MTR Corporation

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MTR Corporation Limited

Type	Public SEHK: 0066
Founded	Hong Kong, 1975
Headquarters	Hong Kong, China
Area served	Hong Kong
Key people	CK Chow, CEO Raymond Ch'ien Kuo Fung, Chairman
Industry	Transport, property
Products	MTR Souvenirs^[1]
Services	Railways, property developer
Profit	HK$7,758,000,000 (2006)^[2]
Employees	6,513 (2005)
Slogan	the ride to great living
Website	http://www.mtr.com.hk

MTR Corporation Limited (traditional Chinese: 香港鐵路有限公司, abbreviated as 港鐵) is a company listed on the Hong Kong Exchange (SEHK: 0066 LSE: MTR) and included in the Hang Seng Index. It is the company that owns and runs the MTR metro system. It also invests and builds railways in different parts in the world.

1 History of the Corporation
- 1.1 Privatisation
2 Operations
3 MTRC-KCRC merger
- 3.1 Fare Reductions
- 3.2 Uniforms
4 Future expansion
5 See also
6 References
7 External links

The Mass Transit Railway Corporation was established in 1975 as a government-owned statutory corporation in order to oversee the initial construction of the Hong Kong Mass Transport System, and later to run and manage the functioning transport system. On 30 June 2000 the MTRC was succeeded by the MTR Corporation Limited (MTRCL). As with the MTRC, the MTRCL's principal business is to operate the mass transit railway system. Following a successful initial public offering, the MTRCL was listed on the Hong Kong Stock Exchange on 5 October 2000, however the government maintains a majority stake in the MTRCL.

On December 2, 2007, the company will start operating the original KCRC railway system, which is commonly known as the MTRCL-KCRC merger. The Chinese name of the company will be changed to 香港鐵路有限公司 (literally translated as Hong Kong Railway Corporation) but English equivalent stays the same, as Mass Transit Railway (MTR).

On 5 October 2000, the MTR Corporation Limited became Hong Kong's first privatised rail and metro company, which marked the start of the Hong Kong government's planned initiative to wind down its interests in various public utilities. Prior to its listing on the Hong Kong Stock Exchange, the Mass Transit Railway Corporation was wholly owned by the Hong Kong Government. The offering involved the sale of around one billion shares, and the company now has the largest shareholder base of any company listed in Hong Kong. In June, 2001, MTR was transferred to Hang Seng Index.

At the time of the initial public offering, the company was operating with a budget surplus of HK$360 million, which had increased from a surplus of HK$278 million in 1997. However, after the IPO profits decreased as the company lost much of its subsidies (mainly development rights of lands) from the government, dropping to HK$139 million. Yet, this trend seems to have reversed, as profits grew more than tenfold in the fourth quarter of 2004, making it one of the few profitable public transport systems in the world.

MTR Corporation has always been reliant on developing properties next to railway stations for its profits (although the rail lines are profitable themselves); many recently built stations are incorporated into large housing estates or shopping complexes. Examples of this type of construction can be seen at Tsing Yi station, which is built next to the Maritime Square shopping centre, and directly underneath the Tierra Verde housing estate.

World Wide House, built by the MTR Corporation Limited.

The MTR Corporation Limited is responsible for the operation of MTR (and KCR since December 2 2007) in Hong Kong. Besides railway operations, the MTRCL is also actively involved in the development of key residential and commercial projects above existing stations and along new line extensions as well as many other commercial activities associated with the railway. The most recent of such developments was the large Maritime Square shopping centre development which was built in conjunction with Tsing Yi station. The MTRCL is also involved in the letting of retail and poster advertising space, ATM banking facilities, and personal telecommunication services. It also provides consultancy services to organizations worldwide.

Main article: MTR Properties

Property is one of the main businesses of the MTR. The MTR tries to develop suitable sites related to their new railway projects and their existing railway. For instance, the reclaimed land situated in West Kowloon that is owned by the MTR will be developed into an area with residential, office and retail space. Two of Hong Kong's largest banks, HSBC and the Bank of China are to have office towers there. Furthermore, will be more than 7,000 housing units in the development. The MTR also owns several shopping centres, as well as the new International Finance Centre.

The MTR Corporation invested heavily to develop large scale shopping centres around MTR stations. An example of such a shopping centre is Maritime Square (青衣城) located at Tsing Yi station. Maritime Square is a nautical-themed mall in which there are supermarkets, boutiques, bookstores, a cinema, and restaurants. Since Tsing Yi station serves as the transportation hub for Tsing Yi, Maritime Square is also easily accessible by other transportation means including buses and taxis. Other shopping centers developed and managed by the corporation include Paradise Mall (杏花新城), Telford Plaza (德福廣場), Luk Yeung Galleria (綠楊坊) and The Lane (連理街).

On 24 November 2004, it was revealed that the MTRC (together with GNER) is one of the main players in acquiring the South Eastern Trains franchise in the United Kingdom. However, Govia has been selected as the operator.

The company conducted a feasibility report to build a light rail in Macau. The company concluded initials concession agreement to build phase 2 of the Line 4 of Shenzhen Metro, and to operate the whole line on a BOT basis. The company is also exploring business opportunities in Beijing Subway and a metro system in Wuhan.

MTR corporation were bidding for the West Midlands Train route in England, but have since withdrawn their bid.

They are also interested to take over the Öresund trains in Sweden and Denmark together with SJ AB.

The company and Laing Rail established a joint venture for the London Overground franchise. In December 2006, Govia and MTR Laing were selected to submit "best and final offers" for the franchise. On 19 June 2007, MTR Laing successfully won the London Overground franchise.

