7. The financial position was strengthened with profits increasing from HK$2.1m. to HK$5.6m. while fixed assets increased from HK$20.1m. to HK$39.1 m. due to the introduction into service of new coaches. Accumulated funds, without interest, rose from HK$39.8m. to HK$45.4m. The introduction of increased passenger fares during the year and agreement to increase freight charges in the next year re-inforce the position.
8. Forty new carriages were put into service on 4th November, 1974. of these, twenty eight were replacements for old rolling stock and twelve were used to lengthen existing trains so as to provide an average of 13 coaches on each train. Despite the introduction of additional carriages restrictions imposed by the single track continued to handicap the handling of the increas- ing number of passengers, especially during daily and seasonal peak periods. It is hoped that the situation will be improved when double tracking of the railway line between Hung Hom and Sha Tin is completed in 1977.
9. Meanwhile, construction of the new terminus at Hung Hom which will replace the existing terminal at Tsim Sha Tsui was reaching the final stages. It will provide more modern facilities for passengers as well as for freight traffic.
10. Extensive training was given to railway staff and liaison maintained with China Travel Service (H.K.) Ltd. staff to familiarize them with the operation of the new terminus. Close relationships with the Public Works Department were continued to ensure that the facilities provided in the new terminus met railway requirements.
Agreement was reached with the Colonial Secretariat for retention of part of the existing main line to become the Ho Man Tin Sidings as an exten- sion of the Hung Hom Terminal when the terminal at Tsim Sha Tsui is closed.
12. Planning: In conjunction with the double tracking project other improve- ments proposed include remodelling of Mong Kok and Sha Tin Stations, a second tunnel through Beacon Hill and construction of a loop line near Ho Tung Lau Railway Workshops to service the proposed new race course at Shatin. Construct- ion of a freight yard at Fotan to service facilities being built by the China Resources Company will begin in 1975. Consideration was given during the
year to the following projects :
(a) Extension of double tracking from Sha Tin to Lo Wu;
(b) Building a marshalling yard at Lo Wu;
(c) Additional rolling stock for passenger and goods traffic;
(a) Construction of new lines from Shatin to Kwai Chung and Tai Po
to Shuen Wan;
(e) Electrification;
(f) Air-conditioning of Coaches;
(g) Improvements to Lowu Station.
13. The projects referred to form part of an investment plan over the next ten years costing $557.65m. which defines the future objectives of the Railway. The plan enables Government to appreciate the direction in which the Railway would like to progress. The proposed investment plan can be found at Appendix VII.
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