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HONG KONG MASS TRANSIT RAILWAY

A SUCCESS STORY

PRESENTED

BY

Ir Thomas S K LAI CEng, MICE, MIStructE, MHKIE

Chairman HKIE UK CHAPTER

2

BIRTH & GROWTH OF

HONG KONG MASS TRANSIT RAILWAY

UP TO DATE

BEAUTIFUL HONG KONG

3

4

HONG KONG

• LOCATED AT THE PEARL RIVER

ESTUARY ON THE SOUTHERN

COAST OF CHINA

VICTORIA HARBOUR

5

HARBOUR FRONT

6

August 2003 77

7

STAR FERRY

August 2003 66

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

10

CULTURAL REVOLUTION

HONG KONG IN

CRISIS

11

CULTURAL REVOLUTION

HONG KONG IN

CRISIS

危 机

• Danger Opportunity

PUBLIC LIGHT BUS 12

PLB

PLB

13

PLB

• AVAILABLE - FREQUENT SERVICE

• CONVENIENT - PASSENGERS HOP ON

AND OFF ANYWHERE ALONG ROUTE

• PREMIUM FOR SERVICE

• POPULAR WITH PASSENGERS

14

HONG KONG GOVERNMENT

•VIABILITY OF UNDERGROUND RAILWAY SYSTEM

•CONFIRMED BY CONSULTANT’S FEASIBILITY

STUDY

(FREEMAN FOX & PARTNERS + WILBUR SMITH)

•1975 - MASS TRANSIT PROVISIONAL AUTHORITY

•1976 - MASS TRANSIT RAILWAY CORPORATION

MTRC

COLIN COULSON

FORMER SR. PARTNER

FFP

15

MTRC

THE MASS TRANIST RAILWAY

ORDINANCE

16

MTRC

• WHOLLY GOVERNMENT

OWNED ENTERPRISE

HUTCHINSON HOUSE - RENTED

OFFICES

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

18

MTRC

HONG KONG GOVERNMENT PUTS IN

INITIAL EQUITY (HK$ 800 M)

MTRC BORROWS REST IN OPEN MONEY

MARKET

19

PREFERRED SYSTEM

INITIAL SYSTEM

LETTER OF INTENT SIGNED WITH JAPANESE

CONSORTIUM FOR THE INITIAL SYSTEM

(20 km) AS A SINGLE DESIGN & BUILD CONTRACT

20

INITIAL SYSTEM

OIL CRISIS

CONSORTIUM WITHDREW

21

22

MODIFIED INITIAL SYSTEM

MIS

(15.6 km)

25 CIVIL & 10 E&M

DESIGN AND BUILD

CONTRACTS

23

MIS

GOVERNMENT SET UP MASS

TRANSIT ADVISER (MTA) TO:

• CO-ORDINATE BETWEEN MTRC & GOVERNMENT DEPARTMENTS

• FACILITATE TIMELY POLICY MAKING & ISSUE RESOLUTION

24

MIS

DIFFERENT LEVEL OF COMMITTEES & WORKING

GROUPS:

• GOVERNMENT / MTR LIAISON COMMITTEE

• GOVERNMENT / MTR PUBLICITY COMMITTEE

• METRO PUBLIC RELATIONS POLICY GROUP

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)

26

INSPECTORATE OF RAILWAY

(UK)

• APPOINTED BY GOVERNMENT AS

ADVISER ON RAILWAY SAFETY

• PROVIDES INPUT DURING DESIGN

• INSPECTS RAILWAY SYSTEM

• RECOMMENDS OPENING

MIS

SET UP IN-HOUSE PROJECT MANAGEMENT TEAM

27

RE-UNION OF SOME MEMBERS OF PROJECT MANAGEMENT TEAM

MIS

APPOINT CONSULTANTS

• FREEMAN FOX & PARTNERS – LEAD

• CHARLES HASWELL & PARTNERS (FE) - TUNNEL

• KAMPAX - PER HALL - IMMERSED TUBE

• KENNEDY & DONKIN INTERNATIONAL – E&M

• DESIGN & RESEARCH UNIT - ARCHITECTURAL

28

IMPORTANCE OF PUBLIC RELATIONS

• OBSERVATION WINDOWS ON HOARDINGS

• GROWING FOR YOU

29

MIS

IMPORTANCE OF PUBLIC RELATIONS

• CEREMONIES OF COMMENCEMENT

& COMPLETION OF WORKS

30

MIS

IMPORTANCE OF PUBLIC RELATIONS

PARTICIPANTS (STAKEHOLDERS) INCLUDE:

CORPORATION REPRESENTATIVES

CONTRACTORS

CONSULTANTS

GOVERNMENT OFFICIALS

LEGISLATORS

DISTRICT COUNCILLORS

LOCAL DIGNITARIES

31

MIS

IMPORTANCE OF PUBLIC RELATIONS

• PUBLICISING PROGRESS OF WORKS

• TEAM BUILDING

MIRANDA LEUNG

FORMER PUBLIC RELATIONS MANAGER

32

MIS

GROUNDBREAKING CEREMONY

BY CHAIRMAN SIR NORMAN THOMPSON

AT KWUN TONG 33

MIS

WORK STARTED

• NOVEMBER

1975

34

MIS

• FIRST CHAIRMAN – SIR NORMAN THOMPSON

DIRECT ACCESS TO THE GOVERNOR

SIMPLE & CLEAR MESSAGES

• PROJECT MANAGER – HONG KONG &

SHANGHAI BANK HQ BUILDING

35

MIS

FIRST M.D. – PROF TONY RIDLEY

M.D. – LONDON UNDERGROUND

MAJOR IMPROVEMENT TO THE SYSTEM

CO-M.D. - EUROTUNNEL

PROFESSOR – IMPERIAL COLLEGE LONDON

ICE PRESIDENT

36

MIS

• GENERAL PUBLIC

– EXCITEMENT

– EXPECTATION

– DETERMINATION

37

MIS

• GENERAL PUBLIC

HIGH DEGREE OF TOLERENCE

&

CO-OPERATION

38

MIS

PROJECT MANAGEMENT APPROACH:

• QUICK DECISION-MAKING

• REGULAR MONITORING OF EFFECT OF CHANGES ON BUDGET & PROGRAMME

• APPROPRIATE DELEGATION OF AUTHORITY

• SHARE RISKS & BENEFITS WITH CONTRACTORS

39

MIS

• BASED ON PROVEN TECHNOLOGY

• PROJECT MOTTO:

IF IT IS ESSENTIAL,

GET ON WITH IT.

IF IT IS DESIRABLE,

FORGET IT.

40

MIS

GOVERNMENT

COMMUNITY MTRC

UNITY IN PURPOSE

MIS

GROUND CONDITIONS

ALLUVIAL DEPOSITS

GRANITE (VARYING DEGREE OF

DECOMPOSITION)

