Three powerful joint ventures have emerged to battle over the 88 Hong Kong Island bus routes up for grabs when China Motor Bus' franchise expires in August.
The world's largest bus company, Scottish-based Stagecoach Holdings, has joined China Motor Bus (CMB) to vie for the franchise, six years after it lost a bid for 26 CMB routes to Citybus.
Another UK transport firm, FirstGroup, said it had formed an alliance with New World Development to bid for the franchise, while Citybus revealed it had formed a consortium with Cheung Kong Investments.
Under the Stagecoach and CMB agreement, each would own 50 per cent of the venture but Stagecoach would manage the bus business.
Stagecoach - which operates 7,000 buses in Britain, Kenya, Malawi, New Zealand and Colombia - pledged to bring in 200 new air-conditioned, low-floor buses by December and a further 230 by the end of next year if its bid succeeded.
FirstGroup said its Firstbus Investments would hold 26 per cent of New World First Holdings, with New World Services taking 74 per cent. New World First said it planned to invest $2.05 billion if awarded the franchise.
The British firms' involvement was announced as the bid by top franchisee Citybus, via a powerful new consortium, raised monopoly fears. Citybus said it had a 35 per cent stake in Hongkong United Bus Company, one of the six applicants for the 88 Hong Kong Island routes.
