Post by ferryfast admin on Dec 17, 2007 15:19:08 GMT -5
Ferry freeze spurs NW Express
Wednesday, 12 December 2007
by Nigel Huxtable
www.macaudailytimesnews.com/index.php?option=com_content&task=view&id=3980&Itemid=28
The suspension of ferry operations from the Taipa terminal yesterday buoyed the unsuccessful license bidder with the claim against the government and left the newest operator feeling like an “innocent bystander”.
At 8:30am the last boatload of travellers from Hong Kong arrived at the temporary Taipa terminal before Cotai Waterjet (Macau) suspended the service.
On Monday the Court of Second Instance ruled against the government's decision to override an injunction application by North West Express. The government had earlier claimed the injunction should not be imposed as it would be detrimental to the “public interest”.
The court saw otherwise and upheld the injunction, suspending the service until it formally rules on the application.
“The client was very pleased I would say, it strengthens our position, although the judgement was very profound, the court already has given us some ideas of what the next decision will be,” Nuno Simoes, lawyer for North West Express told the Macau Daily Times.
“On the first impression we are within reason to complain.”
North West Express filed the injunction on the basis that the decision to award a license to Cotai Waterjet did not follow a valid process.
“We oppose this contract because it was not granted through open tender, there was no decision from the secretary on any grounds not to have an open tender,” said Mr Simoes.
The temporary injunction will stay in place until the court issues a written decision on its validity.
“We don't have any timeline for that, within the next two or three weeks I hope we can have a decision on that,” said Mr Simoes.
However the injunction process is only an opening act for the primary case which North West Express is yet to file with the court.
30 days and counting
The company was unable to file the primary case until the details of the contract between the government and Cotai Waterjet were made public. North West Express only became aware of the existence of the contract after a signing ceremony was held in October.
Last Wednesday the contract details appeared in the December 5 Official Gazette.
“We have 30 days counting from that date to file the case,” said Mr Simoes.
If the court rules in favour of the injunction in the next couple of weeks, the suspension will stay in force until a decision on the primary case is made, which could be some time.
“The main case is not an urgent matter so it will take the normal proceeding of administrative cases,” said Mr Simoes.
“Innocent bystander”
Meanwhile parent company of Cotai Waterjet, Las Vegas Sands Corporation (LVS), is left with its three, 411 passenger catamarans, each worth USD17 million, sitting idle. The service began on November 30 and although initial numbers were low the company was confident the popularity of the route would grow.
“I think we have to be regarded in this sense as almost as an innocent bystander,” Stephen Weaver, Las Vegas Sands Corporation Asian region president told the Times yesterday.
“We inquired about a ferry concession, we applied for it in accordance with the guidelines we were given.
“Based on those assurances we went ahead and bought the ferries and ... it seems there are those who obviously don't want to see us in business.”
Why were Cotai selected?
The government didn't set out to build a temporary facility, however did so to buy it more time to construct a permanent facility that will house the five interested operators, suggests Mr Weaver.
Cotai Waterjet was selected to operate at the temporary ferry terminal as they were the only company who could immediately inject new boats into the Macau to Hong Kong route, he said.
“I know that other people have expressed an interest and as I've said before, there was never going to be a temporary terminal and what has happened, trying to be objective, there was a total of five applicants for the permanent Taipa terminal and it's being designed to cater for all comers, almost,” said Mr Weaver.
“In the meantime the only operator that actually went into the market to buy the additional capacity, because we recognised there was a long lead time in doing that, was us.”
In total the company has ordered 10 vessels from Australian ship-builder, Austral.
Transport secretary regrets decision
The secretary for transport and public works, Lau Si Io, yesterday said that he regretted the inconvenience caused to passengers by the suspension of ferry service.
“I feel sorry about the inconvenience brought to the passengers and I have instructed the related government departments and the ferry company to carry out arrangements in order to reduce the inconvenience to the minimum level,” he said.
Passengers that had reserved tickets on the new service were moved to earlier departures or other carriers, said Mr Weaver.
The last two boats to arrive in Taipa at 7.30am and 8.30am were at full capacity.
Although the company's investment is now bobbing idle in the South China Sea, the immediate concern is that the almost-direct route from Hong Kong to the Venetian Macao is, for the moment, cut.
Public benefit?
Since the venue opened in August it has averaged some 60,000 visitors per day and more than 100,000 on a number of weekends.
With the existing service to the peninsula often reaching capacity at peak times and a number of events scheduled in the coming weeks, Mr Weaver finds it difficult to believe the court's decision will benefit the public.
“What I would have thought was in the public interest is that they (visitors) ought to be able to get a basic transport service to go when they want to go where they want to go,” said Mr Weaver.
“When you have major events that people really want to get to, be they business events or a wedding or a tennis match, it's unacceptable to the public to be lucky enough to secure a ticket to the event but then be unable to get there.”
LVS released a statement last night suggesting the suspension will not affect visitor levels at the Venetian or the second largest local casino, Sands Macao.
The verdict is all part of the business for one of the largest casino operators in the world, which is currently considering its options, said Mr Weaver.
“We've never shied away from taking whatever steps are necessary to protect our interests, it depends on what a very short time will be (before the injunction ruling) but I'd like to see what the final determination of the court is,” he said.
“We're used to having opposition set backs, when you're in business at a senior management level your job is to solve problems and this is just another little road block in the way.”