(), previously known as '''Mass Transit Railway Corporation''' (香港地下鐵路公司) is a company listed on the
Hong Kong Exchange ( ) 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.
The Mass Transit Railway Corporation (MTRC) 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
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
Share s, 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.
, built by the MTR corporation Limited.]]
The MTR Corporation Limited is responsible for the operation of MTR 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.
See Also: 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 Centre s 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
Supermarket s,
Boutique s,
Bookstore s, a
Cinema , and
Restaurant s. Since Tsing Yi station serves as the
Transportation Hub for
Tsing Yi , Maritime Square is also easily accessible by other transportation means including
Bus es 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.
There has been some discussion of
Merging the
Kowloon-Canton Railway Corporation (KCRC), which is also government-owned, and the MTR to make the territory's transport system more efficient. The MTRCL backs such a merge while the KCRC opposes 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 will grant a Service Concession to the MTRCL to operate the
KCR system, with an initial period of 50 years. The KCRC will 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 will make a payment of $7.79 billion for the acquisition of property and other related commercial interests.
[http://www.info.gov.hk/gia/general/200604/11/P200604110162.htm [http://www.info.gov.hk/gia/general/200604/11/P200604110105.htm
The railway lines the KCRC operates are less profitable than the MTRC, and the KCRC is less active in property development. It is 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 can avoid actually selling the KCRC.
The Chinese name of the MTRCL will be changed to 香港鐵路有限公司 (literal translation: Hong Kong Rail Corporation Limited)''Rail Merger Bill'', Legislation Council Bill 06/9. after being granted the Service Concession while the English name will remain unchanged. The KCRC will be a holding company of the KCR system, without actual railway operations.
The merger is subject to approval by shareholders of the MTRCL. The Government and management of the MTRCL has stated the major shareholder (75%), the Government, will not vote, i.e. the merger will be decided by minority shareholders.
The following railways are constructed or planned by MTR currently:
The following railways are constructed or planned by
KCR currently, and they are projected to hand over to MTR if the merging of both companies is successful:
