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Get rid of filthy buses with loans

SCMP – 30 April 2012

On Sunday, April 22, I felt lucky to be living on a high floor above the street-side pollution and in the sunshine.

On the radio, I heard more warning messages about high levels of pollution for this most liveable of cities. People of my age were advised to stay indoors.

I understand that the expense of equipping our bus companies with virtually non-polluting buses (say HK$3 million per vehicle) is not possible given the cap on their profits and the return to their shareholders.

Why, when we have the funds available, can we not lend the money to the companies to buy the buses and stop all this business of fiddling about with catalytic converters year after year?

Of course, it would not be possible to do this all at once but say a long-term loan for 300 buses a year would begin to make a difference. Also, it would send a cheer from the choking travellers and, incidentally, district council voters of Causeway Bay.

David Akers-Jones, Yau Ma Tei

Smog set to stay for years as ozone rises

SCMP

Environmentalist criticises government for blaming Guangdong and dry weather for increase in pollutant when cap on vehicle emissions will work

Olga Wong 
Apr 27, 2012
….

The city’s notorious smog will plague Hong Kong for years to come as the biggest pollutant contributing to it – ozone – is still on the rise.

The concentration level of ozone hit a record high of 0.058 milligram per cubic metre on average last year, according to research by the regional air quality monitoring network, a 10 per cent year-on-year increase and a 21 per cent rise since the network began its monitoring in 2006.

While the Environmental Protection Department was keen to take credit for reducing other pollutants, it blamed dry weather and rapid development in Guangdong province for the unprecedented ozone levels.

But a leading environmentalist criticised the government for shifting the blame and urged it to adopt more drastic measures to reduce ozone – a main component of photochemical smog and a pollutant that can trigger asthma. Ozone is formed through a photochemical reaction between nitrogen oxide and volatile organic compounds under sunlight.

Ozone is the only one of four pollutants monitored by the network that is on the increase. It also measures sulphur dioxide and nitrogen dioxide, which fell 4 per cent and 7 per cent respectively last year compared with 2010. The fourth, respirable suspended particulates, remained at the same level.

Since 2006, the pollutants have been reduced by 49 per cent, 13 per cent and 14 per cent, respectively.

“The reduction is encouraging. It shows measures taken by both sides to improve air quality are working,” the department’s deputy director, Andrew Lai Chi-wah, said. But Lai blamed the accumulation of ozone on dry weather and the influence of Guangdong. “We had less rain and very high temperatures last year. We also saw a 10 per cent GDP growth in Guangdong,” he said, adding that the problem was difficult for Hong Kong to solve alone.

Dave Ho Tak-yin, a principal environmental protection officer, said the Observatory recorded 38 per cent less rainfall and 16 per cent more sunlight last year.

Ho said the problem could not be resolved quickly due to air pollution in the Pearl River Delta, adding: “The ozone spreads to Hong Kong with the monsoon.”

But Man Chi-sum, the chief executive of the environmental group Green Power, said traffic, not the weather, was the key factor in ozone levels. “Weather can be influential but it is not the most critical factor,” he said. “Hong Kong has much room to reduce ozone by cutting the level of nitrogen oxides.”

Man urged the incoming administration to impose a cap on the emissions of bus fleets, like it did for power plants, as diesel vehicles were a major source of nitrogen oxide. Other measures suggested in the past, such as electronic road pricing and setting up low-emission zones, should also be reconsidered, he said.

olga.wong@scmp.com

Registration and Licensing of Vehicles by Class of Vehicles

table41a Page 3-11 Totals Franchised and Public buses in Hong Kong as at end March 2012

Download PDF : table41a

Dirty buses off the road in four years

SCMP

Three operators get 10-year franchises in exchange for replacing 700 old vehicles, but action groups call for more fare concessions
Joyce Ng
Apr 25, 2012

Three bus companies are expected to replace 700 polluting buses, offer more fare concessions and make space for foldable bicycles after being granted new 10-year franchises by the government.

But critics say the renewal conditions do not go far enough in demanding cleaner vehicles and more concessions for elderly passengers and long-distance commuters.

The new franchises are for New World First, on Hong Kong Island, some cross-harbour routes and routes from the island to Tseung Kwan O; Long Win, on routes from the airport to the New Territories; and Citybus, for its airport and North Lantau bus network.

They will begin when the existing agreements expire in May and July next year.

“The renewal was made after a public consultation and rounds of discussion,” Secretary for Transport and Housing Eva Cheng said yesterday after the Executive Council approved the renewal. “The government’s main consideration was whether the bus companies could provide efficient services.”

The operators agreed to replace a total of 700 buses with buses meeting the latest Euro V emissions standards by 2016. Many buses in the fleets have reached the end of their expected 17-year life cycle.

Cheng said the operators had also committed to letting passengers bring foldable bicycles on board and to incorporating barrier-free access and elderly-friendly features.

They will offer an additional 60 fare concession schemes, ranging from 30 cents to HK$24.90, on top of the existing ones, including 27 new discounts for passengers interchanging between different bus routes and 27 new section fares for people travelling shorter distances on long-distance bus routes. Some Hong Kong buses charge a flat fare regardless of the distance travelled.

At present, 116 interchange discounts are available and there are section fares for 112 routes.

Cheng said the concessions would benefit an extra 8,000 passengers, especially airport workers and residents of Tung Chung, Hong Kong Island and Tseung Kwan O.

But Coalition to Monitor Public Transport and Utilities spokesman Richard Tsoi Yiu-cheong said the fare concessions were inadequate.

“Obviously the government did not seize the renewal opportunity to make more demands on bus companies to improve their services,” he said. “At least they should charge the elderly and the disabled a much lower fee.”

At present, elderly passengers are charged half price except on weekends, when they pay a flat HK$2 fare. But Tsoi said they should travel free or be charged one or two dollars like their mainland counterparts.

Helen Choy Shuk-yi, general manager of the Clean Air Network, said the dirty, old buses would be replaced too slowly. “The government lacks the determination to improve roadside air,” she said.

Choy said the three companies had 751 buses that were due to be replaced by 2018, meaning the new replacement requirement would only bring forward the replacement date by two years.

Martin Turner, of the Cycling Alliance, welcomed the provision for folding bicycles. But he urged the operators to allow cyclists to take the folded bikes on board without having to put them in bags or strap them up.

Hung Wing-tat, a transport specialist at Polytechnic University, called for the new administration, which takes office in July, to review the bus fare pricing mechanism and make it more transparent.

The three companies welcomed the arrangements.

joyce.ng@scmp.com

Contracts of franchised bus operators renewed

SCMP

Lai Ying-kit
7:02pm, Apr 24, 2012

Hong Kong’s three franchised bus operators have had their contracts renewed for another 10 years, Secretary for Transport and Housing Eva Cheng said on Tuesday.

Cheng told reporters the Executive Council on Tuesday had approved the renewals by New World First Bus, Citybus and Long Win Bus Company after considering their commitment to improve service quality.

This included a switch to more eco-friendly buses, fare concessions, route rearrangement to increase efficiency, and installing features to help access for elderly and disabled people, Cheng said.

New World First Bus mainly covers Hong Kong Island; Long Win buses operate between the New Territories and North Lantau; and Citybus routes ply from urban areas and Tseung Kwan O to North Lantau.

The three companies’ current contracts would expire between May and July next year.

Cheng said their commitment to move to more eco-friendly vehicles was the most important factor for winning the new contracts. She said the three operators would together replace 700 old buses, or 70 per cent of their fleet, with newer models.

She said the fare concessions would come in the forms of section fare and interchange discounts and range from 30 cents to HK$24.9 per ride.

