The document discusses the history and success of the Hong Kong Mass Transit Railway (MTR) system. It describes how the MTR was established in the 1970s to build and operate an underground railway system in Hong Kong. The initial system, known as the Modified Initial System (MIS), opened in 1979 and was completed on time and within budget despite facing challenges. The MTR has since expanded with new lines and has coincided with Hong Kong's growth as an international financial center.

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. MEMORIES OF
OLD TECHNICAL COLLEGE BUILDINGS
2

3. HONG KONG TECHNICAL COLLEGE
THE RED BRICK BUILDING IN
WANCHAI
灣仔 紅磚屋 3

4. HONG KONG TECHNICAL COLLEGE
1957
NEW PREMISES IN HUNGHOM
4

5. HONG KONG TECHNICAL COLLEGE
1959
KESWICK HALL
5

6. HKPolyU ALUMNI
DR DANIEL WATERS FELIX CHAN
FORMER HEAD HKTC OLD HKTC BUILDINGS
BUILDING DEPARTMENT PROJECT SUPERVISOR 6

7. HKPolyU ALUMNI
THOMAS LAI
PRESENTING HKTC BUILDING DEPARTMENT OLD BOYS ASSOCIATION
SCHOLARSHIP 7

8. BIRTH & GROWTH OF
HONG KONG MASS TRANSIT
RAILWAY
UP TO DATE
8

9. BEAUTIFUL HONG KONG
9

10. HONG KONG
• LOCATED AT THE PEARL RIVER
ESTUARY ON THE SOUTHERN
COAST OF CHINA
10

11. VICTORIA HARBOUR
11

12. August 2003 77
HARBOUR FRONT
12

13. STAR FERRY
August 2003 66
13

14. CHALLENGING BIRTH
14

15. 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
15

16. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
16

17. CULTURAL REVOLUTION
HONG KONG IN
CRISIS
危 机
• Danger Opportunity
17

18. PLB
PLB
PUBLIC LIGHT BUS
18

19. PLB
• AVAILABLE - FREQUENT SERVICE
• CONVENIENT - PASSENGERS HOP ON
AND OFF ANYWHERE ALONG ROUTE
• PREMIUM FOR SERVICE
• POPULAR WITH PASSENGERS
19

20. 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
20

21. MTRC
THE MASS TRANIST RAILWAY
ORDINANCE
21

22. MTRC
• WHOLLY GOVERNMENT
OWNED ENTERPRISE
22

23. 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
23

24. MTRC
HONG KONG GOVERNMENT PUTS IN
INITIAL EQUITY (HK$ 800 M)
MTRC BORROWS REST IN OPEN MONEY
MARKET
24

25. PREFERRED SYSTEM
25

26. INITIAL SYSTEM
LETTER OF INTENT SIGNED WITH JAPANESE
CONSORTIUM FOR THE INITIAL SYSTEM
(20 km) AS A SINGLE DESIGN & BUILD CONTRACT
26

27. INITIAL SYSTEM
OIL CRISIS
CONSORTIUM WITHDREW
27

28. MODIFIED INITIAL SYSTEM
MIS
(15.6 km)
25 CIVIL & 10 E&M
DESIGN AND BUILD
CONTRACTS
28

29. MIS
GOVERNMENT SET UP MASS
TRANSIT ADVISER (MTA) TO:
• CO-ORDINATE BETWEEN MTRC &
GOVERNMENT DEPARTMENTS
• FACILITATE TIMELY POLICY MAKING
& ISSUE RESOLUTION
29

30. MIS
DIFFERENT LEVEL OF COMMITTEES & WORKING
GROUPS:
• GOVERNMENT / MTR LIAISON COMMITTEE
• GOVERNMENT / MTR PUBLICITY COMMITTEE
• METRO PUBLIC RELATIONS POLICY GROUP
30

31. 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)
31

32. INSPECTORATE OF RAILWAY
(UK)
• APPOINTED BY GOVERNMENT AS
ADVISER ON RAILWAY SAFETY
• PROVIDES INPUT DURING DESIGN
• INSPECTS RAILWAY SYSTEM
• RECOMMENDS OPENING
32

