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WEDNESDAY, APRIL 21, 1993
"THE FACT THAT THE CORPORATION HAS BEEN ABLE TO PAY A DIVIDEND TO THE GOVERNMENT REFLECTS THE CONFIDENCE WE HAVE IN THE CORPORATION'S FINANCIAL STRENGTH.
"IT IS ALSO A POSITIVE SIGNAL TO FUTURE POTENTIAL INVESTORS HONG KONG'S RAILWAY INFRASTRUCTURE," HE SAID.
IN
LAST YEAR, THE MTRC CARRIED ABOUT 751 MILLION PASSENGERS, 3.4 PER CENT HIGHER THAN 1991; WHILE THE KCR CARRIED 198 MILLION PASSENGERS, AN INCREASE OF ABOUT 5 PER CENT OVER 1991. FOR THE RAIL TRANSIT SYSTEM (LRT), THE FIGURES WERE 106 MILLION AND 10 PER CENT RESPECTIVELY.
LIGHT
AT THE END OF LAST YEAR, THE MTRC'S LOANS AND FINANCE LIABILITIES STOOD AT $18.4 BILLION WITH A YEAR-END DEBT-TO-EQUITY RATIO OF 2.3 TO 1, WHILE THE BORROWINGS OF KCRC WAS $894 MILLION A 1 TO 5.1 RATIO.
WITH
"THE MTRC IS WIDELY RESPECTED IN THE INTERNATIONAL FINANCIAL COMMUNITY. THE HIGH CREDIT RATINGS ENJOYED BY THE CORPORATION DEMONSTRATE CONFIDENCE IN THE FINANCIAL STRENGTH OF THE CORPORATION AND ITS FUTURE PLANS.
"WITHOUT AN EXTENSION OF THE EXISTING SYSTEM, THE CORPORATION EXPECTS TO BE ABLE TO RETIRE ALL DEBTS ON EXISTING LOANS BY AROUND THE TURN OF THE CENTURY, MR YEUNG SAID.
THE
OVER THE NEXT FIVE YEARS, THE MTRC HAS BUDGETED TO SPEND $5 BILLION ON MAJOR CAPITAL PROJECTS. IT IS PLANNING TO IMPROVE MORNING PEAK TRAIN SERVICE ON THE TSUEN WAN LINE FROM THE EXISTING 30 TRAIN TRIPS PER HOUR TO 31 SOME TIME THIS YEAR, 32 NEXT YEAR AND 34 IN 1996.
MR YEUNG SAID ONCE AGREEMENT WAS REACHED WITH THE CHINESE SIDE REGARDING THE FINANCING OF THE AIRPORT RAILWAY, AND FINANCE COMMITTEE APPROVAL WAS OBTAINED, THE MTRC WOULD BE ABLE то PROCEED WITH A PROJECT THAT AFFORDED MUCH-NEEDED RELIEF TO THE EXISTING SYSTEM AND SUPPORT FOR THE NEW AIRPORT.
FOR THE KCRC, HE NOTED THAT CASH GENERATED BY THE OPERATING DIVISIONS WAS SUFFICIENT TO COVER ONGOING CAPITAL EXPENDITURE AND DEBT REPAYMENT.
MAJOR IMPROVEMENTS TO KCRC'S SERVICES WERE MADE DURING THE YEAR TO ENHANCE CUSTOMER SERVICES, HE SAID.
PUNCTUALITY WAS IMPROVED, WITH A DAILY AVERAGE OF 95 PER CENT AND 98 PER CENT OF TRAINS ARRIVING ON TIME FOR KCR AND LRT RESPECTIVELY.
OVER THE NEXT FIVE YEARS, THE KCRC PLANS TO INVEST A FURTHER $5.3 BILLION IN INFRASTRUCTURE AND SERVICE IMPROVEMENTS.
"THIS SUBSTANTIAL INVESTMENT CLEARLY DEMONSTRATES THE CORPORATION'S CONTINUED COMMITMENT TO UPGRADING ITS SYSTEMS TO PROVIDE HIGH QUALITY CUSTOMER SERVICES," MR YEUNG SAID.
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