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The Netherlands

Sustainable Transport in Hong Kong

Final report To be printed as notes pages

December 2001

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What are Hong Kong’s options for sustainable transport? 1. 2. 3. 4.

Situation Integrated planning Two examples Conclusions

Civic Exchange is developing a new sustainable public transport strategy for Hong Kong that meets with broad public acceptance. The program will include the development of three ‘visions’ from experts on how transport can (and should) develop in Hong Kong over the next twenty years. Civic Exchange has asked DHV Environment and Infrastructure (the Netherlands) to present their vision to the following main question : What are Hong Kong’s options for sustainable transport? Two DHV experts have visited Hong Kong and have interviewed approximately 20 transport stakeholders. In addition a substantial number of reports and other publications has been considered. This document contains the findings of the DHV team based on interviews and site visit observations. Though a significant number of stakeholders has been interviewed it is not claimed that all stakeholders have been approached. We do feel however that we have gained a broad enough insight in the Hong Kong transport system to make recommendations about its sustainability. We would like to thank the Dutch government for their assistance.

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1. Situation • High public transport patronage • High quality of public transport • Public transport operates on ‘prudent commercial principles’ • High cost of private car use • Accessibility and livability under strain • Economic development uncertain

High public transport patronage Daily, 11 million passengers make a trip using Public Transportation, 1.3 million passengers make a trip by taxi and another 1.3 million make a trip using private cars. High standards in public transport Reliability, speed, user friendliness, cleanliness and safety of bus and rail based public transport rank amongst the highest in the world Public transport operates on ‘prudent commercial principles’ The public transport runs on prudent commercial principles, in other words : it is 100% self-financing, which is rare in the world today. However indirect subsidies are given through property development rights or tax reduction. High cost of private car use The costs for owning and using a private car are very high. Not only are fuel costs high, import taxes (approx. 100%)and road taxes are also high and parking space is scarce.

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Economic development uncertain Hong Kong has long been the gateway to China. China however is now opening new sea ports for import and export and is upgrading road and rail networks. Chinese ports may be somewhat inefficient at the moment, but since the ports are in some cases operated by experienced companies (e.g. Hutchison Whampoa) they are likely to improve over the years. Traffic flows may divert significantly and traffic projections should therefore be estimated carefully. Accessibility and liveability under strain Hong Kong has seen a strong rise in population, economy and as a result, there a growing pressure on the transport system. At present congested roads make certain areas of Hong Kong difficult to reach. In addition rising noise and pollution levels at street level are making Hong Kong a less attractive place to live. The following sections give an overview of accessibility and liveability issues

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1. Situation

Accessibility issues • • • •

Population is growing Amount of cargo is increasing Efficiency of network is changing Costs of transportation are rising

Inspired by “Sustainable Transport Policies” (ECMT, 1998)

A number of accessibility issues have struck us as typical for Hong Kong. These issues are divided below into four categories. For each issue we have tried to determine whether it will have a positive or negative influence on accessibility. Some issues have an undetermined effect on accessibility.

Population

Amount of cargo

Efficiency of network

Cost of transportation

0

+ More cargo to go through PRC ports

+

Very sophisticated metro/railway system

+

0 Hong Kong is mainly on corridor to PRC

+

City traffic somewhat fluent when compared to world cities more emphasis on corridor to PRC bus competes with rail road maintenance hampers traffic flows CBD congested empty buses near CBD limited parking space border crossings congested

-

0

growing by roughly 1 million per decade stronger relationship with PRC population

- Port expects to double throughput - Road traffic is supposed to rise accordingly

0 0 -

+ 0 -

Public Transport mostly self-supporting High cost for private car ownership

positive / likely to improve accessibility situation undetermined negative / likely to deteriorate accessibility situation

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1. Situation

Liveability issues • Safety • Intimidation increasing • Nature reserves appear to be well protected • Noise increasing • Air quality is health threatening • Enforcement divided Inspired by “Sustainable Transport Policies” (ECMT, 1998)

In addition to accessibility issues, a number of liveability issues have struck us as typical for Hong Kong. These issues are divided below into categories. For each issue we have tried to determine whether it will have a positive or negative influence on liveability. Some issues have a negative impact on liveability.

