Citybus begins fleet upgrade

Newly listed Citybus, which operates 59 franchised bus routes on Hong Kong Island, is to deploy five new buses today at $2 million each as part of the first phase of its 1997 network expansion plan.

The buses will serve Routes 40 and 40M, linking Wah Fu with Wan Chai ferry, and represent a 25 per cent increase in the number of buses allocated to the two routes.

Citybus managing director Lyndon Rees said the company's network expansion plan would require an extra 200 buses. The next routes set for expansion were 511 and 11.

Citybus was spun off by its parent CNT Group in November, raising a net $335 million to help finance new bus purchases. Its shares were issued at $1.42 and closed last week at $2.42.