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The Kowloon Motor Bus Holdings Limited

Operational Review


Network Expansion

KMB operates the territory's largest public bus transport network, providing passengers with quality, comfortable and safe services.

New Routes

During the year, a total of 8 new bus routes were launched into service. Two of these new routes fulfil the demand arising from rapid developments in the New Territories. Another route is an overnight service running between Wah Fu/ Causeway Bay and Sha Tin. Four special morning routes have also been introduced to cater to high demand during morning peak hours. Furthermore, a recreation route was added to carry passengers between Sha Tin Racecourse and Wah Fu on horse-racing days.

Chek Lap Kok Airport and North Lantau Area Service

In October 1996, Long Win Bus Company Limited (formerly known as Long Win Holdings Limited), a wholly-owned subsidiary of the Company, was awarded a franchise to operate 12 bus routes to Chek Lap Kok Airport and North Lantau. These routes will be introduced by stages as shown in the table below. A total of 135 new 3 axle air-conditioned double-deck buses will be required to operate these new services.


A Modern Bus Fleet

In a continual effort to provide better service to passengers, KMB made significant investment in upgrading its bus fleet.

Air-conditioned Buses

During the year, a total of 283 new 3 axle air-conditioned double-deck buses were introduced into service and a further 319 were ordered for delivery in 1997.

The addition was in response to passenger surveys and patronage trends which indicated a growing demand for air-conditioned bus services. The enlargement of our air-conditioned service reflects the Company's commitment to customer satisfaction. In the year under review, the number of air-conditioned buses increased from 975 to 1,233, comprising 948 double-deck and 285 single-deck buses, representing 34 per cent of our total fleet.

Easy-access Buses

In mid-June 1996, KMB pioneered an easy-access assessment trial for less mobile passengers with two specially-ordered super low-floor single-deck buses.

The two buses were deployed on route No 88K to test their performance under local operating conditions. Feedback from disabled passengers on the level of service and facilities provided was closely monitored. The trial results indicated that these buses operated satisfactorily in a local environment and no particular problems were identified.

Although the level of use of these buses was not high on that particular route, a second batch of 10 more of these buses were purchased and delivered, bringing the total number in the fleet to 12, allowing us to expand the assessment trial to other routes. Consultation has been made with relevant bodies to decide on the deployment of these buses to maximise usage.

KMB intends to extend the low floor feature to double-deck buses so that more disabled passengers will benefit. Significant progress has been made during the year in developing a low floor double-deck version with features similar to those of the single-deck model. The first prototype has been completed in the UK and testing has commenced. Proving vehicles are now being constructed and will begin operation during the first half of 1997.

New Safety and Environmentally Friendly Features

In line with the new and more stringent exhaust emission regulations effective April 1997, new engines which comply with the new standard (Euro 2) are now being tested in service.

A new piece of driver safety legislation which requires three-point seat belts has been proposed and is targeted for implementation during 1997. To prepare for this, all new buses under fabrication will be equipped with the necessary seat belt anchorage points.

Passenger safety features and improved air conditioning systems continued to be developed. Comfort levels have been improved with the introduction of larger seats and a new 2 by 2 seating configuration replacing the 3 by 2 arrangement in the upper saloon.

ISO Certification

As a milestone of our achievement in improving the overall quality of service, our three operating depots, located in Lai Chi Kok, Sha Tin and Tuen Mun, were ISO certified in July 1996. This reflects our high standard with regard to bus fleet repairs and maintenance. Similar service levels are aimed for all of our "build and overhaul" facilities.

Upgraded Passenger Service

KMB pays the closest attention to all aspects of service to ensure that passengers have a pleasant journey with utmost convenience.

On-vehicle Public Address System

The announcement system installed in Airbus routes has been upgraded to offer better service to Hong Kong visitors. The cassette tapes for the announcement system have been replaced by a new electronic Stop Announcement System called Intelligent Station Reporter, which also features message broadcast functions. The new system will also be installed in the 10 new super low-floor single-deck buses. The feasibility of integrating a visual display with this audio system will be studied.

