History of the Hong Kong Mass Tranist Railway.

1. HONG KONG MASS TRANSIT RAILWAY
A SUCCESS STORY
PRESENTED BY
Ir Thomas S K LAI
CEng, MICE, MIStructE, MHKIE
Chairman HKIE UK CHAPTER
0
©

2. BIRTH & GROWTH OF
HONG KONG MASS TRANSIT RAILWAY
UP TO DATE
1

3. HONG KONG
• LOCATED AT THE PEARL RIVER
ESTUARY ON THE SOUTHERN
COAST OF CHINA
2

4. VICTORIA HARBOUR
3

5. August 2003 77
HARBOUR FRONT
4

6. STAR FERRY
August 2003 66
5

7. CULTURAL REVOLUTION
• In 1966 – CULTURAL REVOLUTION
RAGING IN CHINA
• SPILLED OVER TO HONG KONG
• FARE INCREASE IN STAR FERRY
• RIOTS
• SERIOUS DISRUPTION
TO PUBLIC TRANSPORT
6

8. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
7

9. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
危 机
• Danger Opportunity
8

10. PLB
PLB
PUBLIC LIGHT BUS
9

11. PLB
• AVAILABLE - FREQUENT SERVICE
• CONVENIENT - PASSENGERS HOP ON
AND OFF ANYWHERE ALONG ROUTE
• PREMIUM FOR SERVICE
• POPULAR WITH PASSENGERS
10

12. HONG KONG GOVERNMENT
•VIABILITY OF UNDERGROUND RAILWAY SYSTEM
•CONFIRMED BY CONSULTANT‟S FEASIBILITY STUDY
•1975 - MASS TRANSIT PROVISIONAL AUTHORITY
•1976 - MASS TRANSIT RAILWAY CORPORATION
MTRC
11

13. MTRC
THE MASS TRANIST RAILWAY
ORDINANCE
12

14. MTRC
• WHOLLY GOVERNMENT
OWNED ENTERPRISE
13

15. MTRC
• MANDATED TO BUILD AND
OPERATE AN UNDERGROUND
RAILWAY SYSTEM
• ON PRUDENT COMMERCIAL
PRINCIPLES
• HAVING REGARD TO THE
REASONABLE REQUIREMENTS OF
THE PUBLIC TRANSPORT SYSTEM
OF HONG KONG
14

16. MTRC
HONG KONG GOVERNMENT PUTS IN
INITIAL EQUITY (HK$ 800 M)
MTRC BORROWS REST IN OPEN
MONEY MARKET
15

17. PREFERRED SYSTEM
16

18. INITIAL SYSTEM
LETTER OF INTENT SIGNED WITH JAPANESE
CONSORTIUM FOR THE INITIAL SYSTEM
(20 km) AS A SINGLE DESIGN & BUILD CONTRACT
17

19. INITIAL SYSTEM
OIL CRISIS
CONSORTIUM WITHDREW
18

20. MODIFIED INITIAL SYSTEM
MIS
(15.6 km)
25 CIVIL & 10 E&M
DESIGN AND BUILD
CONTRACTS
19

21. MIS
GOVERNMENT SET UP MASS
TRANSIT ADVISER (MTA) TO:
• CO-ORDINATE BETWEEN MTRC &
GOVERNMENT DEPARTMENTS
• FACILITATE TIMELY POLICY MAKING
& ISSUE RESOLUTION
20

22. MIS
DIFFERENT LEVEL OF COMMITTEES & WORKING
GROUPS:
• GOVERNMENT / MTR LIAISON COMMITTEE
• GOVERNMENT / MTR PUBLICITY COMMITTEE
• METRO PUBLIC RELATIONS POLICY GROUP
21

23. MIS
• LAND ACQUISITION CO-ORDINATION COMMITTEE (LACC)
• STATION AND TRANSPORT INTEGRATION COMMITTEE
(STIC)
• SAFETY AND SECURITY CO-ORDINATION COMMITTEE
(SSCC)
• TRAFFIC MAMAGEMENT GROUP (TMG)
• UTILITIES CO-ORDINATION GROUP (UCG)
22

24. INSPECTORATE OF RAILWAY
(UK)
• APPOINTED BY GOVERNMENT AS
ADVISER ON RAILWAY SAFETY
• PROVIDES INPUT DURING DESIGN
• INSPECTS RAILWAY SYSTEM
• RECOMMENDS OPENING
23

25. MIS
IMPORTANCE OF PUBLIC RELATIONS
• OBSERVATION WINDOWS ON HOARDINGS
• GROWING FOR YOU
24

26. MIS
IMPORTANCE OF PUBLIC RELATIONS
• CEREMONIES OF COMMENCEMENT
& COMPLETION OF WORKS
25

27. MIS
IMPORTANCE OF PUBLIC RELATIONS
PARTICIPANTS (STAKEHOLDERS) INCLUDE:
CORPORATION REPRESENTATIVES
CONTRACTORS
CONSULTANTS
GOVERNMENT OFFICIALS
LEGISLATORS
DISTRICT COUNCILLORS
LOCAL DIGNITARIES
26