33. MIS
IMPORTANCE OF PUBLIC RELATIONS
• OBSERVATION WINDOWS ON HOARDINGS
• GROWING FOR YOU
33

34. MIS
IMPORTANCE OF PUBLIC RELATIONS
• CEREMONIES OF COMMENCEMENT
& COMPLETION OF WORKS
34

35. MIS
IMPORTANCE OF PUBLIC RELATIONS
PARTICIPANTS (STAKEHOLDERS) INCLUDE:
CORPORATION REPRESENTATIVES
CONTRACTORS
CONSULTANTS
GOVERNMENT OFFICIALS
LEGISLATORS
DISTRICT COUNCILLORS
LOCAL DIGNITARIES
35

36. MIS
IMPORTANCE OF PUBLIC RELATIONS
• TEAM BUILDING
• PUBLICISING PROGRESS OF WORKS
36

37. MIS
WORK STARTED
• NOVEMBER
1975
GROUNDBREAKING CEREMONY
BY CHAIRMAN SIR NORMAN THOMPSON
37
AT KWUN TONG

38. MIS
• FIRST CHAIRMAN – SIR NORMAN THOMPSON
 DIRECT ACCESS TO THE GOVERNOR
 SIMPLE & CLEAR MESSAGES
• PROJECT MANAGER – HONG KONG &
SHANGHAI BANK HQ BUILDING
38

39. MIS
FIRST M.D. – PROF TONY RIDLEY
M.D. – LONDON UNDERGROUND
MAJOR IMPROVEMENT TO THE SYSTEM
PROFESSOR – IMPERIAL COLLEGE LONDON
39

40. MIS
• GENERAL PUBLIC
– EXCITEMENT
– EXPECTATION
– DETERMINATION
40

41. MIS
• GENERAL PUBLIC
HIGH DEGREE OF TOLERENCE
&
CO-OPERATION
41

42. MIS
PROJECT MANAGEMENT APPROACH:
• QUICK DECISION-MAKING
• REGULAR MONITORING OF EFFECT OF
CHANGES ON BUDGET & PROGRAMME
• APPROPRIATE DELEGATION OF
AUTHORITY
• SHARE RISKS & BENEFITS WITH
42
CONTRACTORS

43. MIS
• BASED ON PROVEN TECHNOLOGY
• PROJECT MOTTO:
IF IT IS ESSENTIAL,
GET ON WITH IT.
IF IT IS DESIRABLE,
FORGET IT.
43

44. MIS
GOVERNMENT
COMMUNITY MTRC
UNITY IN PURPOSE
44

45. MIS
GROUND CONDITIONS
 ALLUVIAL DEPOSITS
 GRANITE (VARYING DEGREE OF
DECOMPOSITION)
 HARD ROCK
45

46. MIS
STATION WALL CONSTRUCTION
46

47. MIS
STATION CONSTRUCTION
47

48. MIS
INSITU HORSESHOE TUNNEL
48

49. MIS
PRECAST CONCRETE TUNNEL
LINING
49

50. MIS
SGI TUNNEL LINING
50

51. MIS
NGAU TAU KOK STATION &
VIADUCT
51

52. MIS
KOWLOON BAY DEPOT
52

53. MIS
ADMIRALTY STATION
EXCAVATION
53

54. MIS
IMMERSED TUBE CASTING
54

55. MIS
IMT
55

56. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO SHEK KIP MEI
– OPERATIONAL ON 1 OCTOBER 1979
56

57. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO TSIM SHA TSUI
– OPERATIONAL ON 31 DECEMBER 1979
57