Modern Bus Shelters

In 1996, 260 aluminium bus passenger shelters were erected throughout Kowloon and the New Territories. Equipped with a rotating information panel and stylish advertising panels, these shelters are functional and attractive. The aesthetically pleasing structures complement the environment while providing a comfortable waiting area for passengers. An amended version for pavements which are not wide enough to accommodate the original design was configured and approved by the Government in late 1996. This increases the provision of modern and comfortable waiting areas at more bus stop locations.

Contactless Smart Card Project

KMB is a founding member of the joint venture company Creative Star Limited which was established to develop and operate a smart card ticketing and fare payment system applicable to the major public transport services in Hong Kong. Other members of the consortium are the Mass Transit Railway Corporation, Kowloon-Canton Railway Corporation, Hong Kong and Yaumatei Ferry Limited and Citybus Limited.

As the result of an open naming competition, the name "Octopus " was adopted for the smart card and will be used in all marketing and promotional activities.

Trials of bus and depot equipment are continuing for the utilisation of the Octopus card. KMB staff and selected members of 'FRIENDS OF KMB' are participating in the system trial which allows the use of the Octopus card on KMB routes 16M, 26M and 29M, and the MTR (Mass Transit Railway), KCR (Kowloon-Canton Railway) and LRT (Light Rail Transit) systems.

The current plan is to install the Company's cross harbour buses with smart card equipment when the system goes into public service in the third quarter of 1997. Within the current contract for the supply of smart card equipment, the Company can exercise an option to acquire additional equipment for installation on the MTR feeder bus services. The decision on whether to take up this option will be made after evaluating the performance of the system during the trial period.

Communication with Passengers

KMB embarks on an active two-way communication programme with our passengers, government departments and public bodies in order to provide passengers with information about our services and to receive continual feedback from them.

KMB Passenger Enquiry Hotline

In the year under review, the KMB Passenger Enquiry Hotline 2745 4466 handled over 300,000 passenger enquiries per month. In addition to the availability of a three-language-option (Cantonese, Putonghua and English) on bus route enquiry and fax-on-demand services, the system was upgraded in December 1996 to incorporate an innovative enquiry service, B.A.T. (Bus Arrival Timeline). This allows customers to find out the arrival time of the next two buses of our route Nos N216 and N293 overnight bus service.

The Passenger Liaison Group Programme

In 1996, the Company organised several Passenger Liaison Group ("PLG") sessions which provided an active and direct channel of communication between customers and the Company. University lecturers, Mr Andy Fong and Mr Cliff Au acted as moderators and Transport Department representatives acted as observers. PLG participants are comprised of volunteers drawn from all sectors of the community.

Mobile Service Centre

In addition to the Service Centre located at the Shatin New Town Plaza, an air-conditioned coach was converted into a Mobile Service Centre travelling to various districts in Hong Kong. The Mobile Service Centre aims to enhance direct communications with customers by reaching out to collect their opinions, increasing our understanding of their needs and facilitating our provision of customer-oriented services.

In 1996, our Mobile Service Centre frequently received chairmen of various District Boards and their Traffic and Transport Committees as VIP visitors.

Meetings with Members of District Boards and Community Groups

In addition to collecting feedback from Passenger Liaison Groups, other efforts to collect customers' views included meetings with members of District Boards and local community groups. Representatives from the Company attended 60 District Board and user group meetings during the year.

Area-based Route Maps

Three additional area-based route maps were published and widely distributed during the year to provide clearer, up-to-date information to regular customers and to promote KMB's services to occasional riders and visitors. A comprehensive route map booklet was published in May 1996 and a total of 50,000 copies were sold with sales proceeds donated to the Community Chest, one of Hong Kong's largest charities. More purpose-designed route maps will be published in 1997/98 to raise awareness for our services.

KMB on Internet

In 1995, KMB became the first public utility company in Hong Kong to be connected to the Internet. This initiative added to our scope of service information.

