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| Type | Public (SEHK: 0066, OTC: MTRJY) |
|---|---|
| Founded | Hong Kong (1975) |
| Founder(s) | Sir Charles Philip Haddon-Cave |
| Headquarters | Kowloon Bay, Hong Kong |
| Area served | Hong Kong, Beijing, Shenzhen, Shenyang, Hangzhou, London, Stockholm, Melbourne |
| Key people | CK Chow, CEO Raymond Ch'ien Kuo Fung, Chairman |
| Industry | Transport, property |
| Products | MTR Souvenirs[1] |
| Services | Railways, property developer |
| Revenue | HK$17,628,000,000 (2008), ▲ 64.9% from 2007[2] |
| Operating income | HK$11,012,000,000 (2008), ▼ 2.4% from 2007[2] |
| Profit | HK$8,284,000,000 (2008), ▼ 45.4% from 2007[2] |
| Total assets | HK$159,340,000,000 at 31 December 2008 ▲ 2.4% from year earlier |
| Total equity | HK$106,430,000,000 at 31 December 2008 |
| Owner(s) | Government of Hong Kong 50% Shareholders 50% |
| Employees | 14,134 (2008) |
| Website | www.mtr.com.hk |
MTR Corporation Limited (traditional Chinese: 香港鐵路有限公司, abbreviated as 港鐵公司) is a company listed on the Hong Kong Exchange (SEHK: 0066) and included in the Hang Seng Index. MTR is the company that owns and runs the MTR metro system in Hong Kong. It also invests and builds railways in different parts in the world, and has won contracts to operate rapid-transit systems in London, Stockholm, Beijing, Shenzhen,and Melbourne.
In 2008 MTRC was awarded at the 2008 ALB Hong Kong Law Awards[3] as the:
- In-House of the Year - Construction In-House Team of the Year
- In-House of the Year - Hong Kong In-House Lawyer of the Year
Contents |
History of the Corporation
The Mass Transit Railway Corporation (Chinese: 地下鐵路公司) 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, Chinese: 地鐵有限公司). 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 started operating the original KCRC railway system, which the plan is commonly known as the MTRCL-KCRC merger. The Chinese name of the company changed to 香港鐵路有限公司 (literally translated as Hong Kong Railway Corporation Limited) but English equivalent stays the same, as Mass Transit Railway (MTR). The logo of MTR symbolises a railway line connecting Hong Kong Island and Kowloon.
Privatisation
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.
Miscellaneous
MTR Corporation once commissioned two documentaries about MTR. The first, MTR UNDERGROUND IRON The Building Of A Railway, was aired in mid-1986 and had only Cantonese dialogue. The second and most recent documentary, Underground Pride, was aired in 1990 and had only English dialogue.
Operations
Hong Kong
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.
Property management
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.
Shopping centres
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).
MTR-KCR 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.[4]
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[5] (literal translation: Hong Kong Railway Corporation Limited) after being granted the Service Concession while the English name will remain unchanged.[6][7] 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.
Fare reductions
All adult Octopus Card holders would be the first to benefit from the merger.[8] Student and Concessionary Octopus holders would also benefit from the merger by further reducing $0.1 from their 50% off fares.[8] 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).[9]
Future expansion
The following railway links are being constructed or planned by MTR currently:
- Kowloon Southern Link (West Rail Line from Nam Cheong to Hung Hom; project completed, opens 16 August 2009)
- West Island Line (Island Line extended westward to Kennedy Town; under planning, to be completed in 2013 or 2014)
- South Island Line (East and West) (Two lines to the south of Island Line, to South Horizons residential area and Wong Chuk Hang; under planning, South Island Line (West) to be completed in 2014)
- Kwun Tong Line Extension (to Ho Man Tin and Whampoa; under planning)
- Sha Tin to Central Link (extension of Ma On Shan Line to Tsim Sha Tsui, Kwun Tong Line extension to Whampoa, and East Rail Line to Admiralty; under planning; construction starts by 2010)
- Northern Link (New Territories) (Line from Kam Sheung Road to Chau Tau and Lok Ma Chau; under planning)
- North Island Line (absorption of Island Line by the Tung Chung and Tseung Kwan O lines; proposal deferred to 2016)
United Kingdom
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.
MTR corporation were bidding for the West Midlands Train route in England, but have since withdrawn their bid.
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. MTR Laing has since changed its name to London Overground Rail Operations Limited (LOROL), as Laing Rail Group has become acquired by Germany's Deutsche Bahn. LOROL is mainly managed by Laing Rail Group Management moved from their Chiltern Railways division with MTR providing specialists as needed.
