Hong Kong Streetcars Get a French Twist

By YVONNE LEE

HONG KONG -- Hong Kong's iconic streetcars are going under French management as Wharf Holdings Ltd. sells a half stake in the network to utility Veolia Environnement.
Hong Kong's tram system, known locally as the "ding ding" for the clanging bells on the streetcars, will be held in a 50-50 joint venture between Wharf Transport Investments Ltd. and Veolia Transport China Ltd., under the deal announced Tuesday.
Veolia will operate the trams and receive an option to buy Wharf's stake, Wharf Transport director Frankie Yick said at a news conference. He declined to provide financial details.
Hong Kong Tramways, dating to 1904, operates 163 tram cars on Hong Kong Island, transporting around 240,000 passengers daily.
Bruno Charrade, head of operations at Veolia Transport China, said the tram system might be expanded with a loop along a waterfront development between the Central and Wan Chai business districts.
Wharf also owns and operates the Star Ferry, Hong Kong's oldest ferry service linking Hong Kong Island with the Kowloon peninsula. Wharf plans to keep the ferry, Mr. Yick said.
Hong Kong's trams and the Star Ferry are popular attractions for tourists and are Hong Kong's least expensive form of transportation, with fares a fraction of the price of subway tickets. Hong Kong Tramways charges adults two Hong Kong dollars, about 25 U.S. cents, for single journeys. Mr. Yick said the tram is profitable but he didn't provide figures.
Write to Yvonne Lee at yvonne.lee@wsj.com