KMB's home page on Internet was chosen by the APEX '96 Awards for Publication Excellence, receiving a Certificate of Excellence for 'Design and Illustration-Web Pages'. The APEX '96 Awards are one of the most distinguished communications awards based in North America that recognises publication excellence.

Our World Wide Web Address on the Internet is "http://www.hkstar.com /netmarket/transport/". Over one million Internet users have accessed KMB's home page since it was launched.

Corporate Advertising

The Company launched its first television corporate-image campaign in 1994. Subsequent to the 1995 corporate television commercial "Road" which emphasised KMB's extensive network, the 1996 corporate television commercials "Soccer", "Grandma" and "Lover" were based on the theme of "Someone you want to see", depicting the message that no matter where you were in Hong Kong, KMB could bring you to that special someone. Complementary newspaper advertisements sharing the same theme were launched over seven days.

KMB's corporate print campaign achieved outstanding results at the Asian Advertising Awards, winning the Spike Award and a Certificate of Excellence. Also, our corporate television commercial "Road" has been nominated as one of the finalists of the "Most Popular TV Commercial Awards 1996" organised by Asia Television Limited.

Improving Productivity and Efficiency

KMB pledges to be an efficiently run and reliable bus company, meeting the high demand of today's passengers, and actively seeking ways to improve the Company's overall productivity.

Performance Pledge

KMB's firm commitment to the provision of a quality and reliable bus service is reflected in our Performance Pledge made on mechanical reliability and operation capability -- the two core competencies in bus operation.

Mechanical reliability is assessed by the average number of trips operated before a bus experiences one mechanical breakdown on the road while passengers are on board. The pledged target is 1,350:1.

Operational capability is measured by the ratio of actual-to-scheduled departure trips travelling in peak directions within the overall bus network during peak morning hours, i.e. 7:00 am - 9:00 am. The pledged target is 97%.

KMB published its Performance Pledge Report 1995-96 (covering the year ending 30 June 1996) in October 1996. The performance on mechanical reliability was 1,803:1 and on operational capability 99.96%. Both of these results exceeded the pledged targets.

As an operator that always aims at achieving the best, the Company will strive to uphold these high performance standards in the coming year.

Depot Renovation

To improve the performance of the depot facilities, comprehensive renovations to depot buildings and mechanical installations have been implemented on the Kwai Chung Major Unit Overhaul Depot and Tuen Mun Bus Body Construction Depot. Upon completion, the working environment of these upgraded depots will promote higher productivity and better quality of services.

Bus Body Advertising

Since their introduction in 1995 and early 1996, the "123" and "Four 2's" advertising packages continued to receive good response and contributed considerable advertising revenue for the year.

In 1996, bus body advertising was chosen as one of the major advertising media by property developers to promote sales of domestic flats. Property developments such as Metro City, Sunshine City, Granville Garden, Discovery Park, etc. made substantial bookings on KMB bus body advertising. The additional revenue derived from these contracts balanced out the loss of revenue due to non-renewal or partial renewal of contracts for other products. Thus, advertising revenue was maintained at a reasonable growth level in 1996.

Bus Shelter Advertising

During 1996, approximately 100 new bus shelters installed with light boxes were supplied with metered or unmetered power supply. Since KMB was still in negotiation with the Government for extension of our bus operation franchise during the year, the award of a term contract or contracts to carry out the shelter advertising was put on hold pending the extension of the franchise.

Community Involvement

KMB strives to be a good corporate citizen in fulfilling its obligations to the society in which it serves.

Environmental Protection

To minimise pollution to the environment, in 1996 five waste water treatment facilities were installed in the Company's temporary depots. All waste water produced as a result of the depots' daily operation will be well treated before they are discharged into public sewage.

In addition to the installation of waste water treatment facilities at other depots, the concept of recycling water is now being examined. The waste water generated will be reused once recycled. Pending positive results of the examination, water recycling plants will be installed in all depots as soon as possible. The quantity of waste water discharged from the Company's depots into public sewers will be substantially reduced.