58. MIS
• FROM KWUN TONG TO CENTRAL
KWUN TONG TO CENTRAL
– OPENED BY PRINCESS ALEXANDRA
ON 12 FEBRUARY 1980
58

59. MIS
• FROM KWUN TONG TO CENTRAL
ON TIME AND WITHIN BUDGET
59

60. 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
60

61. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
61

62. MIS
• CLEAN
• QUIET
• EFFICIENT
• RELIABLE
DAVID BARRACLOUGH
• AIR-CONDITIONED
FORMER OPERATIONS DIRECTOR
62

63. MIS
SUCCESS
63

64. GROWTH
64

65. TSUEN WAN LINE
BUILDING UP THE
COMPANY
ERIC BLACK
SECOND MD
65

66. TSUEN WAN LINE
66

67. TWL
• ENGINEER’S DESIGN
• CONTRACTOR’S ALTERNATIVE
PROPOSALS CONSIDERED &
ADOPTED
TSUEN WAN DEPOT
&
LUK YEUNG SUN CHUEN DEVELOPMENT
67

68. TWL
• SET UP STRONG IN-HOUSE
PROFESSIONAL PROJECT
MANAGEMENT TEAM
• HANDS-ON STYLE
LAI KING TO KWAI FONG
CROSS-OVER
68

69. 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
69

70. TWL
• TSUEN WAN LINE
– TSUEN WAN
TO CENTRAL
– OPERATIONAL
10 May 1982
(AHEAD OF PROGRAMME)
70

71. 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
71

72. ISL
72

73. ISL
• ISLAND LINE
– CHAI WAN TO
ADMIRALTY
31 MAY 1985
– CHAI WAN TO
SHEUNG WAN
23 MAY 1986
73

74. 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
74

75. MORE CHALLENGING TIME
75

76. 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
76
CONSTRUCTION

77. MTR
ARRIVAL & GROWTH OF MTR
COINCIDE WITH :
TRANSFORMATION OF HONG KONG
FROM REGIONAL CITY
TO INTERNATIONAL FINANCIAL CENTRE
77

78. 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
78

79. HONG KONG LEASE
• BRITISH PRIME MINISTER VISITED
BEIJING
• OFFER TO EXCHANGE
SOVEREIGNTY FOR
ADMINSTRATION
• OFFER REJECTED BY CHINA
79

80. HONG KONG LEASE
BUT AGREED TO:
• SET UP JOINT LIAISON COMMITTEE (JLC)
• CONTINUE NEGOTIATION
• MAINTAIN STABILITY & PROSPERITY OF
HONG KONG
80

81. HONG KONG LEASE
• NEGOTIATION NOT GOING WELL
• UNCERTAINTY
81

82. HONG KONG LEASE
• JITTERY & GLOOMY
• INVESTMENTS PUT ON HOLD
• STOCK MARKET CRASH
• PROPERTY BUBBLE BURST
82

83. HONG KONG LEASE
HONG KONG DOLLAR PLUNGES
FROM AROUND HK$ 6 = US$ 1
TO
OVER HK$ 9 = US$ 1
83

84. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE
84

85. HONG KONG LEASE
PEOPLE RUSH TO SUPERMARKET
TO BUY :
RICE &
BABY’S POWDERED MILK
85

86. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
86

87. HONG KONG LEASE
• CALM THE CITY
• STOP PANIC
87

88. 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
88

89. 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
89

90. HONG KONG LEASE
•ENSHRINED IN •LODGED WITH
BASIC LAW UNITED NATIONS
90

91. HONG KONG LEASE
• CURRENCY PEG
HK$ 7.8 = US$ 1
• REMAINS TO THIS DAY
91

92. MTRC
• BORROWING IN US$
• REVENUE IN HK$
• ADVERSE IMPACT BY
HIGH INTEREST RATE (12%)
DEVALUATION
92

93. 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
93

94. MTRC
SECURED CREDIT RATING FROM
• MOODY
• S&P
ROAD SHOW TO TAP INTERNATIONAL BOND MARKET
• YANKEE BOND
• SAMURAI BOND
94

95. MTRC
• IN NO POSITION TO FINANCE NEW
EXTENSIONS ON ITS OWN
95

96. EASTERN HARBOUR CROSSING
96

97. 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
97

98. 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 PROJECTS & OPERATIONS
DIRECTOR 98

