Hong Kong rail operator wins prestigious London transport contract

By David Brem, UKTI OurWorld editor

Hong Kong’s mass transit railway system carries over 2.3 million passengers – one third of the total population – every day.

MTR Corporation, the company responsible for managing what is one of the most intensively used public transport systems in the world, is now breaking into Europe.

This week Mayor of London Ken Livingstone announced that MTRLaing had been awarded the concession to operate the new London Overground service.

Winning this franchise is an important first step in the development in the MTR Corporation’s European growth strategy.

Dr Francis Lung,

China and International Business Director,

MTR Corporation.

MTRLaing is a 50/50 partnership between MTR and Laing Rail, who run Chiltern Railways out of London Marylebone station.

UK provides opportunities for business growth

“Winning this franchise is an important first step in the development in the MTR Corporation’s European growth strategy,” said Dr Francis Lung, China and International Business Director of MTR Corporation.

The firm, which also has interests in property and retail development, will use the UK as their European base.

“Going forward, we will continue to look for suitable opportunities to invest in both the United Kingdom and other parts of Europe, using our asset light approach,” added Lung.

High-value long term contract

The contract to operate London Overground begins in November 2007 and runs for seven years, with the option for a two year extension.

The high-profile network which is more than 100km in length, includes five separate rail lines serving North, East and West London.

MTRLaing will eventually manage 55 of the 78 stations on the network.

Improving London’s infrastructure

The London Overground service is important to capital’s infrastructure, especially with the 2012 Olympics on the horizon.

We will continue to look for suitable opportunities to invest in both the United Kingdom and other parts of Europe

Dr Francis Lung,

China and International Business Director,

MTR Corporation.

This reflects the recognition of MTR’s ability to deliver highly reliable and frequent rail services with excellent levels of customer service,” said Dr Lung.

“We are looking forward to applying our knowledge to improve the experience of London rail passengers and assisting Mayor Livingstone in realising his vision to deliver noticeable improvements.”

Advantages to London’s commuters

MTRLaing will help introduce a number of improvements to London Overground, including station upgrades, a more comprehensive ticketing system and improved comfort and security for passengers.

A new fleet of trains will also be introduced from 2009.