28. MIS
IMPORTANCE OF PUBLIC RELATIONS
• TEAM BUILDING
• PUBLICISING PROGRESS OF WORKS
27

29. MIS
WORK STARTED
• NOVEMBER
1975
GROUNDBREAKING CEREMONY
BY CHAIRMAN SIR NORMAN THOMPSON
28
AT KWUN TONG

30. MIS
• FIRST CHAIRMAN – SIR NORMAN THOMPSON
 DIRECT ACCESS TO THE GOVERNOR
 SIMPLE & CLEAR MESSAGES
• PROJECT MANAGER – HONG KONG &
SHANGHAI BANK HQ BUILDING
29

31. MIS
• FIRST M.D. – PROF. TONY RIDLEY
• M.D. – LONDON UNDERGROUND
MAJOR IMPROVEMENT TO THE SYSTEM
• PROFESSOR – IMPERIAL COLLEGE
LONDON
30

32. MIS
• HONG KONG PEOPLE
– EXCITEMENT
– EXPECTATION
– DETERMINATION
31

33. MIS
• HONG KONG PEOPLE
HIGH DEGREE OF TOLERENCE
&
CO-OPERATION
32

34. MIS
PROJECT MANAGEMENT APPROACH:
• QUICK DECISION-MAKING
• REGULAR MONITORING OF EFFECT OF
CHANGES ON BUDGET & PROGRAMME
• APPROPRIATE DELEGATION OF AUTHORITY
• SHARE RISKS & BENEFITS WITH
CONTRACTORS
33

35. MIS
• BASED ON PROVEN TECHNOLOGY
• PROJECT MOTTO:
IF IT IS ESSENTIAL,
GET ON WITH IT.
IF IT IS DESIRABLE,
FORGET IT.
34

36. MIS
GOVERNMENT
COMMUNITY MTRC
UNITY IN PURPOSE
35

37. MIS
GROUND CONDITIONS
 ALLUVIAL DEPOSITS
 GRANITE (VARYING DEGREE OF
DECOMPOSITION)
 HARD ROCK
36

38. MIS
STATION WALL CONSTRUCTION
37

39. MIS
STATION CONSTRUCTION
38

40. MIS
INSITU HORSESHOE TUNNEL
39

41. MIS
PRECAST CONCRETE TUNNEL
LINING
40

42. MIS
SGI TUNNEL LINING
41

43. MIS
NGAU TAU KOK STATION &
VIADUCT
42

44. MIS
KOWLOON BAY DEPOT
43

45. MIS
ADMIRALTY STATION
EXCAVATION
44

46. MIS
IMMERSED TUBE CASTING
45

47. MIS
IMT
46

48. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO SHEK KIP MEI
– OPERATIONAL ON 1 OCTOBER 1979
47

49. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO TSIM SHA TSUI
– OPERATIONAL ON 31 DECEMBER 1979
48

50. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO CENTRAL
– OPENED BY PRINCESS ALEXANDRA
ON 12 FEBRUARY 1980
49

51. MIS
• FROM KWUN TONG TO CENTRAL
ON TIME AND WITHIN BUDGET
50

52. MIS
ESTIMATED COST IN 1975 HK$ B
(INCL. 7% p.a. ESCALATION TO 1980) 5.8
CONSTRUCTION COST 5.6
INCL. INTEREST AND FINANCE COST S 7.3
51

53. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
52

54. MIS
• CLEAN
• QUIET
• EFFICIENT
• RELIABLE
• AIR-CONDITIONED
53

55. MIS
SUCCESS
54

56. TSUEN WAN LINE
55

57. TWL
• ENGINEER‟S DESIGN
• CONTRACTOR‟S ALTERNATIVE
PROPOSALS CONSIDERED &
ADOPTED
LAI KING TO KWAI FONG VIADUCT
56

58. TWL
• SET UP STRONG IN-HOUSE
PROFESSIONAL PROJECT
MANAGEMENT TEAM
• HANDS-ON STYLE
LAI KING TO KWAI FONG
CROSS-OVER
57

59. TWL
• PROJECT TEAM RESPONSIBLE FOR:
 FEASIBLITY STUDY
 PROPOSAL TO GOVERNMENT
 SPECIFICATION
 APPOINTMENT OF CONSULTANTS
 TENDERING
 CONTRACT AWARD
 DESIGN MANAGEMENT
 CONSTRUCTION MANAGEMENT
 TESTING & COMMISSIONING
 HANDOVER TO OPERATIONS
58

60. TWL
• TSUEN WAN LINE
– TSUEN WAN
TO CENTRAL
– OPERATIONAL
10 May 1982
(AHEAD OF PROGRAMME)
59

61. TWL
ESTIMATED COST IN 1978 HK$ B
(INCL. ESCALATION TO 1982) 4.1
CONTRACT COSTS 3.7
CORPORATION COST
CONSULATANTS‟ FEES
LAND ACQUISITION
COMPENSATION 0.7
FINAL CONSTRUCTION COST 3.9
INCL. INTEREST AND FINANCE COSTS 5.3
60

62. ISL
61

63. ISL
• ISLAND LINE
– CHAI WAN TO
ADMIRALTY
31 MAY 1985
– CHAI WAN TO
SHEUNG WAN
23 MAY 1986
62

64. ISL
ESTIMATED TOTAL COSTS HK$ B
AT 1986 PRICES 10.9
(EXCL. INTEREST AND FINANCE
COSTS)
FINAL COST 10.0
INCL. INTEREST AND FINANCE COSTS 11.9
FORTESS HILL STATION
63

