PROCEDURES OF SHANGHAI MUNICIPALITY ON THE ADMINISTRATION OF PASSENGER TRANSPORT BY BUS, TRAM AND TROLIYBUS

   Article 1 (Purpose)

The present Procedures are formulated in order to strengthen the administration of bus, tram and trollybus passenger transport in
this Municipality, to protect the legitimate rights and interests of passengers and operators and to meet the basic demands of city
public passenger transport.

   Article 2 (Definition)

The buses, trams, and trollybuses as defined in the present Procedures refer to the passenger transport buses, trams and trollybuses
within this Municipality that are open to the public, run along a fixed route, follow a set schedule, take and discharge passengers
at regular stops, and charge fares according to the transport distance.

   Article 3 (Scope of Application)

The present Procedures are applicable to the operation and its related administrative activities of bus, tram and trollybus passenger
transport within the administrative areas of this Municipality.

   Article 4 (Principles for Development)

The development of bus, tram and trollybus passenger transport shall be geared to urban construction, socio-economic development and
the actual living standards of the people in coordination with other means of public transport.

The people’s government at various levels shall follow a policy of support on the development of bus, tram and trollybus passenger
transport.

   Article 5 (Principles for Operation)

The operation of bus, tram and trollybus passenger transport shall follow the principles of unified planning, moderate competition,
standardized service and conveniencing the passengers.

   Article 6 (Administrative Departments)

The Shanghai Municipal Public Utilize Administration Bureau (hereinafter referred to as “the Municipal Public Utilities Bureau”) is
the administrative department of this Municipality responsible for the administration of bus, tram and trollybus passenger transport,
while the Shanghai Municipal Administrative Section of Public Passenger Transport (hereinafter referred to as “the Municipal Public
Transport Administrative Section) takes charge of the specific administrative work in this field in accordance with the present Procedures.

Related departments of city planning, public security, traffic and municipal public works shall work in coordination in implementing
the present Procedures in accordance with their respective duties.

   Article 7 (Development Plan and Annual Plan)

The plans of development for this Municipality’s bus, tram and trollybus passenger transport and the annual plans shall be organized
and formulated by the Municipal Public Utilities Bureau and shall, after being overall balanced by relevant departments, according
to the specified procedure, be submitted to the Municipal People’s Government for approval.

   Article 8 (Planning of Lines and Networks)

The Municipal Public Utilities Bureau shall, jointly with relevant departments, formulate plans of lines and networks for bus, tram
and trollybus passenger transport in accordance with the municipal plan of development for this city’s bus, tram and trollybus.

The opening, rerouting and canceling of bus, tram and trollybus passenger transport lines (hereinafter referred to as lines) shall
meet the requirements of plans of bus, tram and trollybus passenger transport lines and networks.

   Article 9 (Requirements for Line Operators)

Line operators shall meet the following requirements:

1. Possessing more than 100 passenger transport vehicles that meet the stipulated requirements;

2. Possessing parking lots and supporting facilities that meet the stipulated requirements;

3. Having rational and feasible plans for line operation;

4. Having a sound system of operation management concerning passenger service and safe driving;

5. Having adequate managing personnel and drivers, conductors and dispatchers who have been trained and qualified in accordance with
relevant stipulations of the State.

   Article 10 (Announcement of Plans of Lines)

The Municipal Public Utilities Bureau shall announce regularly the annual plans of newly-opened and extended lines.

   Article 11 (Ways of Choosing Line Operators)

The Municipal Public Utilities Bureau may, in accordance with the actual demands of public passenger transport in this Municipality
and the plans of line and networks for bus, tram and trollybus passenger transport, decide on line operators by way of applying for
examination and approval, inviting bids or appointment respectively.

