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MTR Corporation Limited
Formerly
Mass Transit Railway Corporation (1972–2000)
Public; State-owned enterprise
Traded as
Industry
  • Transport
  • Property
FoundedSeptember 22, 1972; 48 years ago (1972-09-22)
Headquarters
Area served
Worldwide, including:
Key people
RevenueHK$55.4 billion (December 2017)[1]
HK$10.5 billion (December 2017)
Total assetsHK$263.768 billion (December 2017)
Owner
Number of employees
28,053 (June 2017)
Websitemtr.com.hk
MTR Corporation
Traditional Chinese香港鐵路有限公司
Literal meaningHong Kong Railway Corporation Limited

MTR Corporation Limited is a majority state-owned Hong Kong company listed on the Hong Kong Exchange and the OTC Market

MTR Corporation Limited is a majority state-owned Hong Kong company listed on the Hong Kong Exchange and the OTC Markets Pink Sheets, and a component of Hang Seng Index. The MTR Corporation runs Hong Kong's eponymous Mass Transit Railway (MTR), and is also a major property developer and landlord in Hong Kong. The MTR additionally invests in railways across different parts in the world, including franchised contracts to operate rapid transit systems in London, Sweden (Stockholm Metro and the MTRX Stockholm-Gothenburg rail link), Beijing, Hangzhou, Macau, Shenzhen, Melbourne, and Sydney.

History

The Mass Transit Railway Corporation (Chinese: 地下鐵路公司) was established on 22 September 1972 as a government-owned statutory corporation to build and operate a mass transit railway system to meet Hong Kong's public transport needs. On 30 June 2000 the MTRC was succeeded by the MTR Corporation Limited (MTRCL, 地下鐵路有限公司). 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 is still the majority stakeholder in the MTRCL.

Partial privatisation

On 11 September 2000, the Financial Secretary of the Hong Kong Government, Mr Donald Tsang, announced the partial privatisation of MTR Corporation Limited.[2] The offering was for one billion shares, but this was increased to 1.15 billion due to high demand.[3] On 5 October 2000, the company was listed on the Hong Kong Stock Exchange with 600,000 shareholders. In June 2001, MTR was added to the Hang Seng Index.

At the time of the initial public offering, the company was operating with a budget surplus of HK$360 million (US$46.1 million), which had increased from a surplus of HK$278 million (US$35.6 million) in 1997. The MTR has continued to be one of the few profitable public transport systems in the world.[4]

MTR-KCR merger

The Mass Transit Railway Corporation (Chinese: 地下鐵路公司) was established on 22 September 1972 as a government-owned statutory corporation to build and operate a mass transit railway system to meet Hong Kong's public transport needs. On 30 June 2000 the MTRC was succeeded by the MTR Corporation Limited (MTRCL, 地下鐵路有限公司). 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 is still the majority stakeholder in the MTRCL.

Partial privatisation

On 11 September 2000, the Financial Secretary of the Hong Kong Government, Mr Donald Tsang, announced the partial privatisation of MTR Corporation Limited.[2] The offering was for one billion shares, but this was increased to 1.15 billion due to high demand.[3] On 5 October 2000, the company was listed on the Hong Kong Stock Exchange with 600,000 shareholders. In June 2001, MTR was added to the Hang Seng Index.

At the time of the initial public offering, the company was operating with a budget surplus of HK$360 million (US$46.1 million), which had increased from a surplus of HK$278 million (US$35.6 million) in 1997. The MTR has continued to be one of the few profitable public transport systems in the world.[4]

MTR-KCR merger

Railway network after merger
Hong Kong Government, Mr Donald Tsang, announced the partial privatisation of MTR Corporation Limited.[2] The offering was for one billion shares, but this was increased to 1.15 billion due to high demand.[3] On 5 October 2000, the company was listed on the Hong Kong Stock Exchange with 600,000 shareholders. In June 2001, MTR was added to the Hang Seng Index.

At the time of the initial public offering, the company was operating with a budget surplus of HK$360 million (US$46.1 million), which had increased from a surplus of HK$278 million (US$35.6 million) in 1997. The MTR has continued to be one of the few At the time of the initial public offering, the company was operating with a budget surplus of HK$360 million (US$46.1 million), which had increased from a surplus of HK$278 million (US$35.6 million) in 1997. The MTR has continued to be one of the few profitable public transport systems in the world.[4]

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 11 April 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 Kowloon–Canton Railway (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.[5]

The KCRC's lines were less profitable than those of 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 for an unreasonably low price. Leasing the operation rights of the KCR system to the MTRCL avoided 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[6] (literal translation: Hong Kong Railway Corporation Limited) after being granted the Service Concession while the English name will remain unchanged.[7][8] The KCRC is now a holding company of the KCR system, without actual railway operations. The merger was approved by shareholders of the MTRCL on 9 October 2007. The merger is effective for 50 years. This also resulted in changing the system's Chinese name from "地鐵" ("Subway") to "港鐵" "(Hong Kong Railway").

