Mtr a success story 20.11.2012 staff v3

0

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HONG KONG MASS TRANSIT RAILWAY

A SUCCESS STORY

PRESENTED

BY

Ir Thomas S K LAICEng, MICE, MIStructE, MHKIE

Chairman HKIE UK CHAPTER

75th ANNIVERSARY OF THE HONG KONG POLYTECHNIC UNIVERSITY

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 BUS12

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

•1975 - MASS TRANSIT PROVISIONAL AUTHORITY

•1976 - MASS TRANSIT RAILWAY CORPORATION

MTRC

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

IMPORTANCE OF PUBLIC RELATIONS

• OBSERVATION WINDOWS ON HOARDINGS

• GROWING FOR YOU

27

MIS

IMPORTANCE OF PUBLIC RELATIONS

• CEREMONIES OF COMMENCEMENT

& COMPLETION OF WORKS

28

MIS

IMPORTANCE OF PUBLIC RELATIONS

PARTICIPANTS (STAKEHOLDERS) INCLUDE:

CORPORATION REPRESENTATIVES

CONTRACTORS

CONSULTANTS

GOVERNMENT OFFICIALS

LEGISLATORS

DISTRICT COUNCILLORS

LOCAL DIGNITARIES

29

MIS

IMPORTANCE OF PUBLIC RELATIONS

• TEAM BUILDING

• PUBLICISING PROGRESS OF WORKS

30

MIS

GROUNDBREAKING CEREMONY

BY CHAIRMAN SIR NORMAN THOMPSON

AT KWUN TONG31

MIS

WORK STARTED

• NOVEMBER

1975

32

MIS

• FIRST CHAIRMAN – SIR NORMAN THOMPSON

DIRECT ACCESS TO THE GOVERNOR

SIMPLE & CLEAR MESSAGES

• PROJECT MANAGER – HONG KONG &

SHANGHAI BANK HQ BUILDING

33

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

34

MIS

• GENERAL PUBLIC

– EXCITEMENT

– EXPECTATION

– DETERMINATION

35

MIS

• GENERAL PUBLIC

HIGH DEGREE OF TOLERENCE

&

CO-OPERATION

36

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

37

MIS

• BASED ON PROVEN TECHNOLOGY

• PROJECT MOTTO:

IF IT IS ESSENTIAL,

GET ON WITH IT.

IF IT IS DESIRABLE,

FORGET IT.

38

MIS

GOVERNMENT

COMMUNITY MTRC

UNITY IN PURPOSE

MIS

GROUND CONDITIONS

ALLUVIAL DEPOSITS

GRANITE (VARYING DEGREE OF

DECOMPOSITION)