   Article 12 (Procedures of Applying for examination and Approval)

To apply for the opening or extending of lines, the applicant shall submit to Municipal Public Utilities Bureau the following documents:

1. Application;

2. Certificates of credit standing;

3. Certificates of parking lots;

4. Plans of line operation, operational management system and feasibility study report.

Upon accepting an application, the Municipal Public Utilities Bureau shall seek, in written from, the opinions of the municipal administrative
departments of public security. traffic control, and municipal public works, which shall make a written reply within 30 days after
receiving the letter seeking opinions, and their failure to make a reply within the prescribed period shall be regarded as approval.

The Municipal Public Utilities Bureau shall, within 60 days after accepting the application, make a decision of approval or disapproval
and notify the applicant in writing.

   Article 13 (Procedures of Inviting Bids)

When line operators are to be chosen by inviting bids, the following procedures shall be followed:

1. The Municipal Public Utilities shall, according to the plans of lines and networks for bus, tram and trollybus passenger transport,
publicize documents on bid invitations and relevant materials concerning the opening and extending of bus, tram or trollybus lines
or send them to potential bidders on a selective basis;

2. The bidder shall put his sealed bidding documents into the designated bid box according to the requirements of bid invitations
documents;

3. The Municipal Public Utilities Bureau shall, jointly with relevant departments, invite experts to form a bid appraisal committee,
which, after having decided on a way of appraisal, preside over the bid opening, bid appraisal. and the decision on the winning bidder;

4. The bid appraisal committee shall appraise the valid bidding documents and decide on the winning bidder;

5. The bid appraisal committee shall sign and issue the decision on the winning bidder, to whom the Municipal Public Utilities Bureau
shall send a notice.

   Article 14 (Restriction on Appointing Line Operators)

The Municipal Public Utilities Bureau may appoint line operators for the opening and expending of the lines in one of the following
situations;

1. Lines are listed in the Municipal Government’s practical projects;

2. Lines are operated as supporting facilities for newly-built residential areas.

The Municipal Public Utilities Bureau shall jointly with municipal administrative departments of public security, traffic control
and municipal public works, decide on the lines to be opened or extended, and appoint line operators in the light of the areas through
which the lines run and the actual operating capacity of existing line operators.

   Article 15 (Naming of the Lines)

The Municipal Public Utilities Bureau shall decide, in a unified manner, on the name of the lines to be opened, and make them known
to the public.

   Article 16 (Issuance of Qualification Certificates)

The chosen line operators that need to attend to the enterprise’s establishment or alteration registration shall go to the administrative
department of industry and commerce and the department of taxation, with relevant certificates issued by the Municipal Public Utilities
Bureau, to complete the relevant formalities.

Upon the completion of the formalities as prescribed in the preceding paragraph the Municipal Public Utilities Bureau shall issue
to line operators a Shanghai Municipality Qualification Certificate for Operating Bus, Tram and Trollybus Passenger Transport (hereinafter
referred to as “Qualification Certificate”)

No one shall operate bus, tram or trollybus passenger transport without a Qualification Certificate.

   Article 17 (Issuance of Operation Certificates)

The Municipal Public Transport Administrative Section shall issue operation certificates to line operators according to the number
of vehicles they put into operation and shall issue corresponding service certificates to the drivers, conductors and dispatchers
that are trained and qualified in accordance with relevant regulations of the State.

   Article 18 (Examination and Renewal of Qualification Certificates)

The qualification certificates shall be valid for one year. Line operators shall, fifteen days before the expiration of qualification
certificates, go to the Municipal Public Utilities Bureau to go through the formalities of examination.

The Municipal Public Utilities Bureau shall issue new qualification certificates to those line operators who meet the conditions and
requirements as prescribed in the qualification certificates of those line operators who fail to meet the conditions and requirements
as prescribed in the present Procedures shall not be renewed.

   Article 19 (Alteration and Cancellation of Qualification Certificates)

Line operators who have a merger or split-off shall go, with relevant certificates issued by the industry and commerce department
tax department, to the Municipal Public Utilities Bureau, within fifteen days of the merger or split-off, to go through the formalities
of qualification certificate alteration.

