The MTR Corporation held its annual general meeting yesterday (May 21), announcing plans to invest over HK$100 billion in the coming decade to advance multiple new railway projects, including the Northern Link, Tung Chung Line Extension, and Hung Shui Kiu Station on the Tuen Ma Line.
MTR Chairman Rex Auyeung described the company as entering "a very exciting" growth phase. He stated that investing over HK$100 billion to expand the rail network represents "a vote of confidence in Hong Kong's future," saying that the MTR will continue to analyze various financial arrangements to secure funding while practicing prudent financial management.
Prior to the meeting, Auyeung and CEO Jacob Kam briefed the media. Auyeung reported that MTR's total passenger volume last year reached 1.9 billion trips, approaching pre-pandemic levels, with High Speed Rail passenger numbers exceeding 26 million. Train service punctuality remained at 99.9%.
Auyeung emphasized that the MTR is entering this "very exciting" growth period, with full-scale construction underway on projects like the Tung Chung Line Extension, Tuen Mun South Extension, and Hung Shui Kiu Station. The Northern Link mainline proposal received approval last month, and preparatory works have commenced in an orderly manner. The railway operator plans to invest over HK$100 billion to expand the network, with an additional HK$65 billion allocated for railway maintenance over the next five years - what Auyeung called "a vote of confidence in Hong Kong's future."
Regarding the recently proposed Airport Express fare adjustment (a 9.4% overall increase expected to take effect in June), Auyeung noted this marks the first price hike in eight years, saying that the proposed increase is lower than the cumulative inflation during the period. Given that the Airport Express has been operating for many years and requires approximately HK$2 billion in system upgrades, he expressed hope for public understanding of the fare adjustment.
Kam stated that, facing the post-pandemic "new normal," the MTR has adopted appropriately flexible strategies for its diversified operations to ensure stable business development. By applying innovative technologies, the company aims to enhance competitiveness. He added that the MTR will continue investing resources in maintenance and asset renewal while building a "smart railway" to improve efficiency and prepare for future new rail projects.
New sources of revenue?
With last year's net profit reaching HK$15.77 billion (a 103% year-on-year increase) but facing an upcoming HK$165 billion investment peak over the next decade, revenue generation became a focal point. During the meeting, some shareholders suggested that the MTR collaborate with various intellectual properties (IP), believing the company has the potential to become "ubiquitous with IP."
In response, Auyeung said the board has repeatedly discussed how to leverage the MTR's network advantages, recognizing the need to avoid rigid thinking. The board will seriously study such suggestions, but cautioned that "expanding too broadly could lead to loss of focus."
Addressing shareholder concerns about aging MTR assets and potential maintenance issues, Auyeung clarified that the company continuously updates and enhances its assets, including a HK$65 billion investment planned between 2023-2028 for asset renewal and maintenance.
Better late than never
Regarding recent engineering vehicle malfunctions on the East Rail Line in March and April that caused service disruptions, Auyeung publicly apologized to affected passengers yesterday. He announced an independent investigation would be conducted, with external experts reviewing engineering vehicle operations to propose improvements and prevent recurrence.
For the network congestion at Lok Ma Chau Station during the Labor Day holiday period, he apologized for the inconvenience caused to travelers and confirmed immediate coordination with telecom providers to increase bandwidth capacity.
(Source: Ta Kung Pao; Journalist: Zheng Wendi; English Editor: Darius)
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