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Hong Kong high-speed rail
Hong KongHong Kong Economy

Cross-border rail link may be profitable in 8 years, Hong Kong transport chief says in optimistic U-turn

Frank Chan Fan plays down cost concerns, saying that focus should instead be on the economic benefits project will bring to city

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The high-speed rail link is expected to launch in September. Photo: Roy Issa
Raymond Yeung

The HK$84.4 billion (US$10.8 billion) cross-border high-speed rail link may become profitable in eight years after being launched, Hong Kong’s transport chief said on Saturday in an apparent U-turn from an earlier forecast that tipped the project to be loss-making for decades.

But Secretary for Transport and Housing Frank Chan Fan stressed that Hongkongers should not judge the development based on its profitability. He said the focus should be on the economic benefits it would bring.

The Guangzhou-Shenzhen-Hong Kong Express Rail Link is set to open in September after being plagued by years of construction delays and budget overruns.

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Hong Kong Secretary for Transport and Housing Frank Chan Fan speaks on a radio programme. Photo: David Wong
Hong Kong Secretary for Transport and Housing Frank Chan Fan speaks on a radio programme. Photo: David Wong

Few details are yet available, however, on how the massive project would be financially sustainable, as critics have argued that there are many alternative – and cheaper – options in the market.

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Without backing up his claim, Chan said earlier on Monday that the rail link would be able to turn a profit after 50 years. The forecast instantly raised eyebrows, as it implied that the operator, MTR Corporation – of which the government is a majority shareholder – would have to cover losses for decades.

Cross-border rail link ‘will be profitable’, city transport chief says

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