99. EHC
OPENED ON 1 OCTOBER 1989
PRINCE CHARLES SPEAKING TO
THOMAS LAI
99

100. AFTER JOINT DECLARATION
• UNCERTAINTY REMOVED
• CONFIDENCE RETURNED
LIPPO CENTRE
100

101. KAI TAK AIRPORT
CHECKERBOARD IN SIGHT
101

102. KAI TAK AIRPORT
STEADY AS SHE GOES
102

103. KAI TAK AIRPORT
DO YOUR WINDOW SHOPPING
BEFORE YOU LAND
103

104. KAI TAK AIRPORT
SEE....I LAND IT ON THE ROOF
104

105. KAI TAK AIRPORT
HARD RIGHT TURN AND DIVE
105

106. KAI TAK AIRPORT
BUT LANDING ON THE
RUNWAY...... IS NOT ALWAYS
106
EASY

107. KAI TAK AIRPORT
SOMETIMES.... ENDED UP IN THE
WATER
107

108. AIRPORT CORE PROJECTS
RELOCATE AIRPORT FROM KAI TAK TO CHEK LAP KOK
108

109. AIRPORT CORE PROJECTS
• APPROVED BY BEIJING
& LONDON
109

110. AIRPORT CORE PROJECTS
• OBJECTIVES:
– TO STIMULATE ECONOMY
– TO FACILITATE FUTURE GROWTH
– TO ELIMINATE AVIATION HAZARD
– TO BE COMPLETED IN TIME FOR
HANDOVER
110

111. ACP
• AIRPORT AT CHEK LAP KOK
• TSING MA BRIDGE
• LANTAU & AIRPORT RAILWAY
111

112. ACP
• KAP SHUI MUN BRIDGE
• TING KAU BRIDGE
• HIGHWAYS
• RECLAMATIONS
• THIRD CROSS HARBOUR ROAD
TUNNEL (WESTERN HARBOUR CROSSING)
112

113. ACP
• HK$ 127 BILLION £ 10 BILLION
113

114. ACP
CHINA’S CONCERN:
• ROSE GARDEN PROJECT
• EMPTY TREASURY
• HIGH DEBT
114

115. 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
115

116. ACP
ESSENTIAL TO HAVE CHINA’S AGREEMENT AND SUPPORT
TO ASSURE INVESTORS
WRANGLING OVER FINANCIAL DATADELAYED PROJECT
START
HAMISH MATHERS
116
FORMER CHAIRMAN

117. ACP
JACK SO
FORMER CHAIRMAN & CEO
117

118. 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
118

119. ACP
PROJECT COMPLETED IN 1998
119

120. HONG KONG INTERNATIONAL
AIRPORT
120

121. TSING MA BRIDGE
(ROAD + RAIL)
121

122. LANTAU & AIRPORT LINE
122

123. LAL
AIRPORT EXPRESS LINE
(AEL)
AIRPORT – HONG KONG
23 MINUTES JOURNEY
IN-TOWN-CHECK-IN
123

124. LAL
TUNG CHUNG LINE
(ON SHARED TRACK WITH AEL)
TUNG CHUNG - HONG KONG
COMMUTER LINE
ALSO PROVIDES RELIEF
TO NATHAN ROAD CONGESTION
124

125. 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)
125

126. ACP
EXTENSIVE APPLICATION OF
VALUE ENGINEERING
INTRODUCE PARTNERING
RUSSELL BLACK
FORMER PROJECTS DIRECTOR
126

127. TUNG CHUNG LINE
NO MORE SLIDING SEATS
127

128. AIRPORT EXPRESS
• SPACIOUS SEATING
• PLEASANT AMBIENCE
• BUSINESS CLASS
COMFORT
FROM PLANE,
THROUGH TRAIN,
TO HOTEL AEL TRAIN
128

