The new tolls for vehicles - including buses - using the Western Harbour Tunnel will inevitably trigger another round of public transport fare rises, prompting other operators to follow the lead of Kowloon Motor Bus and its sister company, Long Win Bus.
They have already applied for increases of 8.6 per cent and 7.4 per cent respectively. And fares on other routes will no doubt rise shortly, increasing the financial burden on commuters.
All three harbour crossings were constructed according to the build-operate-transfer (BOT) model when the government negotiated the deals with the consortiums. When the operating franchise agreement of the Cross-Harbour Tunnel expired in 1999, the government assumed control.
The Eastern Harbour Tunnel and Western Harbour Tunnel are mostly controlled by the publicly listed investment group Citic Pacific. The agreement states that the operating franchise for the Western Harbour Tunnel will run until August 2023.
According to the toll adjustment mechanism stipulated under the relevant legislation, the operator of the Western Harbour Tunnel is entitled to increase the statutory tolls without having to seek approval when its actual net revenue falls short of the estimated level specified in the law. That's why the operator can unilaterally raise toll charges despite mounting public opposition.
The government may be powerless to prevent the increases, but it should at least study the broader issue of transport policies and explore other options to relieve the traffic.
The BOT model was adopted during the colonial era to encourage private sector participation in transport infrastructure. Based on the principle of 'big market, small government', the intent was to engage private investors in developing transport facilities to alleviate traffic congestion and reduce public transport costs.