DEVELOPMENT OF THE HK MTR.

1. HONG KONG MASS TRANSIT RAILWAY
A SUCCESS STORY
PRESENTED
BY
Ir Thomas S K LAI
CEng, MICE, MIStructE, MHKIE
Chairman HKIE UK CHAPTER
1
75th ANNIVERSARY OF THE HONG KONG POLYTECHNIC UNIVERSITY ©

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

3. BEAUTIFUL HONG KONG
3

4. HONG KONG
• LOCATED AT THE PEARL RIVER
ESTUARY ON THE SOUTHERN
COAST OF CHINA
4

5. VICTORIA HARBOUR
5

6. August 2003 77
HARBOUR FRONT
6

7. STAR FERRY
August 2003 66
7

8. CHALLENGING BIRTH
8

9. 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
9

10. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
10

11. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
危 机
• Danger Opportunity
11

12. PLB
PLB
PUBLIC LIGHT BUS
12

13. PLB
• AVAILABLE - FREQUENT SERVICE
• CONVENIENT - PASSENGERS HOP ON
AND OFF ANYWHERE ALONG ROUTE
• PREMIUM FOR SERVICE
• POPULAR WITH PASSENGERS
13

14. 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
14

15. MTRC
THE MASS TRANIST RAILWAY
ORDINANCE
15

16. MTRC
• WHOLLY GOVERNMENT
OWNED ENTERPRISE
16

17. 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
17

18. MTRC
HONG KONG GOVERNMENT PUTS IN
INITIAL EQUITY (HK$ 800 M)
MTRC BORROWS REST IN OPEN MONEY
MARKET
18

19. PREFERRED SYSTEM
19

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

21. INITIAL SYSTEM
OIL CRISIS
JAPANESE CONSORTIUM
WITHDREW
21

22. MODIFIED INITIAL SYSTEM
MIS
(15.6 km)
25 CIVIL & 10 E&M
DESIGN AND BUILD
PACKAGES
22

23. MIS
GOVERNMENT SET UP MASS
TRANSIT ADVISER (MTA) TO:
• CO-ORDINATE BETWEEN MTRC &
GOVERNMENT DEPARTMENTS
• FACILITATE TIMELY POLICY MAKING
& ISSUE RESOLUTION
23

24. MIS
DIFFERENT LEVEL OF COMMITTEES & WORKING
GROUPS:
• GOVERNMENT / MTR LIAISON COMMITTEE
• GOVERNMENT / MTR PUBLICITY COMMITTEE
• METRO PUBLIC RELATIONS POLICY GROUP
24

25. 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)
25

26. INSPECTORATE OF RAILWAY
(UK)
• APPOINTED BY GOVERNMENT AS
ADVISER ON RAILWAY SAFETY
• PROVIDES INPUT DURING DESIGN
• INSPECTS RAILWAY SYSTEM
• RECOMMENDS OPENING
26

27. MIS
IMPORTANCE OF PUBLIC RELATIONS
• OBSERVATION WINDOWS ON HOARDINGS
• GROWING FOR YOU
27

28. MIS
IMPORTANCE OF PUBLIC RELATIONS
• CEREMONIES OF COMMENCEMENT
& COMPLETION OF WORKS
28

29. MIS
IMPORTANCE OF PUBLIC RELATIONS
PARTICIPANTS (STAKEHOLDERS) INCLUDE:
CORPORATION REPRESENTATIVES
CONTRACTORS
CONSULTANTS
GOVERNMENT OFFICIALS
LEGISLATORS
DISTRICT COUNCILLORS
LOCAL DIGNITARIES
29

30. MIS
IMPORTANCE OF PUBLIC RELATIONS
• TEAM BUILDING
• PUBLICISING PROGRESS OF WORKS
30

31. MIS
WORK STARTED
• NOVEMBER
1975
GROUNDBREAKING CEREMONY
BY CHAIRMAN SIR NORMAN THOMPSON
31
AT KWUN TONG

32. MIS
• FIRST CHAIRMAN – SIR NORMAN THOMPSON
 DIRECT ACCESS TO THE GOVERNOR
 SIMPLE & CLEAR MESSAGES
• PROJECT MANAGER – HONG KONG &
SHANGHAI BANK HQ BUILDING
32

33. MIS
FIRST M.D. – PROF TONY RIDLEY
M.D. – LONDON UNDERGROUND
MAJOR IMPROVEMENT TO THE SYSTEM
PROFESSOR – IMPERIAL COLLEGE LONDON
33