In February 2009, MTR Corporation were shortlisted as a possible company to run the Tyne and Wear Metro service in Newcastle upon Tyne, UK.[10]
Macau
The company conducted a feasibility report to build a light rail in Macau.
Sweden and Denmark
They are also interested to take over the Öresund trains in Sweden and Denmark together with SJ AB.
On 20 January 2009, it was announced that MTR was awarded the contract to operate the Stockholm Metro. The contract is for eight years with an option to extend the agreement for another six years. MTR will start operating the metro on 2 November 2009.[11]
Australia
In July 2008 there were reports that they are bidding to have the right to operate Melbourne's extensive metropolitan train network, aligned with United Group.[12] In August 2008 it was confirmed that they had been shortlisted.[13]
On the 25th June 2009 MTR were awarded the rights to operate Melbourne's train network as part of a joint venture with John Holland Melbourne Rail Franchise and United Group Rail Services.[14] The contract will begin on 1 December 2009 and it will continue for 8 years, with the option of extending that contract for another 7 years.[14] It is set to operate as a locally themed consortium MTM (Metro Trains Melbourne). MTR will take over from Melbourne's existing network operator (French-owned firm Connex) in December 2009.[14][15]
People's Republic of China
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 has also formed a joint-venture Beijing MTR Corp. Ltd. with Beijing Capital Group ("BCG"), and the Beijing Infrastructure Investment Co. ("BIIC") to build and operate the Line 4, Beijing Subway for 30 years since its inauguration.[16]
See also
References
- ^ "MTR Online Shopping". https://www.paydollar.com/b2c2/PUSControlServlet?action=pusshop&lang=eng&catid=0. Retrieved 2007-11-17.
- ^ a b c "ANNOUNCEMENT OF AUDITED RESULTS FOR YEAR ENDED 31 DECEMBER 2008" (PDF). 2009-03-10. http://www.mtr.com.hk/eng/corporate/file_rep/PR-09-024-E.pdf. Retrieved 2009-03-10.
- ^ www.legalbusinessonline.com.au
- ^ "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. http://www.info.gov.hk/gia/general/200604/11/P200604110236.htm. Retrieved 2007-11-17.
- ^ "Rail Merger Bill" (PDF). Legislation Council of the Hong Kong SAR. http://www.legco.gov.hk/yr05-06/english/bills/b0606301.pdf. Retrieved 2007-11-08.
- ^ Hong Kong Government (2007-08-08). "Appointments announced for post-merger MTR Corporation Limited". Press release. http://www.info.gov.hk/gia/general/200708/08/P200708080125.htm. Retrieved 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. http://www.info.gov.hk/gia/general/200606/28/P200606280167.htm. Retrieved 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.
- ^ "Foreign bids for Metro contract". BBC News. 2009-02-02. http://news.bbc.co.uk/1/hi/england/7864519.stm. Retrieved 2009-02-03.
- ^ "Hongkong-bolag vann t-banekontrakt värt 36 miljarder (Swedish)". E24.se. 2009-01-20. http://www.e24.se/branscher/tjansteforetag/artikel_1015863.e24.
- ^ "Global flavour to bidders for train, tram contracts". The Age. August 28, 2008. http://www.theage.com.au/national/global-flavour-to-bidders-for-train-tram-contracts-20080703-31dk.html?page=-1. Retrieved 2008-07-04.
- ^ "SHORTLIST TO RUN MELBOURNE’S TRAINS ANNOUNCED". Media Release: Premier of Victoria. www.premier.vic.gov.au. August 28, 2008. http://www.premier.vic.gov.au/minister-for-public-transport/shortlist-to-run-melbournes-trains-announced.html. Retrieved 2008-10-08.
- ^ a b c "New train, tram operators for Melbourne". The Age. June 25, 2009. http://www.theage.com.au/national/new-train-tram-operators-for-melbourne-20090625-cxgx.html. Retrieved 2009-06-25.
- ^ Swinburne Institute for Social Research: Putting the Public Interest back into Public Transport.
- ^ "Hong Kong MTR Corp wins 30-year operation of new Beijing metro line" People's Daily, 2006-04-15.
External links
- MTR Corporate Website
- Press release on Wuhan (Adobe Systems Acrobat PDF format)
- History and Development of the Company, EDGAR Online.
- Transport for London press release
- MTR Properties and MTR Property Management
- Maritime Square Website
- Paradise Mall Website
- Luk Yeung Galleria Website
- Telford Plaza Website
- Residents Portal
- Documentaries
- MTR UNDERGROUND IRON (Part 1)
- MTR UNDERGROUND IRON (Part 2)
- MTR UNDERGROUND IRON (Part 3)
- Underground Pride (Part 1)
- Underground Pride (Part 2)
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