They were expected to benefit 8,000 passengers in Tung Chung, the Chek Lap Kok airport, Tseung Kwan O and Hong Kong Island East, Cheng said

Grant of new franchises to three bus companies

http://7thspace.com/headlines/410786/grant_of_new_franchises_to_three_bus_companies.html

Hong Kong (HKSAR) – The Chief Executive in Council (CE-in-Council) today (April 24) approved the granting of new ten-year franchises to New World First Bus Services Limited (NWFB), Long Win Bus Company Limited (LW) and Citybus Limited (Citybus) in respect of its franchise for the Airport and North Lantau bus network (Franchise 2).

The new franchise for NWFB will run from July 1, 2013 to July 1, 2023, and that for LW and Citybus (Franchise 2) from May 1, 2013 to May 1, 2023. The main operating area for NWFB is Hong Kong Island. LW’s bus routes ply between the New Territories (except Tseung Kwan O) and North Lantau (including the Airport) while those for Citybus (Franchise 2) ply between urban areas/Tseung Kwan O and North Lantau (including the Airport).

A government spokesman said that according to the established practice and in keeping with the relevant provisions of the Public Bus Services Ordinance (Cap 230), incumbent operators who have proven themselves to be capable of providing proper and efficient public bus services, and are willing to further invest in their franchised bus operations, would generally be granted new franchises for a period of ten years.

He said that since the commencement of their current franchises in 2003, the three bus companies have provided satisfactory services to passengers in terms of safety, reliability and standard of service, and environmental protection.

They have also demonstrated a commitment to making considerable capital investment towards replacing about 70 per cent of their existing fleet with new buses from 2012 to 2016.

“In negotiating for the new franchises, the three bus companies, having taken into account the views expressed by members of the public in the public engagement process, have committed to provide more fare concessions, to enhance safety and service standards, implement environmental improvement measures, and accept new terms in respect of enhancement of regulation of their operations.

“They were therefore each granted a new franchise of ten years, commencing immediately upon the expiry of their current ones for a smooth continuation of services,” the spokesman said.

On fare concessions, NWFB, LW and Citybus (Franchise 2) are currently providing 116 bus-bus interchange (BBI) concession schemes, as well as section fares for 112 (or 88 per cent) of their 128 routes.

When the new franchises commence, a total of 60 new fare concession schemes will be offered. They include 27 new BBIs (comprising 11 inter-company ones) and new section fares for 27 routes. The new schemes will bring more convenience and fare savings for local passengers in the major service areas of the three bus companies, namely airport workers, residents of Tung Chung, Hong Kong Island and Tseung Kwan O.

The spokesman added that a new franchise clause was introduced which will empower the Commissioner for Transport to require the bus companies to provide facilities or designs for the enhancement of the general service and safety standard of buses.

These include adopting barrier-free and elderly-friendly features on new buses. In addition, the bus companies have committed to allowing passengers to bring foldable bicycles on board buses, providing facilities to reduce potential fire hazards and to enhance passenger safety, as well as other positive measures.

On environmental protection, the bus companies will be required to buy the most environmentally friendly and technologically proven buses commercially available when acquiring new vehicles (with the ultimate objective of using zero emission buses). They will also be required to adopt commercially available technologies and products on their buses to reduce exhaust and noise emissions as far as practicable.

As for the provision of bus service information for passengers, the bus companies will be required to disseminate more service-related information to the travelling public on board buses as well as through the Internet and smart phone applications. The bus companies have also committed to install more Liquid Crystal Display (LCD) panels at major bus termini for the display of route information and bus departure times, as well as LCD panels or other devices inside the bus compartments to provide more detailed route information.

The CE-in-Council has taken into account the advice of the Transport Advisory Committee (copy attached) when considering the proposed granting of new franchises to the three bus companies. The relevant Legislative Council Brief has also been uploaded onto the website of the Transport and Housing Bureau (www.thb.gov.hk).

Source: HKSAR Government

Office Tel Email
Mr. LAI Yee Tak, Joseph, JP Comr for Transp 2829 5200 josephlai@td.gov.hk

Commissioner for Transport

Dear Mr Lai,

please see the link to the attached banker’s blog with information regarding Citybus.