HARD ROCK

39

MIS

40

STATION WALL CONSTRUCTION

MIS

41

STATION CONSTRUCTION

MIS

42

INSITU HORSESHOE TUNNEL

MIS

43

PRECAST CONCRETE TUNNEL

LINING

SGI TUNNEL LINING

44

MIS

NGAU TAU KOK STATION &

VIADUCT45

MIS

KOWLOON BAY DEPOT

46

MIS

ADMIRALTY STATION

EXCAVATION47

MIS

IMMERSED TUBE CASTING

48

MIS

MIS

49

IMT

50

MIS

• FROM KWUN TONG TO CENTRAL

KWUN TONG TO SHEK KIP MEI

– OPERATIONAL ON 1 OCTOBER 1979

51

MIS

• FROM KWUN TONG TO CENTRAL

KWUN TONG TO TSIM SHA TSUI

– OPERATIONAL ON 31 DECEMBER 1979

52

MIS

• FROM KWUN TONG TO CENTRAL

KWUN TONG TO CENTRAL

– OPENED BY PRINCESS ALEXANDRA

ON 12 FEBRUARY 1980

53

MIS

• FROM KWUN TONG TO CENTRAL

ON TIME AND WITHIN BUDGET

54

MIS

ESTIMATED COST IN 1975 HK$ B

(INCL. 7% p.a. ESCALATION TO 1980) 5.8

CONSTRUCTION COST 5.6

INCL. INTEREST AND FINANCE COSTS 7.3

55

MIS

• NO SMOKING

• NO EATING

• NO DRINKING

• NO MUSIC/RADIO

56

MIS

• CLEAN

• QUIET

• EFFICIENT

• RELIABLE

• AIR-CONDITIONEDDAVID BAARACLOUGH

FORMER OPERATIONS DIRECTOR

57

MIS

SUCCESS

GROWTH

58

FIRST HEADQUARTERS BUILDING59

TSUEN WAN LINE

BUILDING UP THE

COMPANY

60

ERIC BLACK

SECOND MD

61

TSUEN WAN LINE

• ENGINEER‟S DESIGN

• CONTRACTOR‟S ALTERNATIVE

PROPOSALS CONSIDERED &

ADOPTED

TSUEN WAN DEPOT

&

LUK YEUNG SUN CHUEN DEVELOPMENT62

TWL

LAI KING TO KWAI FONG

CROSS-OVER

63

TWL

• SET UP STRONG IN-HOUSE

PROFESSIONAL PROJECT

MANAGEMENT TEAM

• HANDS-ON STYLE

64

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

65

TWL

• TSUEN WAN LINE

– TSUEN WAN

TO CENTRAL

– OPERATIONAL

10 May 1982

(AHEAD OF PROGRAMME)

66

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

67

ISL

68

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 COSTSWILLIAM GREIG

FORMER PROJECTS DIRECTOR

69

ISL

MORE CHALLENGING TIME

70

71

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

72

MTR

ARRIVAL & GROWTH OF MTR

COINCIDE WITH :

TRANSFORMATION OF HONG KONG

FROM REGIONAL CITY

TO INTERNATIONAL FINANCIAL CENTRE

73

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

74

MARGARET THATCHER

75

HONG KONG LEASE

OFFER REJECTED BY CHINA

76

HONG KONG LEASE

BUT AGREED TO:

• SET UP JOINT LIAISON COMMITTEE (JLC)

• CONTINUE NEGOTIATION

• MAINTAIN STABILITY & PROSPERITY OF

HONG KONG

77

HONG KONG LEASE

• NEGOTIATION NOT GOING WELL

• UNCERTAINTY

78

HONG KONG LEASE

• JITTERY & GLOOMY

• INVESTMENTS PUT ON HOLD

• STOCK MARKET CRASH

• PROPERTY BUBBLE BURST

79

HONG KONG LEASE

HONG KONG DOLLAR PLUNGES

FROM AROUND HK$ 6 = US$ 1

TO

OVER HK$ 9 = US$ 1

80

HONG KONG LEASE

PEOPLE RUSH TO SUPERMARKET

TO BUY :

RICE

81

HONG KONG LEASE

PEOPLE RUSH TO SUPERMARKET

TO BUY :

RICE &

BABY‟S POWDERED MILK

82

HONG KONG LEASE

• CURRENCY PEG

HK$ 7.8 = US$ 1

83

HONG KONG LEASE

• CALM THE CITY

• STOP PANIC

84

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

85

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

86

HONG KONG LEASE

•ENSHRINED IN

BASIC LAW

•LODGED WITH

UNITED NATIONS

87

HONG KONG LEASE

• CURRENCY PEG

HK$ 7.8 = US$ 1

• REMAINS TO THIS DAY

88

MTRC

• BORROWING IN US$

• REVENUE IN HK$

• ADVERSE IMPACT BY

HIGH INTEREST RATE (12%)