129. LAL
TCL
OPERATIONAL ON 22 JUNE 1998
AEL
OPERATIONAL ON 6 JULY 1998
129

130. LAL
HK$
B
PROJECT COST
35.1
(INCLUDING CAPITALISED INTEREST)
FINANCED BY:
EQUITY
23.7
DEBT
11.4
130

131. CONSOLIDATION
131

132. TSEUNG KWAN O LINE
132

133. TKL
• TSEUNG KWUN O LINE
– COMMUTER LINE
– FROM PO LAM TO NORTH POINT
– OPERATIONAL ON 17 AUGUST 2002
133

134. TKL
I st JULY – 1997
ASIAN FINANCIAL CRISIS
MAJOR REVIEW OF THE
PROJECT
134

135. TKL
INITIAL CAPITAL COST ESTIMATE HK$ B
INCL. CAPITALISED INTEREST 30.5
FINAL COST 16.0
HANG HAU STATION
135

136. TKL
NORTH POINT CAVERN
136

137. DISNEYLAND RESORT LINE
137

138. DISNEYLAND RESORT LINE
138

139. DRL
• DISNEYLAND RESORT
LINE
– FROM SUNNY BAY TO
DISNEYLAND
– FULLY AUTOMATIC
OPERATION
– OPERATIONAL ON
12 SEPTEMBER 2005
139

140. ASIAWORLD-EXPO STATION
140

141. ASIAWORLD-EXPO STATION
141

142. ASIAWORLD-EXPO STATION
AIR STATION –
ASIAWORLD-EXPO
OPERATIONAL ON
20 DECEMBER 2005
142

143. NGONG PING 360
143

144. NGONG PING 360
144

145. NGONG PING 360
145

146. NGONG PING 360
146

147. NGONG PING 360
AIRPORT ISLAND STATION TUNG CHUNG TERMINAL
147

148. NGONG PING 360
• MATERIAL DELIVERY
– HELICOPTERS
– MULES
148

149. NGONG PING 360
SCHEDULED OPENING 24 JUNE 2006
OPERATIONAL 18 SEPT 2006
OFFICIAL OPENING 9 NOV 2006
149

150. NGONG PING 360
OPERATION SUSPENDED 11 JUNE 2007
OPERATION RESUMED 31 DEC 2007
SUBSIDIARY COMPANY SET UP TO
MANAGE & OPERATE THE SYSTEM
150

151. SUCCESS PROFILERATING
151

152. MTRC
 PROJECT MANAGEMENT
 RAILWAY OPERATION
 FINANCIAL EXPERTISE
 TRAINING & DEVELOPMENT
 PROPERTY
 AUTOMATIC FARE COLLECTION
152

153. MTRC
• INVEST HEAVILY IN STAFF TRAINING &
DEVELOPMENT
• CORE VALUES :
 CUSTOMER SERVICE
 RESPECT FOR THE INDIVIDUAL
 ON TIME AND WITHIN BUDGET
153

154. MTRC
PROVIDES PROFESSIONAL
TRAINING SERVICES TO
OTHER RAILWAYS IN:
– MAINLAND CHINA
LEN TURK
FORMER LEGAL DIRECTOR &
– SOUTHEAST ASIA COMPANY SECRETARY
PATRICK MAULE
FORMER PERSONNEL DIRECTOR
PHIILP GAFFNEY
FORMER OPERATIONS DIRECTOR
154

155. PROPERTY DEVELOPMENT
& MANAGEMENT
MAJOR GOVERNMENT POLICY ISSUES
TRANSPORT HOUSING
155

156. PROPERTY DEVELOPMENT
& MANAGEMENT
• GOVERNMENT ALLOCATE LAND AT
FULL MARKET VALUE ALONG THE
RAILWAY FOR DEVELOPMENT
156

157. PROPERTY DEVELOPMENT
& MANAGEMENT
• MAJOR & REPUTABLE
PROPERTY DEVELOPER
AND MANAGER IN
TOWN
• JOINT VENTURES
– RESIDENTIAL
– RETAIL
– OFFICES
– HOTEL 157

158. PROPERTY DEVELOPMENT
& MANAGEMENT
• SUBSTANTIAL CONTRIBUTION
TOWARDS COST OF RAILWAY
• CAPTURED PASSENGERS
(FORMING PART OF 2.4 M DAILY
RIDERSHIP)
158

159. PROPERTY DEVELOPMENT
& MANAGEMENT
PROCEEDS FROM DEVELOPMENTS
HELP TO:
• KEEP FARES AT REASONABLE
LEVEL
• MAINTAIN & EXTEND RAIL
NETWORK
159