We would welcome your response to these interesting facts.

Yours sincerely,

James Middleton

Chairman

www.cleartheair.org.hk

http://alexbhturnbull.tumblr.com/

Text

March 10, 2012

Excess Rents Hong Kong Style: Citybus

As some of you know I am a bit of greenie and get pretty angried up about air pollution. HK’s air pollution is due to two things: regional air pollution, largely from Guangdong that Hong Kong can arguably do little about (the biodome idea was shot down) and roadside pollution principally caused by buses and trucks about which it could do a lot more. There is a great paper here from 2009 that outlines what HK could do about its air pollution, bus regulation is the best “bang for the buck” thing that HK could do with a 6.3 cost to benefit ratio. Paper here.

As buses are regulated utilities I thought I’d look into the financials of these businesses and the documents governing their concessions to see just what was causing them to be so slow to turn over their bus fleet – maybe fares are too low, or perhaps they face exceedingly high costs of some kind, leaving them limited extra cash to invest in newer, cleaner buses. Crazier things have happened though HK’s other utilities like Power Assets Holdings (formerly Hongkong Electric), CLP and Transport International Holdings (listed entity holding the Kowloon bus franchise) have pretty standard returns on equity that would not look out of place in most jurisdictions though Transport International seemed to be earning some fairly ridiculous returns from 98-03 and again in 04-05.

Well, as you can see here for the bus franchises owned by New World – Citybus in particular – that is most certainly not the case (numbers extracted from here). Citybus’ headline ROA numbers is way higher than their 9.7% mandated level and if you look into their depreciation accounting it is much higher.

You see, when you look at the concession agreement for Citybus (Transport Department link here) a few things jump out. Firstly, the depreciation of the buses is 15 years straight line to $1 – so the buses can be readily written down zero or close to it, which is funny because they are almost there – the bus fleet is about 12.5 years old now on average meaning there are a number of assets older than 15 years that are held at $1. Cute, though under ROA type regulation there is no free lunch: if you haven’t got any assets you aren’t entitled to any returns. That does not seem to be the case here – if you take their depreciation at face value Citybus is earning some major excess rents and the Transport Commissioner should explain why New World gets special treatment.

What is a much better representation of Citybus’ returns is when you ignore depreciation and look at cash capital expenditures net of proceeds from disposals. Net cash capex for these business is pretty close to zero – $4.5mm Hong Kong which is absurd when a new Euro V bus costs $3-4mm Hong Kong. So the cash return on book assets they making is close to 30-40% which is the sort of return you expect on a high risk mining venture, not a regulated utility in Hong Kong.

What is more, these disposals are a source of no doubt significant excess rents for New World. Here is how I would take advantage of the Transport Commissioner being asleep at the switch:

1) Get an ROA way above requirement due to aggressive depreciation accounting that is unassailable because its in the terms of your concession and thus protected by contract. Watch the Transport Commissioner do nothing. (we know this is happening from these accounts)

2) Sell older buses at artificially low book values as your regulated fares don’t take account of this in calculating your asset returns. Use proceeds to fund the bare basement capital expenditure you do. Net result: almost no cash capital expenditures.

3) When the concession comes up, buy back refurbished buses at prevailing market rates to ensure you have an asset base on which to earn fares. Claim that you are making a big investment when bidding for the concession.

4) At every available opportunity cry poor about oil prices.

Net-net: 20-30% cash returns for 10 years on government utility type risk.

What can I say? I’m clearly in the wrong game. The bigger question is why isn’t anyone doing anything about this, and why does Transport International not get to play at this game? Its numbers look pretty aggressive too (depreciation at ~900mm HKD, versus capex that looks lower) but Citybus is taking it to another level.

Tags: hong kong hk citybus new world air pollution

From: Franchise Renewal [mailto:franchise-renewal@td.gov.hk]
Sent: Monday, October 03, 2011 09:16
To: James Middleton
Subject: Re: Bus Franchise Requirements

Dear Sir/ Madam,

Thank you for your email offering your views on the requirements of the bus franchises. We have put your views in our record, and will consider them together with all other comments received.

