LettersWhy South Africa should consider replicating Hong Kong’s MTR model
Readers discuss the appeal of the MTR’s ‘rail plus property’ model, the remarkable symmetries in Chinese and Indian cultures, and Macau’s tourism revival
Transport planners across the world continue to ask the same question about Hong Kong’s MTR Corporation: how does a rail system maintain low fares, world-class reliability, and operate without government subsidies? The answer has less to do with trains and more to do with land.
The MTR model is straightforward in principle. Rail stations increase nearby land values. Rather than allowing private developers to capture these gains entirely, Hong Kong grants MTR development rights around stations. The corporation then develops properties itself or partners with developers, generating revenue from offices, housing, retail space and commercial assets. A significant proportion of MTR revenue comes from property activities, reducing dependence on fares and public subsidies.
Johannesburg has already showed that rail infrastructure creates similar value. Areas such as Rosebank and Sandton have seen significant investment growth linked to Gautrain stations. Yet this value largely accrues to private property markets rather than returning to the transport system itself.
The opportunity created by state ownership is therefore significant. Johannesburg could allocate development rights around stations, create competitive partnerships with developers, and channel revenues back into rail operations and future expansion. Applied strategically across high-potential nodes and future expansion corridors, this approach could strengthen the long-term financial sustainability of the network.