Negligence behind cable car accident

Ngong Ping 360 report due today, but attraction is unlikely to reopen before Christmas

Negligence appears to be the reason for the June accident that has shut the Ngong Ping 360 cable car, so now the question is what the MTR Corporation - which owns the attraction - can do to restore public confidence.

In any case, Ngong Ping 360 was not expected to reopen before Christmas, a government source said yesterday.

The cable car ride has been closed since a cabin crashed to the ground during testing on June 11 after the attraction had closed for the day.

The finding of a government-mandated expert investigation will clear system failure as a cause for the blunder, leaving only human error.

Now the MTR Corp has to decide what to do about the management of the ride and, more importantly, how to get people to ride again once it is reopened.

Today's report is also expected to cover the future of the cable car's Australian operator, Skyrail-ITM, which has been plagued by operational blunders since Ngong Ping 360 opened last year.

Early termination of its contract, which runs for 20 years, is a possible option for the government.

The government source said: '[Skyrail] has breached some clauses. Sacking one or two people in this case would not help regain public's confidence in the matter.'

Skyrail-ITM managing director Bill Calderwood declined to comment, saying he had not seen the report yesterday, but Ken Chapman, chairman of Skyrail in Australia, had already arrived in Hong Kong.

The MTR Corp was engaged in last-minute negotiations with Skyrail management last night.

Whether the contract with Skyrail-ITM ends or management is reshuffled, a solution could take months, which means the tourist attraction will miss operating during the mainland's 'golden week' holiday starting from October 1, which is National Day.

That is bad news for shop owners of Ngong Ping village - whose business has been slashed by up to 90 per cent since the accident.

But another government source said the government did not want to rush into reopening as it needed time to plan a series of relaunch activities - which may include free rides - to make the comeback a success.

At a press conference at 3pm today, the chairman of the MTR Corp, Raymond Chien Kuo-fung, will announce a set of interim measures if the two parties fail to reach a final verdict.

The Legislative Council's economic services panel has called a special meeting for 4.30pm to discuss the latest development.

Edmund Leung Kwong-ho, former president of the Hong Kong Institution of Engineers who led the investigation into the East Rail rolling stock blunders, said there were plenty of alternatives for the MTR Corporation if it needed a new operator.

But he said there were legal implications to consider.

'There should be clauses [allowing termination of contracts] to protect the owner if the contractor has failed to deliver certain demands,' Mr Leung said.

'But contractors could dispute the extent of damages and the penalties it warrants, and that could trigger a chain of legal actions.'

Michael Wu Siu-ieng, an executive committee member of the Hong Kong Association of Travel Agents, said one or two heads may roll, referring to Mr Calderwood, but not the whole team.

'It's not easy for the MTRC to just tear up its management contract with Skyrail. There are terms and clauses that make this unlikely, and I think only a few individuals will shoulder the blame,' Mr Wu said.