Regards,
Transport Department

“James Middleton” <dynamco@netvigator.com>

01/10/2011 16:13

To <franchise-renewal@td.gov.hk>
cc
Subject Bus Franchise Requirements

Transport Department

1             The time for submissions needs to be extended to allow further studies and submissions and you have not provided copies of current Franchise documents for evaluation.
2             The document you provided permits the bus companies to continue using Euro 1  and Euro II through Euro V vehicles whereas existing Franchise documents already require that any replacement vehicles must be of Best Available Current Technology which is Euro V (soon to be Euro VI). Any new deal means the companies should comply with BACT rather than outdated polluting current buses.
3             Transport department should not be making unilateral decisions that would impinge on other departments’ responsibilities namely, Air Quality.
4             Roadside pollution in Hong Kong is already diabolical and rates next to the worst performing 3rd world countries in the emissions of lethal PM2.5. which comes from the combustion of fossil fuels. The Central roadside PM2.5 levels are nine times higher than Vancouver and double those of Singapore. Mongkok and Causeway Bay are worse.
5             There seems to be no incentive to allow the bus companies to bring in hybrid buses which would be best suited here given the topography and hills.
6             There should be a date set and made known to all that certain areas will be designated Low emissions Zones where only Euro V or later or hybrid / electric buses will be allowed to operate. Setting this into Law will make the bus companies comply accordingly.
7.            Transport Department personnel and their children have to breathe the same pollutants as the public and they should realise that health and environment come first and the profits of the bus business tycoons  last.

James Middleton
Chairman
www.cleartheair.org.hk

From: panel_t [mailto:panel_t@legco.gov.hk]
Sent: Thursday, October 20, 2011 10:21
To: James Middleton
Subject: Re: please advise when this wil be discussed

Dear Mr Middleton,

Thank you for your email.

The Panel on Transport will further discuss “Franchises of New World First Bus Services Limited, Long Win Bus Company Limited and Citybus Limited (Franchise for the Airport and North Lantau bus network)” at its meeting on Monday, 7 November 2011, at 4:30 pm in Conference Room 1 of the Legislative Council Complex.  The Panel will receive views from the public on the requirements of the new franchises at the meeting.

Interested members of the public can give their views by providing written submissions, or/and attending the meeting to present their views to the Panel.  Those who wish to attend the meeting to present views are requested to complete the reply slip at:

http://www.legco.gov.hk/general/english/sec/invite_s/tp20111018.htm

Regards,

Panel on Transport

Euro 1 buses still run on Hong Kong’s congested urban canyon roads with no political will to act.

http://wpcontent.answcdn.com/wikipedia/en/thumb/7/72/Flintstones_car_model_at_2008_NY_Auto_Show.jpg/220px-Flintstones_car_model_at_2008_NY_Auto_Show.jpg

Cheap Hydrogen Cars In A Decade, Researchers Say

8 April 2012

A new process for producing fuel cells could help bring the cost of hydrogen carsdown significantly within 10 years, researchers claim.

Staff from the University of Connecticut developed the process, which involves spraying atom-sized particles of a catalyst onto a membrane, to produce hydrogen fuel cells.

image via University of Connecticut

They say that the same technique could also be used to make lithium-ion batteries, the kind used in most electric and hybrid cars.

The potential benefits of hydrogen fuel cell cars have long tempted auto makers. They have low emissions, no moving parts and because they generate power on board in fuel cells, they don’t need the long charging time of electric vehicles.

But the high production cost of the fuel cells has put the cars out of the price range of most consumers. The holy grail of many researchers has therefore been to find a way to get these costs down.

In order to make the fuel cells a catalyst is needed that can withstand the highly acidic solvents necessary to turn hydrogen into electricity. The only elements capable of this are platinum and iridium, which are both rare and expensive.

