MINISTER OF TRANSPORT'S VISIT TO HONG KONG - APRIL 1980

BRIEF ON RAILWAY PROJECTS

SUMMARY

the Mass

All the main contracts on the recent major projects Transit Railway and the Canton Kowloon Railway (Hong Kong section) have now been placed. Attention is now on two further developments known as the Tuen Mun LR and the Island Corridor extension.

LINE TO TAKE

BTC, Hong Kong is keeping Department of Trade fully informed of developments but it would be useful to know more about the Hong Kong Government's thinking on:

(a) the Island Corridor Extension

timing of and whether

an interim light rail vehicle system solution is the real answer or whether a heavier underground link would make more

sense.

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(b) Tuen Mun timescale of development. Reference can be made to the UK's successful involvement on the Mass Transit Railway and the Canton Kowloon Railway (see below).

BACKGROUND NOTES

The Mass Transit Railway

1.

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The MTR system is intended to relieve increasing road congestion in the Colony.

In 1975 tenders were issued for the

£700 millions first-stage linking the Central District of Hong Kong Island with Kwun Tong in Kowloon. British firms secured 25% of the contracts, including the most important one for the supply of 140 rail cars which was won by Metro Cammell (with GEC as principal sub-contractor). Met Cam also secured an option for the supply of a further 70 cars which was subsequently taken up. 2. In 1978, the Hong Kong Government gave the go ahead for a 10.7 km extension to the growing town of Tsuen Wan, (total cost £500 million). UK firms have again picked up a substantial share of the contracts including the key rolling stock contract 150 cars, (worth £50 million approximately) with an option for a further 70 - which went to Met Cam in spite of fierce Japanese

competition. Other UK successes included a £10 million power supply contract won by GEC and a £7.5 million signalling contract won by Westinghouse. Henry Boot have secured a £8 million track-

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