DEVALUATION

89

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

90

91

MTRC

IN NO POSITION TO FINANCE NEW

EXTENSIONS ON ITS OWN

EXECUTIVE COMMITTEE

92

MTRC

• IN NO POSITION TO FINANCE NEW

EXTENSIONS ON ITS OWN

93

EASTERN HARBOUR CROSSING

EASTERN HARBOUR CROSSING

ENTRANCE94

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

95

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

96

EHC

OPENED ON 1 OCTOBER 1989

PRINCE CHARLES SPEAKING TO

THOMAS LAI

97

AFTER JOINT DECLARATION

• UNCERTAINTY REMOVED

• CONFIDENCE RETURNED

LIPPO CENTRE

CHECKERBOARD IN SIGHT

98

KAI TAK AIRPORT

STEADY AS SHE GOES

99

KAI TAK AIRPORT

DO YOUR WINDOW SHOPPING

BEFORE YOU LAND100

KAI TAK AIRPORT

SEE....I LAND IT ON THE ROOF

101

KAI TAK AIRPORT

HARD RIGHT TURN AND DIVE

102

KAI TAK AIRPORT

BUT LANDING ON THE

RUNWAY...... IS NOT ALWAYS

EASY103

KAI TAK AIRPORT

SOMETIMES.... ENDED UP IN THE

WATER104

KAI TAK AIRPORT

105

AIRPORT CORE PROJECTS

RELOCATE AIRPORT FROM KAI TAK TO CHEK LAP KOK

106

AIRPORT CORE PROJECTS

• APPROVED BY BEIJING

& LONDON

107

AIRPORT CORE PROJECTS

• OBJECTIVES:

– TO STIMULATE ECONOMY

– TO FACILITATE FUTURE GROWTH

– TO ELIMINATE AVIATION HAZARD

– TO BE COMPLETED IN TIME FOR HANDOVER

108

ACP

• AIRPORT AT CHEK LAP KOK

• TSING MA BRIDGE

• LANTAU & AIRPORT RAILWAY

109

ACP

• KAP SHUI MUN BRIDGE

• TING KAU BRIDGE

• HIGHWAYS

• RECLAMATIONS

• THIRD CROSS HARBOUR ROAD

TUNNEL (WESTERN HARBOUR CROSSING)

110

ACP

• HK$ 127 BILLION £ 10 BILLION

111

ACP

CHINA‟S CONCERN:

• ROSE GARDEN PROJECT

• EMPTY TREASURY

• HIGH DEBT

112

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

113

ACP

ESSENTIAL TO HAVE CHINA‟S AGREEMENT AND SUPPORT

TO ASSURE INVESTORS

WRANGLING OVER FINANCIAL DATA DELAYED PROJECT

START

HAMISH MATHERS

FORMER CHAIRMAN

114

ACP

JACK SO CHAK KWONG

FORMER CHAIRMAN & CEO

115

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

•

116

ACP

PROJECT COMPLETED IN 1998

Ir DOUGLAS OAKERVEE

PROJECT DIRECTOR HKIA

FORMER MTR PROJECT MANAGER

ICE PRESIDENT

HONG KONG INTERNATIONAL

AIRPORT117

TSING MA BRIDGE

(ROAD + RAIL)118

119

LANTAU & AIRPORT LINE

120

LAL

AIRPORT EXPRESS LINE(AEL)

AIRPORT – HONG KONG

23 MINUTES JOURNEY

IN-TOWN-CHECK-IN

121

LAL

TUNG CHUNG LINE(ON SHARED TRACK WITH AEL)

TUNG CHUNG - HONG KONG

COMMUTER LINE

ALSO PROVIDES RELIEF

TO NATHAN ROAD CONGESTION

122

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)

123

ACP

EXTENSIVE APPLICATION OF

VALUE ENGINEERING

INTRODUCE PARTNERING

RUSSELL BLACK

FORMER PROJECTS DIRECTOR

NO MORE SLIDING SEATS

124

TUNG CHUNG LINE

AEL TRAIN

125

AIRPORT EXPRESS

• SPACIOUS SEATING

• PLEASANT AMBIENCE

• BUSINESS CLASS COMFORT

FROM PLANE,

THROUGH TRAIN,

TO HOTEL

126

LAL

TCL

OPERATIONAL ON 22 JUNE 1998

AEL

OPERATIONAL ON 6 JULY 1998

127

LAL

HK$ B

PROJECT COST 35.1

(INCLUDING CAPITALISED INTEREST)

