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Serco signs new £30m contract with Hong Kong government to manage two new tunnels for major road project

Published: 9 Nov 2018

Serco, the international service company, has signed a new contract with Hong Kong’s Transport Department to manage, operate and maintain the new Lung Shan and Cheung Shan Tunnels, which will form part of a major road link project in the region. This new contract builds on Serco’s 25 years’ experience supporting Hong Kong in road and toll management. The contract has an initial 3-4-month gearing-up period followed by a four-year operating term. The operating term may be extended by the Government by one year. The total value of the contract, excluding any extension, is HK$305m (equivalent to approximately £30m).   

The Lung Shan Tunnel is 4.8km long and will be the longest road tunnel in Hong Kong. The Cheung Shan Tunnel is 0.7km long and links to 3.9km of elevated highway that will also be managed under this contract. The tunnels and highway connect the existing Fanling Highway and the new Heung Yuen Wai Boundary Control Point to create a new link facilitating greater access between Hong Kong and the eastern part of neighbouring Guangdong Province, and further establishing Hong Kong as an international logistics hub.

Under the new contract, Serco will be responsible for traffic operations management, incident response, and maintenance and repair work for all tunnel equipment. This contract is testament to the good work of Serco’s Hong Kong team in managing the Tsing Sha Control Area, a 13km long highway which Serco has operated since 2013.

In developing its solution, Serco is pleased to be able to provide innovative approaches to the challenge of ensuring efficient transport for the people of Hong Kong. Serco has enhanced its Road and Tunnel Management Plan to ensure the safe and efficient passage of traffic through the tunnels. Its plan addresses all normal operational, maintenance and emergency planning requirements but also the additional challenges created due to the anticipated heavy freight use and the length of the Lung Shan Tunnel in comparison with other Hong Kong tunnels.

Mark Irwin, Serco Asia Pacific Chief Executive, said: “We are pleased to be selected to have the opportunity to support the Hong Kong government through this work. Serco’s successful bid for this contract is based on the strength of our experience and reputation in managing similar infrastructure and in demonstrating that we will be ready for the planned opening of the route. In its Global Competitiveness Report, The World Economic Forum ranks Hong Kong’s physical infrastructure as among the best in the world, and we are proud of our role in operating and maintaining some of its key strategic links.”

Photo: William Cheung, Operations Director Hong Kong; Serco Hong Kong Managing Director John Hesketh; Stella Lee, Assistant Commissioner for Transport Department Hong Kong and Chris Chiu, Principal Transport Officer.

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