Safety

Intimidation (1)

Nature

Noise

Air quality

+

-

+ 70% of surface is nature reserve

- low standards when compared to other countries

+

-

some footbridges road reconstruction

many waterfront roads

+

+ -

+ 0 -

Visibility Slightly improving increasingly higher emission standards for PT

Enforcement - Separation of PD & EPD enforcement resources

taxis on LPG chemical composition worsening

positive / likely to improve liveability i situation undetermined negative / likely to deteriorate liveability i situation 1. Intimidation expresses how much people are (subjectively) hindered by infrastructure. For instance a coastal road may be safe, but people still experience it as a barrier to get to the waterfront.

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1. Situation

Bottlenecks • Increasing congestion of road network • Decreasing air quality and rising noise levels • Sustainability is under pressure

Increase sustainability on a permanent basis through integrated planning

Some of the issues may turn into bottlenecks if not recognized in advance. Some of these trends are worsening accessibility - : • Increasing congestion at the Central Business District (CBD) may make it unreachable • Expansion of harbor function for PRC freight will require more infrastructure. Cargo flows in the area however are increasingly uncertain with new People’s Republic of China (PRC) ports opening. This may lead to an unbalanced road infrastructure in the long run. • Current road maintenance practice hampers fluent flow of traffic. More traffic is foreseen which leads to more maintenance and more conflicts between traffic and maintenance • The trend to not built Mass transit until an area has a population of multiple hundreds of thousands of people leaves many people no choice but to use road options. This may have a strong influence on passenger traffic demand. Liveability issues that may turn into bottlenecks are amongst others: • Increase in motorized traffic is creating more and more conflicts with pedestrian flows • Noise and air pollution may increase to unacceptable levels An additional issue is concerned with planning : Although environmental assessments are performed at at a high quality level they are only influential near the completion of infrastructure planning and design. The most important and influential decisions will already have been made by then. Often, an environmental assessment fails to have much effect. 7


2. Integrated Planning

Sustainability through an integrated approach • Brundlandt: future generations • Three pillars: ecology, economy and social justice • Needed: long term and balance through an integrated approach at three levels: Substance (integrated planning) Organisation (of cooperation, control of information) Finance (power bases)

Hong Kong has options to make its transport policy more sustainable. However, every option has its benefits and drawbacks. Hong Kong should decide for itself how the transport system should develop. In doing this, it can be guided by the principle of sustainability. The Brundlandt Commission in the 1980s defined sustainable development as a development that doesn’t compromise the use of resources by future generations. The World Business Council on Sustainable Development identified the three third pillars of sustainable development: economy, ecology and social justice (www.wbcsd.org). In The Netherlands it is considered difficult to use scientific research in order to define what sustainable development implies for day-to-day actions. In stead good policy-making is needed. Good policy-making should be balanced (takes into account ecology, economics and social justice) and should explicitly balanced (taking into account the values of ecology, economy and social justice), and explicitly take into account the interests of future generations. Policy implementation requires co-operation between different sectors. This is known as an integrated approach.

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For an integrated approach, the distribution of power within the process of policy- making needs to be balanced. Main determinants of balance are the control of information and money. Therefore, an integrated approach is needed at three levels: •Substance, since the substantial links between different policy fields need to be made tangible and need to be agreed upon (integrated planning) •Organisation, since integrated planning processes require co-operation between many actors •Finance, since money is a prerequisite for effective planning

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2. Integrated Planning

Planning Using long-term goals as a framework for short term action. Sustainable planning requires: • Participation • Cooperation • Continuous renewal

