31 July 2000
KCRC's profit goes up by 9.7% in the first half of 2000
 
The Kowloon-Canton Railway Corporation's(KCRC) profit after taxation went up by 9.7% to $1,037 million in the first six months of 2000, said KCRC Chairman and Chief Executive K Y Yeung in announcing the 2000 half-yearly financial results.
He said in parallel with economic recovery, KCRC experienced steady growth in the first half of 2000.Passenger trips on East Rail and Light Rail went up by 4.4% and 1.8% to 141 million and 58 million respectively over the same period last year.This led to a 7.3% increase in fare revenues to $1,900 million.
Mr Yeung noted that by the end of June 2000, construction of West Rail, Phase I, was well on its way towards the targeted completion date of December 2003. Tunnelling and piling were particularly far advanced with 45% and 40% respectively of the works completed. In addition, 21% of the works on the viaducts had been finished, together with about 16% of station construction.
He also said that the East Rail Extensions had now progressed beyond detailed design. KCRC had begun inviting tenders for construction contracts.
Mr Yeung pointed out that the Government's Railway Development Strategy 2000 identified three out of six new railway schemes for implementation by KCRC, namely the Northern Link, the Kowloon Southern Link and the Port Rail Line.
"All three schemes are natural extensions of the Corporation's passenger and freight systems and will, on completion, give Hong Kong an incomparable circle line," he said.
The Strategy also proposed building a Sha Tin to Central Link and a Regional Express Line. Mr Yeung said the Corporation was currently studying these projects with a view to determining their feasibility.
He noted that in March, the Corporation launched a 10-year US$1 billion global bond to finance the expansion of its network.Oversubscribed by 25%, it was the largest note issue to come out of Hong Kong so far this year.
"With this global bond issue, KCRC's credit is now firmly established with the worldwide investor community," he said.
In May, the Government committed to inject into KCRC an equity contribution of up to $8.5 billion towards the cost of building East Rai's Tsim Sha Tsui Extension and Ma On Shan Rail.These two railway lines, together with the Sheung Shui to Lok Ma Chau Spur Line, make up the East Rail Extensions project, which carries a total estimated cost of $26.7 billion (expressed in money of the day).The balance of this cost will be funded by way of commercial loans and retained corporate profits.
In June, an agreement was signed with the Export Development Corporation of Canada to provide KCRC with a US$42 million export credit loan facility for the purchase of a train control and signalling system for West Rail, Phase I, from Alcatel Canada Inc.The competitive terms offered will help reduce KCRC's overall financing costs.
Consolidated Profit and Loss Account
Consolidated Balance Sheet
Key Statistics

Chairman's Statement