34. MIS
• GENERAL PUBLIC
– EXCITEMENT
– EXPECTATION
– DETERMINATION
34

35. MIS
• GENERAL PUBLIC
HIGH DEGREE OF TOLERENCE
&
CO-OPERATION
35

36. MIS
PROJECT MANAGEMENT APPROACH:
• QUICK DECISION-MAKING
• REGULAR MONITORING OF EFFECT OF
CHANGES ON BUDGET & PROGRAMME
• APPROPRIATE DELEGATION OF
AUTHORITY
• SHARE RISKS & BENEFITS WITH
36
CONTRACTORS

37. MIS
• BASED ON PROVEN TECHNOLOGY
• PROJECT MOTTO:
IF IT IS ESSENTIAL,
GET ON WITH IT.
IF IT IS DESIRABLE,
FORGET IT.
37

38. MIS
GOVERNMENT
COMMUNITY MTRC
UNITY IN PURPOSE
38

39. MIS
GROUND CONDITIONS
 ALLUVIAL DEPOSITS
 GRANITE (VARYING DEGREE OF
DECOMPOSITION)
 HARD ROCK
39

40. MIS
STATION WALL CONSTRUCTION
40

41. MIS
STATION CONSTRUCTION
41

42. MIS
INSITU HORSESHOE TUNNEL
42

43. MIS
PRECAST CONCRETE TUNNEL
LINING
43

44. MIS
SGI TUNNEL LINING
44

45. MIS
NGAU TAU KOK STATION &
VIADUCT
45

46. MIS
KOWLOON BAY DEPOT
46

47. MIS
ADMIRALTY STATION
EXCAVATION
47

48. MIS
IMMERSED TUBE CASTING
48

49. MIS
IMT
49

50. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO SHEK KIP MEI
– OPERATIONAL ON 1 OCTOBER 1979
50

51. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO TSIM SHA TSUI
– OPERATIONAL ON 31 DECEMBER 1979
51

52. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO CENTRAL
– OPENED BY PRINCESS ALEXANDRA
ON 12 FEBRUARY 1980
52

53. MIS
• FROM KWUN TONG TO CENTRAL
ON TIME AND WITHIN BUDGET
53

54. 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
54

55. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
55

56. MIS
• CLEAN
• QUIET
• EFFICIENT
• RELIABLE
DAVID BARRACLOUGH
• AIR-CONDITIONED
FORMER OPERATIONS DIRECTOR
56

57. MIS
SUCCESS
57

58. GROWTH
58

59. TSUEN WAN LINE
BUILDING UP THE
COMPANY
ERIC BLACK
SECOND MD
59

60. TSUEN WAN LINE
60

61. TWL
• ENGINEER’S DESIGN
• CONTRACTOR’S ALTERNATIVE
PROPOSALS CONSIDERED &
ADOPTED
TSUEN WAN DEPOT
&
LUK YEUNG SUN CHUEN DEVELOPMENT
61

62. TWL
• SET UP STRONG IN-HOUSE
PROFESSIONAL PROJECT
MANAGEMENT TEAM
• HANDS-ON STYLE
LAI KING TO KWAI FONG
CROSS-OVER
62

63. 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
63

64. TWL
• TSUEN WAN LINE
– TSUEN WAN
TO CENTRAL
– OPERATIONAL
10 May 1982
(AHEAD OF PROGRAMME)
64

65. 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
65

66. ISL
66

67. ISL
• ISLAND LINE
– CHAI WAN TO
ADMIRALTY
31 MAY 1985
– CHAI WAN TO
SHEUNG WAN
23 MAY 1986
67

68. ISL
ESTIMATED TOTAL COSTS HK$ B
AT 1986 PRICES 10.9
(EXCL. INTEREST AND FINANCE
COSTS)
FINAL COST 10.0
INCL. INTEREST & 11.9
FINANCE COSTS
WILLIAM GREIG
FORMER PROJECTS DIRECTOR
68

69. MORE CHALLENGING TIME
69

70. 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
 BOARD MEMBER OF HONG KONG &
SHANGHAI BANKING CORPORATION (HSBC)
 HON. FELLOW - HKIE
 CHAIRMAN – LONDON TRANSPORT
OVERSAW JUBILEE LINE EXTENSION
70
CONSTRUCTION

