Star Ferry is Drowning in Debt

How much longer can the Star Ferry continue to operate?

Another victim of the pandemic is the Star Ferry, one of the best known icons of Hong Kong which is now in dire financial straits.

Painted green and white, and chugs across Victoria Harbour between Central Tsim Sha Tsui and Wan Chai, the Star Ferry is having trouble covering employees' salaries and paying down debts, and it even projects it will still be in the red in 2047 after two years of losses totalling a whopping HK$70 million (US$8.9 million).

Passengers have dropped off since 2021

It was affected by the 2019 protests -- though there were a few nights during the occupation of Hong Kong Polytechnic University when tons of people crowded onto the Star Ferries to get across to Hong Kong Island -- and now the pandemic into its third year.

David Chow Cheuk-yin, the Star Ferry company's general manager, said in a statement on Monday that the firm had accumulated losses of more than HK$70 million over the past two years, saying ridership in the first two months of 2022 had plunged by 73 percent compared to the same period in 2019.

Last year the Star Ferry carried only 9.57 million passengers, a sharp drop of 46 percent from 17.97 million passengers in 2019.

"It is disheartening to see our iconic Star Ferry is now a company with negative equity," he said. "In view of the threats posed by the current environment, I am afraid I can't be optimistic, as much as I would love to be, for Star Ferry to survive this wave."

The company is now borrowing to pay its daily expenses, as monthly revenue isn't even enough to cover employees' salaries.

"Enormous losses have far exceeded the company's total assets. The Star Ferry has struggled with negative equity for a long time and now counts completely on loans to cover daily operating expenses," said Chow.

Central ferry pier was at Edinburgh Place

He even hinted the company may not even be able to repay its loans even after 2047.

When a company as famous as the Star Ferry is in negative equity that's tragic. Even worse the government has done nothing to save this traditional form of public transport that has made Hong Kong famous.

If anything some of the budget from the Hong Kong Tourism Board could be funnelled into keeping the Star Ferry literally afloat, as everyone associates the city with the boats crossing the harbour.

It would be an absolute travesty if the government lets this company die because no other company or tycoon would bother taking over a money-losing business.

But let's face it -- the Star Ferry already began dying its slow death back in 2006 when its pier was moved from Edinburgh Place to another 500 metres away on reclaimed land to Man Kwong Street. It used to be so convenient to cross the harbour by Star Ferry, just past the Mandarin Oriental and the Central Post Office. 

Original steamboat from the 1880s

Now it's a commitment to want to take the Star Ferry from either Central or Wan Chai -- where the pier is not close to anything at all.

How can the Star Ferry survive with the odds stacked against it, and yet it is everyone's favourite ride crossing Victoria Harbour. It is the closest people can feel to taking transport back in 1880, when Parsi cook Dorabjee Naorojee Mithaiwala acquired a steamboat to ferry his baked goods across between Kowloon and Central.

Anyone want to start crowdfunding for the Star Ferry? Or is that considered to be violating the national security law?