Toll review underway as govt face $268m deficit in major tunnels: Mable Chan

With five major government tunnels reported to be operating at a loss in the 2023-24 fiscal year with a total deficit of up to HK$268 million, Secretary for Transport and Logistics Mable Chan stated that the authorities will complete the tunnel tolls review this year.

Ongoing deficits for Shing Mun Tunnels and Aberdeen Tunnel

The current 10 government toll tunnels include Hung Hom Cross-Harbour Tunnel, Eastern Harbour Crossing, Western Harbour Crossing, Aberdeen Tunnel, Lion Rock Tunnel, Shing Mun Tunnels, Tate's Cairn Tunnel, and Route 8 in the Tsing Sha Control Area including the Eagle's Nest Tunnel, Sha Tin Heights Tunnel and Tai Wai Tunnel.

In a written reply to the LegCo, Chan pointed out the growing losses at the Aberdeen Tunnel and Shing Mun Tunnels, noting that neither has had a toll adjustment for 34 years.

According to the Transport Department (TD) data, the Shing Mun Tunnels has incurred losses of HK$26 million, HK$37 million and HK$52 million over the past three years, while the Aberdeen Tunnel recorded an operational deficit of HK$16 million in the 2023-24 fiscal year.

Additionally, it is anticipated that both tunnels will continue to post losses in the coming fiscal year, with projected deficits of HK$21 million for the Aberdeen Tunnel and HK$52 million for the Shing Mun Tunnels.

In contrast, it is reported that the three cross-harbour tunnels generated revenue ranging from HK$530 million to HK$660 million.

Meanwhile, Route 8K -- which includes the Eagles’ Nest and Sha Tin Heights Tunnels -- also reported a growing deficit in the past three years, which were HK$151 million, HK$175 million and HK$200 million.

As Route 8K is forecast to produce HK$181 million in revenue this year, down from HK$191 million last year, indicating the likelihood of sustained losses.

“User Pays” principles will be considered for tolls

Chan stressed that the department will take into account four major principles when determining the toll levels for government tunnels and trunk roads, including traffic management needs, “user pays”, public transport first and efficiency first”. 

Moreover, other factors such as public affordability and the prevailing social circumstances will also be considered.

Owning to the higher costs and resource demands with the tunnels, Chan highlighted the government will continue to adhere to the “user pays” and “cost recovery” principles, imposing reasonable tolls to ensure the financial sustainability of the infrastructure.

Chan noted the review of tunnel tolls will be completed and submitted to the LegCo within this year.