The new technique involves firing the catalyst on to the membrane in the form of a gas flame. The flame-based dispersion means the metal bonds quicker, eliminating the need for repeated binding and drying steps.

Professor Radenka Maric, who developed the process at the University of Connecticut’s Center for Clean Energy Engineering, said it used 10 times less catalyst material and produced significantly less waste

http://theenergycollective.com/namarchetti/81593/cheap-hydrogen-cars-decade-researchers-say

UMass Amherst chemical engineers boost petrochemical output from biomass by 40 percent

e! Science News

Updated by artificial intelligence Wed, 28 Mar 2012, 9:31:15 EDT    Learn more

UMass Amherst chemical engineers boost petrochemical output from biomass by 40 percent

Published: Wednesday, January 11, 2012 – 16:37 in Physics & Chemistry

Chemical engineers at the University of Massachusetts Amherst, using a catalytic fast pyrolysis process that transforms renewable non-food biomass into petrochemicals, have developed a new catalyst that boosts the yield for five key “building blocks of the chemical industry” by 40 percent compared to previous methods. This sustainable production process, which holds the promise of being competitive and compatible with the current petroleum refinery infrastructure, has been tested and proven in a laboratory reactor, using wood as the feedstock, the research team says. “We think that today we can be economically competitive with crude oil production,” says research team leader George Huber, an associate professor of chemical engineering at UMass Amherst and one of the country’s leading experts on catalytic pyrolysis.

Huber says his research team can take wood, grasses or other renewable biomass and create five of the six petrochemicals that serve as the building blocks for the chemical industry. They are benzene, toluene, and xylene, which are aromatics, and ethylene and propylene, which are olefins. Methanol is the only one of those six key petrochemicals not produced in that same single-step reaction.

“The ultimate significance of our research is that products of our green process can be used to make virtually all the petrochemical materials you can find. In addition, some of them can be blended into gasoline, diesel or jet fuel,” says Huber.

The new process was outlined in a paper published in the Dec. 23, 2011 edition of the German Chemical Society’s journal Angewandte Chemie. It was written by Huber, Wei Fan, assistant professor of chemical engineering, and graduate students Yu-Ting Cheng, Jungho Jae and Jian Shi.

“The whole name of the game is yield,” says Huber. “The question is what amount of aromatics and olefins can be made from a given amount of biomass. Our paper demonstrates that with this new gallium-zeolite catalyst we can increase the yield of those products by 40 percent. This gets us much closer to the goal of catalytic fast pyrolysis being economically viable. And we can do it all in a renewable way.”

The new production process has the potential to reduce or eliminate industry’s reliance on fossil fuels to make industrial chemicals worth an estimated $400 billion annually, Huber says. The team’s catalytic fast pyrolysis technology has been licensed to New York City’s Anellotech, Inc., co-founded by Huber, which is scaling up the process to industrial size for introduction into the petrochemical industry.

In this single-step catalytic fast pyrolysis process, either wood, agricultural wastes, fast growing energy crops or other non-food biomass is fed into a fluidized-bed reactor, where this feedstock pyrolysizes, or decomposes due to heating, to form vapors. These biomass vapors then enter the team’s new gallium-zeolite (Ga-ZSM-5) catalyst, inside the same reactor, which converts vapors into the aromatics and olefins. The economic advantages of the new process are that the reaction chemistry occurs in one single reactor, the process uses an inexpensive catalyst and that aromatics and olefins are produced that can be used easily in the existing petrochemical infrastructure.

Olefins and aromatics are the building blocks for a wide range of materials. Olefins are used in plastics, resins, fibers, elastomers, lubricants, synthetic rubber, gels and other industrial chemicals. Aromatics are used for making dyes, polyurethanes, plastics, synthetic fibers and more.

