The Hong Kong Transport Department (HKTD) is responsible for the planning, implementation, and management of Hong Kong's transport infrastructure and services. It aims to provide safe, efficient, and reliable transport systems to meet the needs of the public and support the economic development of Hong Kong.
PUBLIC SECTOR
Challenges
HKTD traditionally managed vehicle registration mark (VRMs) distributions through in-person auctions. With a push towards a digital economy by the Hong Kong SAR Government, the HKTD aimed to launch its first online auction platform to simplify public access to vehicle registration marks.
This shift presented several key challenges. Firstly, the HKTD had limited business domain knowledge of the online auction process and its many variables, necessitating a knowledgeable and experienced digital transformation partner. Secondly, ensuring the security of digital monetary transactions and data privacy was another critical concern. On the logistical side, the platform would also need the requisite IT infrastructure to be able to support such a large number of concurrent public users.
The platform would need to enable accurate transaction reconciliation by certified accountants, as well as ensure prompt responses to enquiries from the general public regarding portal usage, the bidding process, auto-bid setting, pre-set auto bid, payment and more.
Solutions
LPS developed an online auction portal “eAuction”, enabling the HKTD to deliver one-stop customer experiences for citizens purchasing vehicle marks. With multiple participation options including real-time bidding, auto-bid (during the auction), and pre-set auto bid (before the auction), bidders can now choose their preferred method and seamlessly participate online.
The entire auction process has been digitalized, providing real-time bidding status and prices while enabling online direct payments within the same portal. The platform successfully hosted its first online auction of vehicle marks via the eAuction website in February 2025, running smoothly and uninterrupted for five straight days. During this period, a total of 50 Ordinary VRMs were auctioned, representing a significant milestone in digitalizing the auction process.
Further AI chatbot capabilities have been incorporated to handle general enquiries quickly and efficiently. Additionally, a 24/7 hotline supports public enquiries throughout the pre-auction, during auction, and post-auction periods. The platform also supports iAM Smart+ integration for registration, further synergizing with Hong Kong’s city-wide smart city initiatives and services.
Value created
The successful implementation and operation of the online eAuction platform offers a comprehensive and user-friendly experience for the public, enabling enhanced efficiency, transparency, and accessibility while elevating Hong Kong’s digital government services. This has minimized costs and resource expenditure, further giving the HKTD much greater flexibility in managing the auction process by effectively removing previous limitations of time, venue, and operation for both organizers and users.
The switch to online auctions has dramatically increased participation, with the eAuction platform accommodating up to 50,000 bidders – 100 times more than traditional physical auctions. The convenience and broader reach of the platform resulted in considerable gains in both bidder engagement and prices. For example, in the first online auction, the highest bid reached HKD 60,000, and average bids were approximately 50% higher compared to live auctions, illustrating both tangible and intangible benefits of digital transformation for the HKTD.
All auction proceeds are directed to the Government Lotteries Fund after deducting the expenses incurred in conducting the auction and are donated to charitable causes.
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