Background Case: Profitable MTR System in Hong Kong

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Background Case: Profitable MTR System in Hong Kong

(In this research case, I want to know what the key factors of the profitable MTR system are. In another word, what conditions other cities in developing countries need in order to successfully replicate the MTR rail-property development model.)

In Hong Kong, public transit serves more than 90% of daily trips, and among them 40% are from the metro system, the Mass Transit Railway (MTR) (Wu, 2009). First built in late 1970s, MTR has a daily ridership of 5.6 million passengers and total revenue of HK$35.7 billion in 2012 (MTR, 2012). Until now, the system has 11 lines, 84 stations and a total route length of 218.2 km with an average fare of HK$7.1 per trip (MTR, 2012). It runs 7 days a week, from early 5 a.m. in the morning to 1a.m. the next day. The MTR has become an indispensable part of residences’ lives in Hong Kong.

Hong Kong is a famous international economic center with the 4th highest population density in the world (CIA, 2012). It consists of three main islands: Hong Kong Island, Kowloon and the New Territories. The rapid transit railway system connects business and residential centers in the three islands through harbor rails, which can be both run by train and vehicles. The system passes the area with high population density, like the Mong Kok Station in New Territories and the Central Station at Hong Kong Island (see Figure 1). On the land of New Territories and Kowloon, East Rail Line, West Rail Line and Ma on Shan Line are surface-street trams which provide both intra-island and inter-island services to Shenzhen in mainland China. The system also connects the main islands to the airport and Disneyland Resort on Lantau Island in the southwest through Airport Exp...

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6. Next Step

The rail-property development for a financially sustainable transit system seems feasible in many developing countries since many cities are experiencing rapid population and economy growth and are in great need of high-capacity railway transit system, just like Hong Kong in the 1970s. Since the model in Hong Kong works well, I want to look into other reports and researches about its unique key factors of success. I also want to look at other cases where the model partly or fully failed following this model. I want to come up with some evaluation standards that other cities or transit operators can refer to in order to replicate the MTR model in Hong Kong.

(Can you give me some advice on this new background case? I know it changes a lot from the original one. And I want to know some other research methods about this case. Thanks.)

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