On 11 April 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 Kowloon–Canton Railway (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.[5]

The KCRC's lines were less profitable than those of 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 for an unreasonably low price. Leasing the operation rights of the KCR system to the MTRCL avoided 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[6] (literal translation: Hong Kong Railway Corporation Limited) after being granted the Service Concession while the English name will remain unchanged.[7][8] The KCRC is now a holding company of the KCR system, without actual railway operations. The merger was approved by shareholders of the MTRCL on 9 October 2007. The merger is effective for 50 years. This also resulted in changing the system's Chinese name from "地鐵" ("Subway") to "港鐵" "(Hong Kong Railway").

All adult Octopus Card holders would be the first to benefit from the merger.[9] Student and Concessionary Octopus holders would also benefit from the merger by further reducing $0.1 from their 50% off fares.[10] 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).[11]

MTR Corporation is responsible for the operation of MTR (and the Kowloon–Canton Railway since 2 December 2007). The rail lines are profitable, but the MTR Corporation derives most of its profits from property development (usually adjacent to railway stations) and other commercial activities in Hong Kong, including the letting of retail and poster advertising space, ATM banking facilities, and personal telecommunication services.

Rail services

Mass Transit Railway (MTR) is the rapid transit railway system in Hong Kong. Originally opened in 1979, the system currently (at August 2018) includes 221 km (137 mi) of rail with 159 stations, including 91 railway stations and 68 light rail stops.[12] There are also several future projects of the MTR.

Property management

Property is one of the main businesses of the MTR generating most of the profits. In 2009 of a net profit of HK$7.3 billion, MTR made HK$3.55 billion from property and HK$2.12 billion from transport operations.[13] The MTR tries to dev

Property is one of the main businesses of the MTR generating most of the profits. In 2009 of a net profit of HK$7.3 billion, MTR made HK$3.55 billion from property and HK$2.12 billion from transport operations.[13] 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 International Finance Centre.

Shopping centres

The MTR Corporation invested heavily to develop large shopping centres around MTR

The MTR Corporation invested heavily to develop large shopping centres around MTR stations. The most recent example is the PopCorn mall located at Tseung Kwan O station. It is connected to the adjacent malls, high-end housing and hotels. Another 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 centres developed and managed by the corporation include Elements, Paradise Mall, Telford Plaza, Luk Yeung Galleria and The Lane.

United Kingdom

MTR Nordic AB is a subsidiary of MTR Corporation UK based in Stockholm[32] that operates in the public transportation sector through four subsidiaries. The CEO of MTR Nordic is Mark Jensen.[33]

  • MTR Tunnelbanan AB (known as MTR Stockholm AB until June 2016) is responsible for the operation, planning and maintenance of the Stockholm Metro. In January 2009, Tunnelbanan Teknik Stockholm, a 50/50 joint venture between MTR and Mantena, was awarded the contract from Storstockholms Lokaltrafik (SL) to operate the network for eight years with an option to extend for another six years. MTR started operating the metro on 2 November 2009,[34][35] and in September 2015 the six-year extension was granted.[36] In January 2016, MTR bought out its joint venture partner.[37][38] The division has approximately 3,000 employees[39] with Johan Oscarsson as its CEO.[40]
  • MTR Tech AB, formerly Tunnelbanan Teknik Stockholm AB (TBT), carries out maintenance of the Stockholm Metro rolling stock. Its CEO is Erika Enestad.
  • MTR Express (Sweden) AB operates long-distance trains between Stockholm and Gothenburg with its own ticket sales using the brand name MTR Express.[41][42] The service, operational since 21 March 2015, uses six X74 (Stadler Flirt) electric multiple units travelling at up to 200 km/h.[43] The division has 90 employees based in both Stockholm and Gothenburg, led by CEO Mats Johannesson.[44][45]
  • MTR Pendeltågen AB has been the operator of Stockholm commuter rail network since 11 December 2016. In December 2015, the Traffic Commission in the Stockholm County Council decided that MTR would take overall responsibility for the network, trains, and stations[46] in a contract for 10 years, with an option to extend for another four years.[47] SJ requested a review of the decision, but it was rejected by the Stockholm Administrative Court.[48] MTR took over the service from the previous operator Stockholmståg under CEO Henrik Dahlin.[40]

Australia

In June 2009, the Metro Trains Melbourne consortium of MTR (60%), John Holland and United Rail (20% each) were selected to operate the Melbourne suburban railway network, taking over from Connex Melbourne on 30 November 2009.[49] In September 2016, the government opened negotiations with Metro Trains Melbourne to extend the contract for seven years until November 2024.[50][51]

In June 2014, Northwest Rapid Transit, a consortium consisting of MTR (60%), John Holland Group, Leighton Contractors, Plenary Group and UGL Rail, was selected to deliver the Sydney North West Rail Link operations contract.[52][53] As part of the consortium, MTR Corporation, John Holland and UGL Rail formed the Metro Trains Sydney joint venture to operate services on the line for 15 years. The North West Rail Link (now renamed Sydney Metro Northwest) opened in May 2019.[54]

China

Beijing MTR Corporation Limited
Hangzhou MTR Corporation Limited
MTR Railway Operations (Macau) Company Limited
MTR Corporation (Shenzhen) Limited