65. ISL
• CHAIRMAN & CEO :
SIR WILFRID NEWTON
 STRENGTHENED CORPORATION‟S FINANCE
 LAID SOUND FOUNDATION FOR FUTURE
GROWTH
 RE-ORGANISED HONG KONG STOCK
EXCHANGE AFTER MARKET COLLAPSE
 DIRECTOR OF HONG KONG & SHANGHAI
BANKING CORPORATION (HSBC)
 HON. FELLOW - HKIE
 CHAIRMAN – LONDON TRANSPORT
OVERSAW JUBILEE LINE EXTENSION
64
CONSTRUCTION

66. MTR
ARRIVAL & GROWTH OF MTR
COINCIDE WITH :
TRANSFORMATION OF HONG KONG
FROM REGIONAL CITY
TO INTERNATIONAL FINANCIAL CENTRE
65

67. HONG KONG LEASE
• 99-YEAR LEASE EXPIRES ON 1 JULY 1997
• GOVERNMENT DEPENDS ON SALE OF
LAND LEASES FOR REVENUE
• NEEDS TO KNOW ITS FUTURE
• NEGOTIATION BETWEEN LONDON &
BEIJING
66

68. HONG KONG LEASE
• BRITISH PRIME MINISTER VISITED
BEIJING
• OFFER TO EXCHANGE
SOVEREIGNTY FOR
ADMINSTRATION
• OFFER REJECTED BY CHINA
67

69. HONG KONG LEASE
BUT AGREED TO:
• SET UP JOINT LIAISON COMMITTEE (JLC)
• CONTINUE NEGOTIATION
• MAINTAIN STABILITY & PROSPERITY OF
HONG KONG
68

70. HONG KONG LEASE
• NEGOTIATION NOT GOING WELL
• UNCERTAINTY
69

71. HONG KONG LEASE
• JITTERY & GLOOMY
• INVESTMENTS PUT ON HOLD
• STOCK MARKET CRASH
• PROPERTY BUBBLE BURST
70

72. HONG KONG LEASE
HONG KONG DOLLAR PLUNGES
FROM AROUND HK$ 6 = US$ 1
TO
OVER HK$ 9 = US$ 1
71

73. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE
72

74. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE &
BABY‟S POWDERED MILK
73

75. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
74

76. HONG KONG LEASE
• CALM THE CITY
• STOP PANIC
75

77. HONG KONG LEASE
• IN 1984 BRITAIN & CHINA SIGNED
JOINT DECLARATION ON FUTURE OF
HONG KONG
• CHINA TO REGAIN FULL SOVEREIGNTY
ON 1 JULY 1997
August 2003 85
76

78. HONG KONG LEASE
PROMISE TO HONG KONG PEOPLE
• HONG KONG PEOPLE GOVERN HONG
KONG
• WITH HIGH DEGREE OF AUTONOMY
• ONE COUNTRY TWO SYSTEMS
• NO CHANGE FOR 50 YEARS
77

79. HONG KONG LEASE
•ENSHRINED IN •LODGED WITH
BASIC LAW UNITED NATIONS
78

80. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
• REMAINS TO THIS DAY
79

81. MTRC
• BORROWING IN US$
• REVENUE IN HK$
• ADVERSE IMPACT BY
HIGH INTEREST RATE (12%)
DEVALUATION
80

82. MTRC
• HONG KONG GOVERNMENT TO
INCREASE EQUITY
(HK$ 2.5 B ISSUED, 2.5 B ON CALL )
• SHIFT BORROWING TO BE
HK$ DENOMINATED
81

83. MTRC
• IN NO POSITION TO FINANCE NEW
EXTENSIONS
82

84. EASTERN HARBOUR
CROSSING
83

85. EHC
• BOT PROJECT BY OTHERS
• LINKING KWUN TONG TO QUARRY BAY
• THIRD CROSS HARBOUR TUNNEL
CARRYING ROAD AND RAILWAY
• RAIL PORTION LEASED TO MTRC
EASTERN HARBOUR CROSSING
ENTRANCE
84

86. EHC
MTRC PAYS SEMI-ANNUAL INSTALMENTS FOR
18½ YEARS TOTALLING HK$ 2.6 B
OTHER CAPITAL INVESTMENT
INCL. ROLLING STOCKS 0.365 B
IMMERSED TUBE CASTING 85

87. EHC
OPENED BY PRINCE OF WALES
ON 1 OCTOBER 1989
86

88. AFTER JOINT DECLARATION
• UNCERTAINTY REMOVED
• CONFIDENCE RETURNED
LIPPO CENTRE
87

89. KAI TAK AIRPORT
CHECKERBOARD IN SIGHT
88

90. KAI TAK AIRPORT
STEADY AS SHE GOES
89

91. KAI TAK AIRPORT
DO YOUR WINDOW SHOPPING
BEFORE YOU LAND
90

92. KAI TAK AIRPORT
SEE....I LAND IT ON THE ROOF
91

93. KAI TAK AIRPORT
HARD RIGHT TURN AND DIVE
92

94. KAI TAK AIRPORT
BUT LANDING ON THE
RUNWAY...... IS NOT ALWAYS
93
EASY

95. KAI TAK AIRPORT
SOMETIMES.... ENDED UP IN THE
WATER
94

96. AIRPORT CORE PROJECTS
RELOCATE AIRPORT FROM KAI TAK TO CHEK LAP KOK
95

97. AIRPORT CORE PROJECTS
• APPROVED BY BEIJING
& LONDON
96

98. AIRPORT CORE PROJECTS
• OBJECTIVES:
– TO STIMULATE ECONOMY
– TO FACILITATE FUTURE GROWTH
– TO ELIMINATE AVIATION HAZARD
– TO BE COMPLETED IN TIME FOR
HANDOVER
97

