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Complete Case details are given below :
Case Name : Lack of Coordination in Management of the Three Cross Harbour Tunnels in Hong Kong
Authors : Ka-Fu Wong, Carola Ramon-Berjano
Discipline : Business & Government Relations
Case Length : 24 pages
Solution sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
Hong Kong had three Cross Harbour Tunnels linking Hong Kong Island with the Kowloon Peninsula and the New Territories. All three projects were undertaken under Build Operate and Transfer (BOT) contracts, and after 30 years, the management would revert to the government. The government managed the oldest tunnel, the Cross Harbour Tunnel (CHT), whereas private companies still managed the Eastern Harbour Tunnel (EHT) and the Western Harbour Tunnel (WHT). In 2002, the New Hong Kong Tunnel Co., which managed the EHT, had applied for a toll increase. Following the government's rejection, the case was handled by two independent arbitrators, who ruled that the company should raise the toll by 62.5% for all vehicles effective May 1, 2005. This increase in toll sparked a controversy. As a result of the toll increase, it was estimated that traffic in the EHT would fall by 17%, whereas the CHT, which was already heavily congested, would receive most of the diversion in traffic.
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