Railway network after merger

Ticket gates at key interchange stations will be removed one year after the merger

There had been some discussion of merging the Kowloon-Canton Railway Corporation (KCRC), which was also government-owned, and the MTR to make the territory's transport system more efficient. The MTRCL backed such a merge while the KCRC opposed the plan. In March 2004, the Hong Kong Government officially encouraged the two companies to merge.

On April 11, 2006, the Hong Kong Government officially announced the details of the proposed merger. Under the non-binding Memorandum of Understanding the Government has signed with KCRC, KCRC would grant a Service Concession to the MTRCL to operate the KCR system, with an initial period of 50 years. The KCRC would receive a one-time upfront payment of HK$4.25 billion, a fixed annual payment of HK$750 million and a variable annual payment based on revenues generated from operation of the KCR system. In addition, MTRCL would make a payment of $7.79 billion for the acquisition of property and other related commercial interests.^[3]

The railway lines the KCRC operated were less profitable than the MTRC, and the KCRC was less active in property development. It was widely considered that the Government's choice was to avoid being criticised for selling assets of the KCRC, which it wholly owned to MTRCL at an underpriced level. Leasing the operation right of the KCR system to the MTRCL could avoid actually selling the KCRC.

On 2 December 2007, the Chinese name of the MTRCL was changed to 香港鐵路有限公司^[4] (literal translation: Hong Kong Railway Corporation Limited) after being granted the Service Concession while the English name will remain unchanged.^[5]^[6] The KCRC is now a holding company of the KCR system, without actual railway operations. The merger had been approved by shareholders of the MTRCL on October 9, 2007. The merger is effective for 50 years.

All adult Octopus Card holders would be the first to benefit from the merger.^[7] Student and Concessionary Octopus holders would also benefit from the merger by further reducing $0.1 from their 50% off fares. ^[7] Student Octopus holders would continue to pay the current reduced concessionary fares on the MTR network. Elderly Octopus holders would be introduced to a new fare system which only the elderly can enjoy a $2 fare to anywhere on the MTR network (excluding Airport Express, Light Rail, and Cross-Boundary Stations).^[8]

Corporation Uniforms (starting from December 2)

Rich shades of navy blue, khaki and highlights of yellow are the uniforms of the MTR Corporation after the merger, designed by Hong Kong fashion guru William Tang.

The uniforms of the public-facing railway operations staff were designed to easily catch the eye of the millions of people who take trains every day, achieved by an interplay of yellow with base colours that project a friendly, approachable demeanor, compared to MTR's previous "sailor-type" and KCR's "tough-style" uniforms.

Mr. Andrew McCusker, Operations Director of MTR Corporation, said, “We have taken the chance to reflect in these new uniforms the idea of harmony – One company, One team. And indeed, they are the result of a year’s teamwork under the guiding inspiration of William Tang that very much involved the staff of the MTR Corporation and the Kowloon-Canton Railway Corporation (KCRC) in the design process.”

Designer William Tang, known for his versatility and ability to deliver powerful expressions on the catwalk, worked from a management brief that placed greater emphasis on a less formal, more customer-friendly look.^[9]

The following railway links are constructed or planned by MTR currently:

Lok Ma Chau Spur Line (Opened 15 August 2007)
Kowloon Southern Link (Finish in 2009)
Tseung Kwan O Line South Extension (Finish in 2009)
West Island Line (Finish in 2012)
South Island Line (Under Planning)
Kwun Tong Line Extension (Under Planning)
North Island Line (Under Planning)
Sha Tin to Central Link (Under Planning)
New Territories Northern Link (Under Planning)

^ MTR Online Shopping. Retrieved on 2007-11-17.
^ ANNOUNCEMENT OF AUDITED RESULTS FOR YEAR ENDED 31 DECEMBER 2006 (PDF) (2007-03-13). Retrieved on 2007-11-06.
^ Press Release: Government has reached understanding with MTRCL on the terms for merging the MTR and KCR systems. Hong Kong SAR Government (2006-04-11). Retrieved on 2007-11-17.
^ Rail Merger Bill (PDF). Legislation Council of the Hong Kong SAR. Retrieved on 2007-11-08.
^ Hong Kong Government (2007-08-08). Appointments announced for post-merger MTR Corporation Limited. Press release. Retrieved on 2007-11-10. (Comparing with the Chinese version)
^ Hong Kong Government (2006-06-08). Rail Merger Bill to be introduced into Legco (English name remain MTR). Press release. Retrieved on 2007-11-15. (Comparing with the Chinese version)
^ ^a ^b Railway Merger Proposal in Hong Kong Gets Green Light, Hong Kong Economic and Trade Office in United States.
^ Elders ride on the MTR on Sundays and public holidays for just $2 for the whole journey
^ MTR Corporation Corporate File

MTR Corporate Website
Press release on Wuhan (Adobe Acrobat PDF format)
History and Development of the Company, EDGAR Online.
Transport for London press release

MTR Properties and MTR Property Management

v • d • e MTR rapid transit railway system in Hong Kong
Lines of the MTR	Airport Express · Disneyland Resort Line · East Rail Line · Island Line · Kwun Tong Line · Ma On Shan Line · Light Rail · Tseung Kwan O Line · Tsuen Wan Line · Tung Chung Line · West Rail Line
Other pages	Stations · Trains (SP1900/SP1950 Rolling Stock · East Rail Line Metro Cammell Stock) · Future projects · Arts · MTR Corporation