Peak Tram operating rights renewed until end of 2015

Premium is worth $25m.

According to a release, the Chief Executive in Council today approved the Peak Tramways Company's right to continue operating the Peak Tramway until the end of 2015.

The company must pay the Government a non-refundable lump-sum full market premium of $25 million for the government land on which the tram track lies.

The Government said it is satisfied with the company's safety and service performance, and the operator will continue to take measures to maintain safety and service performance standards.

During the two-year interim operating period, the Government will study and decide upon the long-term arrangements for the tramway, including the exit and premium payment mechanisms, and introduce legislative amendments.