FINANCED BY:

EQUITY 23.7

DEBT 11.4

CONSOLIDATION

128

129

TSEUNG KWAN O LINE

130

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

131

132

TKL

INITIAL CAPITAL COST ESTIMATE HK$ B

INCL. CAPITALISED INTEREST 30.5

FINAL COST 16.0

HANG HAU STATION

TKL

133

NORTH POINT CAVERN

134

DISNEYLAND RESORT LINE

135

DRL

• DISNEYLAND RESORT LINE

– FROM SUNNY BAY TO DISNEYLAND

– FULLY AUTOMATIC OPERATION

– OPERATIONAL ON

12 SEPTEMBER 2005

136

ASIAWORLD-EXPO STATION

137

ASIAWORLD-EXPO STATION

AIR STATION –

ASIAWORLD-EXPO

OPERATIONAL ON

20 DECEMBER 2005

138

NGONG PING 360

139

NGONG PING 360

140

NGONG PING 360

141

NGONG PING 360

AIRPORT ISLAND STATION TUNG CHUNG TERMINAL

142

NGONG PING 360

• MATERIAL DELIVERY

– HELICOPTERS

– MULES

143

NGONG PING 360

SCHEDULED OPENING 24 JUNE 2006

OPERATIONAL 18 SEPT 2006

OFFICIAL OPENING 9 NOV 2006

NGONG PING 360

OPERATION SUSPENDED 11 JUNE 2007

OPERATION RESUMED 31 DEC 2007

SUBSIDIARY COMPANY SET UP TO

MANAGE & OPERATE THE SYSTEM

144

SUCCESS PROFILERATING

145

146

MTRC

PROJECT MANAGEMENT

RAILWAY OPERATION

FINANCIAL EXPERTISE

TRAINING & DEVELOPMENT

PROPERTY

AUTOMATIC FARE COLLECTION

147

MTRC

• INVEST HEAVILY IN STAFF TRAINING & DEVELOPMENT

• CORE VALUES :

CUSTOMER SERVICE

RESPECT FOR THE INDIVIDUAL

ON TIME AND WITHIN BUDGET

148

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

149

150

PROPERTY DEVELOPMENT

& MANAGEMENT

• GOVERNMENT ALLOCATE LAND AT

FULL MARKET VALUE ALONG THE

RAILWAY FOR DEVELOPMENT

151

PROPERTY DEVELOPMENT

& MANAGEMENT

• MAJOR & REPUTABLE PROPERTY DEVELOPER AND MANAGER IN TOWN

• JOINT VENTURES

– RESIDENTIAL

– RETAIL

– OFFICES

– HOTEL

152

PROPERTY DEVELOPMENT

& MANAGEMENT

• SUBSTANTIAL CONTRIBUTION

TOWARDS COST OF RAILWAY

• CAPTURED PASSENGERS

(FORMING PART OF 2.4 M DAILY

RIDERSHIP)

153

PROPERTY DEVELOPMENT

& MANAGEMENT

PROCEEDS FROM DEVELOPMENTS HELP TO:

• KEEP FARES AT REASONABLE LEVEL

• MAINTAIN & EXTEND RAIL NETWORK

154

PROPERTY DEVELOPMENT

& MANAGEMENT

TELFORD GARDEN

155

PROPERTY DEVELOPMENT

& MANAGEMENT

PROPERTY DEVELOPMENT

& MANAGEMENT

156

PARK VIEW

PROPERTY DEVELOPMENT

& MANAGEMENT

157

CENTRAL STATION RETAIL

PROPERTY DEVELOPMENT

& MANAGEMENT

158

TELFORD PLAZA

MARITIME SQUARE

159

PROPERTY DEVELOPMENT

& MANAGEMENT

PROPERTY DEVELOPMENT

& MANAGEMENT

160ELEMENTS

2IFC

161

2 INTERNATIONAL FINANCE CENTRE

162

UNION SQUARE

ICC

163

INTERNATIONAL COMMERCE CENTRE

• 118 FLOORS

• 490 METRES HIGH

• THIRD TALLEST

BUILDING IN THE

WORLD

164

ICC

ICC

GATEWAY TOWERS

165

• PROPERTY OPEARATIONS

& MANAGEMENT

CHINA – BEIJING

166

GINZA MALL

PROPERTY DEVELOPMENT

& MANAGEMENT

AS AT END 2011:

Investment properties

Hong Kong: 12 shopping malls + 18 floors at 2 IFC

Shops 226,622 sq.m )

Offices 41,000 sq.m ) 279,424 sq.m

Other use 11,202 sq.m )

Mainland China: Ginza Mall

Shops 18,398 sq.m

Managed properties:

• 86,162 residential units in Hong Kong

• 744,214 sq.m commercial properties in Hong Kong

• 776,402 sq.m in Mainland China

167

168

AUTOMATIC FARE COLLECTION

• ELECTRO-MAGNETIC CARD

• STORED VALUE CARD

• CONTACTLESS SMART CARD

ROB NOBLE

FORMER MARKETING & PLANNINGDIRECTOR

169

AUTOMATIC FARE COLLECTION

ELECTRO-MAGNETIC CARD

• PLASTIC

• RE-USABLE

• NO LITTER

• ISSUED BY MACHINE / HAND

• FIXED VALUE

• ELECTRO-MAGNETIC

• SINGLE JOURNEY

170

MIS

• NO SMOKING

• NO EATING

• NO DRINKING

• NO MUSIC/RADIO

• NO TICKET FLICKING

171

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

172

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

173

OCTOPUS CONTACTLESS SMART CARD

• RELIABLE TICKETING

• LABOUR SAVING

• DATA FOR:

OPERATIONAL PLANNIN INCLUDING PRICING

174

OCTOPUS CONTACTLESS SMART CARD

• FORERUNNER OF:

• EZ-LINK – SINGAPORE

• OYSTER CARD – LONDON

• EASYCARD - TAIPEI

175

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

176

177

MTR CORPORATION

AN OUTSTANDINGLY SUCCESSFUL

ENTERPRISE

178

MTR CORPORATION LTD

LISTED ON THE HONG KONG

EXCHANGE

ON 5 OCTOBER 2000

MERGER WITH KCRC

179

180

MERGER

• HONG KONG GOVERNMENT ANNOUNCED

MERGER PROPOSAL BETWEEN MTRCL & KCRC

ON 11 APRIL 2006

181

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

182

MERGER

KCRC

• OPERATES:

– EAST RAIL

– WEST RAIL

– LIGHT RAIL

– INTERCITY TO GUANGZHOU

– FREIGHT TO INTERIOR OF MAINLAND CHINA

183

MERGER

KCRC

• PROPERTY DEVELOPMENT

&

MANAGEMENT

184

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

185

MERGER

MOU PROVIDES FOR:

• REDUCED FARE

• ABOLITION OF SECOND BOARDING CHARGE

• FURTHER DISCOUNTS FOR MEDIUM & LONG DISTANCE JOURNEYS

• INTRODUCTION OF AN OBJECTIVE, TRANSPARENT & PREDICTABLE FARE ADJUSTMENT MECHANISM (FAM)

