Forty years ago today, HK’s MTR opened its Island line, twelve stations originally running from Admiralty east through Wan Chai (“Admiralty East”) to Chai Wan (“tea village” so not the reverse of Wan Chai “small bay”). Although not the first – fifteen stations on what are now parts of the Tsuen Wan and Kwun Tong lines opened in 1979 / 80 – the Island Line started the enormous expansion of the network incorporating along the way the old Kowloon China Railway, Tuen Mun light rail, the airport express and the High Speed Rail to Shenzhen, Guangzhou and beyond. The network now encompasses ten lines along 245 km of track through 179 stations carrying 5.5. million passengers on a typical working day. Boasting 99.9% punctuality, the MTR has exported its expertise to the Mainland as well as to the likes of Crossrail / Elizabeth Line in London, to Stockholm metro and to Sydney NW metro.
From a cost benefit analysis, the upfront costs were, of course, met by the government in anticipation of the benefits which would accrue over time to the public travelling on the network, travelling on other modes of transport, even those not travelling at all. The government shared some of the financing burden by listing 25% of the company in 2000 (not always welcomed) and issuing bonds out to 30 years where markets treat the MTR as quasi – government (both are rated AA+ by Standard & Poor’s). Crucially, though, the government granted land around those stations, on / above which the MTR built a whole load of much needed and well connected real estate. Indeed, MTR Corp has been likened more to a property company which happens to run some railways. Singapore followed suit in 1987, others likewise.
At a time when many governments still need infrastructure but are short of funds, a delicate balance of public and private finance is ever more necessary. Logie Group can advise on how much – and what kind of – support from the former is needed to entice the latter into making it happen on large and small scale alike.
In the meantime, having got rather wet at Songkran in Bangkok last month, we will no doubt be doing so again next weekend when it is time for dragon boating. Today is Tuen Ng, the fifth day of the fifth month, said to commemorate Qu Yuan, a poet and minister in one of the Warring State governments, Chu (approx 475 to 221 BCE). When he was falsely accused by the emperor, he drowned himself in the Miluo River in Hunan province. So as to distract the fish from eating his body, the loyal villagers dropped zongzi (glutinous rice dumplings) into the river although the connection to dragon boats then becomes obscure. Although today is the 
day, hence the public holiday in HK, for reasons that are also obscure, the actual boating doesn’t happen until next weekend 7 / 8 June. This hasn’t stopped the celebrations spreading far and wide (Yorkshire, anyone?) Enjoy!