99. ACP
• AIRPORT AT CHEK LAP KOK
• TSING MA BRIDGE
• LANTAU & AIRPORT RAILWAY
98

100. ACP
• KAP SHUI MUN BRIDGE
• TING KAU BRIDGE
• HIGHWAYS
• RECLAMATIONS
• THIRD CROSS HARBOUR ROAD
TUNNEL (WESTERN HARBOUR CROSSING)
99

101. ACP
• HK$ 127 BILLION £ 10 BILLION
100

102. ACP
CHINA‟S CONCERN:
• ROSE GARDEN PROJECT
• EMPTY TREASURY
• HIGH DEBT
101

103. ACP
AGREEMENT REACHED TO:
• LEAVE HK$ 25 B MIN. IN TREASURY
• CAP GOVERNMENT BORROWING
AT HK$ 5 B UNLESS AGREED
OTHERWISE
• CAP ANNUAL LAND SALE
NO MORE THAN 50 ha /year
102

104. ACP
• ESSENTIAL TO HAVE CHINA‟S
AGREEMENT AND SUPPORT TO
ASSURE INVESTORS
• WRANGLING OVER FINANCIAL DATA
DELAYED PROJECT START
103

105. ACP
AT TIME OF HANDOVER
ON 30 JUNE/1 JULY 1997
• CHINESE PRESIDENT ARRIVED BY PLANE AT
THE NEW AIRPORT
• LAST BRITISH GOVERNOR LEFT ON ROYAL
YACHT BRITANNIA
104

106. ACP
PROJECT COMPLETED IN 1998
105

107. HONG KONG INTERNATIONAL
AIRPORT
106

108. TSING MA BRIDGE
(ROAD + RAIL)
107

109. LANTAU & AIRPORT LINE
108

110. LAL
AIRPORT EXPRESS LINE
(AEL)
AIRPORT – HONG KONG
23 MINUTES JOURNEY
IN-TOWN-CHECK-IN
109

111. LAL
TUNG CHUNG LINE
(ON SHARED TRACK WITH AEL)
TUNG CHUNG - HONG KONG
COMMUTER LINE
ALSO PROVIDES RELIEF
TO NATHAN ROAD CONGESTION
110

112. LAL
FINANCIAL SUPPORT AGREEMENT (FSA)
WITH GOVERNMENT
• HK$ 23.7 B ADDITIONAL EQUITY BY
GOVERNMENT
• 62 ha LAND FOR DEVELOPMENT
• DEFERRAL OF DIVIDENDS UNTIL 2001
• REVENUE DEFICIENCY PAYMENTS
(80% FOR NO MORE THAN 2 YEARS
IF DELAYED BY OTHERS)
111

113. LAL
• EXTENSIVE APPLICATION OF
VALUE ENGINEERING
• INTRODUCE PARTNERING
112

114. TUNG CHUNG LINE
NO MORE SLIDING SEATS
113

115. AIRPORT EXPRESS
• SPACIOUS SEATING
• PLEASANT AMBIENCE
• BUSINESS CLASS
COMFORT
FROM PLANE,
THROUGH TRAIN,
TO HOTEL AEL TRAIN
114

116. LAL
TCL
OPERATIONAL ON 22 JUNE 1998
AEL
OPERATIONAL ON 6 JULY 1998
115

117. LAL
HK$ B
PROJECT COST 35.1
(INCLUDING CAPITALISED INTEREST)
FINANCED BY:
EQUITY 23.7
DEBT 11.4
116

118. TSEUNG KWAN O LINE
117

119. TKL
• TSEUNG KWUN O LINE
– COMMUTER LINE
– FROM PO LAM TO NORTH POINT
– OPERATIONAL ON 17 AUGUST 2002
118

120. TKL
I st JULY – 1997
ASIAN FINANCIAL CRISIS
MAJOR REVIEW OF THE
PROJECT
119

121. TKL
INITIAL CAPITAL COST ESTIMATE HK$ B
INCL. CAPITALISED INTEREST 30.5
FINAL COST 16.0
HANG HAU STATION
120

122. TKL
NORTH POINT CAVERN
121

123. DISNEYLAND RESORT LINE
122

124. DISNEYLAND RESORT LINE
123

125. DRL
• DISNEYLAND RESORT
LINE
– FROM SUNNY BAY TO
DISNEYLAND
– OPERATIONAL ON
12 SEPTEMBER 2005
124

126. ASIAWORLD-EXPO STATION
125

127. ASIAWORLD-EXPO STATION
126

128. ASIAWORLD-EXPO STATION
AIR STATION –
ASIAWORLD-EXPO
OPERATIONAL ON
20 DECEMBER 2005
127

129. NGONG PING 360
128

130. NGONG PING 360
129

131. NGONG PING 360
130

132. NGONG PING 360
131

133. NGONG PING 360
AIRPORT ISLAND STATION TUNG CHUNG TERMINAL
132

134. NGONG PING 360
• MATERIAL DELIVERY
– HELICOPTERS
– MULES
133

135. NGONG PING 360
SCHEDULED OPENING 24 JUNE 2006
OPERATIONAL 18 SEPT 2006
OFFICIAL OPENING 9 NOV 2006
134

136. NGONG PING 360
OPERATION SUSPENDED 11 JUNE 2007
OPERATION RESUMED 31 DEC 2007
SUBSIDIARY COMPANY SET UP TO
MANAGE & OPERATE THE SYSTEM
135