71. MTR
ARRIVAL & GROWTH OF MTR
COINCIDE WITH :
TRANSFORMATION OF HONG KONG
FROM REGIONAL CITY
TO INTERNATIONAL FINANCIAL CENTRE
71

72. 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
72

73. HONG KONG LEASE
BRITISH PRIME MINISTER
VISITED BEIJING
OFFERED TO EXCHANGE
SOVEREIGNTY FOR
ADMINSTRATION
MARGARET THATCHER
73

74. HONG KONG LEASE
OFFER REJECTED BY CHINA
74

75. HONG KONG LEASE
BUT AGREED TO:
• SET UP JOINT LIAISON COMMITTEE (JLC)
• CONTINUE NEGOTIATION
• MAINTAIN STABILITY & PROSPERITY OF
HONG KONG
75

76. HONG KONG LEASE
• NEGOTIATION NOT GOING WELL
• UNCERTAINTY
76

77. HONG KONG LEASE
• JITTERY & GLOOMY
• INVESTMENTS PUT ON HOLD
• STOCK MARKET CRASH
• PROPERTY BUBBLE BURST
77

78. HONG KONG LEASE
HONG KONG DOLLAR PLUNGES
FROM AROUND HK$ 6 = US$ 1
TO
OVER HK$ 9 = US$ 1
78

79. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE
79

80. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE &
BABY’S POWDERED MILK
80

81. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
81

82. HONG KONG LEASE
• CALM THE CITY
• STOP PANIC
82

83. 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
83

84. 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
84

85. HONG KONG LEASE
•ENSHRINED IN •LODGED WITH
BASIC LAW UNITED NATIONS
85

86. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
• REMAINS TO THIS DAY
86

87. MTRC
• BORROWING IN US$
• REVENUE IN HK$
• ADVERSE IMPACT BY
HIGH INTEREST RATE (12%)
DEVALUATION
87

88. MTRC
• HONG KONG
GOVERNMENT TO
INCREASE EQUITY
(HK$ 2.5 B ISSUED, 2.5 B
ON CALL )
• SHIFT BORROWING TO BE
HK$ DENOMINATED
ROGER MOSS
FORMER FINANCE DIRECTOR
88

89. MTRC
SECURED CREDIT RATING FROM
• MOODY
• S&P
ROAD SHOW TO TAP INTERNATIONAL BOND MARKET
• YANKEE BOND
• SAMURAI BOND
89

90. MTRC
IN NO POSITION TO FINANCE NEW
EXTENSIONS ON ITS OWN
EXECUTIVE COMMITTEE
90

91. EASTERN HARBOUR CROSSING
91

92. EHC
• Build Own Transfer 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
92

93. EHC
MTRC PAYS SEMI-ANNUAL INSTALMENTS FOR
18½ YEARS TOTALLING HK$ 2.6 B
OTHER CAPITAL INVESTMENT
INCL. ROLLING STOCKS 0.365 B
WILLIAM DONALD
FORMER OPERATIONS DIRECTOR
93

94. EHC
OPENED ON 1 OCTOBER 1989
PRINCE CHARLES SPEAKING TO
Ir THOMAS LAI
94

95. AFTER JOINT DECLARATION
• UNCERTAINTY REMOVED
• CONFIDENCE RETURNED
LIPPO CENTRE
95

96. NEW AIRPORT
96

97. KAI TAK AIRPORT
CHECKERBOARD IN SIGHT
97

98. KAI TAK AIRPORT
STEADY AS SHE GOES
98

99. KAI TAK AIRPORT
DO YOUR WINDOW SHOPPING
BEFORE YOU LAND
99

100. KAI TAK AIRPORT
SEE....I LAND IT ON THE ROOF
100

101. KAI TAK AIRPORT
HARD RIGHT TURN AND DIVE
101

102. KAI TAK AIRPORT
BUT LANDING ON THE
RUNWAY...... IS NOT ALWAYS
102
EASY

103. KAI TAK AIRPORT
SOMETIMES.... ENDED UP IN THE
WATER
103

104. AIRPORT CORE PROJECTS
RELOCATE AIRPORT FROM KAI TAK TO CHEK LAP KOK
104

105. AIRPORT CORE PROJECTS
• APPROVED BY BEIJING
& LONDON
105

106. AIRPORT CORE PROJECTS
• OBJECTIVES:
– TO STIMULATE ECONOMY
– TO FACILITATE FUTURE GROWTH
– TO ELIMINATE AVIATION HAZARD
– TO BE COMPLETED IN TIME FOR
HANDOVER
106