• FULLY INTEGRATED INTERCHANGE STATIONS FOR SHATIN TO CENTRAL LINK

• IMPROVEMENT ON EXISTING INTERCHANGE ARRANGEMENTS IN THE SHORT TERM

• PROVISION OF SEAMLESS INTERCHANGE ARRANGEMENTS WITH FUTURE EXTENSIONS

186

MERGER

MOU PROVIDES FOR

• JOB SECURITY FOR ALL FRONTLINE STAFF

187

MERGER

DEAL TERMS

• PROVIDE A BALANCED PACKAGE FAIR TO ALL

STAKEHOLDERS

188

MERGER

DEAL TERMS

• ACQUISITION OF RENEWABLE OPERATIONAL RIGHT OF

KCR FOR 50 YEARS

– UPFRONT PAYMENT OF HK$4.25 BILLION FOR SERVICE

CONCESSION AND TO PURCHASE CERTAIN RAIL ASSETS

– HK$7.79 BILLION FOR A PROPERTY PACKAGE

– FIXED ANNUAL PAYMENT OF HK$750 MILLION

– VARIABLE ANNUAL PAYMENT BASED ON REVENUES

GENERATED FROM KCR‟S RAIL AND RAIL-RELATED

OPERATIONS

• EXPECTED TO BE EPS & NPV ACCRETIVE FOR MTRCL

189

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

190

MERGER

BENEFITS

• SYNERGY

• ECONOMIES OF SCALE

• COST EFFICIENCY

• INTEGRATED RAIL SYSTEM

191

MERGER

TRANSITION - ONE YEAR OR MORE

SHARE PRICE JUMPED 5.3%

(FROM HK$19 TO 20)

RAIL MERGER BILL APPROVED BY LegCo

on 8 JUNE 2007

OUTLOOK - BRIGHT

MERGED

• COMPLETED ON

2 DECEMBER

2007

• 香港鐵路有限公司

192ONE COMPANY ONE TEAM

193

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 PASSENGERS194

MERGED

ONE COMPANY ONE TEAM

195

STAFF INTEGRATION WILLIAM CHAN

FORMER HUMAN RESOURCES DIRECTOR

MTR CORPORATION LTD

GROWTH MOMENTUM

196

197

MTRCL

EXPANSION

NEW VISION :

• TO BE A WORLD CLASS ENTERPRISE

• GROWING IN HONG KONG & BEYOND

• FOCUSING ON RAIL, PROPERTY &

RELATED BUSINESS

198

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

199

MTRCL

• NEW CORE VALUES :

EXCELLENT SERVICE

VALUE CREATION

MUTUAL RESPECT

ENTERPRISING SPIRIT

HONG KONG BUSINESS

HONG KONG INTERNATIONAL AIRPORT

SUBCONTRACT FOR AUTOMATED PEOPLE

MOVER MIDFIELD CONCOURSE EXTENSION

PROJECT

RESPONSIBLE FOR DESIGN,

PROCUREMENT, INSTALLATION, TESTING &

COMMISSIONING OF SEVERAL RAILWAY

SYSTEMS

200

MACAO BUSINESS

201

MACAO GOVERNMENT

MOU SIGNED FOR LIGHT RAIL

PROJECT CONSULTANCY

DUBAI

202

DUBAI

203

METRO & AIRPORT LINES

DUBAI

CONSULTANCY

TO REVIEW DESIGN PROPOSALS IN

RESPECT OF :

OPERATION &

MAINTENANCE

204

VIADUCT CONSTRUCTION

DUBAI

CONSULTANCY

MOU SIGNED TO ASSIST TO DEVELOP A

MASS URBAN TRANSPORT SYSTEM,

PROVIDING HIGH QUALITY TRANSPORT

SERVICES

205

INDIA

Delhi Airport Metro

Express Line

(AMEL)

• Major engineering &

project management

contract206

207

UK BUSINESS

BIDS

208

UK BUSINESS

LORO (MTR/LAING )

FRANCHISE TO OPERATE

LONDON ORBITAL RAILWAY

(with over 1090 trains a day)

