Hong Kong’s transport authorities will complete a review of tunnel tolls this year to establish appropriate fee levels, following years of multimillion-dollar losses, including a HK$52 million (US$6.68 million) deficit at the Shing Mun Tunnels.
In a written reply to the Legislative Council on Wednesday, Secretary for Transport and Logistics Mable Chan said that the review was necessary because some tunnels had operated at a loss for years without toll adjustments, some for as long as 34 years.
“For example, the Aberdeen Tunnel and the Shing Mun Tunnels encountered operating deficits of HK$16 million and HK$52 million in 2023-24 respectively. In fact, the toll levels for the two tunnels have not been adjusted for 34 years,” she said.
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“As the specific circumstances of each government tunnel and trunk road are different, such as geographical location, the target users and traffic management needs, the government needs to weigh various principles in order to set an appropriate toll level.”
According to government data, the Shing Mun Tunnels and Route 8K, which includes the Eagle’s Nest and Sha Tin Heights Tunnels, have experienced increasing losses.
The Shing Mun Tunnels saw a deficit of HK$26 million in 2021-22, HK$37 million in 2022-23, and HK$52 million in 2023-24. Route 8K’s losses escalated from HK$151 million in 2021-22 to HK$175 million in 2022-23 and HK$200 million in 2023-24.
The government forecasts that the Shing Mun Tunnels and the Aberdeen Tunnel will continue to post losses of HK$52 million and HK$21 million, respectively, this financial year. For Route 8K, the operating expenses for the year will be determined after the tender results are available.
Chan said that in determining toll levels for government tunnels and trunk roads, authorities would consider various factors, including traffic management needs, the “user pays” principle, efficiency, public affordability and prevailing social circumstances.
“If toll levels are not sufficiently high enough for effective traffic management, the toll level will be further adjusted,” she said.
“Therefore, the government has all along adhered to the ‘user-pays’ and ‘cost recovery’ principles and imposed reasonable tolls to ensure the financial sustainability of these transport infrastructures.”
Lawmaker Michael Tien Puk-sun, former chairman of the Kowloon-Canton Railway Corporation, suggested toll increases for the Shing Mun Tunnels and Route 8K, given their significant losses over the years.
“For the two profitable tunnels, Tate’s Cairn Tunnel and the Lion Rock Tunnel, there should be toll reductions for non-peak hours as the adjustment won’t attract too many users to affect the traffic there,” he said.
“For the three cross-harbour tunnels in the city, there should be no adjustment at all as any toll increase for these tunnels will aggravate the congestion there.”
But he said the existing nine toll-free tunnels should impose a fee on users to align with the government’s “user-pays” principle.
More from South China Morning Post:
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- Lawmakers slam HK$3.9 billion cost overrun, 2-year delay for Hong Kong tunnel
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