25 April 2001
KCRC tables 2000 Annual Report in Legco
The 2000 Annual Report of the Kowloon-Canton Railway Corporation (KCRC) has been published and was tabled in the Legislative Council today.
In the report, Chairman and Chief Executive Mr K Y Yeung said, "The year 2000 was undoubtedly another year of steady growth in patronage. These growth rates reflect, overall, the continuing recovery of the economy. The fact that the cross-boundary and intercity services grew at a much faster pace is a clear indication that Shenzhen and Guangzhou in particular continue to be highly attractive destinations."
Average daily passenger trips on East Rail’s domestic line edged up 2% to 558,900 and that for Light Rail grew 2.7% to 322,700. At an average of 229,100 passenger trips a day, East Rail’s cross-boundary service continued to record double-digit growth of 10.9%.
Mr Yeung said KCRC had another year of good financial results in 2000, the sixteenth consecutive year of profitability. Net profit after tax was $2,288 million, a growth rate of 20.2% over that in 1999. For the first time since KCRC became profitable, net recurrent profit surpassed the $2,000 million mark, leaving aside property development profit.
Transport revenue at $4,089 million was 7.1% up on the preceding year. Recurrent revenue from rents, royalties, advertising, leveraged leasing deals and other commercial transactions registered a growth rate of 5.4% at $642 million.
Mr Yeung said that civil construction of West Rail, Phase I, was 33% finished and KCRC looked forward to substantial completion at the end of 2001.
"At the present time we are confident that West Rail, Phase I, can be completed for a revised total cost of $46,427 million, in time for it to become operational as scheduled by December 2003."
As for the Ma On Shan Rail and the Tsim Sha Tsui Extension, he said contracts had been awarded and construction would begin in the first quarter of 2001.
Mr Yeung noted that the Government’s Railway Development Strategy 2000 proposed the development of six new railway corridors targeted to go into service between 2008 and 2016. Three of these – the Kowloon Southern Link, the Northern Link and the Port Rail Line and Terminal – were regarded as natural extensions of the KCR system. Two others – the Regional Express Line and the Shatin to Central Link – were open for competition.
"Early in 2001, the Government invited KCRC and MTR Corporation Ltd to make proposals for the Shatin to Central Link and KCRC to make proposals for the Kowloon Southern Link, for submission in July."
Mr Yeung said that given West Rail, Phase I, the East Rail Extensions and at least three other projects in the pipeline all taking place at different stages of conception, design and construction, the time had come for the Corporation to develop both the organisational and human resources capability to handle these projects as a continuous programme of works.
In four short years, he continued, KCRC had grown from a strength of a little over 3,500 operational staff to a strength of 4,867 at the end of 2000, of whom over 1,100 were engaged in project management.
"This wealth and mixture of expertise and experience had enabled KCRC to construct new railway lines rapidly while remaining profitable."
2000 Annual Report