Hong Kong Investment and Settlement listens to Hong Kong Stories: A tram passes through a street market in Hong Kong. The tram carries 200,000 passengers daily, with a fare of HKD 2.3 or 30 cents, regardless of distance.
According to a report by the Chinese website of The New York Times, Hong Kong—Hong Kong has a highly praised subway system: the stations are clean and tidy, the carriages have good mobile phone signals, and some platforms even provide computers with free internet access. The journey across Hong Kong Island is eight miles, taking only 25 minutes by subway, with a train punctuality rate of 99.9%.
People once thought that the MTR would signal the demise of the slower and less comfortable surface transport, the century-old Hong Kong tram. These trams slowly navigate through the crowded streets of Hong Kong, and without air conditioning, passengers must endure the humidity of Hong Kong's tropical climate. In contrast, the air-conditioned subway is cool and pleasant, yet the tram has survived.
"I often take the tram—it’s convenient, economical, and efficient," said 42-year-old Derek Huang, who works in the catering industry and rides the tram 5 to 10 times a week. "If you plan your time well, the speed of the tram is not an issue."
Because the trams are equipped with bells to alert pedestrians, they are also affectionately referred to by locals as "Ding Ding Cars." The tram carries 200,000 passengers daily, with a fare of HKD 2.3 or 30 cents, regardless of distance. Senior passengers enjoy half-price fares. In comparison, MTR fares range from HKD 4.1 to HKD 7.5. The daily ridership is 5.1 million. Given the dense commercial and shopping areas in northern Hong Kong Island, the convenience of hop-on, hop-off transport is equally important.
Trams may be old and slow—averaging a speed of six miles per hour (approximately ten kilometers)—but they remain popular, demonstrating that some traditional habits still have a strong vitality in this increasingly modern city. The tram system in Hong Kong is operated by a French private company. Research shows that it is not only long-term residents of Hong Kong who rely on this 109-year-old mode of transport.
"We are very characteristic of Hong Kong," said Emmanuel Vivant, the general manager of the tram company. "Both the elderly and the young take the tram. Many white-collar workers ride the tram during lunch hours," typically for short trips, such as from Hong Kong's towering financial skyscrapers to nearby residential area restaurants.
The operator, Veolia Transport, is confident in the tram's position in Hong Kong and is investing approximately USD 20 million to upgrade the tram system, primarily replacing the original wooden bodies with more durable aluminum alloy bodies. The new carriages will last six times longer—requiring a complete overhaul only after 20 years of use. Veolia will also introduce video and audio announcement systems, which is somewhat overdue, as other regions' trams have had these improvements for years.
Nevertheless, trams still face increasing challenges from the expanding MTR. The latter is extending its lines around Hong Kong Island, opening a new line to the southwest of Hong Kong Island while extending the main island line into an area that was previously only served by trams. Vivant admits that the MTR's expansion makes his company "deeply concerned about the future."
The MTR system's profits come not only from ticket sales but also from the more substantial profits generated by real estate developments around subway stations, which include office buildings and some famous high-end shopping centers that attract tourists from around the world to Hong Kong.
To compete, Veolia must rely on some new revenue methods, in addition to advertising on the sides of the trams, such as renting out the vintage trams for group tours. Meanwhile, Veolia has lower fixed costs and has not outsourced its operations. Trams run every 90 seconds, with standing room packed, and each tram can carry a maximum of 110 passengers, ensuring a steady stream of income.
The simplicity of the tram routes is also an advantage. Navigating the MTR's maze-like underground network can sometimes be very time-consuming.
The nostalgic feel of the trams attracts many loyal passengers. The tram system was the first public transport system on Hong Kong Island, operating along the waterfront until land reclamation allowed tram services to enter the inland areas of Hong Kong Island. In the 1980s, the Hong Kong government considered abolishing the tram lines, but public support helped the trams survive.
"The tram is one of the symbols of Hong Kong," said 59-year-old Peter Huang, who is retired and has been riding trams "since childhood."
In terms of fare, it is simply impeccable.
"I don’t mind that there is no air conditioning on the tram because it is very affordable," Mr. Huang said while waiting for the tram at West Harbour City. "With such a low fare, you can’t have everything. Also, the tram preserves Hong Kong's culture."