MTR Corporation

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 ($46.1 million), which had increased from a surplus of HK$278 million ($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

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 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 railway lines the KCRC operated were less profitable than 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 at an underpriced level. Leasing the operation right of the KCR system to the MTRCL could avoid 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]

Hong Kong

World Wide House, built by the MTR Corporation Limited.

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.

United Kingdom

MTR Crossrail logo

Sweden

MTR Nordic is a subsidiary of MTR Corporation UK. MTR Nordic has four subsidiaries, including MTR Express.

In January 2009, Tunnelbanan Teknik Stockholm, a 50/50 joint venture between MTR and Mantena, was awarded the contract to operate the Stockholm Metro. The contract is for eight years with an option to extend for another six years. MTR started operating the metro on 2 November 2009.^[30][31] In September 2015 the six-year extension was granted.^[32] In January 2016, MTR bought out its joint venture partner.^[33][34]

On 21 March 2015, MTR began operating fast long distance traffic between Stockholm and Gothenburg with own ticket sales using the brand name MTR Express.^[35][36] It has purchased six Stadler Flirt electric multiple units.^[37]

MTR has been the operator of Stockholm commuter rail network since December 2016. The contract is for 10 years with an option to extend for another four years.^[38]

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.^[39] In September 2016, the government opened negotiations with Metro Trains Melbourne to extend the contract for seven years until November 2024.^[40][41]

In June 2014, Northwest Rapid Transit, a consortium consisting of MTR (60%), John Holland, Leighton Contractors, Plenary Group and UGL Rail, was selected as the preferred operator to deliver the Sydney North West Rail Link operations contract.^[42][43] The North West Rail Link (now renamed Sydney Metro Northwest) is scheduled to open in 2019.^[44]

China

Beijing MTR Corporation Limited
MTR Corporation (Shenzhen) Limited
Hangzhou MTR Corporation Limited

Type	Public company
Industry	Transport, property
Founded	Beijing (16 January 2006 (2006-01-16)) Shenzhen (1 July 2010 (2010-07-01)) Hangzhou (6 September 2012 (2012-09-06))
Headquarters	(Beijing, Shenzhen, & Hangzhou), China
Area served	Beijing, Shenzhen, Hangzhou
Website	Beijing MTR Corporation MTR Corporation (Shenzhen) Hangzhou MTR Corporation