Source: University of Massachusetts Amherst

http://esciencenews.com/articles/2012/01/11/umass.amherst.chemical.engineers.boost.petrochemical.output.biomass.40.percent

On the road to the e-bus

Clear the Air says:

the obvious choice for Hong Kong is the latest version of hybrid buses. The drive train is electric and the batteries are charged by a small Euro 5 engine that only runs when the batteries run low and will not run when the bus stops to pick up or set down passengers. Braking also charges the batteries. In a perfect world we would have hydrogen fuel cell vehicles and a network of hydrogen filling stations here.

Hong Kong, with a wide range of terrain, represents a steep challenge for two mainland-based companies hoping to develop electric buses suitable for the city

Cheung Chi-fai 
Mar 23, 2012

There’s still a long way to go towards eliminating Hong Kong’s air pollution but two mainland-based makers of electric buses are about to take the city further along the road towards blue skies.

BYD, backed by US investment expert Warren Buffet, and fast-growing Great Dragon – a joint venture between mainland bus maker Yixing and Global Electric Vehicles, owned by locally-listed Dah Chong Hong – have shown keen interest in developing vehicles suitable for Hong Kong.

They believe the city is ideal for developing right-hand-drive vehicles for sale in larger markets such as Britain, Australia and India.

Both companies are set to test-drive pilot vehicles designed with Hong Kong’s conditions in mind – more than 10 years after disappointing results from plans to introduce electrically powered vehicles in a city choking on its exhaust fumes.

“We are going to make a perfect bus for the Hong Kong market,” said Paul Lin for BYD, which is carrying out commissioning tests on a bus assembled at its Changsha production plant.

Raymond Lo Yuk-shun, Great Dragon’s managing director, said tailoring electric buses to a specific locale was the key to capturing the Hong Kong bus market. “You just can’t have one design to meet all the needs. You have to fine-tune each bus for special needs.”

In 2001, some 14-seat electric minibuses were tested for six months, along with minibuses running on liquified petroleum gas. The electric buses were badly outperformed by the latter. They couldn’t travel as far, were difficult to charge, spluttered going uphill and were expensive to maintain.

Two years later, an estate at Ma Wan introduced an electric single-decker bus for its shuttle service. Three of the buses were retired within two years, and the last one in 2010. The buses were said to run inefficiently and most of the time were sidelined for maintenance.

Not only must an electric bus meet legal requirements – technical and safety standards governed by road-traffic regulations – but it must suit Hong Kong’s operating environment. And it must be reliable enough to transport millions of commuters every day.

One of the biggest concerns with electric buses is their range, which is often limited by the size and efficiency of batteries and the availability of recharging facilities.

With a fully charged battery an electric bus’ usual range is between 200 and 300 kilometres, which approaches the average daily travelling range of each of the city’s three franchised bus operators – Kowloon Motor Bus (KMB), New World First Bus (NWFB) and City Bus – who operate about 5,800 of the 13,000 buses in Hong Kong.

In 2010, the vehicles of the three bus firms travelled a total of 440 million kilometres. This means that, assuming 90 per cent of the fleet was used at all times, the daily average travelling range of each of these 5,800 buses was around 230 kilometres (KMB 246 kilometres, NWFB 205 kilometres City Bus 253 kilometres).

In reality, the terrain can vary tremendously depending on the routes, making the suitability of electric buses much more complicated. For example, with a driving range of about 200 kilometres, an electric bus can handle 87 trips without recharging on KMB’s short 71B route, which runs about 2.3 kilometres within Tai Po new town. But a similar bus could only make four trips on KMB’s longest route, a 50-kilometre trip from Fanling to Wan Chai.

Driving range is just one consideration. Climbing power is the weakest link for electric buses – making Hong Kong a steep challenge.

“Forget about getting up to The Peak on an electric bus for the moment,” said Lo. “The battery can barely support the vehicle to finish the trip.

“Even if it can, the bus might need power replenishment right away at a terminus.”

A complete transition to electric buses in Hong Kong could take years. Until then, Lo predicts, the city’s streets would see a mix of power sources for buses.

“It will still take us a long time to replace these buses, perhaps 10 to 20 years, I don’t know,” he said. “But this is going to happen sooner or later, when technology advances could lower the battery weight by as much as half.”

