal of assets, ranging from rolling stock, signalling systems, power supply systems to a variety of station facilities, etc. The Government will continue to closely monitor the MTRCL’s performance in asset maintenance to ensure that the MTRCL provides sufficient resources for the completion of asset renewal on schedule, so that the railway assets will be operating well in a safe and reliable manner. read more

     â€‹Following is a question by the Hon Gary Zhang and a reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (May 14):

Question:

     It has been reported that the passenger throughput at Hong Kong International Airport (HKIA) reached 5.28 million in January this year, with an average daily passenger throughput of over 170 000. However, there are views pointing out that the existing VIP lounge services set up by airlines or enterprises at HKIA are unable to meet the demand, resulting in chronic queues. In this connection, will the Government inform this Council whether it knows:

(1) the current number of VIP lounges at HKIA, as well as the respective average daily number of passengers served and maximum capacity, floor area and year of opening; whether the Airport Authority Hong Kong (AAHK) will consider allowing enterprises to re-establish VIP lounges on the Arrivals Level in response to the increased passenger throughput due to the expansion of HKIA; if so, of the details; if not, the reasons for that;

(2) the number of additional VIP lounges planned to be provided in HKIA’s Terminal 1 in the next five years, together with their respective area, target average daily number of passengers to be served and maximum capacity; the eligibility criteria, approval standards, procedures and time required for applications to establish or expand VIP lounges; and

(3) the number of VIP lounges planned to be established after the expansion of HKIA’s Terminal 2; the respective location, area, target average daily number of passengers to be served and maximum capacity of these VIP lounges and their opening dates?

Reply:

President,

     Hong Kong is an international aviation hub. This positioning is recognised in the National 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. To this end, the Government of the Hong Kong Special Administrative Region and the Airport Authority Hong Kong (AAHK) have been taking measures to continuously enhance the strengths and competitiveness of Hong Kong International Airport (HKIA).

     With regard to passenger services, the efficiency of airport operations and the passenger experience are our keys to success. Taking into account the large number of passengers, who are of different backgrounds and with different travel purposes, received by the airport every day, the AAHK has been providing a wide range of facilities and services at HKIA, and has been continuously reviewing and striving to improve the facilities to cater for the needs of different groups of passengers. In particular, to cater for the needs of high-end and business travellers, the AAHK has reserved locations in the Passenger Terminal Building of HKIA for airlines or other corporations to set up and operate lounges in accordance with the market demand and commercial modes, with a view to providing travellers with a more superior and comfortable travel experience.

     With regard to the matters relating to the lounges in the question, having consulted the AAHK, my reply is as follows:

(1) At present, there are 17 lounges at HKIA, including nine lounges operated by airlines for use by designated passengers of the airlines and their alliances, and eight other lounges operated by other non-airline corporations, which are open to passengers on a pay-per-visit basis or on other prescribed modes.

     These lounges, which first started operation in 1998, range in size from less than 200 square metres to over 6 000 square metres. The location, size and establishment year of each lounge are set out at the Annex. As regards the service capacity, the 17 lounges mentioned above can receive a total of about 22 000 visitors per day on average, and are currently receiving about 16 000 visitors per day. As the numbers of visitors received by each individual lounge involve commercially sensitive information of the operators, the AAHK is not positioned to provide such information.

     Taking into account the fact that departing or transfer passengers generally stay in the restricted area of the airport for a longer period of time to wait for boarding and departure, and that most arriving passengers leave the airport for the urban area expeditiously upon their arrival in Hong Kong, the AAHK has mainly reserved spaces for lounges on the Departures Level of the restricted area to cater for the needs of passengers waiting for their flights. At present, all the 17 lounges at HKIA are located on the Departures Level of the restricted area of Terminal 1 for use by departing or transit passengers. That said, in view of the demand of some arriving passengers for lounge services, there were previously two lounges in the original Terminal 2. The AAHK has reserved spaces for re-establishing two lounges in the Arrivals Hall of the expanded Terminal 2. The proposed lounges will be located outside the restricted area and adjacent to Terminal 1, which will facilitate the reception of passengers arriving via either terminals.

(2) and (3) With the increasing number of high-end passengers, the AAHK has been maintaining communication with airlines and other related corporations, and negotiating with airlines and other corporations interested in setting up, expanding and refurbishing lounges on the leasing arrangements as well as the related operational details, so as to ensure that the facilities of the airport lounges can meet the demand of passengers.

