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Old April 12th, 2006, 01:17 AM   #1421
hkskyline
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Cheung Kong wins KCR Tai Wai site
12 April 2006
South China Morning Post

Cheung Kong (Holdings) yesterday beat three other bidders to win the development contract for the Kowloon-Canton Railway Corp's residential project in Tai Wai, which is expected to cost $21.5 billion.

This is the second residential project for Cheung Kong in Sha Tin. The other is in Ma On Shan.

KCRC called for tenders from developers last month to build the flats in two phases above the podium of the rail maintenance centre. It received four bids.

Cheung Kong, Henderson Land Development and Hang Lung Properties submitted bids for the two phases. Sino Land, Chinese Estates Holdings and Nan Fung Development made a joint bid.

The project will be sold to MTR Corp after its merger with KCRC.

Savills director Charles Chan Chiu-kwok said he expected the developer would need to sell the flats at $5,500 per square foot to turn a reasonable profit.

Property agents said the Great Hill project in Sha Tin, developed by K Wah Real Estates, fetched $7,000 to $10,000 per square foot.

Prices in the secondary market range from $5,500 to $6,000 per square foot in the area.

Under the terms of the tender, the winning developer will pay the Lands Department a land premium of $3.5 billion, or more than $3,600 per square foot.

"The development agreement ensures KCRC receives a guaranteed payment from the developer, while the total amount received may increase in accordance with a fixed formula arrangement should the sales of flats exceed present expectations," a KCRC spokesman said.

"The government will receive a premium both from the development of the land for the maintenance facilities as well as from the property development."

The Tai Wai project will have 4,304 flats with a gross floor area of about 3.66 million sq ft on a seven hectare site.

The developer is obliged to pay the land premium and $1 billion and $500 million of the construction costs for the first and second phases, respectively.

The project can be developed in two phases and is scheduled for completion by 2010.
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Old April 12th, 2006, 05:53 AM   #1422
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Fare cuts aimed at easing fears over tie-up of giants
Jonathan Cheng
Hong Kong Standard
Wednesday, April 12, 2006



The government and transport operators Tuesday cut rail fare prices in a bid to ease public fears about the merger between Hong Kong's two giant railway corporations.

One of the centerpieces of Tuesday's announcement of the merger between Kowloon-Canton Railway Corporation and the MTR Corporation was a plan that the government says will slash the cost of the city's 2.8 million daily passenger trips.

Lawmakers from all three major parties voiced general support for the fare cuts, but one academic said the merger meant the merged railway entity will be free to set its own prices in future.

The Democratic Alliance for the Betterment and Progress of Hong Kong called for 15 percent fare cuts on longer rides, and proposed that monthly KCR passes apply to the MTR as well.

A source in the Transport Bureau said the DAB wanted a 10 percent across-the-board fare cut. But such a cut was not feasible, the source said.

The Liberal Party called for an extension of the KCR monthly pass system into Lo Wu, a plan that would help cross-border commuters.

The Hong Kong Association for Democracy and People's Livelihood called for 10 percent across-the-board reductions.

But one academic warned that the fare cuts and preservation of frontline jobs were meant to distract the public from the merger's most important implication: that the government could no longer control future transit fares.

"Even though fares will be reduced and will not be raised again in the next two years, it is only meant to get the public's approval for the merger," said Hung Wing-tat, assistant professor at Hong Kong Polytechnic University. Hung warned that the merged railway would become an "enormous" publicly listed company concerned primarily with shareholders' interests.

Transport chief Sarah Liao Sau-tung said: "We have heard the voice of the public," adding that 10 percent fare reductions on long-haul trips will help Hong Kong's neediest.

Fares for long-distance trips of HK$12 or more will be cut by 10 percent, and medium-distance trips between HK$8.50 and HK$11.90 will be cut 5 percent.

A blanket reduction of 20 HK cents will apply to all adult Octopus card users, while second boarding charges for passengers interchanging between the two rail systems will be cancelled once the merger goes through.

But these savings will not apply to the two most expensive public transit rides - those on the Airport Express and those at the Shenzhen border crossing at Lo Wu.

A government source said the merged railway will not cut fares further, should the merger save more costs than expected.

In the long run, fares will be adjusted according to a formula that factors in fluctuations in the consumer price index, the wage index and a productivity factor.

The new fare-setting system, which the government says will increase and decrease prices in an "objective, transparent and predictable" manner, will be used once a year to readjust fares according to market conditions.

The fare adjustments will only kick in if they are substantial - that is, there will be no fare adjustment in a particular year if a change is less than 1.5 percent.