HARD ROCK

41

MIS

42

STATION WALL CONSTRUCTION

MIS

43

STATION CONSTRUCTION

MIS

44

INSITU HORSESHOE TUNNEL

MIS

45

PRECAST CONCRETE TUNNEL

LINING

SGI TUNNEL LINING

46

MIS

NGAU TAU KOK STATION &

VIADUCT 47

MIS

KOWLOON BAY DEPOT

48

MIS

ADMIRALTY STATION

EXCAVATION 49

MIS

IMMERSED TUBE CASTING

50

MIS

MIS

51

IMT

52

MIS

• FROM KWUN TONG TO CENTRAL

KWUN TONG TO SHEK KIP MEI

– OPERATIONAL ON 1 OCTOBER 1979

53

MIS

• FROM KWUN TONG TO CENTRAL

KWUN TONG TO TSIM SHA TSUI

– OPERATIONAL ON 31 DECEMBER 1979

54

MIS

• FROM KWUN TONG TO CENTRAL

KWUN TONG TO CENTRAL

– OPENED BY PRINCESS ALEXANDRA

ON 12 FEBRUARY 1980

55

MIS

• FROM KWUN TONG TO CENTRAL

ON TIME AND WITHIN BUDGET

56

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

57

MIS

• NO SMOKING

• NO EATING

• NO DRINKING

• NO MUSIC/RADIO

58

MIS

• CLEAN

• QUIET

• EFFICIENT

• RELIABLE

• AIR-CONDITIONED DAVID BARRACLOUGH

FORMER OPERATIONS DIRECTOR

59

MIS

SUCCESS

GROWTH

60

FIRST HEADQUARTERS BUILDING 61

TSUEN WAN LINE

BUILDING UP THE

COMPANY

62

ERIC BLACK

SECOND MD

63

TSUEN WAN LINE

• ENGINEER’S DESIGN

• CONTRACTOR’S ALTERNATIVE

PROPOSALS CONSIDERED &

ADOPTED

TSUEN WAN DEPOT

&

LUK YEUNG SUN CHUEN DEVELOPMENT 64

TWL

LAI KING TO KWAI FONG

CROSS-OVER

65

TWL

• SET UP STRONG IN-HOUSE

PROFESSIONAL PROJECT

MANAGEMENT TEAM

• HANDS-ON STYLE

66

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

67

TWL

• TSUEN WAN LINE

– TSUEN WAN

TO CENTRAL

– OPERATIONAL

10 May 1982

(AHEAD OF PROGRAMME)

68

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

69

ISL

70

ISL

• ISLAND LINE

– CHAI WAN TO ADMIRALTY

31 MAY 1985

– CHAI WAN TO SHEUNG WAN

23 MAY 1986

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

71

ISL

MORE CHALLENGING TIME

72

73

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

CONSTRUCTION

74

MTR

ARRIVAL & GROWTH OF MTR

COINCIDE WITH :

TRANSFORMATION OF HONG KONG

FROM REGIONAL CITY

TO INTERNATIONAL FINANCIAL CENTRE

75

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

HONG KONG LEASE

BRITISH PRIME MINISTER

VISITED BEIJING

OFFERED TO EXCHANGE

SOVEREIGNTY FOR ADMINSTRATION

76

MARGARET THATCHER

77

HONG KONG LEASE

OFFER REJECTED BY CHINA

78

HONG KONG LEASE

BUT AGREED TO:

• SET UP JOINT LIAISON COMMITTEE (JLC)

• CONTINUE NEGOTIATION

• MAINTAIN STABILITY & PROSPERITY OF

HONG KONG

79

HONG KONG LEASE

• NEGOTIATION NOT GOING WELL

• UNCERTAINTY

80

HONG KONG LEASE

• JITTERY & GLOOMY

• INVESTMENTS PUT ON HOLD

• STOCK MARKET CRASH

• PROPERTY BUBBLE BURST

81

HONG KONG LEASE

HONG KONG DOLLAR PLUNGES

FROM AROUND HK$ 6 = US$ 1

TO

OVER HK$ 9 = US$ 1

82

HONG KONG LEASE

PEOPLE RUSH TO SUPERMARKET

TO BUY :

RICE

83

HONG KONG LEASE

PEOPLE RUSH TO SUPERMARKET

TO BUY :

RICE &

BABY’S POWDERED MILK

84

HONG KONG LEASE

• CURRENCY PEG

HK$ 7.8 = US$ 1

85

HONG KONG LEASE

ADVOCATE

JOHN GREENWOOD

86

HONG KONG LEASE

• CALM THE CITY

• STOP PANIC

87

August 2003 85

HONG KONG LEASE

• IN 1984 BRITAIN & CHINA SIGNED

JOINT DECLARATION ON FUTURE OF

HONG KONG

• CHINA TO REGAIN FULL SOVEREIGNTY

ON 1 JULY 1997

88

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

HONG KONG LEASE

•ENSHRINED IN

BASIC LAW

•LODGED WITH

UNITED NATIONS

90

HONG KONG LEASE

• CURRENCY PEG

HK$ 7.8 = US$ 1

• REMAINS TO THIS DAY

91

MTRC

• BORROWING IN US$

• REVENUE IN HK$

• ADVERSE IMPACT BY

HIGH INTEREST RATE (12%)