Line operators who are to close down business shall notify the Municipal Public Utilities Bureau in writing ninety days before close
down and shall go, with relevant certificates issued by the industry and commerce department and the tax department, to the Municipal
Public Utilities Bureau, within fifteen days upon closing business, to complete the formalities of canceling the qualification certificates.

   Article 20 (Choosing of New Line Operators)

The Municipal Public Utilities Bureau shall choose new line operators in accordance with the stipulations of this chapter to replace
those who have closed business.

   Article 21 (Plans of Line Operation)

Line operators shall formulate plans of line operation before formally starting business. The plans shall be implemented after they
are examined, verified and approved by the Municipal Public Transport Administrative Section.

   Article 22 (Overall Requirements for Operation)

Line operators shall start operation within the period prescribed by the Municipal Public Transport Administrative Section in accordance
with the approved operational plans, including the routes, number of runs, schedules, vehicle models, number of vehicles, and the
number of passengers to be carried. Line operators shall not stop operation without approval.

Line operators shall not reduce the number of vehicles in operation, nor the number of runs, once the line has gone into formal operation.
When passenger traffic increases on the line, the line operator shall increase the number of vehicles and their runs proportionately
in accordance with the requirements of the Municipal Public Transport Administrative Section.

   Article 23 (Restriction on Conductorless Operation)

Line operators who need to engage in conductorless operation shall meet the requirements of conduetorless operation with respect to
their vehicles and the number of runs, and shall start conductorless operation only after approval has been obtained from the Municipal
Public Transport Administrative Section.

The requirements for conducterless operation shall be stipulated separately by the Municipal Public Utilities Bureau.

   Article 24 (Alteration and Cancellation of Routes and Steps or Temporary Suspension of Operation)

Line operators who need to alter routes and stops shall first obtain approval from the Municipal Public Transport Administrative Section
which shall examine, and verify the matter jointly with the municipal administrative departments of public security, traffic control,
and municipal public works before giving approval.

Under any one of following circumstances, the Municipal Public Transport Administrative Section may, after getting approval from the
municipal administrative departments of public security, traffic control, and municipal public works, ask the line operators to alter
or cancel lines or stops, or to temporarily suspend operation:

1. Adjustment of bus, the plan of tram and trollybus passenger transport lines and networks;

2. Construction of municipal public works such as roads and underground pipes and cable;

3. Needs of road traffic control;

4. Safety of operation being affected by road conditions.

Line operators shall notify the public by putting up notices at all the stops along the lines five days before alteration or cancellation
of lines and stops or the temporary suspension of operation. Alteration or cancellation of lines and stops or temporary suspension
of operation due to force majeure shall be made known to the public immediately.

When two or more lines are simultaneously to be altered or canceled, or their operation are to be to temporarily suspended, the Municipal
Public Transport Administrative Section shall notify the public through mass media.

   Article 25 (Rates of Fares)

Line operators and personnel engaged in passenger transport shall adopt the standard rates of fares for bus, tram and trollybus operation
set by municipal price control departments and shall not be allowed to make any alteration without approval.

   Article 26 (Use and Management of Tickets)

Line operators and personnel engaged in passenger transport shall use the uniform tickets bearing the name of line operator uniformly
printed or approved by the Municipal Public Utilities Bureau jointly which the municipal tax department. The face value of the ticket
shall conform to the set rates of fares.

Universal bus, tram and trollybus tickets shall be printed and sold by the public passenger transport tickets agency uniformly set
up by this Municipality. These tickets shall be valid on all buses, trams and trollybuses throughout this Municipality and on line
operators or personnel engaged in passenger transport shall have the right to refuse to accept them.

The redemption and settlement of the universal bus, tram and trollybus tickets shall be carried out by the public passenger transport
tickets agency uniformly set up by this Municipality with the line operators in accordance with the stipulations of the Municipal
Public Utilities Bureau.