Liao said that both corporations had pledged not to increase fares for the next 24 months. The faster the merger occurred, she added, the faster fares would be reduced.
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Old April 12th, 2006, 05:54 AM   #1423
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I've been keeping track of the merger news under the MTR thread here : http://www.skyscrapercity.com/showthread.php?t=337079
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Old April 12th, 2006, 12:05 PM   #1424
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A Clip about the merge
(source from:KCRC)
One Hong Kong, One Integrated Railway
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Old April 12th, 2006, 01:13 PM   #1425
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From news.gov.hk:
Future railway staff deployment under study
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Old April 12th, 2006, 01:37 PM   #1426
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network map after merging
(source: article from MTR web)
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Old April 12th, 2006, 11:09 PM   #1427
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Rethink looms on plans for Sha Tin-Central line
12 April 2006
South China Morning Post

The government is looking for ways to better integrate the proposed Sha Tin-Central rail link with existing MTR lines following the railways' merger, a move other transport operators say will hit their competitiveness.

A government source yesterday identified Admiralty, Diamond Hill and Central as the stations where better linkages could be achieved.

"The Sha Tin-Central line was a project proposed with competition between the MTR Corp and KCRC. We knew then that it was not ideal," the source said.

"We will soon revisit the Sha Tin-Central line again, taking into consideration the development of southeast Kowloon, its population as well as other land-use issues."

The project, awarded to the KCRC in 2004, was planned to run from Tai Wai station on the East Rail line to a new Central station near Upper Albert Road, with eight intermediate stops including Diamond Hill, Kai Tak, To Kwa Wan, Ho Man Tin, Hunghom, Causeway Bay, Convention Centre and East Admiralty.

The MTR Corp proposed building an extension from Yau Ma Tei to Whampoa, with an interchange at Ho Man Tin connecting the two rail lines. After the merger it is possible to offer more direct and even multiple interchanges.

Citybus spokeswoman Elaine Chan Yin-ling warned that the government should think twice before approving any changes to the route.

"I hope the government would contemplate whether there is genuine need, after all the government needs to invest in the project with public funds, and [MTR Corp] is a listed company."

She acknowledged that continued expansion of the railway network posed great challenges to bus operators, but said bus services had maintained their edge by offering cheap fares and point-to-point transport.

Economics professor Andy Kwan Cheuk-chiu said the birth of the super railway corporation was destined to take more business from other operators. But he said the public would reap the benefits as he expected the consolidation of the two railways would bring down fares and improve public transport by making it more competitive.

Transport Department figures show the share of average daily passengers carried by buses dropped from 39.7 per cent in 2002 to 35 per cent last year, while the MTR's share rose from 32.3 per cent to 36.2 per cent.
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Old April 13th, 2006, 05:50 PM   #1428
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From news.gov.hk:
Transport experts back rail merger
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Old April 13th, 2006, 06:33 PM   #1429
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Soon there might be an addition to that rail map with the Shatin-Central link.
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Old April 13th, 2006, 09:18 PM   #1430
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So are the KCR Lines going to receive MTR signage and ER/WR/MOS lines to be renamed more like MTR line names? ie. Lowu Line, Ma On Shan Line, Tuen Mun Line?
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Old April 14th, 2006, 01:52 AM   #1431
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I personally don't think so, I think it's just transfer of asset ownership.
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Old April 14th, 2006, 04:40 AM   #1432
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Quote:
Originally Posted by superchan7
I personally don't think so, I think it's just transfer of asset ownership.
no the asset will be retained by kcr but the whole railway management will be transferred to mtr.... meaning everything will be integrated together...

if you watch the video, they mentioned that 1) the gates will be removed at all interchange stations 2) route-map will be combined and 3) one ticket will be able to get you through all systems (non-octopus travellers)

the company will also be renamed and kcr will only be 'holding' the assets but will not function for anything else.
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Old April 14th, 2006, 11:05 AM   #1433
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its sad that the KCR will be "gone" after such a long history

too bad they couldn't have just integrated the fare payment systems instead

more railway companies means a greater variety of rolling stock, just look at Tokyo...
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Old April 14th, 2006, 02:04 PM   #1434
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Quote:
Originally Posted by en
its sad that the KCR will be "gone" after such a long history

too bad they couldn't have just integrated the fare payment systems instead

more railway companies means a greater variety of rolling stock, just look at Tokyo...
yeah surely KCR will be gone... but the thing is... hong kong is such a small place and in fact all parts of hong kong can be classified as 'metro' area so there isn't much point for having 2 railway systems running within the city.

the proposed new extension - shatin-central link is a good example how the original 'competition' between the two companies resulted in redundancy in network... the whole proposal will now be reconsidered after the merger.
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Old April 14th, 2006, 04:26 PM   #1435
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I kind of like MTR being separated, but oh well...

