Clever financing keeps Hong Kong metro profitable
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.
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.
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