The Government announced today (Dec. 24) the launch of an open tender for managing the Kai Tak Cruise Terminal (KTCT) (Tender Reference: TC 1/2025) and is inviting experienced and qualified bidders to participate.
The KTCT is designed specifically for mega cruise ships, capable of accommodating two ships with a gross tonnage of up to 220,000 tonnes each simultaneously. The current operator's tenancy agreement will end on May 31, 2028. Since international cruise lines typically plan their itineraries two years in advance, the Government is initiating this tender now to allow the new operator to prepare for upcoming berthing arrangements.
The chosen operator will manage the KTCT for a 10-year term, potentially extendable for an additional five years based on performance. To qualify, applicants must have at least three consecutive years of experience in operating and managing a cruise terminal within the past decade, as well as experience with cruise ships that have a gross tonnage of 160,000 tonnes or more.
A spokesperson from the Culture, Sports and Tourism Bureau (CSTB) stated, "The Action Plan on Development of Cruise Tourism aims to position Hong Kong as Asia's international cruise hub. Efficient operation of the KTCT is essential for attracting more cruise ships and fostering the growth of Hong Kong's cruise industry. The Government is dedicated to enhancing the KTCT's role as a cruise terminal accessible to all while maximizing the use of its facilities."
Having reviewed the terms and conditions of the tenancy agreement with the terminal operator and consulted relevant stakeholders, the Government will make two main adjustments in the next tenancy agreement to boost the appeal and competitiveness of the KTCT:
(1) Consolidating the management of the KTCT
To improve the management of the KTCT and enhance operational efficiency, the operator under the next tenancy agreement will, in addition to handling cruise-related matters, be responsible for managing the public space of the KTCT, including the podium gardens on the second floor and the KTCT Park at the rooftop. The Government earlier received 14 expressions of interest submissions from commercial organisations, cultural and creative industries, sports organisations, and young entrepreneurs on how to better utilise the space of the KTCT. Most expressed interest in leasing the ancillary commercial area and public space in one go. Private organisations or non-profit-making organisations can rent the public space of the KTCT for organising commercial and other activities, thereby promoting the KTCT for hosting more non-cruise and commercial events during the cruise low season and on days when fewer cruises berth there to better utilise the space at the KTCT.
(2) Introducing Key Performance Indicators (KPIs) for the work of the terminal operator
To strengthen the monitoring of the terminal operator's performance, the Government will introduce the following four KPIs in the next tenancy agreement:
(i) the number of ship calls per year;
(ii) the number of non-cruise related events per year;
(iii) the number of visitors brought by non-cruise related events per year; and
(iv) the occupancy rate of ancillary commercial areas.
Taking into account that the terminal operator requires time to adjust and adapt to the terminal operation, the provisions regarding compensation to the Government arising from the operator's failure to meet the targets will take effect from the third year of the tenancy agreement.
A "two-envelope approach" will be adopted in the tender assessment. A weighting of 70 per cent will be allocated to the assessment of the non-price proposal and 30 per cent to the price proposal. The non-price proposal includes the aforementioned KPIs as well as the execution plan for the operation and management of the KTCT. The tender must comply with the requirements specified in the tender documents. The detailed assessment criteria are set out in the tender documents.
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