Transit in Hong Kong

One of my favourite aspects of travelling throughout Asia was observing and using public transportation systems. After using public transportation in Japan, Thailand and India, I was curious to learn whether we can apply similar strategies in Canada. I blogged about transportation in Japan in the past, but I wanted to explore Hong Kong’s public transit system, known as the Mass Transit Railway (MTR). With over four million weekly users and the highest utilization globally, it’s fascinating that the MTR is an entirely private (and profitable) organization.  

What specifically grabbed my attention about the MTR is its approach of using property development as an additional channel of revenue. The MTR develops properties like shopping centres, large housing complexes and office buildings on top of stations. The benefits of this approach are twofold: first, the MTR gets immediate cash flow from rental fees, and second ridership rises due to increased economic activity around stations. For instance, businessmen working in towers located overtop MTR stations will choose to use the MTR over driving due to convenience and affordability. Interestingly, the MTR’s properties generate more profit than transit fares. In 2009, the MTR made a net profit of HK$7.3 billion; of this amount, HK$3.55 billion came from property and HK$2.12 billion came from transit fares.

Hanford Plaza Located Overtop a MTR Station

 

What do you think about the MTR’s approach of using property development as a revenue source? 

By Trevor S.