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HONG KONG LEGISLATIVE COUNCIL - - 11 May 1988
twice the $117 million achieved in 1986, and the $47 million loss accumulated since the formation of the corporation in 1983 was thus eliminated. Total revenue for the year amounted to $964 million, 31 per cent higher than that for 1986. The corporation's current and non-current liabilities at year end were $394 million and $191.2 million respectively.
The five business areas of the corporation all performed well. The heavy rail carried over 136 million passengers during the year, an 18 per cent increase over 1986. Railway facilities have been upgraded and train capacity increased progressively to cater for the needs of the growing number of passengers.
Freight traffic on the railway continued to grow in the year. While outgoing freight to China registered a significant growth of 24 per cent to 1.1 million tonnes, imports from China recorded a modest gain of 5 per cent to 3.48 million tonnes. In order to cope with the anticipated substantial growth in freight traffic in the coming years, the corporation is actively discussing with the Government the development of a new freight terminal. Meanwhile, the corporation is looking into ways to provide additional temporary freight handling facilities.
Visible progress was made during the year in the construction of phase I of the light rail transit system in the north-west New Territories, due for commis- sioning in August this year. The corporation has also embarked on the design work of six additional regional links to complete the full regional system.
Good progress has been achieved on the two property development projects above the Light Rail Transit Pierhead terminus and depot in Tuen Mun, and detailed arrangements for a package development deal involving three sites along the existing KCR mainline has been made. The corporation has also commenced studies on the feasibility of having property development above the remodelled KCR depot and workshops at Ho Tung Lau.
Sir, the corporation's buses commenced operation in September, providing feeder services to the KCR and internal services in the north-west transit service area, with encouraging passenger growth in the last quarter. Additional order for buses has been placed to provide the necessary back-up for the light rail transit system.
The Kowloon-Canton Railway Corporation has demonstrated its success as a responsible and efficient corporation rendering a variety of transport and associated services to the community. With the funds generated from the railway operation, the corporation is planning to undertake a number of major infrastructural projects and to upgrade the railway facilities so as to keep pace with the continued population growth in the New Territories and the growth in passenger and freight movements between Hong Kong and China.
Finally, Sir, I would like to congratulate the chairman and the board, and the management and staff of the Kowloon-Canton Railway Corporation on their outstanding performance and excellent results, and to thank them for their hard work during the year.