Making sustainable investment decisions and action plans means that long-term goals need to be used as criteria for short-term action. Moreover, these long-term goals must be comprehensive: they should include ecological, social as well as economic goals. Sustainable planning requires public participation, administrative co-operation, flexibility and continuous renewal: • Public participation allows the government to gain the support that democratic bodies need, as well as co-operation of private groups during implementation. It is also necessary to stimulate a continuous dialogue about values, which is needed to make tradeoffs when available technology doesn’t allow for “perfect solutions”. When the government deals with public groups (enterprises, NGOs, or the public at large), it should “speak with one tongue”, or it will loose its credibility. • Administrative co-operation is needed to ensure that all parts of the government use the same long-term values and goals as criteria for short-term tradeoffs and act together towards common goals • Flexibility and continuous renewal allows society to respond to unexpected developments. Working with one long-term development “vision” as the preferred scenario and leading principle has proven to be naive. Scenarios are extremely useful to identify possible futures, but the future itself is not known. A nation can try to influence the future, but it has to be flexible in its response to unexpected developments. Therefore, the national dialogue on sustainable development should be continuously renewed.

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Also in The Netherlands, with its tradition of co-operation (“polder model�), sustainable planning is extremely difficult to implement. However, most politicians, NGOs and scientists agree that it is a path considering the far future in an effective way. Other nations can also follow this path. The next sheets deals with the organisation of a process that leads to sustainable (action) plans.

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2. Integrated Planning

Organisation • Who should co-operate? • At which organisation level? • Broad dialogues about major issues • Fitting-in infrastructures: integrated Assessment • Monitoring and accounting

Who should co-operate? Integrative action planning aimed at long-term goals requires strong co-operation between the government sectors of planning and management. The main ones are transport (and its different modes), and land use planning and environment (including health, recreation and nature). In particular the link between land-use planning and infrastructure planning may be important. The capacity of new transport infrastructure has an inevitable effect on development of land use patterns, and vice versa. Relevant development options may also include action by fiscal, legal, police departments. Also, co-operation between different levels of government may be needed particularly if solutions for large-scale problems need to be implemented by small-scale action. At which organization level? Co-operation is needed at all levels: from cabinet level up to shop floor level, and also in Parliament. Executives should work closely together, and jointly manage the co-operation at work floor level. Initiatives can also start at work floor level, but require sponsoring at management level. Achieving this working method, starting from a highly fragmented administration, requires a cultural transition. However, pockets of change-oriented people may make the first steps, which then slowly snowball. The options for sustainable development previously mentioned may be used for structuring such co-operation (important organisational conditions have already been identified in these sheets).

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Broad dialogues about major issues The urgency of organisational change can be underlined by starting broad dialogues about major issues, like large infrastructure investments. What are their impacts on economy, social justice and ecology? Are they useful and needed? Do they fit into “visions� one might have about the future of Hong Kong? Such dialogues can be started by anyone who has the resources to do it. In The Netherlands, groups of progressive NGOs, Members of Parliament, and Members of Cabinet jointly have put such dialogues on the agenda, and they were organised by the Cabinet (for example, the future of Amsterdam Airport, and the future of the Port of Rotterdam, in both cases the dialogue was initiated after infrastructure extensions had been proposed). They involved media campaigns, debates in Parliament, public debates in theatres and on TV, but also an integrated approach to the production of a Cabinet view on the issues. This involved working groups of different sectors of government, frequently involving NGOs and lower governments. The dialogues did not directly lead to major shifts of policy, but they underlined the urgency of a more continuous debate about integral long-term issues. Fitting-in infrastructures: integrated assessment When new infrastructures are programmed for development, they have to be fit into the environment. The design process logically has several phases, from global routing (or site selection) and design of major crossings to detailed design of location and noise barriers. Decisions in every phase of development should be based on a full assessment of impacts at that stage: economy, social and ecology.The development or design process that leads to a proposed decision should also be integrative. The more strategic decisions are, the more closely different authorities work together, the more detailed decision are, the more the relevant skills are internalised into the main planning sector (e.g. the roads department). However, at all levels implementation progress is monitored and communicated with prior agreed indicators or themes. The public may be involved at several stages during the planning process, when their input is most relevant. The public in a large area may be involved at strategic stages, when different modal or route alternatives are compared. Only local residents have to be involved when the decision is about local mitigating measures.