DEVALUATION

92

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

MTRC

SECURED CREDIT RATING FROM

• MOODY

• S&P

ROAD SHOW TO TAP INTERNATIONAL BOND MARKET

• YANKEE BOND

• SAMURAI BOND

93

94

MTRC

IN NO POSITION TO FINANCE NEW

EXTENSIONS ON ITS OWN

EXECUTIVE COMMITTEE

95

EASTERN HARBOUR CROSSING

EASTERN HARBOUR CROSSING

ENTRANCE 96

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

97

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

98

EHC

OPENED ON 1 OCTOBER 1989

PRINCE CHARLES SPEAKING TO

THOMAS LAI

99

AFTER JOINT DECLARATION

• UNCERTAINTY REMOVED

• CONFIDENCE RETURNED

LIPPO CENTRE

EMIGRATION

1989 JUNE 4 1989 INCIDENT

100

EMIGRATION

101

BEIJING

EMIGRATION

102

HONG KONG

EMIGRATION

STOCK & PROPERTY MARKET

COLLAPSED

WAVE OF EMIGRATION

103

EMIGRATION

MTRC

PROVIDENT FUND PAYOUT DEPENDED ON HANG

SENG SHARE INDEX AT END OF PREVIOUS

MONTH

FEAR OF FURTHER DEPRECIATION

STAFF RESIGNED TO CASH IN

AGGRAVATING STAFF LOSS 104

EMIGRATION

CHANGED TO FINAL SALARY

SCHEME

STEMMED OUTFLOW

105

CHECKERBOARD IN SIGHT

106

KAI TAK AIRPORT

STEADY AS SHE GOES

107

KAI TAK AIRPORT

DO YOUR WINDOW SHOPPING

BEFORE YOU LAND 108

KAI TAK AIRPORT

SEE....I LAND IT ON THE ROOF

109

KAI TAK AIRPORT

HARD RIGHT TURN AND DIVE

110

KAI TAK AIRPORT

BUT LANDING ON THE

RUNWAY...... IS NOT ALWAYS

EASY 111

KAI TAK AIRPORT

SOMETIMES.... ENDED UP IN THE

WATER 112

KAI TAK AIRPORT

113

AIRPORT CORE PROJECTS

RELOCATE AIRPORT FROM KAI TAK TO CHEK LAP KOK

114

AIRPORT CORE PROJECTS

• APPROVED BY BEIJING

& LONDON

115

AIRPORT CORE PROJECTS

• OBJECTIVES:

– TO STIMULATE ECONOMY

– TO FACILITATE FUTURE GROWTH

– TO ELIMINATE AVIATION HAZARD

– TO BE COMPLETED IN TIME FOR HANDOVER

116

ACP

• AIRPORT AT CHEK LAP KOK

• TSING MA BRIDGE

• LANTAU & AIRPORT RAILWAY

117

ACP

• KAP SHUI MUN BRIDGE

• TING KAU BRIDGE

• HIGHWAYS

• RECLAMATIONS

• THIRD CROSS HARBOUR ROAD

TUNNEL (WESTERN HARBOUR CROSSING)

118

ACP

• HK$ 127 BILLION £ 10 BILLION

119

ACP

CHINA’S CONCERN:

• ROSE GARDEN PROJECT

• EMPTY TREASURY

• HIGH DEBT

120

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

121

ACP

ESSENTIAL TO HAVE CHINA’S AGREEMENT AND SUPPORT

TO ASSURE INVESTORS

WRANGLING OVER FINANCIAL DATA DELAYED PROJECT

START

HAMISH MATHERS

FORMER CHAIRMAN

122

ACP

JACK SO CHAK KWONG

FORMER CHAIRMAN & CEO

123

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

•

124

ACP

PROJECT COMPLETED IN 1998

Ir DOUGLAS OAKERVEE

PROJECT DIRECTOR HKIA

FORMER MTR PROJECT MANAGER

ICE PRESIDENT

HONG KONG INTERNATIONAL

AIRPORT 125

TSING MA BRIDGE

(ROAD + RAIL) 126

127

LANTAU & AIRPORT LINE

128

LAL

AIRPORT EXPRESS LINE (AEL)

AIRPORT – HONG KONG

23 MINUTES JOURNEY

IN-TOWN-CHECK-IN

129

LAL

TUNG CHUNG LINE (ON SHARED TRACK WITH AEL)

TUNG CHUNG - HONG KONG

COMMUTER LINE

ALSO PROVIDES RELIEF

TO NATHAN ROAD CONGESTION

130

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)

131

ACP

EXTENSIVE APPLICATION OF

VALUE ENGINEERING

INTRODUCE PARTNERING

RUSSELL BLACK

FORMER PROJECTS DIRECTOR

NO MORE SLIDING SEATS

132

TUNG CHUNG LINE

AEL TRAIN

133

AIRPORT EXPRESS

• SPACIOUS SEATING

• PLEASANT AMBIENCE

• BUSINESS CLASS COMFORT

FROM PLANE,

THROUGH TRAIN,

TO HOTEL

134

LAL TCL

OPERATIONAL ON 22 JUNE 1998

AEL

OPERATIONAL ON 6 JULY 1998

135

LAL

HK$ B

PROJECT COST 35.1

(INCLUDING CAPITALISED INTEREST)

