18. The sea-side of Taipo Station yard was widened to provide more storage space.

19. The third house to the block of Traffic Staff Quarters at Shatin Station was built and the other two houses were repaired.

20. A reinforced concrete signal-post was erected at Lowu in place of a rotting wooden one. All signal-posts at Kowloon and Yaumati Stations were repainted.

21. The steel pale-fencing around Locomotive Yard, Hung Hom, was reconditioned with new galvanised framework. The old iron Carriage Shed in the Locomotive Yard was repaired.

22. The following quarters were renovated:--

Nos. 1 and 2, Class "A" European Quarters, Nos. 2 and 3, Class "B" European Quarters, Yaumati Traffic Staff Quarters, and Gang Huts Nos. 5 and 6.

23. Parts of the steelwork of the platform awnings and of the concourse of Kowloon Station were scraped and repainted; the remaining parts will be done in 1933.

24. Of 5,011 sleeper renewals, 4,762 were relaid with "Timeproof" concrete sleepers, 95 with ordinary wooden sleepers. The number of crossing and bridge timbers renewed was 154.

TRAFFIC.

25. The year under review constituted a new record for the line in traffic earnings. The increased revenue was attributable to the accelerated service of express trains between Kowloon and Canton so far as the Foreign traffic was concerned, and to the growth of the border town of Shum Chun as affecting the Local receipts.

26. The total number of ordinary fare paying passengers, irrespective of season and pass holders, carried during 1932 was 2,182,634 of which 1,123,576 or 51% were Foreign, and 1,059,056 or 48.1% Local, with a normal time table of 24 trains daily and two extras on Sundays. The local figures, since this Railway only serves an agricultural rural district, are of interest, and disprove the contention held in some quarters that the Railway does not fulfil a local need, and when it was opened, that its sphere of usefulness was thought to be confined to its possible connection with the Canton-Hankow line. The train capacity of this single line is fast reaching its limit and the time has come when serious attention must be given towards providing additional passing places. There are only four crossing stations at uneven distances in the total distance of 224 miles, at a small breakdown is sufficient to cause serious congestion and delay.

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