The operator of Hong Kong's 163 trams says less than a third of its fleet will be upgraded by 2014 - half of its original target - because it did not get the fare rise it asked for.
Explaining the impact of the government decision to award it a 30 HK cent increase, rather than the 50 HK cents it sought, Veolia Transport said it would have to do most of the work in its own workshops, slowing down the process.
'I had planned to outsource several parts to be more efficient,' managing director Bruno Charrade said. 'But now I am ready to do more things in-house.'
The company is under pressure to upgrade because of the looming competition from the MTR's West Island Line between Sheung Wan and Kennedy Town - due to open in 2014 - which overlaps with the tramway's most profitable section from Causeway Bay to Western district.
'We want significant changes by then, but [the slowdown means] changes may not be so visible now.'
The new tram - with the traditional wooden body replaced with aluminium - will also be fitted with a new braking and traction system, a new broadcasting and information system, and various interior design features that, the company says, should make the journey safer, more efficient and more comfortable.
But instead of producing 24 new trams a year, its Western district depot will be able to roll out only 10 to 12. Eight of them will hit the tracks by the end of this year. 'The production rate may improve after a while, but my guess is that there will only be 40 to 45 [new] trams by 2014,' Charrade said.