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MTR Corporation

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(Redirected from MTR Nordic)
This article is about the public transport company with operations worldwide. For the public transport network in Hong Kong operated by the company, see MTR. For other uses, see MTR (disambiguation).
"MTRC" redirects here. For the concept car, see Toyota Motor Triathlon Race Car.
Not to be confused with ⵣ or Ж.

MTR Corporation Limited
FormerlyMass Transit Railway Corporation (1972–2000)
Company typePublic; Government-owned corporation
Industry
Founded22 September 1972; 52 years ago (1972-09-22)
HeadquartersKowloon Bay,
Hong Kong
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)
Websitewww.mtr.com.hk Edit this at Wikidata
MTR Corporation
Traditional Chinese香港鐵路有限公司
Simplified Chinese香港铁路有限公司
Literal meaningHong Kong Railway Corporation Limited
Transcriptions
Yue: Cantonese
Yale RomanizationHēung góng tit louh yáuh haahn gūng sī
JyutpingHoeng1 gong2 tit3 lou6 jau5 haan6 gung1 si1

MTR Corporation Limited is a majority government-owned public transport operator and property developer in Hong Kong which operates the Mass Transit Railway, the most popular public transport network in Hong Kong. It is listed on the Hong Kong Exchange and is a component of the Hang Seng Index. The MTR additionally invests in railways across different parts of the world, including franchised contracts to operate rapid transit systems in London, Stockholm, Beijing, Hangzhou, Macao, Shenzhen, Sydney, and a suburban rail system in Melbourne.

History

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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

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On 11 September 2000, the financial secretary of the Hong Kong Government, Sir 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 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

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Main article: MTR–KCR merger
Railway network after merger
Ticket gates at key interchange stations have been removed one year after the merger

There had been some discussion of merging the Kowloon-Canton Railway Corporation (KCRC), which was also government-owned and the MTRCL 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.[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.[citation needed]

On 2 December 2007, the Chinese name of the MTRCL was changed to 香港鐵路有限公司[6] (lit. "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]

Revenue model

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In July 2021, Liber Research Community, an NGO, produced a report which detailed the history of MTR's revenue model.[12] In it, it reported 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 per cent of its total revenue.[12]

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".[12] 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.[12] 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.[12]

The report noted that as of 2017, 40 per cent of MTR's revenue is 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 subsidise operations and the construction of new stations.[12]

Senior leadership

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  • Chairman: Rex Auyeung (since July 2019)
  • Chief Executive: Jacob Kam (since April 2019)

List of former chairmen

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  1. Sir Philip Haddon-Cave (1972–1974); project manager
  2. Sir Norman Thompson (1974–1983); first official Chairman
  3. Sir Wilfrid Newton (1983–1989)
  4. Hamish Mathers (1989–1995)
  5. Jack So (1995–2003)
  6. Raymond Ch'ien (2003–2015)
  7. Frederick Ma (2016–2019)

List of former chief executives

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The position of Chief Executive was created in 1995.

  1. Jack So (1995–2003)
  2. Sir Chow Chung-kong (2003–2011)
  3. Jay Walder (2012–2014)
  4. Lincoln Leong (2015–2019)

Operations by market

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Hong Kong

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World Wide House, built by the MTR Corporation Limited.

On 5 October 2000 the operator of the MTR network, the Mass Transit Railway Corporation (MTRC), became Hong Kong's first rail company to be partially privatised, marking the beginning of the Hong Kong government's initiative to reduce its interests in public utilities. Prior to its listing on the Hong Kong Stock Exchange, the Mass Transit Railway Corporation (MTRC) was wholly owned by the Hong Kong government. 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 [citation needed].

Rail services

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Main article: MTR

Mass Transit Railway (MTR) is the rapid transit railway system in Hong Kong. Originally opened in 1979, the system currently (at September 2024) includes 271 km (168 mi) of rail with 167 stations, including 99 railway stations and 68 light rail stops.[13][14] There are also several future projects.

Property management

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Main article: MTR Properties

Property is one of the main businesses of the MTR, generating most of its profits. In 2009, with a net profit of HK$7.3 billion, MTR made HK$3.55 billion from property and HK$2.12 billion from transport operations.[15] 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 owned by the MTR was developed into Union Square, a mixed-use development with residential, office, retail, and hotel space. The site includes the tallest commercial building in Hong Kong, the 118-storey International Commerce Centre.

Central's landmark International Finance Centre is managed by Premier Plus, MTR's elite property management brand.[16]

Shopping centres
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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 transport hub for Tsing Yi, Maritime Square is also easily accessible by other transport 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.