160. PROPERTY DEVELOPMENT
& MANAGEMENT
160

161. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD GARDEN
161

162. PROPERTY DEVELOPMENT
& MANAGEMENT
PARK VIEW
162

163. PROPERTY DEVELOPMENT
& MANAGEMENT
CENTRAL STATION RETAIL
163

164. PROPERTY DEVELOPMENT
& MANAGEMENT
TELFORD PLAZA
164

165. PROPERTY DEVELOPMENT
& MANAGEMENT
MARITIME SQUARE
165

166. PROPERTY DEVELOPMENT
& MANAGEMENT
ELEMENTS 166

167. 2 INTERNATIONAL FINANCE CENTRE
2IFC
167

168. UNION SQUARE
168

169. INTERNATIONAL COMMERCE CENTRE
• 118 FLOORS
• 490 METRES HIGH
• THIRD TALLEST
BUILDING IN THE
WORLD
ICC
169

170. ICC
ICC
170

171. GATEWAY TOWERS
171

172. CHINA – BEIJING
• PROPERTY OPEARATIONS
& MANAGEMENT
GINZA MALL
172

173. 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
173
• 744,214 sq.m commercial properties in Hong Kong

174. AUTOMATIC FARE COLLECTION
• ELECTRO-MAGNETIC CARD
• STORED VALUE CARD
• CONTACTLESS SMART CARD
174

175. AUTOMATIC FARE COLLECTION
ELECTRO-MAGNETIC CARD
• PLASTIC
• RE-USABLE
• NO LITTER
• ISSUED BY MACHINE / HAND
• FIXED VALUE
• ELECTRO-MAGNETIC
• SINGLE JOURNEY
175

176. MIS
• NO SMOKING
• NO EATING
• NO DRINKING
• NO MUSIC/RADIO
• NO TICKET FLICKING 176

177. 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
177

178. 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
178

179. OCTOPUS CONTACTLESS SMART CARD
• RELIABLE TICKETING
• LABOUR SAVING
• DATA FOR:
OPERATIONAL PLANNIN INCLUDING PRICING
179

180. OCTOPUS CONTACTLESS SMART CARD
• FORERUNNER OF:
• EZ-LINK – SINGAPORE
• OYSTER CARD – LONDON
• EASYCARD - TAIPEI
180

181. OCTOPUS CONTACTLESS SMART CARD
OTHER USES:
 PUBLIC TRANSPORTS
 CAR PARKS
 ACCESS CONTROL TO BUILDINGS
 CONFIRMATION OF STUDENTS’
ATTENDANCE AT SCHOOL
181

182. 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
182

183. MTR CORPORATION
AN OUTSTANDINGLY SUCCESSFUL
ENTERPRISE
183

184. MTR CORPORATION LTD
LISTED ON THE HONG KONG
EXCHANGE
ON 5 OCTOBER 2000
184

185. MERGER WITH KCRC
185

186. MERGER
• HONG KONG GOVERNMENT ANNOUNCED
MERGER PROPOSAL BETWEEN MTRCL & KCRC
ON 11 APRIL 2006
186

187. 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
187

188. MERGER
KCRC
• OPERATES:
– EAST RAIL
– WEST RAIL
– LIGHT RAIL
– INTERCITY TO
GUANGZHOU
– FREIGHT TO
INTERIOR OF
MAINLAND CHINA
188

189. MERGER
KCRC
• PROPERTY DEVELOPMENT
&
MANAGEMENT
189

190. 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
190

191. 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
191

192. MERGER
MOU PROVIDES FOR
• JOB SECURITY FOR ALL FRONTLINE STAFF
192

193. MERGER
DEAL TERMS
• PROVIDE A BALANCED PACKAGE FAIR TO ALL
STAKEHOLDERS
193

194. 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
194

195. 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
195

196. MERGER
BENEFITS
• SYNERGY
• ECONOMIES OF SCALE
• COST EFFICIENCY
• INTEGRATED RAIL SYSTEM
196

197. 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
197

198. MERGED
• COMPLETED ON
2 DECEMBER
2007
• 香港鐵路有限公司
ONE COMPANY ONE TEAM
198

199. MERGED
199

200. 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
200

201. MERGED
ONE COMPANY ONE TEAM
STAFF INTEGRATION WiILLIAM CHAN
FORMER HUMAN RESOURCE DIRECTOR
201

202. MTR CORPORATION LTD
GROWTH MOMENTUM
202

203. MTRCL
EXPANSION
NEW VISION :
• TO BE A WORLD CLASS ENTERPRISE
• GROWING IN HONG KONG & BEYOND
• FOCUSING ON RAIL, PROPERTY &
RELATED BUSINESS
203