137. MTR CORPORATION
AN OUTSTANDINGLY SUCCESSFUL
ENTERPRISE
136

138. MTRC
SUCCESSES PROFILERATING
 PROJECT MANAGEMENT
 RAILWAY OPERATION
 FINANCIAL EXPERTISE
 TRAINING & DEVELOPMENT
 PROPERTY
 AUTOMATIC FARE COLLECTION
137

139. MTRC
• INVEST HEAVILY IN STAFF TRAINING &
DEVELOPMENT
• CORE VALUES :
 CUSTOMER SERVICE
 RESPECT FOR THE INDIVIDUAL
 ON TIME AND WITHIN BUDGET
138

140. MTRC
• PROVIDES PROFESSIONAL
TRAINING SERVICES TO OTHER
RAILWAYS IN:
– MAINLAND CHINA
– SOUTHEAST ASIA
139

141. PROPERTY DEVELOPMENT
& MANAGEMENT
• GOVERNMENT ALLOCATE LAND AT
FULL MARKET VALUE ALONG THE
RAILWAY FOR DEVELOPMENT
140

142. PROPERTY DEVELOPMENT
& MANAGEMENT
• MAJOR & REPUTABLE
PROPERTY DEVELOPER
AND MANAGER IN
TOWN
• JOINT VENTURES
– RESIDENTIAL
– RETAIL
– OFFICES
– HOTEL 141

143. PROPERTY DEVELOPMENT
& MANAGEMENT
• SUBSTANTIAL CONTRIBUTION
TOWARDS COST OF RAILWAY
• CAPTURED PASSENGERS
(FORMING PART OF 2.4 M DAILY
RIDERSHIP)
142

144. PROPERTY DEVELOPMENT
& MANAGEMENT
PROCEEDS FROM DEVELOPMENTS
HELP TO:
• KEEP FARES AT REASONABLE
LEVEL
• MAINTAIN & EXTEND RAIL
NETWORK
143

145. PROPERTY DEVELOPMENT
& MANAGEMENT
144

146. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD GARDEN
145

147. PROPERTY DEVELOPMENT
& MANAGEMENT
PARK VIEW
146

148. PROPERTY DEVELOPMENT
& MANAGEMENT
CENTRAL STATION RETAIL
147

149. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD PLAZA
148

150. PROPERTY DEVELOPMENT
& MANAGEMENT
MARITIME SQUARE
149

151. PROPERTY DEVELOPMENT
& MANAGEMENT
ELEMENTS 150

152. 2 INTERNATIONAL FINANCE
CENTRE
2IFC
151

153. UNION SQUARE
152

154. INTERNATIONAL COMMERCE
CENTRE
• 118 FLOORS
• 490 METRES HIGH
• THIRD TALLEST
BUILDING IN THE
WORLD
ICC
153

155. ICC
ICC
154

156. GATEWAY TOWERS
155

157. CHINA – BEIJING
• PROPERTY OPEARATIONS
& MANAGEMENT
GINZA MALL
156

158. PROPERTY DEVELOPMENT
& MANAGEMENT
AS AT END 2010:
Investment properties :
• 12 shopping malls + 18 floors at 2 IFC
• 277,942 sq.m in Hong Kong
Managed properties:
• 81,962 residential units in Hong Kong
• 744,214 sq.m commercial properties in Hong Kong
• 776,402 sq.m in Mainland China
157

159. AUTOMATIC FARE COLLECTION
• ELECTRO-MAGNETIC CARD
• STORED VALUE CARD
• CONTACTLESS SMART CARD
158

160. AUTOMATIC FARE COLLECTION
ELECTRO-MAGNETIC CARD
• PLASTIC
• RE-USABLE
• NO LITTER
• ISSUED BY MACHINE / HAND
• FIXED VALUE
• ELECTRO-MAGNETIC
• SINGLE JOURNEY
159

161. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
• NO TICKET FLICKING 160

162. AUTOMATIC FARE COLLECTION
STORED VALUE
• PLASTIC
• RE-USABLE
• NO LITTER
• ISSUED BY MACHINE / HAND
• FIXED VALUE
• ELECTRO-MAGNETIC
• MULTIPLE JOURNEYS
• UNRESTRICTED LAST JOURNEY
• ADVANCE REVENUE COLLECTION
• REDUCTION IN CASH HANDLING
161

163. AUTOMATIC FARE COLLECTION
OCTOPUS CONTACTLESS SMART CARD
• PLASTIC
• ISSUED BY MACHINE / HAND
• RE-USABLE
• NO LITTER
• MULTIPLE JOURNEYS
• ADVANCE REVENUE
• RADIO FREQUENCY IDENTIFICATION (RFID)
• NO CONTACT AT TURNSTILE
• TOP UP VALUE
• FURTHER REDUCTION IN CASH HANDLING
• ACCEPTED BY BUSINESS PARTNERS
162