As of 2023, MTR Corporation owns 13 shopping malls across Hong Kong, classified into luxury, regional, and neighbourhood malls.[17]

United Kingdom

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MTR Elizabeth line logo

Current operations

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  • Elizabeth line: In May 2015, TfL Rail began an eight-year contract to operate the Crossrail concession in London, with an option for a further two years.[18] Before the new railway lines opened, MTR already operated Liverpool Street–Shenfield and Paddington–Heathrow Airport services branded as TfL Rail. In May 2022 services commenced between Paddington and Abbey Wood via Liverpool Street, and all services were renamed Elizabeth line. As of 2024, the Elizabeth line is operated by MTR Elizabeth line under a contract with TfL which will expire in May 2025. It is also the line's first operator.[19]

In November 2024, Transport for London announced that MTR has lost its bid to renew the operation of the Elizabeth line to GTS Rail Operations.[20]

Former operations

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Unsuccessful or withdrawn bids

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Sweden

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MTRX train in Gothenburg, Sweden

MTR Nordic AB is a subsidiary of MTR Corporation UK based in Stockholm[39] that operates in the public transportation sector through various subsidiaries. The CEO of MTR Nordic is Henrik Dahlin.[40]

Current Operations (ending November 2025):

  • 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,[41][42] and in September 2015 the six-year extension was granted.[43] The current contract with Storstockholms Lokaltrafik (SL) for the metro extends to November 2025.[44] In January 2016, MTR bought out its joint venture partner.[45][46] The division has approximately 3,000 employees[47] with Caroline Åstrand as its CEO.[48] Metro operations will be taken over in November 2025 by Connecting Stockholm AB.[49]
  • MTR Tech AB, formerly Tunnelbanan Teknik Stockholm AB (TBT), carries out maintenance of the Stockholm Metro rolling stock. Its CEO is Erika Enestad.

Former Operations:

  • MTR Express (Sweden) AB (2015 - 2024) operated long-distance trains between Stockholm and Gothenburg as a private open access operator using the brand name MTRX.[50][51] The service, operational since 21 March 2015, uses six X74 (Stadler Flirt) electric multiple units travelling at up to 200 km/h.[52] The division had 90 employees based in both Stockholm and Gothenburg, led by CEO Joakim Sundh.[53][54] Sold May 2024 to VR Group[55][56]
  • MTR Pendeltågen AB (2016 - 2024) was the operator of the Stockholm commuter rail network between 11 December 2016 and 3 March 2024. MTR took overall responsibility for the network, trains, and stations[57] in a contract for 10 years, with an option to extend for another four years.[58] In November 2023, citing poor performance by MTR, SL decided to cut short the existing contract, and awarded an emergency contract to SJ, which took over the operation from March 2024.[59] In November 2023 it was reported that MTR would pay a total fine of 800 million kronor (US$76.8 million) to SL. This sum included 300 million SEK (US$28.8 million) for penalties and contract breaches, and 280 million SEK (US$26.9 million) to cover SL's extra expenses due to MTR's early termination.[60]
  • MTR Mälartåg AB (2021 - 2024) was awarded the contract to run regional Mälartåg trains between 2021 and 2029. In July 2022, MTR Mälartåg was required to pay multi-million kronor penalties to Mälardalstrafik due to over 6,100 fully or partially cancelled train departures during the first half of the year.[61] After facing continuing challenges, MTR decided in 2024 to terminate its Mälartåg contract five years early. Mälartåg operations were taken over in June 2024 by Transdev.[62]

Australia

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Mainland China

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Logo Name Founded Website
Beijing MTR Corporation Limited 16 January 2006 (2006-01-16) mtr.bj.cn
Hangzhou MTR Corporation Limited 6 September 2012 (2012-09-06) mtrhz.com.cn
MTR Corporation (Shenzhen) Limited 1 July 2010 (2010-07-01) mtrsz.com.cn

Beijing

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The company has also formed a joint-venture Beijing MTR Corporation Limited (Jinggang MTR) (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, Line 16 and Line 17[69][70] of the Beijing Subway.

Hangzhou

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The company formed a new joint-venture Hangzhou MTR (Hanggang 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.[citation needed]

Shenzhen

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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).[71]

Macau

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MTR Railway Operations (Macau)
 Company Limited
Company typePublic company
IndustryTransport
Founded11 April 2018 (2018-04-11)
Headquarters
Taipa
,
Macau
Area served
Taipa
WebsiteMTR (Macau)

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.[72]

