Rail News

Early Review of Fare Adjustment Mechanism for MTR Corp. Hong Kong

Image courtesy of MTR

Hong Kong – In response to a letter at the end of last month from the government, MTR has on 20 April 2016 announced that it will bring forward its 2017/18 re-assessment of the Fare Adjustment Mechanism (“FAM”) by one year. The FAM is the process by which MTR Hong Kong can annually adjust travel costs according to corporate needs. The letter and subsequent agreement to an early review of this pricing mechanism comes amidst growing public concern over successive yearly price rises. This year is due to see the seventh annual increase in rail fares in the region, this time at a rate of 2.7%.

“The existing FAM formula is fair, objective and transparent. It balances the interest of different stakeholders and keeps MTR fares at a reasonable level,”

stated Professor Frederick Ma, Chairman of MTR Corporation, continuing:

“2015 was one of the best years for on time performance since the Rail Merger. To ensure the continued delivery of this safe and reliable high performance railway, the Corporation spent more than $7 billion last year in maintaining, upgrading and renewing our railway assets.”

In 2015, the total number of train journeys provided by the company was 2.8 million, with an outstanding punctuality rate of 99.9%.  MTR has recently won accolades for company performance and high levels of customer service.

Related Post:  Network Rail: Route Directors Appointed for Eastern Region

Professor Ma said:

“We will listen to different views and welcome constructive discussion on this matter. While we must balance the interest of all stakeholders, including our customers and shareholders, it would be in the best interests of all our stakeholders for the Corporation to maintain a sustainable financial model such that we can continue to invest in our rail network.”

The upcoming review, with first discussions scheduled for next month, will be a coöperative process between Government and MTR.  Many of its aspects, such as details of the procedure, involvement of stakeholders and time scale will be matters for this joint decision making process. With calls for publications of proposals before they are discussed, and worries over governmental control of prices due to its 76% stake in the company, it seems that, for the people of Hong Kong, the matter will very much stay in the public eye.

News categories

    07 Jan 2019
    MTR Corporation Gets New Generation of Light Rail Vehicles
    08 Oct 2018
    Almost 1 Million Passenger Journeys on Hong Kong High-Speed Rail to Date
    26 Sep 2018
    Services Start on Guangzhou-Shenzhen-Hong Kong High-Speed Rail
    30 Aug 2018
    MTR Will Operate Guangzhou-Shenzhen-Hong Kong High-Speed Rail Line
    17 Aug 2018
    High-Speed Rail Service Between China and Hong Kong Reaches Milestone
    27 Jul 2018
    MTR Announces Details of New Hong Kong Station and Staff Uniforms
    30 Mar 2018
    MTR’s Hong Kong Express Rail Link Enters Final Preparation Phase
    23 Aug 2017
    Tracklaying for Hong Kong’s East West Corridor Completed
    Subscribe
    Subscribe to Railway-News
    Get the latest contract alerts and Railway News emailed directly to your inbox.

    We respect your privacy and take protecting it seriously.

    Please tick to confirm you would like to receive emails we think may be of interest to you. We sometimes tailor the content you see to what we think you'll find interesting, and so monitor your interaction with our website and email content (find out more).