164. OCTOPUS CONTACTLESS
SMART CARD
• RELIABLE TICKETING
• LABOUR SAVING
• DATA FOR:
OPERATIONAL PLANNIN INCLUDING PRICING
163

165. OCTOPUS CONTACTLESS
SMART CARD
• FORERUNNER OF:
• EZ-LINK – SINGAPORE
• OYSTER CARD – LONDON
• EASYCARD - TAIPEI
164

166. OCTOPUS CONTACTLESS
SMART CARD
OTHER USES:
 PUBLIC TRANSPORTS
 CAR PARKS
 ACCESS CONTROL TO BUILDINGS
 CONFIRMATION OF STUDENTS‟
ATTENDANCE AT SCHOOL
165

167. OCTOPUS CONTACTLESS
SMART CARD
AT END OF JUNE 2011:
• 24.3 MILLION CARDS ISSUED (18.7 MILLION ACTIVE)
• 11.7 MILLION DAILY TRANSACTIONS
• HK$ 112.7 MILLION PER DAY
• ADOPTED BY OVER 3000 SERVICE PROVIDERS
166

168. MTR CORPORATION LTD
LISTED ON THE HONG KONG
EXCHANGE
ON 5 OCTOBER 2000
167

169. MTRCL
EXPANSION
NEW VISION :
• TO BE A WORLD CLASS ENTERPRISE
• GROWING IN HONG KONG & BEYOND
• FOCUSING ON RAIL, PROPERTY &
RELATED BUSINESS
168

170. MTRCL
• NEW MISSION :
• EXCELLENT VALUE FOR CUSTOMERS
• OPPORTUNITIES FOR STAFF
• DEVELOP RAILWAY NETWORK AS
BACKBONE OF PUBLIC TRANSPORT IN
HONG KONG
• GROW IN MAINLAND CHINA & CAPTURE
OPPORTUNITIES IN EUROPE
169

171. MTRCL
• NEW CORE VALUES :
EXCELLENT SERVICE
VALUE CREATION
MUTUAL RESPECT
ENTERPRISING SPIRIT
170

172. MERGER
• HONG KONG GOVERNMENT ANNOUNCED
MERGER PROPOSAL BETWEEN MTRCL & KCRC
ON 11 APRIL 2006
171

173. MERGER
• KCRC
• ORIGINALLY A GOVERNMENT DEPARTMENT
• TURNED INTO A WHOLLY GOVERNMENT
OWNED PUBLIC CORPORATION
• CHARGED TO OPERATE AND DEVELOP
DOMESTIC, CROSS-BOUNDARY AND INTERCITY
RAILWAY SERVICES
• IN A PRUDENT COMMERCIAL MANNER
172

174. MERGER
KCRC
• OPERATES:
– EAST RAIL
– WEST RAIL
– LIGHT RAIL
– INTERCITY TO
GUANGZHOU
– FREIGHT TO
INTERIOR OF
MAINLAND CHINA
173

175. MERGER
KCRC
• PROPERTY DEVELOPMENT
&
MANAGEMENT
174

176. MERGER
• HONG KONG GOVERNMENT ANNOUNCED MERGER
PROPOSAL BETWEEN MTRCL & KCRC ON 11 APRIL 2006
• MTRCL SIGNED MEMORANDUM OF UNDERSTANDING
(MOU) WITH HK GOVERNMENT
175

177. MERGER
MOU PROVIDES FOR:
• REDUCED FARE
• ABOLITION OF SECOND BOARDING CHARGE
• FURTHER DISCOUNTS FOR MEDIUM & LONG DISTANCE
JOURNEYS
• INTRODUCTION OF AN OBJECTIVE, TRANSPARENT &
PREDICTABLE FARE ADJUSTMENT MECHANISM (FAM)
• FULLY INTEGRATED INTERCHANGE STATIONS FOR
SHATIN TO CENTRAL LINK
• IMPROVEMENT ON EXISTING INTERCHANGE
ARRANGEMENTS IN THE SHORT TERM
• PROVISION OF SEAMLESS INTERCHANGE
ARRANGEMENTS WITH FUTURE EXTENSIONS
176

178. MERGER
MOU PROVIDES FOR
• JOB SECURITY FOR ALL FRONTLINE STAFF
177

179. MERGER
DEAL TERMS
• PROVIDE A BALANCED PACKAGE FAIR TO ALL
STAKEHOLDERS
178

180. MERGER
DEAL TERMS
• ACQUISITION OF RENEWABLE OPERATIONAL RIGHT OF
KCR FOR 50 YEARS
– UPFRONT PAYMENT OF HK$4.25 BILLION FOR SERVICE
CONCESSION AND TO PURCHASE CERTAIN RAIL ASSETS
– HK$7.79 BILLION FOR A PROPERTY PACKAGE
– FIXED ANNUAL PAYMENT OF HK$750 MILLION
– VARIABLE ANNUAL PAYMENT BASED ON REVENUES
GENERATED FROM KCR‟S RAIL AND RAIL-RELATED
OPERATIONS
• EXPECTED TO BE EPS & NPV ACCRETIVE FOR MTRCL
179