FINANCED BY:

EQUITY 23.7

DEBT 11.4

CONSOLIDATION

136

137

TSEUNG KWAN O LINE

138

TKL

• TSEUNG KWUN O LINE

– COMMUTER LINE

– FROM PO LAM TO NORTH POINT

– OPERATIONAL ON 17 AUGUST 2002

TKL

I st JULY – 1997

ASIAN FINANCIAL CRISIS

MAJOR REVIEW OF THE

PROJECT

139

140

TKL

INITIAL CAPITAL COST ESTIMATE HK$ B

INCL. CAPITALISED INTEREST 30.5

FINAL COST 16.0

HANG HAU STATION

TKL

141

NORTH POINT CAVERN

142

DISNEYLAND RESORT LINE

143

DRL

• DISNEYLAND RESORT LINE

– FROM SUNNY BAY TO DISNEYLAND

– FULLY AUTOMATIC OPERATION

– OPERATIONAL ON

12 SEPTEMBER 2005

144

ASIAWORLD-EXPO STATION

145

ASIAWORLD-EXPO STATION

AIR STATION –

ASIAWORLD-EXPO

OPERATIONAL ON

20 DECEMBER 2005

146

NGONG PING 360

147

NGONG PING 360

SCHEDULED OPENING 24 JUNE 2006

OPERATIONAL 18 SEPT 2006

OFFICIAL OPENING 9 NOV 2006

SUCCESS PROFILERATING

148

149

MTRC

PROJECT MANAGEMENT

RAILWAY OPERATION

FINANCIAL EXPERTISE

TRAINING & DEVELOPMENT

PROPERTY

AUTOMATIC FARE COLLECTION

150

MTRC

• INVEST HEAVILY IN STAFF TRAINING & DEVELOPMENT

• CORE VALUES :

CUSTOMER SERVICE

RESPECT FOR THE INDIVIDUAL

ON TIME AND WITHIN BUDGET

151

MTRC

PROVIDES PROFESSIONAL

TRAINING SERVICES TO

OTHER RAILWAYS IN:

– MAINLAND CHINA

– SOUTHEAST ASIA

PHILP GAFFNEY

FORMER OPERATIONS DIRECTOR

LEN TURK

FORMER LEGAL DIRECTOR &

COMPANY SECRETARY

PATRICK MAULE

FORMER PERSONNEL DIRECTOR

PROPERTY DEVELOPMENT

& MANAGEMENT

MAJOR GOVERNMENT POLICY ISSUES

TRANSPORT HOUSING

152

153

PROPERTY DEVELOPMENT

& MANAGEMENT

• GOVERNMENT ALLOCATE LAND AT

FULL MARKET VALUE ALONG THE

RAILWAY FOR DEVELOPMENT

154

PROPERTY DEVELOPMENT

& MANAGEMENT

• MAJOR & REPUTABLE

PROPERTY DEVELOPER AND MANAGER IN TOWN

• JOINT VENTURES

– RESIDENTIAL

– RETAIL

– OFFICES

– HOTEL

155

PROPERTY DEVELOPMENT

& MANAGEMENT

• SUBSTANTIAL CONTRIBUTION

TOWARDS COST OF RAILWAY

• CAPTURED PASSENGERS

(FORMING PART OF 2.4 M DAILY

RIDERSHIP)

156

PROPERTY DEVELOPMENT

& MANAGEMENT

PROCEEDS FROM DEVELOPMENTS HELP TO:

• KEEP FARES AT REASONABLE LEVEL

• MAINTAIN & EXTEND RAIL NETWORK

157

PROPERTY DEVELOPMENT

& MANAGEMENT

TELFORD GARDEN

158

PROPERTY DEVELOPMENT

& MANAGEMENT

PROPERTY DEVELOPMENT

& MANAGEMENT

159

PARK VIEW

PROPERTY DEVELOPMENT

& MANAGEMENT

160

CENTRAL STATION RETAIL

PROPERTY DEVELOPMENT

& MANAGEMENT

161

TELFORD PLAZA

MARITIME SQUARE

162

PROPERTY DEVELOPMENT

& MANAGEMENT

PROPERTY DEVELOPMENT

& MANAGEMENT

163 ELEMENTS

2IFC

164

2 INTERNATIONAL FINANCE CENTRE

165

UNION SQUARE

ICC

166

INTERNATIONAL COMMERCE CENTRE

• 118 FLOORS

• 490 METRES HIGH

• THIRD TALLEST

BUILDING IN THE

WORLD

167

ICC

ICC

GATEWAY TOWERS

168

• PROPERTY OPEARATIONS

& MANAGEMENT

CHINA – BEIJING

169

GINZA MALL

PROPERTY DEVELOPMENT

& MANAGEMENT

AS AT END 2012:

Investment properties

Hong Kong: 13 shopping malls + 18 floors at 2 IFC

Shops 212,612 sq.m )

Offices 40,969 sq.m ) 267,223sq.m

Other use 13,642 sq.m )

Mainland China: Ginza Mall

Shops 18,398 sq.m

Managed properties:

• 86,266 residential units in Hong Kong

• 764,725 sq.m commercial properties in Hong Kong

• 233,000 sq.m in Mainland China

170

171

AUTOMATIC FARE COLLECTION

• ELECTRO-MAGNETIC CARD

• STORED VALUE CARD

• CONTACTLESS SMART CARD

ROB NOBLE

FORMER MARKETING & PLANNINGDIRECTOR

172

AUTOMATIC FARE COLLECTION

ELECTRO-MAGNETIC CARD

• PLASTIC

• RE-USABLE

• NO LITTER

• ISSUED BY MACHINE / HAND

• FIXED VALUE

• ELECTRO-MAGNETIC

• SINGLE JOURNEY

173

MIS

• NO SMOKING

• NO EATING

• NO DRINKING

• NO MUSIC/RADIO

• NO TICKET FLICKING

174

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

175

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

176

OCTOPUS CONTACTLESS SMART CARD

• RELIABLE TICKETING

• LABOUR SAVING

• DATA FOR:

OPERATIONAL PLANNIN INCLUDING PRICING

177

OCTOPUS CONTACTLESS SMART CARD

• FORERUNNER OF:

• EZ-LINK – SINGAPORE

• OYSTER CARD – LONDON

• EASYCARD - TAIPEI

178

OCTOPUS CONTACTLESS SMART CARD

OTHER USES:

PUBLIC TRANSPORTS

CAR PARKS

ACCESS CONTROL TO BUILDINGS

CONFIRMATION OF STUDENTS’

ATTENDANCE AT SCHOOL

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

179

180

MTR CORPORATION

AN OUTSTANDINGLY SUCCESSFUL

ENTERPRISE

181

MTR CORPORATION LTD

LISTED ON THE HONG KONG

EXCHANGE

ON 5 OCTOBER 2000

MERGER WITH KCRC

182

183

MERGER

• HONG KONG GOVERNMENT ANNOUNCED

MERGER PROPOSAL BETWEEN MTRCL & KCRC

ON 11 APRIL 2006

184

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

185

MERGER

KCRC

• OPERATES:

– EAST RAIL

– WEST RAIL

– LIGHT RAIL

– INTERCITY TO GUANGZHOU

– FREIGHT TO INTERIOR OF MAINLAND CHINA

186

MERGER

KCRC

• PROPERTY DEVELOPMENT

&

MANAGEMENT

187

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

188

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

MERGED

• COMPLETED ON

2 DECEMBER

2007

• 香港鐵路有限公司

189 ONE COMPANY ONE TEAM

190

MERGED

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 191

MERGED

ONE COMPANY ONE TEAM

192

STAFF INTEGRATION WILLIAM CHAN

FORMER HUMAN RESOURCES DIRECTOR

MTR CORPORATION LTD

GROWTH MOMENTUM

193

194

MTRCL

EXPANSION

NEW VISION :

• TO BE A WORLD CLASS ENTERPRISE

• GROWING IN HONG KONG & BEYOND

• FOCUSING ON RAIL, PROPERTY &

RELATED BUSINESS

195

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

196

MTRCL

• NEW CORE VALUES :

