New World First Ferry warned yesterday that fare rises were likely because of extra trips and rising fuel costs.
The company said it was 'seriously considering' raising the fares on the eight outlying island and cross-harbour routes it took over from Hongkong & Yaumati Ferry two months ago.
Director and general manager John Hui Shiu-yin said since the transfer, some 330 extra trips had been made using vessels from other ferry operators at a cost of $4,000 to $7,000 per trip in rent alone. The situation was not helped by the fact that fuel costs, which makes up 40 per cent of the operating costs, also went up by one-third, he added.
Under the licensing agreement First Ferry inherited from its predecessor, the company can raise ferry fares by five per cent from next month.
'With the fare increases, we still expect to make a loss of $30 million in our first year of operations,' Mr Hui said.
