The new chief executive of MTR Corp expects overseas revenue contribution to grow gradually in the coming years as the mass transit carrier seeks to diversify from a deflation-hit domestic market.
Direct investments in rail systems and the provision of rail system building, operation and maintenance experience, as well as consultancy services, outside Hong Kong will complement the corporation's core fare revenue, which has been hit hard by the poor economy, competition and the outbreak of Sars.
Meeting the press for the first time since he started on December 1 was Sir Chung-kong Chow, who took over from Jack So Chak-kwong after spending 17 years in senior positions in Australia, Britain, the United States and Japan. His last position was as chief executive of Anglo-Australian logistics conglomerate Brambles Industries.
Sir C.K., as he is widely called, will spearhead MTRC's push outside Hong Kong. One of his key tasks is heading talks on a possible acquisition of a more than 20 per cent stake in a proposed six billion yuan rail line connecting Beijing's airport and the capital.
'We're at the beginning of the process of utilising our knowledge and knowhow ... Few companies like MTRC have integrated knowledge and experience in planning, building, operating and maintaining a rail system,' Sir C.K. said.
Ironically, the viability of MTRC's business model, which uses property development income to subsidise construction of rail lines, has been thrown into question as deflation drags on for the fifth consecutive year in Hong Kong while the government is shifting its housing and land policies to halt a supply glut.