   Article 27 (Requirements of Operational Vehicles)

Lime operators shall strengthen their administration of operational vehicles. Vehicles in operation shall meet the following requirements:

1. They are clean and tidy, with adequate facilities;

2. Their performance conforms with the technical standards set by the State;

3. Their two sides bear the name of the line operator at the prescribed position;

4. Their front, tail, and right side bear the name of the line;

5. They post a copy of operational certificate at the top right side of their windscreen;

6. They post, at the prescribed positions inside the vehicle, the rules on riding buses, tram and trollybuses, a sketch map of the
their routes, and telephone numbers for passenger supervision and complaint;

7. They meet other requirements of operational service standards.

Advertisements, if and, to be put up inside the vehicle shall be posted at positions prescribed by the Municipal Public Transport
Administrative Section.

   Article 28 (Operational Service Standards for Drivers and Conductors)

Bus, tram and trollybus line operators shall strengthen their administration of drivers and conductors and urge them to abide by following
rules:

1. Carry service certificates in conformity with the operational certificates;

2. Follow the approved routes and operate according to the approved number of runs and the approved number of passengers to be carried,
and not to shorten the line nor to force passengers to get off midway, without approval;

3. Take on and discharge passengers within the prescribed limits of the stops;

4. Announce clearly the names of stops, the name of routes and the direction in which the vehicle is running;

5. Maintain normal order inside the vehicles and guarantee personal safety of passengers;

6. Not to hand over vehicles for operation to personnel who have not the qualifications for operation as stipulated in the present
Procedure;

7. Submit themselves to the supervision and inspection of the administrative personal of passenger transport;

8. Comply with other rules concerning operational service standards.

In case the vehicle fails to operate normally, the driver and the conductor shall organize the passengers to board, without charge,
vehicles running on the same route and in the same direction, and the drivers and conductors of these vehicles running on the same
route and in the same direction shall not refuse.

   Article 29 (Operational Service Standard of Dispatchers)

Bus, tram and trollybus line operators shall strengthen their administration of dispatchers and urge them to abide by the following
rules:

1. Wear service credentials;

2. Dispatch vehicles according to approved runs and schedules and make rational adjustments in special circumstances so as to disperse
passengers as soon as possible;

3. Fill in daily report forms of bus, tram and trollybus runs accurately;

4. Submit themselves to the supervision and inspection of the administrative personnel of passenger transport;

5. Comply with other rules concerning operational service standards.

   Article 30 (Chargeable Operational Service)

Passengers shall buy tickets or pay the fares according to prescribed rates of fares. However, they may refuse to buy tickets or pay
fares if any one of following circumstances arises:

1. The driver or conductor does not produce tickets that are in conformity with the stipulations;

2. Passengers carrying electronic boarding tickets can not have their tickets read due to failure of the ticket reading machine.

Line operators and personnel engaged in passenger transport may ask passengers who do not buy tickets or pay fares according to the
prescribed rates of fares to pay retroactively the ticket prices or fares equal to ten times the prescribed rate of fares.

   Article 31 (Riding rules)

Passengers shall observe the rules on riding buses, trams and trollybuses. They shall not interfere with the normal riding or affect
personal the safety of other passengers.

Drivers and conductors may refuse to provide service to passengers who violate the rules on riding buses, and tram and trollybuses.

The rules on riding buses, trams and trollybuses shall be formulated by the Municipal Public Utilities Bureau.

   Article 32 (Requirements on the Use of Radio Communications Equipment)

Line operators shall ensure that their radio communications equipment be in continuos, normal working conditions and shall not shut
it down without approval.

The frequency used by line operators shall be reported to the Municipal Public Transport Administrative Section for the record.

   Article 33 (Requirements on Operation in Special Circumstances)

Line operators shall, under the unified command of the Municipal Public Transport Administive Section, organize vehicles and personnel
timely to carry out dispersal transportation in case one of the following circumstances arises:

1. Emergency rescue;

2. Serious shortage of vehicles available at major passenger gathering and dispersing spots;

3. Major social gathering;

4. Other circumstances prescribed by the Municipal People’s Government.

   Article 34 (Submission of Statistical Report Forms)

Line operators shall fill out the statistical report forms for bus, tram and trollybus passenger transport accurately, and submit
them to the Municipal Public Transport Administrative Section in time.