References

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  1. ^ 2017 Financial Highlights MTR Annual Report 2017, Retrieved 2018-05-24
  2. ^ "MTR Privatisation Share Offer (NOT for distribution outside Hong Kong)" (Press release). Hong Kong SAR Government. 11 September 2000. Retrieved 11 February 2017.
  3. ^ "Executive Management's Report – Business Overview" (PDF). Hong Kong Exchanges and Clearing Limited. Retrieved 11 February 2017.
  4. ^ "How Hong Kong's subway turns a $2 billion annual profit". CNN. 30 March 2015. Retrieved 11 February 2017.
  5. ^ "Press Release: Government has reached understanding with MTRCL on the terms for merging the MTR and KCR systems". Hong Kong SAR Government. 11 April 2006. Retrieved 17 November 2007.
  6. ^ "Rail Merger Bill" (PDF). Legislation Council of the Hong Kong SAR. Retrieved 8 November 2007.
  7. ^ "Appointments announced for post-merger MTR Corporation Limited" (Press release). Hong Kong Government. 8 August 2007. Retrieved 10 November 2007. (Comparing with the Chinese version)
  8. ^ "Rail Merger Bill to be introduced into Legco (English name remain MTR)" (Press release). Hong Kong Government. 8 June 2006. Retrieved 15 November 2007. (Comparing with the Chinese version Archived 9 September 2009 at the Wayback Machine)
  9. ^ Railway Merger Proposal in Hong Kong Gets Green Light, Hong Kong Economic and Trade Office in United States.
  10. ^ Fact Sheet (Eng), Merger of the MTR and KCR systems.
  11. ^ Elders ride on the MTR on Sundays and public holidays for just $2 for the whole journey.
  12. ^ a b c d e f lrcresearcher (6 July 2021). "還原「物業帶動鐵路」的歷史時空". Liber Research Community (in Chinese (Hong Kong)). Retrieved 4 August 2021.
  13. ^ "Transport Department - Railways". www.td.gov.hk. Retrieved 11 September 2024.
  14. ^ "MTR Railway Network". MTR. Retrieved 3 August 2018.
  15. ^ Ng, Jeffery (9 March 2010). "MTR Posts 16% Rise in Profit, Plans to Offer 5,000 Apartments". The Wall Street Journal.
  16. ^ "Two ifc services | International Finance Centre, Hong Kong". ifc.com.hk. Retrieved 3 July 2023.
  17. ^ "MTR > Shopping Malls". www.mtr.com.hk. Retrieved 3 July 2023.
  18. ^ "MTR selected to operate Crossrail services". Railway Gazette International. 18 July 2014.
  19. ^ "Bidders shortlisted in the process to find the next operator of the Elizabeth line". Transport for London. Retrieved 20 May 2024.
  20. ^ "Elizabeth line: Operator MTR loses bid to renew its contract". BBC News. Retrieved 20 November 2024.
  21. ^ "FirstGroup and MTR welcome South Western rail franchise award" (Press release). London Stock Exchange. 27 March 2017. Archived from the original on 26 June 2018.
  22. ^ "MTR Laing wins London Overground" Railway Gazette International July 2007 page 408
  23. ^ Four bidders shortlisted for London Overground operating concesssion Railway Gazette International 29 June 2015
  24. ^ TfL announces Overground Shortlist Railnews 30 June 2015
  25. ^ Arriva wins £1.5bn London Overground contract BBC News 18 March 2016
  26. ^ Transport for London announces intention to award London Overground contract to Arriva Arriva 18 March 2016
  27. ^ "GNER joins Hong Kong's MTR to bid for new Kent rail franchise" Rail issue 502 8 December 2004 page 6
  28. ^ "MTR pulls out of West Midlands bid" The Railway Magazine issue 1269 January 2007 page 6
  29. ^ "Foreign bids for Metro contract". BBC News. 2 February 2009. Retrieved 3 February 2009.
  30. ^ "ScotRail franchise shortlist named". BBC News. 1 November 2013. Retrieved 3 February 2009.
  31. ^ East Japan Railway on West Midlands franchise shortlist Railway Gazette International 7 April 2016
  32. ^ "MTR withdraws from West Midlands bidding"Modern Railways issue 815 August 2016 page 21
  33. ^ Wales & Borders bidders asked to propose Metro options Railway Gazette International 13 October 2016
  34. ^ West Coast Partnership and South Eastern rail franchise bidders Department for Transport 22 June 2017
  35. ^ Three shortlisted for West Coast Partnership franchise Railway Gazette International 22 June 2017
  36. ^ "MTR teams up with operator of Europe's largest high speed rail network for West Coast Partnership bid". MTR Europe. 20 December 2018. Retrieved 25 December 2018.