I wonder if they are going to use the already dug tunnel below Diamond Hill Station.
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Old April 14th, 2006, 06:15 PM   #1436
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TAC briefed on way forward for merger of MTR & KCR systems
Thursday, April 13, 2006
Government Press Release

The Transport Advisory Committee (TAC) was briefed by the Administration at its special meeting today (April 13) on the proposed way forward for the merger of MTR and KCR systems.

“The TAC has discussed and offered its views on the Administration’s proposed way forward for the merger of MTR and KCR systems. Members noted that the proposed merger package has met the five parameters set by the Government for the rail merger”, TAC Chairman Ms Cheng Yeuk-wah said.

“The TAC supports the proposal for a rail merger as it will enhance the efficiency of the rail network and bring immediate benefits to the travelling public.”

The TAC has discussed the proposed Fare Adjustment Mechanism (FAM) and the fare reduction package.

“We welcome the proposed introduction of a FAM which will allow fares to go up or down in future according to a formula that is linked to the consumer price index, a wage index and, a productivity factor. Railway fares will be reduced on Day One of the rail merger and the FAM will apply on the basis of the reduced fares. The future fare adjustment process will be more objective, transparent and the adjustment more predictable. This is a major improvement to the existing arrangement whereby the railway corporations have fare autonomy.”

“Members welcome the proposal to reduce fares that will benefit 2.8 million daily passenger trips. Since transport expenditure for long-distance travellers are generally higher, members supported the proposal to provide far greater reduction to this categories of passengers to relieve their financial burden.”

“Members believe this reflects the public aspiration that more assistance should be offered to long distance travellers to encourage cross-district travelling to work”, Ms Cheng added.

“We are pleased to note that passengers on journeys with fares at $12 or above will get at least 10% reduction in their fares. Naturally, the more fare reduction, the more receptive the public would be to the merger package. We have suggested the Administration to continue to listen carefully to and take into account public views in moving forward.”

The TAC noted that the job security for all frontline staff of the two corporations would not be affected as it related to the merger. This would help ensuring the stability and safe operation of the railway systems.

“The TAC noted that the two railway corporations would conduct further studies on the human resource integration and would consult their staff on matters affecting the staff. Members suggested that staff matters should be handled carefully to ensure the safe and efficient operation of the railway service at all times.”

The TAC noted that the post-merger corporation would continue to be subject to the existing regulatory regime and would be required to maintain performance standards not lower than to-day.

“After the rail merger, the Hong Kong Railway Inspectorate will retain the statutory powers to inspect the railway and investigate into railway incidents and accidents. The service and safety of railways and railway operation will be ensured,” Ms Cheng said.

The TAC was also briefed on the structure and financial terms for the proposed rail merger.

“We hope the merger package will be a fair and reasonable deal that could balance the interests of all stakeholders. If implemented, the rail merger will create a very strong Hong Kong-made railway operator who will be more competitive and in a better position than before to expand into the Mainland and overseas markets,” Ms Cheng added.
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Old April 15th, 2006, 06:56 AM   #1437
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Trespasser hit by train in Guangzhou
15 April 2006
South China Morning Post

Intercity through-train services between Hong Kong and the mainland were severely disrupted yesterday after someone was hit by a train on the outskirts of Guangzhou.

The Kowloon-Canton Railway Corporation said the accident occurred shortly after 3pm as a Guangzhou-bound train hit a trespasser near Xiancun and sustained damage underneath.

The corporation said the train was towed to its destination of Guangzhou East station, a seven-minute ride from the accident site, but was delayed at Xiayuan due to busy activity at the station.

The train arrived at 6.25pm, more than three hours late.

Last night the condition of the victim remained unknown.

One passenger claimed that during the stoppage, the onboard toilets were closed and the compartment had become hot. Others complained that the authorities failed to let them know what was happened and that through-train services had been suspended.

Two inbound trains, the T819 and T825, and one Guangzhou-bound train, the T820, were cancelled and about 1,000 travellers were affected.

The KCRC compensated the affected T820 passengers with ticket refunds and the offer of a complementary East Rail ride to Lowu. It arranged for passengers due to catch T819 and T825 to take other Hong Kong-bound through-trains at Guangzhou.

The incident also caused longer journey times for subsequent through-trains. Bottled water was handed to passengers arriving at Hunghom last night.