107. ACP
• AIRPORT AT CHEK LAP KOK
• TSING MA BRIDGE
• LANTAU & AIRPORT RAILWAY
107

108. ACP
• KAP SHUI MUN BRIDGE
• TING KAU BRIDGE
• HIGHWAYS
• RECLAMATIONS
• THIRD CROSS HARBOUR ROAD
TUNNEL (WESTERN HARBOUR CROSSING)
108

109. ACP
• HK$ 127 BILLION £ 10 BILLION
109

110. ACP
CHINA’S CONCERN:
• ROSE GARDEN PROJECT
• EMPTY TREASURY
• HIGH DEBT
110

111. 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
111

112. ACP
ESSENTIAL TO HAVE CHINA’S AGREEMENT AND SUPPORT
TO ASSURE INVESTORS
WRANGLING OVER FINANCIAL DATADELAYED PROJECT
START
HAMISH MATHERS
112
FORMER CHAIRMAN

113. ACP
JACK SO CHAK KWONG
FORMER CHAIRMAN & CEO
113

114. ACP
AT TIME OF HANDOVER
ON 30 JUNE/1 JULY 1997
CHINESE PRESIDENT ARRIVED LAST BRITISH GOVERNOR LEFT
BY PLANE
AT THE NEW AIRPORT ON ROYAL YACHT BRITANNIA
JIANG JI MEN LORD PATTEN
114

115. ACP
PROJECT COMPLETED IN 1998
Ir DOUGLUS OAKERVEE
PROJECT DIRECTOR HKIA
FORMER MTR PROJECT
MANAGER
115

116. WORLD CLASS
HONG KONG INTERNATIONAL AIRPORT
116

117. TSING MA BRIDGE
(ROAD + RAIL)
117

118. LANTAU & AIRPORT LINE
118

119. LAL
AIRPORT EXPRESS LINE
(AEL)
AIRPORT – HONG KONG
23 MINUTES JOURNEY
IN-TOWN-CHECK-IN
119

120. LAL
TUNG CHUNG LINE
(ON SHARED TRACK WITH AEL)
TUNG CHUNG - HONG KONG
COMMUTER LINE
ALSO PROVIDES RELIEF
TO NATHAN ROAD CONGESTION
120

121. 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)
121

122. ACP
EXTENSIVE APPLICATION OF
VALUE ENGINEERING
INTRODUCE PARTNERING
RUSSELL BLACK
FORMER PROJECTS DIRECTOR
122

123. TUNG CHUNG LINE
NO MORE SLIDING SEATS
123

124. AIRPORT EXPRESS
• SPACIOUS SEATING
• PLEASANT AMBIENCE
• BUSINESS CLASS
COMFORT
FROM PLANE,
THROUGH TRAIN,
TO HOTEL AEL TRAIN
124

125. LAL
TCL
OPERATIONAL ON 22 JUNE 1998
AEL
OPERATIONAL ON 6 JULY 1998
125

126. LAL
HK$
B
PROJECT COST
35.1
(INCLUDING CAPITALISED INTEREST)
FINANCED BY:
EQUITY
23.7
DEBT
11.4
126

127. CONSOLIDATION
127

128. TSEUNG KWAN O LINE
128

129. TKL
• TSEUNG KWUN O LINE
– COMMUTER LINE
– FROM PO LAM TO NORTH POINT
– OPERATIONAL ON 17 AUGUST 2002
129

130. TKL
I st JULY – 1997
ASIAN FINANCIAL CRISIS
MAJOR REVIEW OF THE
PROJECT
130

131. TKL
INITIAL CAPITAL COST ESTIMATE HK$ B
INCL. CAPITALISED INTEREST 30.5
FINAL COST 16.0
HANG HAU STATION
131

132. TKL
NORTH POINT CAVERN
132

133. DISNEYLAND RESORT LINE
133

134. DISNEYLAND RESORT LINE
134

135. DRL
• DISNEYLAND RESORT
LINE
– FROM SUNNY BAY TO
DISNEYLAND
– FULLY AUTOMATIC
OPERATION
– OPERATIONAL ON
12 SEPTEMBER 2005
135

