Smooth ride for MTR in London
While the rail operator has been battered with operational problems and project delays in HK, the firm is winning top ratings in the British capital
MTR Corp faces a HK$3 billion bill for delays in building lines in the city and a traveller backlash after a clutch of operational problems this year, but neither appear to be hurting the railway company's overseas businesses.
A subsidiary has in fact been awarded the £1.4 billion (HK$18 billion) London Crossrail train line contract by Transport for London to operate a major new rail service across the British capital in recognition of its success in operating another line.
The contract comes at a time when former chief executive Jay Walder and project director Chew Tai Chong have been forced to step down over delays in the cross-border high-speed railway project.
Announcing the results last week, MTR said its earnings rose 28.5 per cent to HK$7.9 billion. But first-half operations were clearly overshadowed by the lapses in the Guangzhou-Shenzhen-Hong Kong express rail link project as well as delays in the West Island and South Island lines.
The company said it would absorb HK$3 billion in cost overruns it suffered on the two island lines.
Its London operation, however, seems worlds apart.