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In most countries, development of integrated assessment along these lines is not an automatic development. It needs to be initiated by regulations, like those governing Environmental Impact Assessment at the level of project consent decisions. After EIA has been practised for a while, people realise that decisions at more strategic level are also relevant to the environment, and therefore should be assessed (SEA).This might have a need of requiring formal strategic decisions before detailed decisions are made. And: the environmental impacts have to be traded-off with economic and social impacts, so these should be assessed in the same detail. Monitoring and accounting When policies are jointly made, the role of every actor in policy implementation should be clearly delineated. Implementation performance should be monitored and accounted for – if practical implementation deviates from earlier agreements, the policy needs to be renewed.

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2. Integrated Planning

Co-operation

Degree of

A transition to an integrated approach

EIA SEA Time and Economic welfare Source : DHV, 1999

It is difficult to generalise the evolution of the political system in different countries. Nevertheless, in many Western countries development in the past 40 years seems to show a rather similar pattern. This evolution (or rather: transition, given the S-curve above), is highly recommendable. However, it is up to every nation to find its own path. The transition has occurred in the following phases. In the 1960s, concurrent with democratic movements, there were the first signs of a new environmentalist movement. Young people had not witnessed the 2nd world war, and had a comfortable economic situation. They wanted to shake-off the traditional system that aimed only at rebuilding the economy. People, and their living conditions became more important. This included solidarity with poor people around the world. However, the actual degree of co-operation (or applying an integral approach) hadn’t started to rise yet. In the 1970s, a breakthrough was accomplished, and co-operation started to rise. The 1960s movement had led to mass demonstrations against decisions made by the government. The process of decision-making was obstructed, and environmental impact assessment was introduced as an integrated planning approach, in order to ensure that decisions would be accepted. At project level, the environment (in a wide sense) had become an equal factor in information, and therefore decision-makers had to clarify their reasons for making decisions that had an environmental impact. The democratic process forced them to do that in a fair way.

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However, EIA is not enough. At the project level, the necessity of the proposed projects was not the issue . However, the necessity of the project was still challenged many times, which resulted in delays. To avoid delays at project level, Strategic Environmental Assessment was introduced in the 1980s. However, this was usually not done as a legal instrument on its own. Policy processes at strategic level are extremely volatile, and it was difficult to give them a fixed structure. Instead transparency was improved by laws forcing governments to be more open about their decision-making. Governments were forced to develop their policies, plans and programs in a transparent and interactive way. Simultaneously, they understood that this was the only sensible way. Again, this implied that the approach had to be integral, since weaker interests had been transformed into important political factors . The democratic system and a new concern for economic welfare made all this possible. Introduction of integrated planning at strategic level led to a continuous growth of co-operation within the government, and between government and society. This was an intense social learning process, which is still going on. Today, even in The Netherlands, power exertion and fighting often are still the dominant styles of policy making, especially if the weaker interests are those of the far future and the far away, since these interests are not firmly supported by most of the population. Further cooperation in the government is limited by a fragmented Cabinet and the fact that corporations need to give priority to shareholder value. Parliament and stakeholders, who all need to legitimate any further co-operation, have difficulty imagining a co-operative process solely aimed at the far future and the far away. They often perceive such a process as riskyl for their own organisations and interest groups. Therefore, a new transition is needed, and, indeed, most ministers in Cabinet have in 2001 jointly developed the 4th National Environmental Policy paper, introducing the concept of “Transition Management�, as a new philosophy of policy making.

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2. Integrated Planning

Finance • The role of the government • Internalisation of external effects • Money is power

The role of the government According to the current dominant Western thinking, the role of the government is limited to doing what private actors (the market) cannot do: the production of common goods. Where possible, the government may create desirable market conditions that enable the market to produce goods that otherwise had not been produced. In relation to transport, there is a relevant distinction between making planning decisions, investment in the construction of infrastructure, and the management of infrastructure. In many countries there is a trend toward more private participation or even full ownership in the construction and management of infrastructures, but at the same time this is contentious. It is difficult to make a recommendation for Hong Kong at this point, other than to be aware that private enterprises somehow need to be accountable for environmental performance. This may also include keeping alive unprofitable connections. This may require “environmental performance”, defined as performance for the common good that may be contrary to direct economic performance of the corporations, to be highly integrated into a system of monitoring and accounting, where all relevant planning sectors participate.

