Govt tenders next tenancy for Kai Tak Cruise Terminal with stricter performance targets

The government launched an open tender on Wednesday for a ten-year tenancy to operate and manage the Kai Tak Cruise Terminal (KTCT), introducing two major adjustments ahead of the current operator's agreement expiring on May 31, 2028.

The terminal, designed specifically for mega cruise ships, can berth two vessels simultaneously, each up to 220,000 gross tonnes.

Since international cruise lines schedule itineraries up to two years ahead, the early tender allows the next operator to secure ship berths as soon as possible.

Bidders must demonstrate at least three consecutive years of experience operating a cruise terminal in the past decade and proven handling of cruise ships of 160,000 gross tonnes or larger.

A key adjustment in the next tenancy agreement is the introduction of four KPIs. 

These include the annual number of ship calls, the annual number of non-cruise-related events and the visitors they attract, and the occupancy rate of ancillary commercial areas.

The provisions regarding compensation to the government arising from the operator's failure to meet the targets will take effect from the third year of the tenancy agreement.

Meanwhile, the next operator will also be responsible for managing the public spaces of the terminal, including the podium gardens on the second floor and the KTCT Park on the rooftop, in addition to handling cruise-related matters.

Tender evaluation uses a two-envelope system, weighting non-price proposals at 70 percent and price proposals at 30 percent.

"The smooth operation of the KTCT is vital to attracting more cruise ships to berth in Hong Kong and promoting the development of Hong Kong's cruise industry," a spokesperson for the Culture, Sports and Tourism Bureau said.