     With regard to Terminal 1, the AAHK has already received and approved expansion plans for two lounges currently operated by airlines, with their areas be increased by about 4 200 square metres. One of the lounges will be refurbished and expanded within this year and will reopen in 2027, while the other will commence expansion works in 2028 and reopen in 2030. Meanwhile, the AAHK has reserved another three locations on the Departures Level for the operation of new lounges and is in discussion with a number of airlines with a view to bringing the lounges into operation progressively from this year onwards. The total area of the three lounges is about 2 300 square metres.

     For the expanded Terminal 2 and the Terminal 2 Concourse (T2C), the AAHK is now working with its business partners on the preparatory work and will commission the facilities in phases in accordance with passenger demand. Of them, the abovementioned two lounges at the Arrivals Hall, with a total area of about 1 000 square metres, are expected to come into service in phases to tie in with the phased opening of Terminal 2 from end of this year. The AAHK has also reserved spaces on the Departures Level for seven lounges, with a total area of about 6 000 square metres, which will come into operation gradually to tie in with the opening of T2C.
     â€‹
     President, overall speaking, apart from continuously improving and upgrading airport facilities (e.g. lounges), we have also adopted a multi-pronged approach to enhance the passenger experience at the airport, which includes adopting a number of measures such as increasing efficiency through the use of innovative technology, enhancing the customer service standard of airport staff, and increasing the variety of shopping and dining options at the airport, with a view to providing passengers with more comfortable and convenient services. read more

     Following is a question by the Hon Frankie Yick and a written reply by the Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, in the Legislative Council today (May 14):
 
Question:
 
     In January of this year, the London Metal Exchange (LME), a subsidiary of the Hong Kong Exchanges and Clearing Limited, announced that it would include Hong Kong as an approved delivery point within its global warehousing network and accept applications from warehouse operators for approval. Last month, LME announced that it had approved applications to establish four LME-licensed warehouse facilities in Hong Kong. Furthermore, it has been reported that other warehouse operators are applying to become approved warehouses for the storage of LME-registered brands of metals. In this connection, will the Government inform this Council:
 
(1) whether it knows the following information about the four warehouses that have been approved by LME and those that are applying to become approved warehouses: (i) locations, (ii) storage capacities, and (iii) the timing of formal commencement of service; whether the authorities have estimated the number of warehouses and storage capacity needed to develop Hong Kong as a metal delivery point, and what the respective differences are as compared to the current supply and capacity of warehouses;
 
(2) as it has been reported that, to encourage more warehouse operators to apply to become approved warehouses of LME, the Government has stated that it will provide assistance on technical matters as appropriate, whether it knows the requirements for becoming an approved warehouse of LME; what assistance the Government has provided to address technical issues faced by warehouse operators; and
 
(3) regarding the creation of a commodity trading ecosystem, apart from developing approved warehouses, what further measures the Government has put in place to facilitate the robust development of local commodities trading-related services, so as to consolidate Hong Kong’s position as an international financial, shipping and trade centre?
 
Reply:
 
President,
 
     Our country is the world’s largest consumer of industrial metals. Developing relevant commodity trading will drive the development of a financial, shipping and trade centre in Hong Kong. The Chief Executive’s 2024 Policy Address proposes the creation of a commodity trading ecosystem which can be a starting point for attracting relevant enterprises to establish a presence in Hong Kong, turning our city into an operation centre for international commodity trading, storage and delivery, shipping and logistics, risk management, and more.
 
     In consultation with the Hong Kong Exchanges and Clearing Limited (HKEX), the reply to the three parts of the question is as follows:
 
(1) and (2) The London Metal Exchange (LME), a wholly-owned subsidiary of the HKEX, included Hong Kong as an approved delivery point within its global warehousing network in January this year, and began accepting applications from warehouse operators to become approved warehouses. The LME announced the approval of the first four approved warehouses to be established in Hong Kong in April this year. The total storage area and types of metal that can be stored in each warehouse are set out in the table below.
 

Warehouse location	Total storage area (square metre)	Types of metal that can be stored
Cheung Sha Wan	500	aluminium alloy, primary aluminium, copper, nickel, lead, tin and zinc
	500
Tsing Yi	4 100	aluminium alloy, lead, tin and zinc
Yuen Long	4 062	aluminium alloy, primary aluminium, copper, nickel, lead, tin and zinc

 
     The LME-approved warehouses are required to comply with relevant technical requirements, such as loading standards for metals. The four warehouse facilities have passed LME’s initial inspection and are compliant with relevant standards in terms of transportation and logistics. Preparations including system connections are underway, and the facilities are expected to commence operations gradually as soon as July this year.
 