204. 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
204

205. MTRCL
• NEW CORE VALUES :
EXCELLENT SERVICE
VALUE CREATION
MUTUAL RESPECT
ENTERPRISING SPIRIT
205

206. 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
206

207. MACAO BUSINESS
MACAO GOVERNMENT
MOU SIGNED FOR LIGHT RAIL
PROJECT CONSULTANCY
207

208. DUBAI
208

209. DUBAI
METRO & AIRPORT LINES
209

210. DUBAI
CONSULTANCY
TO REVIEW DESIGN PROPOSALS IN
RESPECT OF :
OPERATION &
MAINTENANCE
VIADUCT CONSTRUCTION
210

211. DUBAI
CONSULTANCY
MOU SIGNEDTO ASSIST TO DEVELOP A
MASS URBAN TRANSPORT SYSTEM,
PROVIDING HIGH QUALITY TRANSPORT
SERVICES
211

212. INDIA
Delhi Airport Metro
Express Line
(AMEL)
• Major engineering &
project management
contract
212

213. UK BUSINESS
BIDS
213

214. 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
214

215. UK BUSINESS
LOROL (MTR/DEUTSCHE BAHN)
ACTION ON DAY ONE
• OYSTER TICKETING SYSTEM
• NEW TICKETING MACHINES
• STATIONS GATED
215

216. UK BUSINESS
(MTR/DEUTSCHE BAHN)
• IMPROVEMENT IN:
1. SERVICE OPERATION
2. PUNCTUALITY
3. SAFETY
4. SECURITY
• TICKETLESS TRAVEL DOWN
• REVENUE UP
216

217. UK BUSINESS
(MTR/DEUTSCHE BAHN)
PROGRAMME FOR:
• CUSTOMER SERVICE TRAINING
• STATION CLEANING AND REPAIR
• STATION REFURBISHEMENT
• STATION REMODELLING
• NEW EXTENSIONS
217

218. 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
218

219. UK BUSINESS
(MTR/DEUTSCHE BAHN)
9TH LONDON TRANSPORT AWARDS
 LONDON TRANSPORT OPERATOR OF THE YEAR
(SECOND YEAR IN A ROW)
2012 METRORAIL AWARDS LONDON
 WORLD’S MOST IMPROVED METRO
219

220. UK BUSINESS
SHORT-LISTED TO BID FOR:
ESSEX THAMESIDE FRANCHISE
(LONDON FENCHURCH STREET – TILBURY- SOUTHEND)
SEPTEMBER 2012
THAMESLINK FRANCHISE
(BEDFORD – GATWICK - BRIGHTON)
FEBRUARY 2013
220

221. EUROPE BUSINESS
STOCKHOLM UNDERGROUND
TOOK OVER OPERATION 2 NOVEMBER 2009
(FOR 8 YEARS MINIMUM)
221

222. AUSTRALIA BUSINESS
METRO TRAINS MELBOURNE
TOOK OVER OPERATION ON 30 NOVEMBER 2009
(FOR INITIAL PERIOD OF 8 YEARS)
222

223. AUSTRALIA BUSINESS
UNITED GROUP LTD.
SUBCONTRACT TO SUPPORT ITS ROLLING STOCK
MAINTENANCE WORKS IN NEW SOUTH WALES
223

224. CHINA BUSINESS
224

225. 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
225

226. CHINA BUSINESS
BEIJING LINE 4
– INITIALLED IN FEBRUARY 2005
– COMPANY FORMED IN JANUARY 2006
– AGREEMENT SIGNED ON 12 APRIL 2006
226

