Development of Mass Transit Railway Systems in Hong Kong: Rail Plus Property Model of MTR Corporation

Abstract

Established in 1975, MTR Corporation Limited (MTR) is a publicly listed company in Hong Kong with its principal line of business in building and operating mass transit railway systems in Hong Kong, mainland China, Australia, Sweden, and the United Kingdom, either directly or through joint ventures. Alongside its transport business, MTR develops new communities along the routes by building residential and commercial buildings, shopping centres, and recreational space. This Rail plus Property model showcases how integrating railway construction and operation with property development and management enables urban transit railway systems to be financially self-reliant. This financial sustainability allows MTR to continue upgrading existing railway infrastructure as well as expand the railway network. Even though Hong Kong is a unique case in many aspects, what can other cities learn from the MTR experience with the Rail plus Property model? How should policymakers assess the prospect of using a Rail plus Property model in developing the mass transit railway systems in their own cities?

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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Resources

MTR Annual Financial Reports (2001–2017). Retrieved from http://www.mtr.com.hk/en/corporate/investor/financialinfo.html
Wat, K. , Yau, T. , & Au, B. (2018, July 23). Hong Kong’s MTR by the numbers [video]. South China Morning Post. Retrieved from https://www.scmp.com/video/hong-kong/2152775/hong-kongs-mtr-numbers

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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