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Internalisation of external effects Investment decisions should be based on an integrated assessment of all impacts. It is not easy to organise a balanced planning and decision-making process for every decision (balanced in the sense that actors of all relevant interest groups participate and have some influence). An alternative is to make sure that whatever an investor decides, he has to pay for any damage to others. Examples of potential damage to others include traffic casualties and contributions to the greenhouse effect. At present, this approach is strongly advocated in the European Union. However, it has drawbacks. The value of amenities can hardly be determined solely by scientists. Value systems may change over time. The payment has to be arranged through, for example, contracts (except when monetary values are used for making planning decisions by the government). Money is power Balanced decision-making and management systems require balanced influence of all interests. However, influence is related to financial capabilities. In The Netherlands, it is slowly being recognised that sectoral organisations that make construction investments have relatively more money, and therefore are they relatively powerful. It may therefore be preferable to either give extra subsidies to weaker interest groups (e.g. environmental NGOs) or to “topple� the organisation. Toppling the organization means making strategic decisions more integral and specializing implementation services. At the same time, strong vertical linkages between these levels should be ensured.

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3. Two examples

Two examples • Introducing hub-and-spoke system for buses for feeding rail network • Underground supplying of Hong Kong using metro infrastructure

During the site visit and analysis of sources we have identified a number of measures that could make the transport system of Hong Kong more eco-efficient and more sustainable. Two examples are described in more detail. The first is an example of integrated planning of passenger transport: a different structure of the bus network. The second is integrated planning for ‘retail- and courier’ freight transport in order to support passenger transport by diverting freight transport.

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3a. Hub and spoke system for buses

Hub-and-spoke system summary • Buses feed railways, railways transport majority of passengers • Buses serve locations without railway station + Less buses in congested areas + Higher occupancy ratio for bus and train - Some travellers will experience additional transfers (loss of direct connections)

In order to relieve the road network and prevent (the growth of) congestion it is advisable to make adjustments to the way the bus network operates. At present a passenger can travel from almost any destination directly to a number of other destinations, with seat almost guaranteed. In practice this has lead to the scheduling of many buses which sometimes appear almost empty, especially near their terminus (such as the CBD). In addition the CBD can be easily reached by mass transit. The high number of buses adds to the level of congestion at certain places. To keep the roads open a different approach must be adopted : buses co-operate with the railways rather than compete with them. Main principle is that buses take passengers to and from the mass transit and the mass transit transports them over longer distances to previously congested areas. Travel times may be longer, but the reliability of the connection will be higher. In addition number of buses will be reduced and there will be less congestion. Since the current standards of Public Transport are partly the result of the competition it should be verified whether that the new scheme of cooperation will not lead to loss of quality and diminishing of the ‘almost 100% self-financed PT’.

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3a. Hub and spoke system for buses

Current Hong Kong bus network adds to congestion • Bus companies are operated at high quality level • Routes are operated by two or more companies • Many buses on roads: roads congested by buses relatively low occupancy ratios at congested locations

Bus companies are operated at a high quality level: • high service and reliability levels • buses relatively new, air-conditioned • dense network Routes are operated by two or more companies • franchise system is based on competition • routes are ‘doubled’ to allow and stimulate competition Many buses on roads • high patronage is (amongst other reasons ) achieved by ‘seat guaranteed’ • a high number of buses with a low occupancy ratio is required to live up to this guarantee

At some locations (especially around the Central Business District) the situation is now deteriorating as the roads become congested. Although the bus companies themselves are operated according to high quality standards, the infrastructure and bus network is are bearly coping. This may lead to a situation in which bus companies have more and more trouble to work according to time-table and service level. There are now simply too many buses, taxis and private cars in the CBD. In addition many buses appear (especially near the terminus) almost empty.