One passenger, a Mr Li, said he was very frustrated by the delay after his train arrived at Hunghom nearly two hours late. "I am very unhappy with the situation. We were stuck in Dongguan for ages," he said.

Another passenger, Mr Leung, said he had no problems with the delay. "It happens all the time. Here, the train staff gave us water and explained what happened," he said.

The KCRC said it had arranged for the train in the accident to be returned to the depot for thorough checks. It expected through-train services to be unaffected today.

In March 2004, about 400 passengers on a through-train from Guangzhou to Hong Kong were stranded in Dongguan for more than three hours because of an electrical failure.
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Old April 15th, 2006, 07:50 AM   #1438
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Impressive stuff.

Im looking forward to implementing a similar style elevated system in my SimCity.

If only Sydney had the guts to build the same kind of rail
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Old April 15th, 2006, 03:37 PM   #1439
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HK subway $10b merger

After years of negotiation, HK gov't has announced plan on 10 Apr 06 to consolidate the two subway/rail corporations in HK. Under the proposal, assets of the wholly gov't owned railway corp, the KCRC, will be leased to the gov't owned and public floated MTRC for a term of 50 years at a price of over HKD 70billion (estimate, USD 9 billion). This would result in a subway operator with an annual patronage of approximately 1 billion. See table below:

-------------------------MTRC-------------------KCRC
Route length (km)--------91 ---------------------77+36(light rail)
No of stations------------53---------------------31+68 light rail stops
Annual patronage---------870 million-------------Over 300 million
-------------------------(latest 12 months)------(as per 2004 annual report)
Total asset value---------HKD 106billion----------HKD 91 billion
-------------------------(USD 13.5 billion)-------(USD 11.7 billion)
Market capitalization------HKD 80 billion-----------n/a
-------------------------(USD 10 billion)
ownership----------------75% gov't owned--------100% gov't owned, unlisted
-------------------------25% public minority
business-----------------Urban subway,----------Suburban rail,
-------------------------property development,---intercity rail,
-------------------------overseas subway --------freight and property development
-------------------------operation, consultation
-------------------------(in PRC, India etc)
-------------------------and electronic
-------------------------money business



The merger will create an integrated railway network of the HK society, with coverage of around 80% of population to my personal estimation. Transfer between lines will be made more convenient. The merger will result in a railway giant with HK$10 billion (US$1.28 billion) turnover in fare revenue, the biggest private landowner of HK and a network with patronage that rank 7th in the world.

The merger is expected to realize around HK$500 million (US$ 64 million) of synergy in terms of annual saving in duplicated management positions. 700 jobs will be made redundant out of a total of 12,000. Upon the successful merger, the two corporations agree to cut fare, with moderate reduction of 5% on most trips and deepest cut of more than 10% on long distance trips (albeit local politicians demand 10% on all trips). HK's public transport operators have been heavily criticised of defending its bottom line and keeping fare high in the midst of years of deflation since the Asian financial crisis in 1997. Over the years the city has recorded a deflation of some 10+%. It was even argued that the high transportation fee has discouraged residents in the remote North-western New Territories from commuting to the urban and contributed to poor income, juvenile problems and many others.
The proposal also include a mechanism by which the government could order the proposed corporation to reduce fare according to predefined formula that reflects the price level of the city. A similar pricing mechanism has been applied to public buses early last year.

Besides, planning work of future projects would also be benefited from the merger. Progress of what probably is the last piece of multibillion projects in the urban area of HK, the Shatin-Central Link, is virtually stuck. The line, running from Shatin, cutting through the new development area of the abandoned Kaitak airport and the old residential area of ToKwaWan, all the way to Central on the HK Island, has several conjunctions with the MTR and KCRC network, which makes interchanging difficult and costly. Only if the uncertainty over merger is cleared away, would the work on the new line be proceeded, which both the community and the government are keen to see. However, in any case, the new line could not be opened to public in 2011 as scheduled in earlier plans.

As both railway corporations were incorporated under and governed by uniquely enacted Ordinances (or as referred to “Act” in other jurisdictions), the merger could not be made legitimate without further enactment of the Legislative Council (Parliament, or whatever you call). Moreover, the HK listing rule requires the 25% minority shareholders of MTRC to vote for the proposal to avoid overriding right of the majority shareholders. It therefore takes at least a year before the merger proposal could be approved and realized.

Map of MTR+KCRC

Related Links:
Gov't's news page about the merger
MTRC's leaflet
MTRC's information page
KCRC's homepage
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Old April 15th, 2006, 06:18 PM   #1440
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That's great, why didn't it happen earlier?
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