As a minor shareholder in the MTR Corporation I am dismayed by the apparent favouritism shown by the Government towards the KCR Corporation on the tender for the new Tai Wai, Sha Tin to Central Line.
The MTRC bid will initially cost one third less than the KCRC's and will provide at least one additional station in the Kai Tak area.
My main concern is that if the KCRC wins the project a significant number of MTR passengers could leave the MTR system and cross the harbour in the KCR train.
This will decrease the MTRC's passenger revenue and adversely affect the company's share price. If the MTRC wins the project, it would not greatly affect KCRC revenue, as most passengers from Sha Tin seem to leave the KCR and join the MTR at Kowloon Tong. If the KCRC gets the contract, it is a win for the KCRC and a loss for the MTRC. If MTRC gets the contract, it is a win for the company and for the Hong Kong public.
The financial mismanagement of West Rail contracts should count against the KCRC. The MTRC historically has had a very good record of project management, and completion of projects on time and within budget. From press reports, it would appear the MTR's Tseung Kwan O Line will open earlier than expected and cost less than was originally estimated.
When the MTRC went public in 1999 I did not envisage a situation where the Government would hamper the company's growth.