|GLTA staff are discussing ways and means for productivity improvements.|
Following the implementation of the recommendations of the First Review
on the Cost Effectiveness of Transport Pool Services in March 1999,
the Agency closed the Hung Hom Pool in April 1999, introduced a one-stop
booking service for pool transport from June 1999, reduced the number
of driver posts from 129 to 105 and the pool's vehicle fleet size from
186 to 137 by October 2000.
With Government's policy of encouraging increased outsourcing and implementation
of the Voluntary Retirement (VR) Scheme, the Agency conducted the Second
Review in November 2000 to further streamline the transport pool services.
The focus of this review was to study the feasibility of introducing
more contract hire transport services to replace or supplement the types
of pool transport services that were considered less cost-effective
than commercial vehicles. The review also further examined the optimal
fleet size and mix so as to achieve more cost savings.
The review conclusively supported expanded outsourcing by increasing
the number of vehicle hire contracts from the present eight to nine
by including limousine services to serve visiting VIPs. Moreover, the
review determined a new optimal fleet size of 96 vehicles and 85 drivers.
The figures represented a significant reduction of about 30% and 19%
of the existing number of vehicles and drivers respectively.
By implementing the recommendations made in the report, it is estimated
that annual savings of $17M in operating costs can be achieved. Part
of the cost savings comes from the merging of Kowloon Bay Pool with
Hong Kong Pool made possible by the reduced fleet size, while another
part will come from further deletion of vehicles and driver posts upon
successful introduction of the vehicle hire contract for limousines.
Some of the recommendations have been implemented since the beginning of this year. For instance, we have closed the Kowloon Bay Pool and merged it with the Hong Kong Pool since June. A one-year contract for hiring limousine (equivalent to the Pool's Large Saloon Car Grade A) services has been introduced since July. With regard to the proposed deletion of posts, the department will achieve the target through the VR Scheme.