181. MERGER
MEET THE GOVERNMENT‟S FIVE PARAMETERS
1. ADOPTION OF A MORE OBJECTIVE AND TRANSPARENT
FAM
2. ABOLITION OF THE SECOND BOARDING CHARGE &
REVIEW FARE STRUCTURE TO REDUCE FARES
3. EARLY RESOLUTION OF INTERCHANGE ARRANGEMENTS
FOR RAIL PROJECTS UNDER PLANNING, NOTABLY THE
SHATIN TO CENTRAL LINK
4. ENSURE JOB SECURITY FOR FRONTLINE STAFF
5. PROVISION OF SEAMLESS INTERCHANGE
ARRANGEMENTS IN THE LONG TERM
180

182. MERGER
BENEFITS
• SYNERGY
• ECONOMIES OF SCALE
• COST EFFICIENCY
• INTEGRATED RAIL SYSTEM
181

183. MERGER
TRANSITION - ONE YEAR OR MORE
SHARE PRICE JUMPED 5.3%
(FROM HK$19 TO 20)
RAIL MERGER BILL APPROVED BY LegCo
on 8 JUNE 2007
OUTLOOK - BRIGHT
182

184. MERGED
• COMPLETED ON
2 DECEMBER
2007
• 香港鐵路有限公司
ONE COMPANY ONE TEAM
183

185. MERGED
184

186. MERGED
• 211 Km ROUTE LENGTH
• 82 STATIONS
• 9 COMMUTER LINES
• AIRPORT EXPRESS
• LIGHT RAIL
• DISNEYLAND RESORT LINE
• FEEDER BUS SERVICE
• CABLE CAR
• INTERCITY PASSENGER SERVICE
• INTERCITY FREIGHT SERVICE
• 3 MILLION DAILY PASSENGERS
185

187. MERGED
• ONE COMPANY, ONE TEAM
STAFF INTEGRATION 186

188. MTR CORPORATION LTD
GROWTH MOMENTUM
187

189. DUBAI
188

190. DUBAI
METRO & AIRPORT LINES
189

191. DUBAI
CONSULTANCY
TO REVIEW DESIGN PROPOSALS IN
RESPECT OF :
OPERATION &
MAINTENANCE
VIADUCT CONSTRUCTION
190

192. INDIA
Delhi Airport Metro
Express Line
(AMEL)
• Major engineering &
project management
contract
191

193. UK BUSINESS
BIDS
192

194. UK BUSINESS
LORO (MTR/LAING )
FRANCHISE TO OPERATE
NORTH & EAST LONDON
OVERGROUND LINES
FROM 11 NOVEMBE 2007
FOR 7 YEARS
WITH OPTION FOR 2 FURTHER YEARS
SUCCESS
193

195. UK BUSINESS
LOROL (MTR/DEUTSCHE BAHN)
ACTION ON DAY ONE
• OYSTER TICKETING SYSTEM
• NEW TICKETING MACHINES
• STATIONS GATED
194

196. UK BUSINESS
(MTR/DEUTSCHE BAHN)
• IMPROVEMENT IN:
1. SERVICE OPERATION
2. PUNCTUALITY
3. SAFETY
4. SECURITY
• TICKETLESS TRAVEL DOWN
• REVENUE UP
195

197. UK BUSINESS
(MTR/DEUTSCHE BAHN)
PROGRAMME FOR:
• CUSTOMER SERVICE TRAINING
• STATION CLEANING AND REPAIR
• STATION REFURBISHEMENT
• STATION REMODELLING
• NEW EXTENSIONS
196

198. UK BUSINESS
(MTR/DEUTSCHE BAHN)
• “….so gradually all suburban rail services in London
can be brought up to the standard of London
Overground.”
Ken Livingstone
Mayor of London
197

199. EUROPE BUSINESS
STOCKHOLM UNDERGROUND
TOOK OVER OPERATION 2 NOVEMBER 2009
(FOR 8 YEARS MINIMUM)
198

200. AUSTRALIAN BUSINESS
METRO TRAINS MELBOURNE
TOOK OVER OPERATION ON 30 NOVEMBER 2009
(FOR INITIAL PERIOD OF 8 YEARS)
199

201. CHINA BUSINESS
200

202. CHINA BUSINESS
SHANGHAI
TOGETHER WITH ITS JOINT VENTURE PARTNER,
APPOINTED AS:
 OWNER‟S REPRESENTATIVE TO PROJECT MANAGE
DESIGN AND CONSTRUCTION OF LINE 9
 OWNER‟S ADVISOR OF LINE 8 & LINE 11
201

203. CHINA BUSINESS
BEIJING LINE 4
– INITIALLED IN FEBRUARY 2005
– COMPANY FORMED IN JANUARY 2006
– AGREEMENT SIGNED ON 12 APRIL 2006
202

204. CHINA BUSINESS
BEIJING LINE 4
– PPP
– 30-YEAR CONCESSION AGREEMENT WITH BEIJING
MUNICIPAL GOVERNMENT
– FOR INVESTMENT, CONSTRUCTION & OPERATION
OPENED 28 SEPTEMBER 2009
DAXING LINE
OPENED 30 DECEMBER 2010
203

