Established in 1902, the Hong Kong Tramway Electric Company Ltd. (a British company) began construction of the tramway line in Hong Kong, the first part of which was from Wan Chai to Shau Kei Wan via Happy Valley, opened in 1904.  In 1922, Hong Kong Tramway Limited (HKT), took over the operation and still operates today as a private organization as part of a company called the Wharf Group.   In constant operation since 1904 this makes the Hong Kong tram line one of the oldest streetcar operations in the world.

The tram line is 13 km. long, mostly street-running, in a double track line along the northern coast of Hong Kong Island from Kennedy Town to Shau Kei Wan, with a single track of about 3 kilometres around Happy Valley Racecourse. Originally constructed with both single and double track sections, the last single track section along the main line was discontinued in August 1949.

Services are operated as follows:

Shau Kei Wan to Western Market

Shau Kei Wan to Happy Valley

North Point to Whitty Street

Happy Valley to Kennedy Town

Causeway Bay to Kennedy Town

Western Market to Kennedy Town

The tram is a very inexpensive mode of transportation when compared with other kinds of transport in Hong Kong. It costs HK$2 (US$0.25) for a trip on the tram, for up to 13km!