   Article 35 (Payment of Passenger Transport Administration Fees)

Line operators shall make timely payment of passenger transport administration fees to the Municipal Public Transport Administrative
Section.

The rates of public transport administration fees shall be set by the municipal price control department jointly with the municipal
finance department.

   Article 36 (Construction of Stations and Stops)

Construction units shall build bus, tram and trollybus stations and stops and corresponding parking spaces as ancillary facilities
in accordance with approved plans and relevant construction design standards in any one of the following circumstances:

1. Construction or extension of public passenger gathering and dispersal places, such asairports, railway stations, passenger transport
piers, long distance bus stations and rail transport stations;

2. Construction or extension of large-scale cultural, sports and other public facilities;

3. Construction or extension of residential areas.

   Article 37 (Administration of Shared Stations and Stops)

Stations and stops constructed with government and shared by more than two lines (hereinafter referred to as “shared stations and
stops”) shall be managed by a unit appointed by the Municipal Public Transport Administrative Section; other shared stations and
stops shall be managed by a unit chosen by the construction unit or by the line operators sharing the stations or stops through consultation.

Drivers and conductors entering the shared stations or stops shall submit themselves to the unified command of the management unit
in charge of the said stations or stops.

The management unit in charge of the shared stations and stops shall maintain their operational order and ensure their safety and
smooth transit. It shall not closed them down or turn them to other uses without the approval of the Municipal Public Transport Administrative
Section.

   Article 38 (Fixtures at the Terminals)

Line operators shall set up facilities for waiting passengers at the terminals, and post the rules on riding buses, trams and trollybuses,
the table of rates of fares and the telephone numbers for passenger supervision and complaint.

Newly-opened lines shall set up signs for boarding and discharging passengers respectively at the terminals.

   Article 39 (Maintenance of Station and Stop Facilities)

The construction unit or its authorized unit shall be responsible for the routine maintenance of the facilities at the stations and
stops and for keeping them clean and tidy and in good condition.

   Article 40 (Erection of Sign Boards at the Stations and Stops)

Line operators shall erect signposts, including temporary signposts (similarly hereinafter), at bus, tram and trollybus stations and
stops in accordance with the unified standard prescribed by the Municipal Public Transport Administrative Section.

The bus, tram and trollybus station and stop signposts shall be distinct and in good condition. They shall bear the name of the line,
the time for the first and the last run, the name of the stop and the name of the other stops along the route, the rates of fares,
etc. In the case of lines with vehicles running at an intervals of more than 30 minutes, the time of each run passing the stop should
be clearly indicated.

   Article 41 (Maintenance of Power Supply Facilities for Trams and Trollybuses)

Trams and Trollybus power suppliers shall, in accordance with the technical specifications and standards set by the State, regularly
check and repair tram and trollybus power supply facilities such as tram and trollybus overhead line networks, power feed line networks
and direct- current traction transformer substations to ensure their safety and normal use.

In case of a breakdown in the tram and trollybus power supply facilities, the power supplier shall organize emergency repairs at once
and restore their normal function as soon as possible.

   Article 42 (Safeguarding of Tram and Trollybus Power Supply Facilities)

Tram and Trollybus power supply shall, in accordance with relevant regulations of the State, erect protection markers around tram
and trollybus power supply facilities.

The following acts posing hazards to the safety of tram and trollybus power supply facilities are prohibited:

1. Cover, alter or damage protection markers for tram and trollybus power supply facilities;

2. Hang posters, billboards and clothing or put up other facilities on tram and trollybus overhead line networks or power feed line
networks without approval;

3. Other acts that endanger the safety of power supply.

In case construction for engineering projects may endanger the safety of tram and trollybus power supplier facilities, the construction
unit shall, in accordance with relevant regulations of the State, hold consultation with the power supply and take corresponding
safety measures before starting construction.

