GLTA staff are discussing ways and means for productivity improvements.
The Government Land Transport Agency always strives to provide bureaux and departments with quality and cost-effective vehicle services.

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.

Government Land Transport Agency
September 2001

Mr. Peter B. Walker, Government Land Transport Administrator is leading a discussion with the staff to explore productivity improvements.


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