Bogged down by repeated accidents and train delays, the KCRC's West Rail has been a major disappointment. The fact that Michael Tien Puk-sun has replaced Yeung Kai-yin as chairman of the company can hardly restore its savaged public image.
West Rail carries far fewer passengers than planned and is heavily subsidised by the government - posing unfair competition to private transport operators. It has a long way to go before it can recover its initial investment.
The facts speak for themselves: Last year, the Kowloon-Canton Railway Corporation carried 475 million passengers with a net profit of just $419 million. In contrast, the MTR Corporation last year carried 841 million riders and netted $4.49 billion. The KCRC's current mode of management and operation can no longer be justified.
The government this year announced its intention to push for a KCRC merger with the MTR Corporation. Five million dollars was allocated to a working group, and officials were eager to have a decision by the middle of the year. MTR chairman Raymond Chien Kuo-fung submitted a report on the issue to the government in June.
Yet, a concrete action plan has yet to be devised. Rumours have circulated that the merger idea was aborted because of significant differences over the evaluation of the KCRC's assets.
Meanwhile, Mr Tien's repeated statements that there was no room for the KCRC to reduce its fares has further complicated the scene. His comments have made the proposed merger less palatable, especially for the Legislative Council.