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COMMUNICATIONS AND TRANSPORT
Following the passenger fare increase in November 1974 the first since 1947- freight rates went up on April 1, 1975 for the first time in 15 years. Charges in both cases were raised by about 35 per cent to meet increasing operating costs.
With the greater volume of traffic, the single line railway has reached the limit of its capacity and work is under way to double track and resignal the section from Hung Hom to Sha Tin. Further plans include double-tracking all the way to Lo Wu, electrification of the whole line, the re-modelling and commercial development of stations, extensions to other parts of the New Territories, acquisition of additional rolling stock, the construction of a marshalling yard at Lo Wu, and enlargement of the tunnel between Kowloon and Sha Tin. In order to enable passengers to travel in comfort during the summer months, four coaches are being air-conditioned. The daily passenger service of 17 trains each way has been increased to 20.
Mass Transit Railway
Following the Japanese consortium's decision to cease negotiations for a formal contract for building the mass transit railway's initial system, action was taken by the Mass Transit Railway Provisional Authority to develop an alternative system. On January 14, 1975, the Executive Council agreed in principle to the modified initial system. This comprises a 9.7 mile S-shaped route linking the Central District of Hong Kong Island with Kwun Tong in Kowloon. The agreement was subject to the council's subsequent approval of the recommended tenders for the first represen- tative major civil engineering contracts. Construction costs were not to exceed $5,000 million while government equity was not to exceed $800 million.
The Provisional Authority screened a large number of international and local companies and groups, and selected prospective tenderers for the 25 civil engineering and 10 electrical and mechanical contracts that make up the modified initial system. At the same time, the Provisional Authority negotiated with bankers and financial institutions to raise the capital required for construction. Funds covering 40 per cent of the construction cost were obtained through export credits, the remainder coming from the open market. Through the authority's executive arm in the Public Works Department, the clearance and acquisition of land and the planning of utility diversions continued, along with the development of strategic traffic plans designed to minimise the effect of the construction on the travelling public.
In May, the Mass Transit Railway Corporation Ordinance was passed by the Legislative Council, paving the way for the corporation to take over from the Provi- sional Authority. The ordinance gave the future corporation the right to develop land held by it. One prime site for such development is the Kowloon Bay depot-the main- tenance and administration centre of the railway-over which it is planned to con- struct a housing and commercial development including 5,000 flats.
Tenders for the first four civil engineering contracts had been called by May, and examination of the tenders confirmed that the modified initial system could be constructed within the set budget. In September the Executive Council gave the project its approval, following which the Governor brought the Mass Transit Railway Corporation Ordinance into effect.