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SCMP Reporter

An underdog yesterday won the fiercely fought tendering battle for 88 China Motor Bus routes, sparking employment fears.

 The New World Group outbid five competitors for the five-year franchise, despite admitting it had no experience running a bus company.

 Every local firm and several top international bus companies - including Stagecoach, the world's largest - lost to the financial giant which pledged to invest $2 billion on 500 new buses and facilities, and employ all 2,300 CMB staff.

 Accepting the franchise from Transport Commissioner Fanny Law Fan Chiu-fun last night, New World managing director Henry Cheng Kar-shun pledged New World First Bus Services - a joint venture with British bus firm FirstGroup - would do its utmost to provide quality service.

 He said the firm's new air-conditioned buses would feature facilities for the disabled, smart card payment and tachograph trip recorders to ensure safe speeds. There would also be new bus shelters with additional route information.

 He pledged fares would remain unchanged for the first year of operation.

 But despite the assurances, the company also admitted it might have to offer 'alternative employment' to many mechanics who will not be needed, with the franchise cut back to 88 routes from CMB's 125. Transport authorities have streamlined the franchise by scrapping 24 routes and allowing Citybus and KMB to absorb 13 others.

 CMB's 750 mechanics feared their number could be cut by up to 300.

 Provisional Legislative Council transport panel chairman Miriam Lau Kin-yee described the Government's decision as 'a bold move' in view of New World's lack of experience. She called for tight monitoring.

 Transport Secretary Nicholas Ng Wing-fui said the experience of FirstGroup would ensure strong management and technical support. About three-quarters of New World First Bus Services' shares will be owned by New World with FirstGroup's bus operation, First Bus, holding the rest.

 Mr Ng said the decision was made quickly to calm public anxiety over services and allow the firm time to prepare for taking over the routes on September 1.

NEW WORLD'S PLEDGE $2 billion investment on vehicles and facilities Acquisition of 500 new buses within two years, each equipped with air-conditioners, disabled facilities, two-way radios, Octopus smart card receptors Full employment of all 2,300 CMB staff Construction of a new depot and workshops Replace bus shelters within two years Freeze existing fares for the first year 



Underdog New World bid wins CMB routes