Hong Kong’s MTR Corp must ‘compress’ construction costs: transport chief

Hong Kong’s new transport minister has said she expects the MTR Corporation to squeeze project construction costs, raise its non-fare revenue and diversify financing sources, as the deficit-hit government seeks to increase competition to improve the rail giant’s performance.

Secretary for Transport and Logistics Mable Chan on Thursday laid out her expectations of the company, in which the government has a 75 per cent stake, saying she wanted to attract players from mainland China to provide more solutions to the city’s transport development.

She especially noted that shopping centres located above MTR railway stations not only attracted locals but also visitors from across the border, and could provide a boost to Hong Kong’s economic and tourism development.

“The MTR can help shape Hong Kong’s future, especially its malls along the rail lines,” Chan said in her first solo appearance before a media gathering after taking office in December.

“The corporation can innovate and create new selling points for its malls to attract more locals and mainland visitors. It has lots of room to develop on this.”

Touching on a range of transport-related issues, Chan said she had three expectations of the MTR Corp.