Apart from right-hand drive, Lo said, electric buses for Hong Kong would require larger batteries and motors than those for the mainland. They’ll need greater power to handle the hills, high volume of passengers and need for air conditioning.

But a larger battery could mean fewer seats or a small luggage area, because the weight of the bus must not exceed the legal standard of 16 tonnes for a single decker – a rule that might have to be relaxed in the long term.

Where and how the battery cells are installed in a bus is another concern, because Hong Kong buses have to pass a tilt test – no flipping when tilted sideways at up to 35 degrees. Improper battery location might be dangerous.

Chinese University, located on top of a hill off Ma Liu Shui, is planning to introduce two electric buses under the city’s pilot Green Transport Fund, set up to support the testing of green and innovative technologies for public transport and goods vehicles.

The university is getting a crash course in the vehicles’ pluses and minuses.

“The ability to climb is a very crucial factor in selecting an electric bus,” said Joseph Chan Ping-tak, the university’s environmental sustainability manager. But that strong climbing power and better driving range might come at the expense of passenger capacity and even the provision of air conditioning.

“We hope we don’t have to make such a trade-off since we are not sure if the bus will be designed in a way that the windows can actually be opened,” Chan said, adding that none of the 14 diesel-run buses they have now were equipped with air conditioning. On average each bus can pack in as many as 60 students, mostly standing.

Great Dragon is now going full steam ahead to develop and build 16 electric single-decker buses early next year for trials by organisations awarded subsidies under the Hong Kong government’s Green Transport Fund.

The procurement has yet to be determined after a public tender, but Lo is confident of winning its bid. “We believe we are at least three to five years ahead of our rivals,” he said.

One likely rival is BYD, which signed a memorandum with KMB to supply an electric bus for trials that were to start late last year, but were then postponed to allow more time to develop the vehicles.

Lin denied that the early move was a public relations ploy for BYD, which has been plagued by plunging sales on the mainland for its electric cars. “It makes no sense to develop a right-hand-drive bus in a left-hand-drive market, and that’s why we think the Hong Kong market is very important to us. This is definitely not a public relations war,” Lin said.

KMB is also looking at another technology – a super-capacitor bus used at the World Expo in Shanghai. This bus doesn’t need a huge battery and has a small travelling range of only 50 kilometres when fully charged. But, by using a pantograph – an extendable mechanical link – on the bus roof, it can be recharged every time it stops at a bus stop equipped with an overhanging power cable. A 30-second charge is said to provide power to go one kilometre.

The bus, nicknamed gBus, has been tested by KMB for internal use since 2010. While the bus firm said the test was satisfactory, it plans to introduce another prototype with a longer range within this year. And the company also plans to test battery-driven buses and hybrids.

KMB would check vehicles’ power consumption over different terrain, in loading conditions and in different weather, a company spokeswoman said.

Lo said super-capacitor technology had some problems that need to be addressed. “What if there is a serious traffic jam and the buses run out of power and the air conditioning stops?” he said. “It might also need a larger charging station, and a strong voltage power cable might not be welcomed by residents living close to the bus stops.”

KMB said the gBus could have sufficient power to maintain 30 minutes of air conditioning if it was stuck in traffic.

Lo said the West Kowloon arts hub might be an ideal spot for these buses because of the flat spaces and short distances.

Electric-bus makers are not the only ones revving up for more business. Traditional bus makers are devising greener vehicles, too – including diesel-electric hybrids. Both Alexander Dennis and Volvo have rolled out these new-generation buses in Europe, especially in London, where the Olympic Games this year will boost green city transport.

These makers believe the hybrid buses, being so similar to current buses, offer plenty of advantages over electric powered vehicles.

“It is well recognised that given the limited road space and high passenger volumes, Hong Kong needs double-deck buses. This represents an even greater challenge in the context of an electric vehicle,” said a spokesman for bus maker Alexander Dennis in Hong Kong.

chifai.cheung@scmp.com