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3a. Hub and spoke system for buses

Congestion hampers both liveability and accessibility • Increased noise and exhaust fumes at street level • Reliability will deteriorate, travel times will increase • Expansion of infrastructure is not a real solution

Increased noise and exhaust fumes at street level • Buses emit a lot of noise and fumes at street level, especially when at highly congested areas Reliability will deteriorate, travel times will increase • Due to the increasing congestion the reliability of the buses’ time table will suffer. It will be increasingly difficult to predict at which time a bus will arrive at its destination. Travellers will have to take an additional time buffer into account to cancel out the uncertainty • Travel times will also increase as the average speed of a bus on a congested road is lower than on an non- congested road (without bus lanes) Expansion of infrastructure is not a real solution • The obvious ‘solution’ is to increase road capacity by adding more lanes or implementing a high level traffic management system (e.g. bus lanes) • Numerous cases worldwide have shown that adding more asphalt to the road network will mostly only temporarily relieve (some of the) tension. As soon as more road capacity is provided, it will be usurped by additional vehicles. Travellers who have chosen other means of transportation because of the congestion, will start to use the additional road capacity. In no longer than one or two years the congestion problems will be at the same level again

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3a. Hub and spoke system for buses

A more sustainable bus network in Hong Kong needed • A mix between the present network and a true hub-and-spoke system • Allow some competition between bus and rail • Allow some competition between bus companies • Relieves some of the pressure on the road network

A mix between the present network and a true hub-and-spoke system Hong Kong has an excellent transport system. To make this system sustainable however, adjustments have to be made without lowering quality standards. This means that in the medium term future, bus transport could be concentrated on routes to and from MTR / KCRC stations and on routes where there is no rail. However, in view of the transport conditions in Hong Kong, a true hub-and-spoke system will not work. Hong Kong society is not likely to accept too high a decrease in direct connections and suddenly having to transfer at rail stations. In addition the competition is keeping all companies alert and keen on their business and should therefore be prolonged although not as a leading principle.

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3a. Hub and spoke system for buses

The new bus network in Hong Kong - in practice • Re-arrange bus franchises • Long term planning to allow smooth transition • Public presentation and consultation to gain a societal acceptance • More demand for transport on mass transit routes

Re-arrange bus franchises The Hong Kong government decides on the bus franchises. The government therefore has quite a good instrument to steer desired changes in the bus network. The following franchising approach is suggested: •A franchise should still consist of profitable and non-profitable routes in order to keep desired, though non-profitable, routes open; •Adopt a maximum of two competitors per road, being either bus-bus or bus-rail. This will reduce the number of buses given the current number of routes with 3 or more competitors.

Long term planning to allow smooth transition The transition from the current situation to the new network could take 5-10 years. In this period companies can prepare themselves for the changes to come. Bus companies may want to change their bus fleet and personnel strategy, whereas mass transit companies may also want to change their operations.

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Public presentation and consultation to gain a social basis The public perception of the new network will be dual: on one hand they will loose some of the direct connections they used to have. On the other hand they will notice that roads will be less congested and bus services will be more reliable. However, it is possible that the growth of the population and demand for transport may cancel out the benefits that have been gained from the new bus network. The public may only see a standstill in the development of congestion and may wonder whether the new network has been a waste of effort. More train capacity on cross harbour connections As a result of the new feeding principle of the bus network, the rail network will experience an increase in travellers. With the new cross-harbour tunnel it seems that the railway companies will be able to deal with this increased demand.

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3a. Hub and spoke system for buses

Central Business District • High number of buses from all directions with low occupancy congest the CBD • Main roads (cross-harbour, along HK island coastline) also congested • Congestion has negative impact on surroundings

High number of buses from all directions with low occupancy congest the CBD The Central Business District (CBD) is a economic centre and generates a lot of traffic. A significant part of this traffic consists of buses that come from all directions and from many origins. The result is a high number of buses with a relatively low occupancy. This area of Hong Kong is chosen as an example to illustrate the ‘hub-and-spoke’ system. Main roads (Cross Harbour, along HK island coastline) also congested A secondary effect of all these buses is that the roads leading to the CBD are congested as well as the roads in the CBD. Though the buses are not the sole cause of congestion, congestion will be lowered by removing some of the buses. Congestion has negative impact on surroundings Traffic jams are a burden to the surroundings: they produce emissions and noise with no transport effect.