  37. ^ "RENFE joins MTR's West Coast Partnership bid team". Railway Gazette International. 20 December 2018. Retrieved 5 September 2024.
  38. ^ FirstGroup consortium to replace Virgin on west coast mainline Guardian 14 August 2019 FirstGroup consortium to replace Virgin on west coast mainline] Guardian 14 August 2019
  39. ^ "Contact us". MTR Nordic (in Swedish). Retrieved 8 December 2019.
  40. ^ "Henrik Dahlin ny vd för MTR Nordic AB". MTR Nordic (mynewsdesk) (in Swedish). 20 January 2021. Retrieved 13 April 2021.
  41. ^ "Hongkong-bolag vann t-banekontrakt värt 36 miljarder (Swedish)". Svenska Dagbladet. E24.se. 20 January 2009.
  42. ^ "Hong Kong operator in Stockholm" The Railway Magazine issue 1296 April 2009 page 93
  43. ^ MTR's Stockholm metro contract extended Railway Gazette International 29 September 2015
  44. ^ "MTR får förlängt förtroende till 2023". Mynewsdesk (in Swedish). 8 September 2015. Retrieved 6 July 2022.
  45. ^ MTR Brings Stockholm Metro Rolling Stock Maintenance Fully in House MTR 25 January 2016
  46. ^ MTR to take full ownership of Stockholm Metro in Sweden Rail Technology 27 January 2016
  47. ^ "Nya t-banechefens mål 99,7 procents punktlighet". DN.SE (in Swedish). 28 October 2009. Retrieved 8 December 2019.
  48. ^ "Caroline Åstrand ny VD för MTR Tunnelbanan". MTR Nordic (mynewsdesk) (in Swedish). 16 January 2020. Retrieved 13 April 2021.
  49. ^ Redaktionen (21 November 2024). "Klart: Connecting Stockholm ny utförare av Stockholms lokaltrafik". dagensinfrastruktur (in Swedish). Retrieved 21 November 2024.
  50. ^ Home MTR Express
  51. ^ MTR launches open access inter-city service Railway Gazette International 23 March 2015
  52. ^ MTR Express orders Flirts for Stockholm-Goteborg open access service Railway Gazette International 13 November 2013
  53. ^ "VD-byten inom MTR-koncernen – Mats Johannesson tar över vd-rollen på MTR Pendeltågen och Joakim Sundh blir ny vd på MTRX". MTR Nordic (mynewsdesk) (in Swedish). 21 January 2021. Retrieved 13 April 2021.
  54. ^ "MTR Express takes on SJ in Sweden". International Railway Journal. Retrieved 8 December 2019.
  55. ^ VR Group completes MTR acquisition International Railway Journal 6 June 2024
  56. ^ Hello there, we are VR MTRX
  57. ^ "MTR Gamma AB tar över pendeltågstrafiken". Stockholm Region (in Swedish). 8 December 2015. Retrieved 8 December 2019.
  58. ^ MTR to operate Stockholm Pendeltåg Archived 20 June 2019 at the Wayback Machine Railway Gazette International 9 December 2015
  59. ^ Burroughs, David (1 November 2023). "SJ awarded emergency contract for Stockholm commuter network". International Railway Journal. Retrieved 1 November 2023.
  60. ^ TTText (3 November 2023). "MTR:s nota för uppbrottet med SL: 580 miljoner". Dagens industri (in Swedish). Retrieved 21 November 2024.
  61. ^ Lundkvist, Edvard (19 July 2022). "Tusentals inställda avgångar – MTR Mälartåg ska betala miljonvite". Dagens PS (in Swedish). Retrieved 21 November 2024.
  62. ^ "MTR Mälartåg och Mälardalstrafik avslutar Mälartågsavtal i förtid". dagensinfrastruktur (in Swedish). 22 February 2024. Retrieved 21 November 2024.
  63. ^ New train, tram operators for Melbourne The Age 25 June 2009
  64. ^ "Full steam ahead: Government offers Metro and Yarra Trams contract extensions" The Age 29 September 2016
  65. ^ Victorian government begins negotiations with Metro Trains Melbourne and Yarra Trams for new contracts Urbanlyst 2 October 2016
  66. ^ Major milestones reached on North West Rail Link as preferred operator selected Archived 6 October 2014 at the Wayback Machine, Transport for New South Wales, Retrieved 24 June 2014
  67. ^ Sydney Metro North West MTR
  68. ^ Project Overview Sydney Metro
  69. ^ "确定了！北京地铁17号线，京港地铁公司运营". 30 December 2019. Archived from the original on 26 July 2020. Retrieved 31 December 2019.
  70. ^ website of Beijing MTR Corporation Limited Archived 6 January 2016 at the Wayback Machine
  71. ^ "港铁咨询公司联合体中标深圳市轨道交通13号线公私合营项目". 3 August 2020.
  72. ^ "About Macao Light Rapid Transit (Macao LRT)". MTR Macau. Retrieved 11 December 2019.
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