|Formerly||Mass Transit Railway Corporation (1972-2000)|
|Type||Public; State-owned enterprise|
|Founded||22 September 1972|
|Revenue||HK$55.4 billion (December 2017)|
|HK$10.5 billion (December 2017)|
|HK$263.768 billion (December 2017)|
Number of employees
|28,053 (June 2017)|
|Literal meaning||Hong Kong Railway Corporation Limited|
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 rapid transit system of the same name, and is also a major property developer and landlord in Hong Kong. The MTR additionally invests in railways across different parts of 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, Sydney, and a suburban rail system in Melbourne.
The Mass Transit Railway Corporation (Chinese: ) 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, ). 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.
On 11 September 2000, the Financial Secretary of the Hong Kong Government, Mr Donald Tsang, announced the partial privatisation of MTR Corporation Limited. The offering was for one billion shares, but this was increased to 1.15 billion due to high demand. 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.
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 merger 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.
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  (literal translation: Hong Kong Railway Corporation Limited) after being granted the Service Concession while the English name will remain unchanged. 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 "" ("Subway") to "" "(Hong Kong Railway").
All adult Octopus Card holders would be the first to benefit from the merger. Student and Concessionary Octopus holders would also benefit from the merger by further reducing $0.1 from their 50% off fares. 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).
In July 2021, Liber Research Community, an NGO, produced a report which detailed the history of MTR's revenue model. In it, it discovered that the "Rail + Property" development model was originally formed to offset unexpected financial difficulties with creating the original MTR lines, with original estimates that MTR's property would account for approximately 20% of its total revenue.
The Executive Council also determined that since MTR had to apply for land grants from the government, it was the government's decision on how land above MTR stations should be allocated, stating "the grant of comprehensive development rights on land affected by railway installations will be discretionary". Land above stations would not necessarily be used to build private housing to maximize MTR's revenue, but could be used to solve issues of housing in Hong Kong, such as by developing public housing instead. The Executive Council also noted that "revenue from property development was not originally envisaged as being used as a means of financing the capital cost of the railway itself" and that revenue from property development was to be used for a "contingency reserve", such as for offsetting excessive construction costs.
The report noted that 40% of MTR's revenue is currently from property, and that the original intent of using property revenue for contingency purposes had shifted into a different, unsustainable model where property is used to subsidize operations and construction of new stations.
The position of Chief Executive was created in 1995.
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.
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. There are also several future projects of the MTR.
Station (Long Ping station)
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. 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.
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 () 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 CityLink, Elements, Hanford Plaza, Ocean Walk, Paradise Mall, Plaza Ascot, Sun Tuen Mun Shopping Centre, Telford Plaza, The Lane, the LOHAS, and Luk Yeung Galleria.
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. In September 2016, the government opened negotiations with Metro Trains Melbourne to extend the contract for seven years until November 2024.
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 Metro Northwest operations contract. 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 opened in May 2019.
|Founded||Beijing (16 January 2006)|
Hangzhou (6 September 2012 )
Macau (11 April 2018 )
Shenzhen (1 July 2010 )
(Beijing, Hangzhou, Macau, & Shenzhen),
|Beijing, Hangzhou, Macau, Shenzhen|
The company has also formed a joint-venture Beijing MTR Corporation Limited (49%) with Beijing Capital Group ("BCG") (49%) and the Beijing Infrastructure Investment Co ("BIIC") (2%) to build and operate for 30 years Line 4, Daxing line, Line 14, and Line 16 of the Beijing Subway. Line 17, which is currently under construction, is also confirmed to be operated by the Beijing MTR Corporation Limited.
The company formed a new joint-venture Hangzhou MTR with Hangzhou Metro Group in 2012 to operate Line 1 of the Hangzhou Metro for 28 years, in which MTR holds 49% of the stock, while Hangzhou Metro Group holds the other 51% of the stock. Line 5 of the Hangzhou Metro is operated by Hangzhou MTR Line 5 Ltd, which MTR holds 60% of the stock.
MTR Railway Operations (Macau) Company Limited, a wholly owned subsidiary of MTR Corporation, operates the Taipa Line of the Macau Light Rapid Transit (MLRT or MLM) in Macau since the line's opening on 10 December 2019. MTR will operate and maintain the line for 80 months.
The company concluded initials concession agreement to build phase 2 of the Line 4 of the Shenzhen Metro, and to operate the whole line on a BOT basis for 30 years from 1 July 2010. The phase 2 of Line 4 have been in operation for passengers since 16 June 2011. Line 13, which is currently under construction, is also confirmed to be operated by MTR Corporation (Shenzhen).
MTR Properties and MTR Property Management