Tram takeover heralds new line on an old friend
The electric tram has an iconic image that rivals or even exceeds that of the Star Ferry. Hong Kong's oldest form of public transport, it remains the cheapest. Locals and tourists alike admire its efficiency and heritage value. During rush hours, trams often travel faster than the road vehicles alongside them. Their old, but clean electric technology makes them fashionable again in a city struggling to clean up its polluted air. So when conglomerate Wharf announced yesterday that it is selling a 50 per cent stake in Hong Kong Tramways to French multinational Veolia Environnement, it inevitably provoked nostalgia - and concern. Wharf has a responsibility to help Veolia preserve the trams' unique cultural characteristics and service.
Though the Peak Tram pre-dated it by almost two decades, the century-old tram route that runs along northern Hong Kong Island has always been the more important because it carries far more people - about 230,000 people now ride it each day. However fast and extreme the pace of our city's physical transformation has been, people have always been able to count on the tram as a constant in an ever changing cityscape. Many classic films include footage shot on trams; people have grown up and grown old with them.
The tram service is a commercial rarity that combines profitability with popularity, heritage and history. In most years, it manages to turn a modest profit, all the while serving half those who live on the island. Veolia will now operate the trams, and the deal announced yesterday includes an option for Wharf to sell its remaining stake in the operation to the French company. Wharf must be mindful of the unique place the trams have in our collective memory. There is, however, reason to be hopeful. Veolia is one of the world's biggest water, energy and transport companies and has a track record in operating environment-friendly technology; that should help ensure services are improved without sacrificing their uniqueness.
Veolia has not disclosed the price it is paying, though it appears to be modest. It has an interest in breaking into the mainland market, so its purchase of a significant stake in Hong Kong Tramways will probably be used as a stepping stone. As a showcase venture, it is very much in Veolia's interest to prove that it understands and respects the tram service and its historical place in the city. Who knows, it may even contribute to making the trams more comfortable for passengers while preserving their iconic role.
Recently, much invective has been levelled against foreign buyouts of valuable assets on the mainland and around the world. The trams do not qualify as a strategic asset, though they are valuable in other respects. As our city grapples with air pollution, why not consider building more tram tracks where feasible? With a fresh and foreign perspective, Veolia may spot new opportunities and make the trams serve our city even better. But, given that it could take full ownership of such an important part of our collective memory, it needs to be made aware of its unique responsibility.