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Denise Tsang

Kowloon-Canton Railway Corp registered a year-on-year 14.7 per cent profit jump to HK$1.18 billion in the half to June 30.

It was driven by contributions from train services and commercial investments.

Fare revenue from East Rail train services between Hunghom and Lowu, cross border train services and the Light Rail in Tuen Mun and Yuen Long, rose 1.68 per cent to HK$1.93 billion.

East Rail use grew 1.4 per cent to 143 million passenger trips but the Light Rail stayed steady at 58 million.

KCRC's share of the public transport market was 12.2 per cent, compared with 12.3 per cent previously.

A KCRC official blamed the flat growth of passenger trips on intense competition from other public transport systems, mainly buses.

She said profit growth was helped by a 46.45 per cent rise in net investment income to HK$186 million  - the bulk from the sale of car-park spaces.

Property development generated a HK$24 million profit in the first half, more than triple the HK$7 million previously.

Tight controls saw operating costs at a lower HK$1.37 billion from HK$1.39 billion previously.

Revenue from freight, commercial rental, advertising and other sources grew a meagre 1.99 per cent to HK$410 million, underlining the weak economy.

Defying the economic situation and a public outcry, KCRC is determined to introduce a 3.1 per cent fare increase on April 1.

The fare rise is much steeper than MTR Corp's pending 2.3 per cent increase.

To improve patronage KCRC has embarked on a number of projects such as the West Rail serving the western New Territories, the one-kilometre extension of the East Rail to Tsim Sha Tsui and the 11.4km Ma On Shan viaduct.

'There are indications that West Rail will be able to start running a few months ahead of its target opening date of December 2003,' chairman Yeung Kai-yin said.

All the major milestones had been reached on time or ahead of schedule and operational readiness planning had begun.

'More than 80 per cent of the West Rail's civil engineering works were completed by mid-year,' he said.

Progress on other projects under construction had also met their target schedules.

KCRC is vying with the MTR Corp to build and operate the lucrative HK$30 billion Sha Tin to Central link, to be decided early next year.



KCRC investments push profit to $1.1b