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3a. Hub and spoke system for buses

CBD at present

Red line : bus connection Blue line : mass transit connection

Central District Congested Indicative image

Red line : bus connection (relatively low capacity per connection) Blue line : rail connection (relatively high capacity per connection) The figure above is an indicative sketch of a part of the Hong Kong bus and mass transit network. It is presented to show how a point to point network (from every location to every other location) may lead to congested area at economic centers.

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3a. Hub and spoke system for buses

CBD ‘new’ • Traffic flow improved in Cross Harbour Tunnel, Connaught Rd Central, Harcourt Rd and Gloucester Rd • Traffic flow improved in Central Business District • Utilisation of mass transit increased

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3a. Hub and spoke system for buses

Another bus network

Present network

Central District Flowing

Indicative image

The ‘new network’ as sketched above is characterized by a co-operation between rail and bus, rather than a competition between the two. There will be much more emphasis on transporting passengers to and from the rail system. Bus will no longer connect every location to every other location. In addition the bus will serve locations that are not connected to the railway system. This will reduce the number of bus kilometres (and hence buses) and relieve the road network. More pressure will be put on the rail network. Travellers may now have to transfer from bus to rail (and maybe to bus again) rather than travelling by bus with no transfer. But this may only constitute a minor segment of all travellers. In any case, transfers should be of high quality.

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3a. Hub and spoke system for buses

Integrated planning may make ‘hub and spoke’ feasible • ‘Hub and spoke’ may not be feasible for one or multiple companies • Companies do not experience all the benefits of the investment they make • When reasoning from a Hong Kong society point of view ‘hub and spoke’ may be feasible

Introducing a hub and spoke network may not be feasible for bus companies. They have a bus fleet based on the present method of operation and offer many direct connections. Being partly a feeder service for the mass transit may require changes that will create more costs than benefits. This is especially true because the bus company will not enjoy all the benefits. Examples of benefits to others are : - avoided investments in road infrastructure due to lower demand for road transport (benefits accrue to taxpayers as well as government) - a more pleasant environment due to reduction of noise and exhaust fumes at street level (benefits inhabitants and tourism as well as Hong Kong’s economy and image) When considering all these benefits the balance for Hong Kong as a society may very well be positive. This is an example of integrated planning: doing a Society Cost-Benefit Analysis rather than a Business Economic Cost-Benefit Analysis. A feasibility study should be carried out to assess the viability of this example.

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3. Two examples

Underground supplying using metro infrastructure - summary • Special cargo trains use mass transit rail for bringing supplies to train stations in congested areas + Less trucks = less congestion on roads to/from congested areas + Less hindrance for pedestrians from trucks - Adjustments of train stations required - Additional handling required - May interfere with maintenance of railtrack at night

Supplying a city the size of Hong Kong requires massive logistic operations requiring a high number of trucks and vans. In the Dutch cities of Amsterdam and Rotterdam feasibility studies are being carried out to see whether it is possible to reduce truck movements in the city and to/from city center, using the rail tracks to supply the center at night. Although this may appear more expensive due to additional handling and adjustment of train stations, benefits may turn out to balance these costs: • Fewer truck kilometers are necessary: truck transport costs are lower and less congestion makes delivery time more reliable • Less congestion makes the city more attractive, especially for inhabitants and shoppers • Less congestion may prevent investments in new infrastructure • Many small cargos can be combined into one shipment which greatly improves the occupancy ratio of train and vans making the final delivery when compared to the previous final delivery by truck.

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3b. Underground supplying using metro

Underground supplying using MTR • Supply of shops, supermarkets and offices mostly by road • Many partly loaded trucks and vans in the city centre • Most parts of rail network are not used during the night • Investigate feasibility of using the metro infrastructure to supply the city

To keep up the high quality level of the mass transit system by day, maintenance is carried out at night. So the freight transport should interfere only minimally with the maintenance works. Alternatively freight trains can be mixed with passenger trains in the later hours of the timetable, since passenger trains run less frequent in those hours.

