Innovative Means of Financing for Sustainable Development – Non-fare Businesses

摘要

Raising fund for the construction and operation of a railway system is always one of thernheadaches for most governments. MTR Corporation, a majority government-owned andrnlisted company in Hong Kong, has been adopting a “rail and property” model inrnaddressing this issue. In the financial year 2009, MTR’s property developments generatedrnHK$3,554 million of profit. On the other hand, leveraging on its extensive network andrnhuge number of patronage passing through everyday, MTR has also developed a richrnportfolio of non-fare businesses. Non-fare businesses revenue covered 40% of thernoperating expenses for the 218-km long railway network. This paper in particularrnexplains how MTR develops and operates the railway system sustainably throughrndifferent non-fare businesses.