EXCELLENT SERVICE

VALUE CREATION

MUTUAL RESPECT

ENTERPRISING SPIRIT

BUSINESS OUTSIDE HONG KONG

197

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%

198

UK BUSINESS

LORO (MTR/LAING )

FRANCHISE TO OPERATE

LONDON ORBITAL RAILWAY

INITIALLY FROM

11 NOVEMBER 2007

FOR 7 YEARS

NOW EXTENDED TO 11 NOVEMBER 2016

SUCCESS

199 199 199

UK BUSINESS

LOROL (MTR/DEUTSCHE BAHN)

ACTION ON DAY ONE

• OYSTER TICKETING SYSTEM

• NEW TICKETING MACHINES

• STATIONS GATED

(MTR/DEUTSCHE BAHN)

• IMPROVEMENT IN:

1. SERVICE OPERATION

2. PUNCTUALITY

3. SAFETY

4. SECURITY

• TICKETLESS TRAVEL DOWN

• REVENUE UP

200 200

UK BUSINESS

201 201 201

UK BUSINESS

(MTR/DEUTSCHE BAHN)

PROGRAMME FOR:

• CUSTOMER SERVICE TRAINING

• STATION CLEANING AND REPAIR

• STATION REFURBISHEMENT

• STATION REMODELLING

• NEW EXTENSIONS

202 202 202

UK BUSINESS

(MTR/DEUTSCHE BAHN)

EAST LONDON LINE COMPLETED IN DECEMBER 2012

NOW OPERATES 57 STATIONS OVER 124 km

AROUND 400,000 PASSENGERS/DAY

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

203

UK BUSINESS

“London Overground has become a shining example

of how franchises can be run. With the network soon

to orbit our city, the London Overground's next five

years are sure to take the service to new heights.

Congratulations to all those

workers whose hard graft has

made this a success story.”

Boris Johnson

Mayor of London

204

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

205

(MTR/DEUTSCHE BAHN)

UK BUSINESS

206

UK BUSINESS

207

AWARDED CROSSRAIL FRANCHISE

CURRENT EXTENSION PROJECTS

208

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

209

HONG KONG GOVERNMENT

INFRASTRUCTURE INVESTMENT

210

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)

211

RAILWAY EXTENSIONS

212

RAILWAY EXTENSIONS

213 SCL

JAY WALDER

CEO

TC CHIEW

PROJECTS DIRECTOR

CONSTRUCTION COMMENCED

IN JUNE 2012

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

214

RAILWAY EXTENSIONS

XRL

PROGRAMME DELAY

BUDGET OVERRUN

CHANGE OF CE & PROJ DIRECTOR

215

RAILWAY EXTENSIONS

WIL

HKU & KET OPENED 28 DECEMBER 2014

SYP OPERATIONAL 29 MARCH 2015

216

RAILWAY EXTENSIONS

217 RAILWAY DEVELOPMENT STRATEGY 2000

(UPDATE)

LISTENING & RESPONDING CORPORATION

218

用心聽 用心做

IMPROVED SERVICES

NEW INTEGRATED ENTRANCES

ENTRANCE UPGRADE

FACILITIES FOR THE PHYSICALLY IMPAIRED

RETROFITS - PLATFORM SIDE DOORS & TOILETS

NEW KIOSKS

NEW SINGNALLING SYSTEM

RAILWAY PROTECTION

219

MTRCL

A STORY

OF

OUTSTANDING SUCCESS

KOWLOON BAY HQ BUILDING

220

MTRCL

• PROFITABLE

0

2

4

6

8

10

12

14

16

Turnover

Operating profit before depreciation (after property development profit)

Net profit excluding investment property revaluation

HK$B

14.2

10.7

8.6

MTRCL

221

MTRCL

222

223

MTRCL

CONSOLIDATED P & L A/C

(YEAR ENDED 31 December 2012) HK$ M

• REVENUE 35,759

• PROFIT ON PROPERTY DEVELOPMENTS 3,238

• OPERATING PROFIT BEFORE DEPRECIATION 16,321

• NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 13,532

224

MTRCL

AS AT END 2012:

PATRONAGE ( million)

Yearly 1,771

Daily 4.7

225

MTRCL

HONG KONG PEOPLE

ENGINEERS MTR STAFF

HAVE REASON TO BE PROUD

226

IN THE EYES

of the

BBC

19 APRIL 2006