Monthly journal Parking Review has been the definitive source of news and intelligence on the UK and international public and private parking sectors since 1989.

Rail-led development Hong Kong-style

10 March 2014

When it comes to rail-led property developments, Hong Kong-based MTR is probably in a class of its own. It also runs one of the few truly profitable public transport systems in the world.

MTR (Mass Transit Railway) Corporation was established by the Hong Kong government in 1975, and was partially privatised in 2000 (the state still holds a majority 77% share). It runs nine rapid transit lines, the Airport Express, an LRT system plus some bus feeder services. It carries five million passengers a day.

MTR also operates metro style services in Sweden, Australia and China, and shares management of the London Overground with Arriva. The company has submitted bids for the Crossrail, ScotRail, Thameslink and Essex Thameside rail franchises in the UK.

The key to MTR’s success has been the integration of rail with a wide property portfolio, ranging from residential and retail to hotel and office developments.

CEO Jeremy Long, explained MTR’s successful business model: “MTR acquires the land rights, prepares the overall design of the scheme – including that of the railway – then goes into partnership with development companies to develop the space. MTR oversees the construction, and shares the profit when the property is sold, though it may retain the estate management rights.” 

MTR has 51 developments at stations and investments in 13 shopping malls. Its farebox: property split  is roughly 50:50. Long said that although raising capital in the private sector would always be more expensive than from public sources, this was offset by better private sector know-how and management.

“We manage to run a modern network without any subsidy, and the government has benefited as we have contributed land premiums of £8bn, and profits/value from MTR of £10bn.”

Transport Planner (Green Infrastructure)
London Borough of Ealing

£39,582 - £42,795
Deputy Team Leader Transport Planning
One Source
Havering, Essex
£48,867 - £52,929
Principal Holborn LN Programme Manager
Camden Council
£45,042 - £51,870
View all Vacancies

TransportXtra is part of Landor LINKS

© 2023 TransportXtra | Landor LINKS Ltd | All Rights Reserved

Subscriptions, Magazines & Online Access Enquires
[Frequently Asked Questions]
Email: | Tel: +44 (0) 20 7091 7959

Shop & Accounts Enquires
Email: | Tel: +44 (0) 20 7091 7855

Advertising Sales & Recruitment Enquires
Email: | Tel: +44 (0) 20 7091 7861

Events & Conference Enquires
Email: | Tel: +44 (0) 20 7091 7865

Press Releases & Editorial Enquires
Email: | Tel: +44 (0) 20 7091 7875

Privacy Policy | Terms and Conditions | Advertise

Web design london by Brainiac Media 2020