136. ASIAWORLD-EXPO STATION
136

137. ASIAWORLD-EXPO STATION
137

138. ASIAWORLD-EXPO STATION
AIR STATION –
ASIAWORLD-EXPO
OPERATIONAL ON
20 DECEMBER 2005
138

139. NGONG PING 360
139

140. NGONG PING 360
140

141. NGONG PING 360
141

142. NGONG PING 360
142

143. NGONG PING 360
AIRPORT ISLAND STATION TUNG CHUNG TERMINAL
143

144. NGONG PING 360
• MATERIAL DELIVERY
– HELICOPTERS
– MULES
144

145. NGONG PING 360
SCHEDULED OPENING 24 JUNE 2006
OPERATIONAL 18 SEPT 2006
OFFICIAL OPENING 9 NOV 2006
145

146. NGONG PING 360
OPERATION SUSPENDED 11 JUNE 2007
OPERATION RESUMED 31 DEC 2007
SUBSIDIARY COMPANY SET UP TO
MANAGE & OPERATE THE SYSTEM
146

147. SUCCESS PROFILERATING
147

148. MTRC
 PROJECT MANAGEMENT
 RAILWAY OPERATION
 FINANCIAL EXPERTISE
 TRAINING & DEVELOPMENT
 PROPERTY
 AUTOMATIC FARE COLLECTION
148

149. MTRC
• INVEST HEAVILY IN STAFF TRAINING &
DEVELOPMENT
• CORE VALUES :
 CUSTOMER SERVICE
 RESPECT FOR THE INDIVIDUAL
 ON TIME AND WITHIN BUDGET
149

150. MTRC
PROVIDES PROFESSIONAL
TRAINING SERVICES TO
OTHER RAILWAYS IN:
– MAINLAND CHINA
PHIILP GAFFNEY (3R/B)
FORMER OPERATIONS DIRECTOR
– SOUTHEAST ASIA
LEN TURK (1L/F)
FORMER LEGAL DIRECTOR &
COMPANY SECRETARY
PATRICK MAULE (2L/F)
FORMER PERSONNEL DIRECTOR
150

151. PROPERTY DEVELOPMENT
& MANAGEMENT
MAJOR GOVERNMENT POLICY ISSUES
TRANSPORT HOUSING
151

152. PROPERTY DEVELOPMENT
& MANAGEMENT
• GOVERNMENT ALLOCATE LAND AT
FULL MARKET VALUE ALONG THE
RAILWAY FOR DEVELOPMENT
152

153. PROPERTY DEVELOPMENT
& MANAGEMENT
• MAJOR & REPUTABLE
PROPERTY DEVELOPER
AND MANAGER IN
TOWN
• JOINT VENTURES
– RESIDENTIAL
– RETAIL
– OFFICES
– HOTEL 153

154. PROPERTY DEVELOPMENT
& MANAGEMENT
• SUBSTANTIAL CONTRIBUTION TOWARDS COST OF
RAILWAY
• CAPTURED PASSENGERS
(FORMING PART OF 2.4 M DAILY RIDERSHIP )
VICTOR SO HING WOH THOMAS HO HANG KWONG
FORMER PROPERTY DIRECTORS
154

155. PROPERTY DEVELOPMENT
& MANAGEMENT
PROCEEDS FROM DEVELOPMENTS
HELP TO:
• KEEP FARES AT REASONABLE
LEVEL
• MAINTAIN & EXTEND RAIL
NETWORK
155

156. PROPERTY DEVELOPMENT
& MANAGEMENT
156

157. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD GARDEN
157

158. PROPERTY DEVELOPMENT
& MANAGEMENT
PARK VIEW
158

159. PROPERTY DEVELOPMENT
& MANAGEMENT
CENTRAL STATION RETAIL
159

160. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD PLAZA
160

161. PROPERTY DEVELOPMENT
& MANAGEMENT
MARITIME SQUARE
161

162. PROPERTY DEVELOPMENT
& MANAGEMENT
ELEMENTS 162

163. 2 INTERNATIONAL FINANCE CENTRE
2IFC
163

164. UNION SQUARE
164

165. INTERNATIONAL COMMERCE CENTRE
• 118 FLOORS
• 490 METRES HIGH
• THIRD TALLEST
BUILDING IN THE
WORLD
ICC
165

166. ICC
ICC
166

167. GATEWAY TOWERS
167

168. CHINA – BEIJING
• PROPERTY OPEARATIONS
& MANAGEMENT
GINZA MALL
168

169. PROPERTY DEVELOPMENT
& MANAGEMENT
AS AT END 2011:
Investment properties
Hong Kong: 12 shopping malls + 18 floors at 2 IFC
Shops 226,622 sq.m )
Offices 41,000 sq.m ) 279,424 sq.m
Other use 11,202 sq.m )
Mainland China: Ginza Mall
Shops 18,398 sq.m
Managed properties:
• 86,162 residential units in Hong Kong
169
• 744,214 sq.m commercial properties in Hong Kong

