Hong Kong MTR Corp’s losses top HK$2.2 billion from suspension of high-speed rail link during pandemic
- Government expected to compensate rail operator bleeding from lack of ticket sales, rental income
- Most staff at West Kowloon terminus redeployed, shops and restaurants remain closed
The Hong Kong government is likely to pay about HK$1 billion (US$129 million) in compensation to rail giant MTR Corporation to make up for massive losses on the city’s high-speed cross-border rail link with mainland China.
The much-hyped rail connection cost HK$84.4 billion and opened in September 2018, but saw daily ridership fall from 53,000 in 2018 to 46,400 last year, far short of the government’s projections of 80,100.
Last year it posted a revenue of almost HK$2.1 billion with a total ridership of 16.9 million, and rental revenue of an estimated HK$350 million, according to its annual report.
The rail link’s 26km Hong Kong stretch joins a mainland section that connects the city to 58 destinations across China. It cuts travelling time to just 19 minutes to Shenzhen and 47 minutes to Guangzhou in Guangdong province.