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3b. Underground supplying using metro

Example : corridor airport to Kowloon/ Hong Kong island

The figure above is an indicative sketch of how Hong Kong is supplied. A high number of vehicles is required to keep such a network working.

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3b. Underground supplying using metro

Current supply network adds to congestion • Many trucks and vans are only partly loaded • Supply is continued during road peak hours • There is very limited co-ordination of shipments into and from the city

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3b. Underground supplying using metro

Use metro network at night to supply • Collect shipments at various railway stations • Send cargo trains to stations in congested areas • Use small vehicles to deliver and pick up near train stations • Already feasibility studies for Amsterdam and Rotterdam, the Netherlands

Collect shipments at various railway stations • During the day shipments can be collected or distributed at/near (preferably uncongested) railway stations. Shipments are stored during the day. • Distances (by road) to train stations are in general much shorter. Congested time periods can be avoided • Additional handling and storage at train station required Send cargo trains to stations in congested areas • Special trains take the collected shipments during the night to a train station near the destination of the shipment • Shipment is stored during the night • Additional storage and handling storage required Use small vehicles to deliver and pick up near train stations • A limited number of smaller vehicles are used to distribute shipments to their final destination and pick up new shipments • Fewer and/or smaller vehicles are required

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3b. Underground supplying using metro

Underground distribution at night through metro Perishables

Shop B

Fashion

Mall A

Documents

Office C

Shop D

Railterminal

Airport

HK island

In the new network as sketched above, a significant part of the freight will be transported by mass transit infrastructure into or from the city during the night. During the day goods can be locally distributed.

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3b. Underground supplying using metro

Integrated planning may make underground supply feasible • When reasoning from a point of business economics, underground supply may not be feasible • When reasoning from an integrated planning point of view, additional benefits may tip the balance

Underground supply may not be feasible from the point of view of a single business. Adjustment to structures are extremely difficult and investments will be too high to be carried by a single company. And a number of benefits are not experienced by the investing company. Examples of these benefits are : - avoided investments in road infrastructure due to lower demand for transport (benefits government) - a more pleasant environment due to reduction of noise and exhaust fumes at street level (benefits inhabitants, Hong Kong economy and image) - a more reliable time of delivery (benefits freight forwarders) - reduced storage space required at shop/office (benefit shopkeepers / companies) When considering all these benefits the balance for Hong Kong may very well be positive. This is an example of integrated planning. A feasibility study should be carried out to assess the viability of this example.

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5. Conclusions • Check whether stakeholders recognise the findings sketched in this document • Check whether stakeholders agree that developing Hong Kong society through an integrated approach is a feasible option for sustainability • Take small steps via EIA to SEA towards integrated approach

This document presents DHV’s perspective on a sustainable transport system in Hong Kong. We recommend that the people of Hong Kong take the following steps. Ask relevant stakeholders whether they share the perspective outlined in this document. What are their ideas of future values for Hong Kong, of possible sustainable transport options and of appropriate planning decision-making processes? Are more integrated and co-operative processes needed, aiming at the long term? Are the people of Hong Kong open to changes of the transport system that improve the quality of living, even if there is no direct and clear economic benefit? It takes some time for a society to develop a unique way towards an integrated approach. If there is a sense of urgency, concerned groups may start building networks of people throughout relevant organisations. Transparency and public involvement are essential elements. The first steps are the most difficult ones. A first small step would be to apply Environmental Impact Assessments (EIA) to project decisions that matter the most. Strategic Environmental Assessments (SEA) are the next step. Both should be part of the planning process. Developments should be closely monitored to see whether enough public support is still available. Sustainable techniques (cleaner engines, more efficient networks etcetera) can be identified relatively easily. The most important question ,which Hong Kong now has to answer for itself, is whether it wants to take the difficult road towards an integrated approach.

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