The stringent requirements and criteria established by the government in the public tender for the operation of the Outer Harbour Ferry Terminal are likely to severely restrict the number of participants, an analysis made by the Times of the tender document has concluded.
On the line are the compulsory requirements for the potential bidders who need to be a registered company based in Macau and dedicated to the management of real estate for commercial purposes, management of ferry terminals, piers, airports or border posts.
Companies that participate in the tender also need to do so individually and not in any form of partnership or consortium with other companies.
If these requirements were not restrictive enough, the bidders will also need to present a deposit amounting to as much as MOP20 million.
Another of the requirements established in the tender published by the Marine and Water Bureau (DSAMA) notes the bid price cannot be lower than 10% of the gross revenue of the current concession.
Bids will be accepted until April 8 (Monday) at noon at DSAMA’s headquarters.
All the bids received will be opened on the following day (April 9) at 10 a.m.
Among the criteria and weight used for the evaluation of the proposals, was noted the return to the government of a share of the profits before taxes (50%), the plan for the proposed operation of the Terminal (30%) and the experience of the bidder on the operation and management of this type of facility (20%).
Considering such criteria and requirements, it will be surprising if any company, other than the current operator, has a real chance of winning the tender.
2023 was a “low year ” or the Macau ferry terminal
According to data from DSAMA on the operations of the Outer Harbour Ferry Terminal, last year was a considerably low year for this facility which catered for a total movement of 3,044,237 passengers.
The figure is just about 35.52% of the figure registered in 2019 (8,571,690) and contrasts with the movement of 4,490,240 passengers recorded by the Taipa Maritime Terminal last year. In this case, the almost 4.5 million passengers traveling from Taipa terminal, was about 78.83% of the number registered in 2019 (5,696,082).
Note that the figures indicated for the Taipa Ferry Terminal also include the number of departures and arrivals of passengers using the Coloane Yacht Club Pier.
In a Times analysis of the DSAMA’s detailed figures, some inconsistencies were found.
For example, according to the bureau, the daily average of maritime passenger movements (arrival and departure) in 2023 was 288,131. However, if that is correct, then passenger volume would have amounted to about 8.6 million rather than the bureau’s published figure of 7,534,477.
It is statistically apparent that Outer Harbour has seen a significant decline in passenger numbers since 2017, particularly between 2018 and 2019 (coinciding with the opening of the Hong Kong-Macau-Zhuhai Bridge).
While the Taipa-located terminal was in full operation during the past year, the Macau one suffered because maritime authorities imposed several service limitations and suspensions, related to the construction of the 4th bridge Macau-Taipa.
During the several days of suspension of sailings from and to the Outer Harbour, all ferry services were rerouted to the Taipa facility, also contributing to its higher results.
Tenants and Tourism Industry call for revitalization
According to the president of the Travel Industry Council of Macau, Andy Wu, a revitalization is needed at the Outer Harbour.
In an interview with the Chinese channel of the public broadcaster TDM, Wu said the new operator should consider adding new business elements.
He also said that the facility includes many spaces dedicated to catering for travel agencies which are vacant as “most of this business has shifted to online,” suggesting the operator adjust the size and purpose of the existing commercial spaces to increase the occupation.
Similar ideas were expressed by the member of the Tourism Development Committee, Manuel Iok Pui Ferreira, who called on the operator to adopt a more modernized approach and optimize the facility to allow tourists to buy snacks, drinks or souvenirs, on the path that leads to the gates.
Ferreira noted that the business model of the ferry terminals is lagging and cannot keep up with the pace of the current times and profile of the current visitors.
Concurrently, tenants of some of the commercial spaces of the facility are calling for cheaper rentals taking into account the reduction of movement at the terminal which has also a lot fewer ferries arriving and departing when compared to the pre-pandemic era.
According to DSAMA, only 65% of the commercial spaces of the Outer Harbour are operating (31 of 48). The majority of the spaces in operation are occupied by food and beverage establishments and retail stores.
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