March 19, 2019

Hong Kong's transit secret: mix service with real estate

Guardian - [A] “rail plus property” model allows Hong Kong’s public transport company to be self-financing – unlike most of its counterparts around the world, many of which are loss-making and need to be subsidized by government. ...

Civic Square, part of a sprawling outdoor development above Kowloon Station, shows the model in action. The 118-storey skyscraper, luxury shopping mall, 6,300 flats and two five-star hotels that sit above the station were all developed or are now owned and managed by the MTR.

The MTR makes just as much profit above ground, from property developments, as it does from rail operations, making it one of the most profitable metro operators in the world.

At a time when rail services in cities globally continue to draw the ire of passengers for disruptions, delays and fare increases, the MTR manages an almost perfect 99.9% on-time rate while carrying an average of 5.8 million passengers daily. Fares are kept relatively low.

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