   Article 43 (Supervision and Inspection)

The Municipal Public Transport Administrative Section shall intensify supervision and inspection of bus, tram and trollybus operations.
Administrative personnel of public passenger transport, when going on inspection, shall wear distinctive uniforms, carry law enforcement
ID cards and wear on-duty marks.

Administrative personnel of public passenger transport, upon discovering acts violating the present Procedures shall order the wrongdoer
to rectify immediately or within a prescribed time limit.

   Article 44 (Complaint)

The Municipal Public Transport Administrative Section and line operators shall institute a system to hear and deal with complaints
against acts violating the present Procedures.

Complaints may be sent either to the line operator or to the Municipal Public Transport Administration Section. The complainant shall
provide relevant evidence,

   Article 45 (Handling of Complaints)

Line operators shall make a reply to the complainant within ten days after receiving the complaint.

In case the complainant disagrees with the reply made by the line operator, he may complain to the Municipal Public Transport Administrative
Section.

If the complaint is sent to the Municipal Public Transport Administration Section, this Section shall make a reply within 30 days
after receiving the complaint.

   Article 46 (Verification of Complaints)

When the Municipal Public Transport Administrative Section needs to verify complaints with the line operator, it shall issue a notice
for complaint verification to the latter.

The line operator shall, within 10 days after receiving the notice for complaint verification make a written reply to the Municipal
Public Transport Administrative Section, stating relevant circumstances and his opinions on the handling of the complaints.

   Article 47 (Penalties on Line Operators)

For acts violating the present Procedures line operators shall be penalized by the Municipal Public Utilities Bureau in accordance
with the following rules:

1. For violations of the first clause of Article 18, Article 19 or Article 21 of the present Procedures a fine of 500 to 1,000 yuan
shall be imposed;

2. For violations of Article 22, the first clause of Article 23, or Article 33 of the present Procedures, a fine of 1,000 to 5,000
yuan shall be imposed;

3. For violations of the third clause of Article 24, the first and second clauses of Article 26, Article 32, Article 38, or Article
40 of the present Procedures a disciplinary warning shall be give or a fine of 100 to 1,000 yuan shall be imposed;

4. For violations of the first clause of Article 24, or Article 25 of the present Procedures a fine of 500 to 5,000 yuan shall be
imposed;

5. For violation of Article 27 of the present Procedures a disciplinary warning shall be given or a fine of 50 to 100 yuan shall be
imposed;

6. For violation of Article 28, article 29, or the second clause of article 37 of the present Procedures a disciplinary warning shall
be given or a fine of 50 to 500 yuan shall be imposed;

7. For violations of the first clause of Article 45, or the second clause of Article 46 of the present Procedures a disciplinary warning
shall be given, or a fine of no more than 50 yuan shall be imposed;

   Article 48 (Penalties on Related Units or Individual Persons)

For violation of the third clause of article 37 of the present procedures, the Municipal Public Utilities Bureau Shall impose a fine
of 500 to 1,000 yuan on the unit in charge of the management of stations or stops.

For violations of article 41 or the first clause of Article 42 of the present Procedures, the Municipal Public Utilities Bureau shall
give a disciplinary warning to, or impose a fine of 100 to 1,000 yuan on the tram and trollybus power supplier.

For violation of the second or third clause of Article 42 of the present Procedures, the Municipal Public Utilities Bureau shall give
a disciplinary warning to, or impose a fine of 100 to 1,000 yuan on the units or individual persons concerned.

Those units or individual persons who engage in bus, tram or trollybus passenger transport without qualification certificates or operation
certificates shall be fined 5,000 to 30,000 yuan by the Municipal Public Utilities Bureau.

   Article 49 (Handling of Obstruction of Public Duties)

Those who obstruct passenger transport administrative personnel in performing their duties in violation of “Regulations of the People’s
Republic of China on Public Security Administration and Imposition of Punishment” shall be turned over to the public security departments
and dealt with in accordance with the law, and where such wrong constitute a crime, the wrongdoer shall be prosecuted for his/her
crim

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