2. HISTORY

The electric tram system was proposed in 1881, however nobody was willing to invest in a system at the time. In August 1901, the Second Tramway Bill was introduced and passed into law as the 1902 Tramway Ordinance. Hong Kong Tramway Electric Company Ltd., a British company, was authorized to construct and operate the system. It was soon taken over by the Electric Traction Company of Hong Kong Ltd. on 30 July, 1904, and the name was changed to Hong Kong Tranways Company Ltd. in 1910.

In 1922, a new company, Hong Kong Tramway Ltd. was founded to take over and operate the system. In 1974, Hong Kong Tramways became part of the Hong Kong and Kowloon Wharf and Godown Company Ltd. and is now operated under subsidiary Wharf Transport Investments Ltd.

The Hong Kong Tramways system was built from May 1903. After equipment testing, the electric tram began operation on 30 July, 1904. At that time the main route went along the northern waterfront of Hong Kong Island from Arsenal Street in Wan Chai to Shau Kei Wan, with a branch serving Happy Valley. Shortly after, the line was extended westwards to Kennedy Town. the length of the route was 15 km (9.3 miles), the same as today, except for track relocations and the extension of Happy valley branch in 1914. Originally constructed with both single and double-track sections, the last single-track section was eliminated in August, 1949. Reserved track along Queensway (then part of Queen's Road East) was introduced from 1955.

In the late 1970s and early 1980s there were fears about the survival of the trams when the Mass Transit Railway began to construct the Island Line, which was proposed to run along a route that is similar to the trams'. A survey was taken by the company in 1984, and the results concluded that the public would prefer to keep the tram system intact.