FROM 11 NOVEMBER 2007

FOR 7 YEARS

WITH OPTION FOR 2 FURTHER YEARS SUCCESS

209209209

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 UP210210

UK BUSINESS

211211211

UK BUSINESS

(MTR/DEUTSCHE BAHN)

PROGRAMME FOR:

• CUSTOMER SERVICE TRAINING

• STATION CLEANING AND REPAIR

• STATION REFURBISHEMENT

• STATION REMODELLING

• NEW EXTENSIONS

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

212

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

213

UK BUSINESS

9TH LONDON TRANSPORT AWARDS

LONDON TRANSPORT OPERATOR OF THE YEAR

(SECOND YEAR IN A ROW)

2012 METRORAIL AWARDS LONDON

WORLD‟S MOST IMPROVEED METRO

214

(MTR/DEUTSCHE BAHN)

UK BUSINESS

SHORT-LISTED TO BID FOR:

ESSEX THAMESIDE FRANCHISE

(LONDON FENCHURCH STREET – TILBURY- SOUTHEND)

SEPTEMBER 2012

THAMESLINK FRANCHISE

(BEDFORD – GATWICK - BRIGHTON)

FEBRUARY 2013

215

EUROPE BUSINESS

STOCKHOLM UNDERGROUND

TOOK OVER OPERATION 2 NOVEMBER 2009

(FOR 8 YEARS MINIMUM)

216

AUSTRALIA BUSINESS

METRO TRAINS MELBOURNE

TOOK OVER OPERATION ON 30 NOVEMBER 2009

(FOR INITIAL PERIOD OF 8 YEARS)

217

AUSTRALIA BUSINESS

UNITED GROUP LTD.

SUBCONTRACT TO SUPPORT ITS ROLLING STOCK

MAINTENANCE WORKS IN NEW SOUTH WALES

218

219

CHINA BUSINESS

220

CHINA BUSINESS

SHANGHAI

TOGETHER WITH ITS JOINT VENTURE PARTNER,

APPOINTED AS:

OWNER‟S REPRESENTATIVE TO PROJECT MANAGE

DESIGN AND CONSTRUCTION OF LINE 9

OWNER‟S ADVISOR OF LINE 8 & LINE 11

221

CHINA BUSINESS

BEIJING LINE 4

– INITIALLED IN FEBRUARY 2005

– COMPANY FORMED IN JANUARY 2006

– AGREEMENT SIGNED ON 12 APRIL 2006

222

CHINA BUSINESS

BEIJING LINE 4

– PPP

– 30-YEAR CONCESSION AGREEMENT WITH BEIJING

MUNICIPAL GOVERNMENT

– FOR INVESTMENT, CONSTRUCTION & OPERATION

OPENED 28 SEPTEMBER 2009

DAXING LINEOPENED 30 DECEMBER 2010

223

CHINA BUSINESS

SHENZHEN LINE 4

– 30-YEAR BOT PROJECT

– CONCESSION AGREEMENT WITH SHENZHEN MUNICIPAL GOVERNMENT

– „RAIL + PROPERTY‟

– INITIALLED IN MAY 2005

– PHASE 1 TAKEN OVER 01 JULY 2010

– PHASE 2 OPENED 16 JUNE 2011

224

CHINA BUSINESS

HANGZHOU LINE 1

– J.V. AGREEMENT WITH SUBSIDARY OF HANGZHOU METRO GROUP (PPP)

– INVEST & OPERATE LINE 1 FOR 25 YEARS

– RESPONBLE FOR E&M SYSYTEMS

& ROLLING STOCK

– SINGED IN JULY 2012

– OPERATIONAL ON 24 NOVEMBER 2012

BUSINESS OUTSIDE HONG KONG

225

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%

CURRENT EXTENSION PROJECTS

226

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

227

HONG KONG GOVERNMENT

INFRASTRUCTURE INVESTMENT

228

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 KokLink

• 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) 229

230

RAILWAY EXTENSIONS

RAILWAY EXTENSIONS

231XRL

RAILWAY EXTENSIONS

232WIL

RAILWAY EXTENSIONS

233KTE

RAILWAY EXTENSIONS

234SCL

JAY WALDER

CEO

TC CHIEW

PROJECTS DIRECTOR

RAILWAY EXTENSIONS

235SIL(E)