170. AUTOMATIC FARE COLLECTION
• ELECTRO-MAGNETIC CARD
• STORED VALUE CARD
• CONTACTLESS SMART CARD
ROB NOBLE
FORMER MARKETING & PLANNINGDIRECTOR 170

171. AUTOMATIC FARE COLLECTION
ELECTRO-MAGNETIC CARD
• PLASTIC
• RE-USABLE
• NO LITTER
• ISSUED BY MACHINE / HAND
• FIXED VALUE
• ELECTRO-MAGNETIC
• SINGLE JOURNEY
171

172. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
• NO TICKET FLICKING 172

173. 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
173

174. AFC
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
174

175. OCTOPUS CONTACTLESS SMART CARD
• RELIABLE TICKETING
• LABOUR SAVING
• DATA FOR:
OPERATIONAL PLANNIN INCLUDING PRICING
175

176. OCTOPUS CONTACTLESS SMART CARD
• FORERUNNER OF:
• EZ-LINK – SINGAPORE
• OYSTER CARD – LONDON
• EASYCARD - TAIPEI
176

177. OCTOPUS CONTACTLESS SMART CARD
OTHER USES:
 PUBLIC TRANSPORTS
 CAR PARKS
 ACCESS CONTROL TO BUILDINGS
 CONFIRMATION OF STUDENTS’
ATTENDANCE AT SCHOOL
177

178. OCTOPUS CONTACTLESS
SMART CARD
AS AT END OF JUNE 2012
• 12.1 MILLION DAILY TRANSACTIONS
• HK$ 123.9 MILLION PER DAY
• ADOPTED BY OVER 5000 SERVICE PROVIDERS
178

179. MTR CORPORATION
AN OUTSTANDINGLY SUCCESSFUL
ENTERPRISE
179

180. MTR CORPORATION LTD
LISTED ON THE HONG KONG
EXCHANGE
ON 5 OCTOBER 2000
180

181. MERGER WITH KCRC
181

182. MERGER
• HONG KONG GOVERNMENT ANNOUNCED
MERGER PROPOSAL BETWEEN MTRCL & KCRC
ON 11 APRIL 2006
182

183. 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
183

184. MERGER
KCRC
• OPERATES:
– EAST RAIL
– WEST RAIL
– LIGHT RAIL
– INTERCITY TO
GUANGZHOU
– FREIGHT TO
INTERIOR OF
MAINLAND CHINA
184

185. MERGER
KCRC
• PROPERTY DEVELOPMENT
&
MANAGEMENT
185

186. MERGER
• HONG KONG GOVERNMENT ANNOUNCED MERGER
PROPOSAL BETWEEN MTRCL & KCRC ON 11 APRIL 2006
• MTRCL SIGNED MEMORANDUM OF UNDERSTANDING
(MOU) WITH HK GOVERNMENT
MICHAEL TIEN DR RAYMOND CH'IEN
FORMER CHAIRMAN KCRC CHAIRMAN MTRCL
186

187. 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
187

188. MERGER
MOU PROVIDES FOR
• JOB SECURITY FOR ALL FRONTLINE STAFF
188

189. MERGER
DEAL TERMS
• PROVIDE A BALANCED PACKAGE FAIR TO ALL
STAKEHOLDERS
189

190. 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
190

191. 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
191

192. MERGER
BENEFITS
• SYNERGY
• ECONOMIES OF SCALE
• COST EFFICIENCY
• INTEGRATED RAIL SYSTEM
192

193. 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
193

194. MERGED
• COMPLETED ON
2 DECEMBER
2007
• 香港鐵路有限公司
ONE COMPANY ONE TEAM
194

195. MERGED
195

196. 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
196

197. MERGED
ONE COMPANY ONE TEAM
STAFF INTEGRATION W ILLIAM CHAN
FORMER HUMAN RESOURCES DIRECTOR
197

198. MTR CORPORATION LTD
GROWTH MOMENTUM
198

199. MTRCL
EXPANSION
NEW VISION :
• TO BE A WORLD CLASS ENTERPRISE
• GROWING IN HONG KONG & BEYOND
• FOCUSING ON RAIL, PROPERTY &
RELATED BUSINESS
199