227. 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
227

228. 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
228

229. 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
229

230. 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%
230

231. CURRENT EXTENSION PROJECTS
231

232. 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
232

233. HONG KONG GOVERNMENT
INFRASTRUCTURE INVESTMENT
233

234. 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) 234

235. RAILWAY EXTENSIONS
235

236. RAILWAY EXTENSIONS
XRL 236

237. RAILWAY EXTENSIONS
WIL 237

238. RAILWAY EXTENSIONS
KTE 238

239. RAILWAY EXTENSIONS
JAY WALDER
CEO
TC CHIEW
PROJECTS DIRECTOR
239
SCL

240. RAILWAY EXTENSIONS
FULLY AUTOMATIC OPERATION
240
SIL(E)

241. 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
241

242. RAILWAY EXTENSIONS
RAILWAY DEVELOPMENT STRATEGY 2000
242
(UPDATE)

243. RAILWAY BUILDING
243

244. RAILWAY BUILDING
FEASIBILITY
 IDENTIFY TRANSPORT NEEDS
 FEASIBILITY STUDY
 ROUTE PROTECTION
 PROPOSAL TO GOVERNMENT
244

245. 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
245

246. RAILWAY BUILDING
CONSTRUCTION
 DESIGN MANAGEMENT
 CONSTRUCTION MANAGEMENT
 PROTECTION OF ADJACENT PROPERTIES
 TESTING & COMMISSIONING
 APPROVAL BY RAILWAY INSPECTORATE
 HANDOVER TO OPERATIONS
246

247. SYSTME IMPROVEMENT
&
PROTECTION
247

248. 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
248

249. IN SERVICE
INTEGRATED ENTRANCE
249

250. IN SERVICE
OLD ENTRANCE
NEW ENTRANCE
250

251. IN SERVICE
KIOSKS
251

252. IN SERVICE
TOILETS & LIFTS
252

253. IN SERVICE
CHAIRLIFT & TACTILE ROUTES
253

254. IN SERVICE
PSD
254

255. IN SERVICE
SIGNALLING
SOURCE - BOMBARDIER

256. IN SERVICE
RAILWAY PROTECTION
256

257. HKMTR
&
HKPolyU
257

258. HKPU & XRL
258

259. HKPU & MTR
259

260. HKPU & MTR
260

261. HKPU & MTR
JOINT MASTER DEGREE COURSE
RAILWAY ENGINEERING
261

262. HKPU ALUMNI
VICTOR CHAN HIN FU PROF LEE KANNE KUEN
WILLIAM MILLER
TANG KA FAT
SAMSON MAK
LO CHAK YUEN
& MANY OTHERS 262

263. HKPU ALUMNI
VICTOR SO HING WOH
263
FORMER PROPERTIES

264. HKPU ALUMNI
THOMAS H K HO
FORMER PROPERTY DIRECTOR 264

265. HKPU ALUMNI
DAVID CHUEN CHOY LEUNG
CHIEF OF OPERATIONS ENGINEERING 265

266. HKPU ALUMNI
MIRANDA LEUNG CHAN CHE MING
GENERAL MANAGER – CORPORATE RELATIONS 266

267. MTRCL
A STORY
OF
OUTSTANDING SUCCESS
267

268. MTRCL
• PROFITABLE
268

269. MTRCL
269

270. MTRCL
270

271. 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
271

272. MTRCL
AS AT END 2011:
PATRONAGE ( million)
Yearly 1,644
Daily 4.7
272

273. MTRCL
HONG KONG PEOPLE
ENGINEERS MTR STAFF
HAVE REASON TO BE PROUD
273

274. IN THE EYES
of the
BBC
19 APRIL 2006 274

275. RECAP
275

276. STORY OF THE HKMTR
276

277. STORY OF THE HKMTR
STORY OF HONG KONG IN THE
FINAL DECADES OF LAST CENTURY
277

278. STORY OF THE HKMTR
STORY OF HONG KONG IN THE
FINAL DECADES OF LAST CENTURY
STORY OF 23 YEARS OF MY LIFE
278

279. This presentation is dedicated to :
All my friends
Especially those of the MTR
279

280. 280