FULLY AUTOMATIC OPERATION

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

236

RAILWAY EXTENSIONS

237RAILWAY DEVELOPMENT STRATEGY 2000

(UPDATE)

RAILWAY BUILDING

238

FEASIBILITY

IDENTIFY TRANSPORT NEEDS

FEASIBILITY STUDY

PROPOSAL TO GOVERNMENT

ROUTE PROTECTION

239

RAILWAY BUILDING

PRE-CONTRACT

PREPARATION OF CONTRACT DOCUMENTS

DESIGN STANDARDS MANUAL

MATERIALS & WORKMANSHIP SPECIFICATION

CONDITIONS OF CONTRACT

BILLS OF QUANTITIES

APPOINTMENT OF CONSULTANTS

TENDERING

CONTRACT AWARD

240

RAILWAY BUILDING

CONSTRUCTION

DESIGN MANAGEMENT

CONSTRUCTION MANAGEMENT

PROTECTION OF ADJACENT PROPERTIES

TESTING & COMMISSIONING

APPROVAL BY RAILWAY INSPECTORATE

HANDOVER TO OPERATIONS

241

RAILWAY BUILDING

SYSTEM IMPROVEMENT

&

PROTECTION

242

243

IN SERVICE IMPROVEMENTS:

NEW INTEGRATED ENTRANCES

ENTRANCE UPGRADE

FACILITIES FOR THE PHYSICALLY IMPAIRED

RETROFITS - PLATFORM SIDE DOORS

KIOSKS

NEW SINGNALLING SYSTEM

CONDITION MONITORING

MAINTENANCE

RAILWAY PROTECTION

LISTENING CORPORATION

IN SERVICE

INTEGRATED ENTRANCE

244

IN SERVICEOLD ENTRANCE

245

NEW ENTRANCE

IN SERVICE

KIOSKS

246

IN SERVICE

CHAIRLIFT & TACTILE ROUTES

247

IN SERVICE

PSD

248

IN SERVICE

SIGNALLING

SOURCE - BOMBARDIER

IN SERVICE

RAILWAY PROTECTION

250

251

MTRCL

A STORY

OF

OUTSTANDING SUCCESS

KOWLOON BAY HQ BUILDING

252

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

253

MTRCL

254

255

MTRCL

CONSOLIDATED P & L A/C

(YEAR ENDED 31 December 2011) HK$ M

• REVENUE 33,423

• PROFIT ON PROPERTY DEVELOPMENTS 4,900

• OPERATING PROFIT BEFORE DEPRECIATION 17,038

• NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 14,716

256

MTRCL

AS AT END 2011:

PATRONAGE ( million)

Yearly 1,644

Daily 4.7

257

MTRCL

HONG KONG PEOPLE

ENGINEERS MTR STAFF

HAVE REASON TO BE PROUD

258

IN THE EYES

of the

BBC

19 APRIL 2006

RECAP

259

STORY OF THE HKMTR

260

STORY OF THE HKMTR

STORY OF HONG KONG IN THE

FINAL DECADES OF LAST CENTURY

261

STORY OF THE HKMTR

STORY OF HONG KONG IN THE

FINAL DECADES OF LAST CENTURY

STORY OF 23 YEARS OF MY LIFE

262

This presentation is dedicated to :

All my friends

Especially those of the MTR

263

This presentation is dedicated to :

and to:

The Hong Kong Technical College

(now The Hong Kong Polytechnic University)

For helping me to lay the foundation for

my engineering career264

265