Background Case: Profitable MTR System in Hong Kong Essay

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Background Case: Profitable MTR System in Hong Kong
(In this research case, I want to know what the key factors of the profitable MTR system are. In another word, what conditions other cities in developing countries need in order to successfully replicate the MTR rail-property development model.)
In Hong Kong, public transit serves more than 90% of daily trips, and among them 40% are from the metro system, the Mass Transit Railway (MTR) (Wu, 2009). First built in late 1970s, MTR has a daily ridership of 5.6 million passengers and total revenue of HK$35.7 billion in 2012 (MTR, 2012). Until now, the system has 11 lines, 84 stations and a total route length of 218.2 km with an average fare of HK$7.1 per trip (MTR, 2012). It runs 7 days a
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As Hong Kong was insufficient of land, all the system was designed underground. Hong Kong Mass Transit Railway Corporation (MTRC) was established in 1975 to supervise the construction process and future management of the first line: part of the Tsuen Wan Line and Kwun Tong Line today, which runs across the Hong Kong Island and Kowloon connecting the major residential and industrial districts from the Central Station to Kwun Tong Station. The Construction process of all MTR lines is in table 1.
Table 1. MTR Lines Construction Process
Name Operation Year
East Rail Line 1910
Kwun Tong Line 1980
Tsuen Wan Line 1982
Island Line 1985
Light Rail 1988
The Airport Express 1998
Tung Chung Line 1998
Tseung Kwan O Line 2002
West Rail Line 2003
Ma on Shan Line 2004
Disneyland Resort Line 2005
Source: HKMTIC, MTRC, KCRC

There are three surface-street trams and one light rail in the MTR system: West Rail Line, East Rail Line, Ma on Shan Line, and the Light Rail. All of the railways were once belonged to Kowloon-Canton Railway Corporation (KCRC). In 2000, MTRC was 24% privatized and the Mass Transit Railway Corporation Limited (MTRCL) was established as a listed company with the government as the major stakeholder (Cullinane, 2014). In 2007, the MTRCL and KCRC were combined together to become the only railway operator in Hong Kong

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