200. 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
200

201. MTRCL
• NEW CORE VALUES :
EXCELLENT SERVICE
VALUE CREATION
MUTUAL RESPECT
ENTERPRISING SPIRIT
201

202. HONG KONG BUSINESS
HONG KONG INTERNATIONAL AIRPORT
SUBCONTRACT FOR AUTOMATED PEOPLE
MOVER MIDFIELD CONCOURSE EXTENSION
PROJECT
RESPONSIBLE FOR DESIGN,
PROCUREMENT, INSTALLATION, TESTING &
COMMISSIONING OF SEVERAL RAILWAY
SYSTEMS
202

203. MACAO BUSINESS
MACAO GOVERNMENT
MOU SIGNED FOR LIGHT RAIL
PROJECT CONSULTANCY
203

204. DUBAI
204

205. DUBAI
METRO & AIRPORT LINES
205

206. DUBAI
CONSULTANCY
TO REVIEW DESIGN PROPOSALS IN
RESPECT OF :
OPERATION &
MAINTENANCE
VIADUCT CONSTRUCTION
206

207. DUBAI
CONSULTANCY
MOU SIGNEDTO ASSIST TO DEVELOP A
MASS URBAN TRANSPORT SYSTEM,
PROVIDING HIGH QUALITY TRANSPORT
SERVICES
207

208. INDIA
Delhi Airport Metro
Express Line
(AMEL)
• Major engineering &
project management
contract
208

209. UK BUSINESS
BIDS
209

210. 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
210

211. UK BUSINESS
LOROL MTR/DEUTSCHE BAHN
(CONTROLLED BY ARRIVA UK TRAINS)
ACTION ON DAY ONE
• OYSTER TICKETING SYSTEM
• NEW TICKETING MACHINES
• STATIONS GATED 211

212. UK BUSINESS
• IMPROVEMENT IN:
1. SERVICE OPERATION
2. PUNCTUALITY
3. SAFETY
4. SECURITY
• TICKETLESS TRAVEL DOWN
• REVENUE UP
212

213. UK BUSINESS
PROGRAMME FOR:
• CUSTOMER SERVICE TRAINING
• STATION CLEANING AND REPAIR
• STATION REFURBISHEMENT
• STATION REMODELLING
• NEW EXTENSIONS
213

214. UK BUSINESS
• “….so gradually all suburban rail services in London
can be brought up to the standard of London
Overground.”
Ken Livingstone
Mayor of London
214

215. UK BUSINESS
9TH LONDON TRANSPORT AWARDS
 LONDON TRANSPORT OPERATOR OF THE YEAR
(SECOND YEAR IN A ROW)
2012 METRORAIL AWARDS LONDON
 WORLD’S MOST IMPROVED METRO
215

216. UK BUSINESS
SHORT-LISTED TO BID FOR:
ESSEX THAMESIDE FRANCHISE
(LONDON FENCHURCH STREET – TILBURY- SOUTHEND)
SEPTEMBER 2012
THAMESLINK FRANCHISE
(BEDFORD – GATWICK - BRIGHTON)
FEBRUARY 2013
216

217. EUROPE BUSINESS
STOCKHOLM UNDERGROUND
TOOK OVER OPERATION 2 NOVEMBER 2009
(FOR 8 YEARS MINIMUM)
217

218. AUSTRALIA BUSINESS
METRO TRAINS MELBOURNE
TOOK OVER OPERATION ON 30 NOVEMBER 2009
(FOR INITIAL PERIOD OF 8 YEARS)
218

219. AUSTRALIA BUSINESS
UNITED GROUP LTD.
SUBCONTRACT TO SUPPORT ITS ROLLING STOCK
MAINTENANCE WORKS IN NEW SOUTH WALES
219

220. CHINA BUSINESS
220

221. 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
221

222. CHINA BUSINESS
BEIJING LINE 4
– INITIALLED IN FEBRUARY 2005
– COMPANY FORMED IN JANUARY 2006
– AGREEMENT SIGNED ON 12 APRIL 2006
222

223. 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
223

224. 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
224

225. CHINA BUSINESS
HANGZHOU LINE 1
– J.V. AGREEMENT WITH SUBSIDARY
OF HANGZHOU METRO GROUP
(PPP)
– INVEST & OPERATE LINE 1 FOR 25
YEARS
– RESPONBLE FOR E&M SYSYTEMS
& ROLLING STOCK
– SINGED IN JULY 2012
225