     Before making the decision to include Hong Kong as an approved delivery point, the LME had assessed the feasibility of establishing warehouse facilities in Hong Kong, including the sustainability of business operations, cost, technical requirements, etc. In selecting suitable sites for the warehouses, the operators had to hold in-depth discussions with the relevant warehousing industry players and landowners, which mainly involved the circumstances of individual facilities (such as loading capacity and infrastructure requirements) and other business considerations. In the course of discussion, technical issues involving planning permissions, lease conditions, etc. were identified. The Financial Services and the Treasury Bureau (FSTB) in collaboration with relevant bureaux and departments has been maintaining communication with relevant industry players, and held meetings to provide relevant information and guidance.
 
     The LME has indicated that there are other operators applying to become approved warehouses, and it is expected that more warehouses will be approved subsequently. Based on the implementation of the relevant market mechanism, the development of metal delivery destinations and warehouses will be determined by market supply and demand. There is no specific quantitative target.
 
(3) In terms of base metals, besides facilitating the LME to establish approved warehouses in Hong Kong, to attract more trading and delivery, the HKEX will host LME Asia Week in May this year, inviting international and Mainland metal manufacturers, traders, buyers and sellers to participate in in-depth discussions and exchanges on industry topics, including the introduction of the latest LME approved delivery points, including Hong Kong.
 
     In terms of financial trading of other types of commodity, the Chief Executive’s 2024 Policy Address proposes to use gold as an entry point to develop the relevant commodity ecosystem. Specifically, it is the Government’s goal to promote the development of world-class gold storage facilities, thereby attracting more investors and users from different economies, including the Middle East and Southeast Asia, to store gold in Hong Kong. On the basis of increased storage, we expect increased demand for associated support services in insurance, testing and certification, logistics, etc, while in parallel expanding related transactions including collateral, loan and hedging, hence creating a comprehensive ecosystem in a progressive manner. This will drive all-round multi-currency trading, clearing and delivery, as well as the development of the regulatory system, covering transactions using offshore Renminbi (RMB), thereby establishing a holistic gold trading centre with an industry chain. The FSTB established the Working Group on Promoting Gold Market Development (Working Group) in December 2024, comprising leaders of the financial industry, representatives of regulatory bodies and market participants, to comprehensively review all aspects relating to financial transactions of gold. The Working Group will formulate a plan this year to enhance storage facilities, optimise trading and regulatory mechanisms, expand exchange products, and conduct market promotion.
 
     At the same time, the Qianhai Mercantile Exchange, a subsidiary of the HKEX, operates our country’s only offshore spot trading platform for soybeans, thereby laying the foundation for the expansion of RMB-denominated commodity products, channeling off-shore RMB liquidity to the commodities market, promoting RMB internationalisation, attracting relevant traders to expand their business in Hong Kong, and establishing an ecosystem for the commodity. read more

     The Environmental Protection Department (EPD) started inviting applications for funding support under the new round of the Cleaner Production Partnership Programme today (May 14) and expected to receive applications until June 30, 2… read more

     A spokesman for Hong Kong Talent Engage (HKTE) said today (May 14) that HKTE continues to proactively connect enterprises with global talent for direct job matching and facilitate global talent’s pursuit of development in Hong Kong. HKTE held a two-day Global Online Career Fair last week (May 7 and 8), featuring nearly 50 renowned Hong Kong enterprises that offered over 700 quality job vacancies across sectors such as accounting, finance, consultancy services, legal compliance and engineering. The event aimed to attract talent from the Mainland and overseas who were interested in pursuing development in Hong Kong.

     The online career fair recorded over 26 000 visits in two days, with about 3 000 curricula vitae received. To facilitate connection between talent and enterprises, a one-to-one online meeting session was set up specifically at the career fair, resulting in about 4 800 direct dialogues between talent and enterprises. Participating enterprises expressed that about half of these dialogues would be taken forward.

     According to participating accounting firms, they learned through the online career fair that many international professionals were interested in coming to Hong Kong. The event effectively linked global talent with enterprises in Hong Kong, thereby enabling direct engagement, enhancing talent’s understanding of the structure and recruitment process of Hong Kong enterprises, and enhancing participating talent’s experience.

     Participating talent came from over 12 countries or regions, such as the Mainland, Singapore, India, the United Kingdom, Australia, the United States, Malaysia, France and Canada, with 62 per cent of them holding master’s degrees.

     The HKTE spokesman said that following the career fair held in Malaysia in April in collaboration with renowned enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area, HKTE organised the online career fair to enable talent on the Mainland and overseas to exchange views directly with enterprises prior to relocation to Hong Kong, gain insights into Hong Kong’s job market, and reinforce their confidence in pursuing development in Hong Kong. HKTE will continue organising online career fairs tailored to different regions worldwide and professions, as well as local career programmes, to help talent secure employment in Hong Kong and create impetus for the long-term development of the city. read more