The Macau SAR Government has unveiled plans for an open tender to determine the future operator of the Outer Harbor Ferry Terminal, currently under the franchise of Sociedade de Turismo e Diversões de Macau, S.A. (STDM). As the current license granted to STDM nears expiration, this move signals a significant transition in the management of one of Macau’s crucial transportation hubs.
Tender Announcement and Background:
In October 2018, STDM was granted the license to operate the Outer Harbor Ferry Terminal, with responsibilities extending to the management of its commercial space for a period of 66 months. However, as this tenure approaches its conclusion, the government has opted for an open tender approach, aiming to foster competition and potentially bring new dynamics to the terminal’s operations. The details of the bidding process are yet to be disclosed, but it is evident that the successful bidder will undertake the operation and commercial management of the terminal, alongside meeting specific financial obligations to the government.
Financial Obligations and Exemptions:
Under the terms of the tender, the winning bidder must ensure a monthly return of MOP$1,800,800 (US$223,300) to the government. Notably, during the pandemic period spanning from 2020 to 2023, STDM benefited from an exemption concerning the payment of this monthly return. This exemption reflects the extraordinary circumstances faced by businesses during the pandemic and underscores the government’s flexibility in adapting to economic challenges while maintaining essential services.
Key Players and Affiliations:
The landscape of entities involved in Macau’s ferry services adds a layer of complexity to the tender process. Presently, ferry services at the Outer Harbor Ferry Terminal are operated by Shun Tak-China Travel Ship Management Limited, primarily serving the Hong Kong-Macau route under the TurboJET brand. Shun Tak-China Travel Ship Management Limited is affiliated with Shun Tak Holdings, with Pansy Ho serving as the Group Executive Chairman and Managing Director. Notably, Pansy Ho also holds roles within MGM China Holdings Limited and retains a controlling stake in STDM, the current franchise holder of the Outer Harbor Ferry Terminal. These interconnections underscore the intertwined nature of Macau’s transportation and gaming industries, with implications for regulatory oversight and competition dynamics.
Implications and Considerations:
The transition to a new operator for the Outer Harbor Ferry Terminal carries significant implications for Macau’s maritime connectivity and broader economic landscape. The tender process presents an opportunity for the government to reassess the strategic priorities for the terminal, including enhancing operational efficiency, improving passenger experience, and fostering sustainable growth. Moreover, the involvement of diverse stakeholders, including gaming conglomerates and transportation firms, underscores the interconnected nature of Macau’s economy and the need for balanced regulation to ensure fair competition and consumer welfare.
As Macau prepares to embark on the open tender for the Outer Harbor Ferry Terminal, stakeholders across the gaming, transportation, and government sectors are closely monitoring developments. The outcome of the tender process will not only determine the future operator of a critical transportation hub but also shape the trajectory of Macau’s economic development and connectivity with neighboring regions. By fostering transparency, competition, and strategic vision, the government aims to ensure that the Outer Harbor Ferry Terminal continues to play a pivotal role in facilitating travel and commerce while contributing to the sustainable growth of Macau’s economy.