226. 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%
226

227. CURRENT EXTENSION PROJECTS
227

228. 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
228

229. HONG KONG GOVERNMENT
INFRASTRUCTURE INVESTMENT
229

230. 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) 230

231. RAILWAY EXTENSIONS
231

232. RAILWAY EXTENSIONS
XRL 232

233. RAILWAY EXTENSIONS
WIL 233

234. RAILWAY EXTENSIONS
KTE 234

235. RAILWAY EXTENSIONS
JAY WALDER
CEO
TC CHIEW
PROJECTS DIRECTOR
235
SCL

236. RAILWAY EXTENSIONS
FULLY AUTOMATIC OPERATION
236
SIL(E)

237. 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
237

238. RAILWAY EXTENSIONS
RAILWAY DEVELOPMENT STRATEGY 2000
238
(UPDATE)

239. RAILWAY BUILDING
239

240. RAILWAY BUILDING
FEASIBILITY
 IDENTIFY TRANSPORT NEEDS
 FEASIBILITY STUDY
 PROPOSAL TO GOVERNMENT
 ROUTE PROTECTION
240

241. RAILWAY BUILDING
PRE-CONTRACT
 PREPARATION OF CONTRACT DOCUMENTS
 DESIGN STANDARDS MANUAL
 MATERIALS & WORKMANSHIP SPECIFICATION
 CONDITIONS OF CONTRACT
 BILLS OF QUANTITIES
 APPOINTMENT OF CONSULTANTS
 TENDERING
 CONTRACT AWARD
241

242. RAILWAY BUILDING
CONSTRUCTION
 DESIGN MANAGEMENT
 CONSTRUCTION MANAGEMENT
 PROTECTION OF ADJACENT PROPERTIES
 TESTING & COMMISSIONING
 APPROVAL BY RAILWAY INSPECTORATE
 HANDOVER TO OPERATIONS
242

243. SYSTME IMPROVEMENT
&
PROTECTION
243

244. RAILWAY BUILDING
& MANAGEMENT
IN SERVICE
 IMPROVEMENTS:
 NEW INTEGRATED ENTRANCES
 ENTRANCE UPGRADE
 KIOSKS
 TOILETS & LIFTS
 FACILITIES FOR THE PHYSICALLY IMPAIRED
 RETROFITS - PLATFORM SIDE DOORS
 NEW SINGNALLING SYSTEM
 CONDITION MONITORING
 ASSET MAINTENANCE & REPLACEMENT
 RAILWAY PROTECTION
244

245. IN SERVICE
INTEGRATED ENTRANCE
245

246. IN SERVICE
OLD ENTRANCE
NEW ENTRANCE
246

247. IN SERVICE
KIOSKS
247

248. IN SERVICE
TOILETS & LIFTS
248

249. IN SERVICE
CHAIRLIFT & TACTILE ROUTES
249

250. IN SERVICE
PSD
250

251. IN SERVICE
SIGNALLING
SOURCE - BOMBARDIER

252. IN SERVICE
RAILWAY PROTECTION
252

253. MTRCL
A STORY
OF
OUTSTANDING SUCCESS 253

254. MTRCL
• PROFITABLE
254

255. MTRCL
255

256. MTRCL
256

257. MTRCL
CONSOLIDATED P & L A/C
(YEAR ENDED 31 December 2011) HK$ M
• REVENUE 33,423
• PROFIT ON PROPERTY DEVELOPMENTS 4,900
• OPERATING PROFIT BEFORE DEPRECIATION 17,038
• NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 14,716
257

258. MTRCL
AS AT END 2011:
PATRONAGE ( million)
Yearly 1,644
Daily 4.7
258

259. MTRCL
HONG KONG PEOPLE
ENGINEERS MTR STAFF
HAVE REASON TO BE PROUD
259

260. IN THE EYES
of the
BBC
19 APRIL 2006 260

261. RECAP
261

262. STORY OF THE HKMTR
262

263. STORY OF THE HKMTR
STORY OF HONG KONG IN THE
FINAL DECADES OF LAST CENTURY
263

264. STORY OF THE HKMTR
STORY OF HONG KONG IN THE
FINAL DECADES OF LAST CENTURY
STORY OF 23 YEARS OF MY LIFE
264

265. This presentation is dedicated to :
All my friends
Especially those of the MTR
265

266. 266