205. CHINA BUSINESS
SHENZHEN LINE 4
– 30-YEAR BOT PROJECT
– CONCESSION AGREEMENT WITH
SHENZHEN MUNICIPAL GOVERNMENT
– „RAIL + PROPERTY‟
– INITIALLED IN MAY 2005
– PHASE 1 TAKEN OVER 01 JULY 2010
– PHASE 2 OPENED 16 JUNE 2011
204

206. BUSINESS OUTSIDE HONG KONG
COMPANY SHARE
BEIJING MTR CORPORATION LTD. (BJMTR) 49%
MTR CORPORATION ( SHENZHEN) LTD. (SZMTR) 100%
METRO TRAINS MELBOURNE PTY. LTD. (MTM) 60%
MTR STOCKHOLM AB (MTRS) 100%
TUNNELBANAN TEKNIK STOCKHOLM AB (TBT) 50%
LONDON OVERGROUND RAIL OPERATIONS LTD. (LOROL) 50%
MTR HANGZHOU LINE 1 INVESTMENT CO. LTD. 100%
205

207. MTRCL
• PROFITABLE
HK$B
16
14.2
14
Turnover
12
10.7
10
Operating profit
8 8.6 before depreciation
(after property
6 development profit)
Net profit excluding
4 investment property
revaluation
2
0
206

208. MTRCL
207

209. MTRCL
208

210. MTRCL
CONSOLIDATED P & L A/C
(YEAR ENDED 31 December 2010) HK$ M
• REVENUE 29,500
• PROFIT ON PROPERTY DEVELOPMENTS 4,034
• OPERATING PROFIT BEFORE DEPRECIATION 10,917
• NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 12,059
209

211. MTRCL
AS AT END 2010:
PATRONAGE ( million)
Yearly 1,564
Daily 4.5
210

212. HONG KONG GOVERNMENT
INFRASTRUCTURE INVESTMENT
• 2007-2008 POLICY ADDRESS
ANNOUNCES TEN MAJOR
INFRASTRUCTURE PROJECTS
• ANNUAL EXPENDITURE OF
HK$ 50 BILLION (£ 4 BILLION)
IN COMING YEARS
211

213. HONG KONG GOVERNMENT
INFRASTRUCTURE INVESTMENT
• Transport Infrastructure
1. South Island MTR Line
2. The Sha Tin to Central MTR Link
3. The Tuen Mun Western Bypass and Tuen Mun-Chek Lap Kok
Link
• Cross-boundary Infrastructure Projects
4. The Guangzhou-Shenzhen-HK Express Rail Link
5. HK-Shenzhen Airport Co-operation
6. HK-Zhuhai-Macao Bridge
7. HK-Shenzhen Joint Development of the Lok Ma Chau Loop
• New Urban Development Areas
8. West Kowloon Cultural District
9. Kai Tak Development Plan
10. New Development Areas (NDAs) 212

214. RAILWAY EXTENSIONS
213

215. RAILWAY EXTENSIONS
XRL 214

216. RAILWAY EXTENSIONS
WIL 215

217. RAILWAY EXTENSIONS
KTE 216

218. RAILWAY EXTENSIONS
SCL 217

219. RAILWAY EXTENSIONS
218
SIL(E)

220. RAILWAY EXTENSIONS
EXTENSION PROJECT FUNDING
XRL SERVICE CONCESSION
(GOVERNMENT CAPITAL + MTRCL OPERATIONS)
WIL CAPITAL GRANT
KTE RAIL + PROPERTY
SCL SERVICE CONCESSION
SIL(E) RAIL + PROPERTY
219

221. RAILWAY BUILDING
& MANAGEMENT
FEASIBILITY
IDENTIFY TRANSPORT NEEDS
FEASIBILITY STUDY
ROUTE PROTECTION
PROPOSAL TO GOVERNMENT
220

222. RAILWAY BUILDING
& MANAGEMENT
PRE-CONTRACT
 PREPARATION OF CONTRACT DOCUMENTS
 DESIGN STANDARDS MANUAL
 MATERIALS & WORKMANSHIP SPECIFICATION
 CONDITIONS OF CONTRACT
 BILLS OF QUANTITIES
 APPOINTMENT OF CONSULTANTS
 TENDERING
 CONTRACT AWARD
221

223. RAILWAY BUILDING
& MANAGEMENT
CONSTRUCTION
DESIGN MANAGEMENT
CONSTRUCTION MANAGEMENT
PROTECTION OF ADJACENT PROPERTIES
TESTING & COMMISSIONING
APPROVAL BY RAILWAY INSPECTORATE
HANDOVER TO OPERATIONS
222

224. RAILWAY BUILDING
& MANAGEMENT
IN SERVICE
 IMPROVEMENTS:
 NEW INTEGRATED ENTRANCES
 ENTRANCE UPGRADE
 RETROFITS - PLATFORM SCREEN DOORS
 FACILITIES FOR THE PHYSICALLY IMPAIRED
 KIOSKS
 CONDITION MONITORING
 MAINTENANCE
 RAILWAY PROTECTION
223

225. MTRCL
A STORY
OF
OUTSTANDING SUCCESS
224

226. MTRCL
HONG KONG PEOPLE
ENGINEERS MTR STAFF
HAVE REASON TO BE PROUD
225

227. This presentation is dedicated to :
All my friends
Especially those of the MTR
226

228. 227

229. BBC NEWS
19 APRIL 2006
228