Management & Operations

Clever financing keeps Hong Kong metro profitable

Posted on September 12, 2013

Hong Kong metro photo via Wikimedia Commons by yeowatzup
Hong Kong metro photo via Wikimedia Commons by yeowatzup
HONG KONG — Mass Transit Railway (MTR), which manages the subway and bus systems on Hong Kong, is considered the gold standard for transit management worldwide. In 2012, the MTR turned a profit of $2 billion, with farebox recovery ratio of 185%, the world's highest, The Atlantic reported.

Following the concept of "value capture," the Hong Kong metro essentially functions as part of a vertically integrated business that, through a "rail plus property" model,  controls both the means of transit and the places passengers visit upon departure, according to the report. For the full story, click here.

RELATED: "Report probes land 'value capture' to fund transit."

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