Participation in Various Charities and Public Functions

As a socially responsible company, KMB shows concern for the public through sponsorships and participation in various community events. During the year, the Company supported the Community Chest in their various programmes -- Corporate Contribution Programme, Corporate Challenge Half Marathon, Dress Casual Day and Walks for Millions. Also, a charity sale of new KMB route maps at various busy districts raised funds for the Community Chest.

KMB received the President's Award for Excellence for its effort in raising funds of over HK$1 million for the Community Chest for the year 1995/96. The Company has also supported many other charitable bodies and community activities through sponsorships and the provision of free bus body advertising to various campaigns organised by the Government and other charitable organisations, including sponsoring the 1996 Hong Kong Awards for Industry and the Business and Industry Environment Conference and donating two 24-seater Toyota coaches each to the Po Leung Kuk Orphanage and Haven of Hope Hospital for their use.

FRIENDS OF KMB

In the spirit of creating goodwill in the community and encouraging passengers to become closely connected with KMB, the Company has created the "FRIENDS OF KMB". Designed to benefit the community and reward participating members, the "FRIENDS OF KMB" recruits members from the travelling public. Members are expected to observe a set of simple practices established by KMB and encourage them to perform simple civic duties, such as being considerate and assisting other passengers. Members are rewarded with various attractive privileges. Since the launch of the campaign in 1995, KMB has recruited 720 "FRIENDS OF KMB" members.

Ten Most Distinguished Artists Volunteer Recognition Campaign '96

KMB acted as the sole sponsor of the "Ten Most Distinguished Artists Volunteer Recognition Campaign '96" organised by Radio Television Hong Kong and the Agency for Volunteer Service. In the year under review, the participation of volunteer service organisations in Mainland China, Taiwan and Macau propelled the campaign onto an even grander scale than in previous years.

The objective of this six month community out-reach programme was to continue promoting and fostering the development of voluntary service to the public. The '96 programme focused on the need of patients in public hospitals. KMB provided services to transport volunteer workers to their work place with an air-conditioned double-deck bus with special "KMB Volunteer Bus" livery.

Employees Training and Relations

KMB considers human resources as one of the most valuable assets and makes tremendous investments in staff training and programmes which recognise their contribution.

Staff Training

During October to December 1996, KMB instituted a "Service Ambassador" Training programme for Service Department front-line staff, including breakdown recovery staff, mechanics at bus terminals and receptionists in bus depots. The objective of this programme is to improve the skills of our front-line maintenance staff in handling daily duties with emphasis on better communications with bus captains, thus enhancing the overall support system of our bus operations.

Bus Captain of the Year Competition

The annual "Bus Captain of the Year" competition aims to showcase the professional skills of our bus captains as well as promote road safety to commuters. An array of exciting events, such as bus captain driving competitions, bus displays, children's corner, stage performances and a wide variety of game booths were lined up for the visitors. This year, from amongst 7,000 bus captains, 36 were selected to participate in the event. The competitors were selected according to their work performance, driving skills and knowledge of passenger safety and traffic regulations.

Awards to Employees

As a service company, KMB recognises the valuable efforts of its employees as one of its most valuable assets. During the year, the Company gave out the following awards to the staff as a token of appreciation for their dedication to the Company and contribution to the community:
Sporting and Recreational Activities

KMB joined the Corporate Games organized by the Urban Council in various sporting activities such as soccer, badminton, swimming, track and field and long distance runs.

The Company Dragon Boat Team achieved good results in open competitions, attaining the Championship of an International Race in Japan. Locally, the team came first in the 'Sai Kung Long Distance Dragon Boat Race', second in both the 'Royal Hong Kong Jockey Club Invitation Race' and the 'Epson Inter-Company Championship Race'.

Two representative teams of the Company joined the 'Community Chest Corporate Challenge 10K Run' to help raise funds for charity.

The Staff Welfare Section continues to organise recreational activities for the staff. The activities included Sports Day, Swimming Gala, Karaoke Competition, Football Tournament, Badminton Tournament and picnics.


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