XN000022-1987-05-06 — Page 33

31

WEDNESDAY, MAY 6, 1987

NOTING THAT FEEDER BUS SERVICES TO THE LRT WILL BE PROVIDED BY THE CORPORATION AND 25 DOUBLE DECKERS HAVE BEEN ORDERED MR YAXLEY SAID THESE WOULD COMMENCE OPERATIONS IN THE LATTER PART OF THIS YEAR.

THE EXPANSION OF THE RAILWAY FREIGHT TERMINAL ON THE HUNG HOM BAY RECLAMATION WAS BEING STUDIED BY THE CORPORATION.

+THIS DEVELOPMENT IS IMPORTANT IF THE PROJECTED INCREASE IN RAIL FREIGHT ANTICIPATED FOLLOWING COMPLETION OF DOUBLE-TRACKING FROM BEIJING THROUGH TO SHENZHEN IN 1988 IS TO BE MET, HE ADDED.

MR YAXLEY CONCLUDED THAT, THE KOWLOON-CANTON RAILWAY CORPORATION HAD CLEARLY ESTABLISHED ITSELF AS AN EFFICIENT OPERATOR OF ONE OF HONG KONG'S MAJOR PUBLIC TRANSPORT SYSTEMS, AND HAD RUN THE FULLY ELECTRIFIED KCR EFFICIENTLY AND PROFITABLY.

HE CONGRATULATED THE BOARD, MANAGEMENT AND STAFF ON THEIR EXCELLENT RESULTS.

MTRC DEBT REPAYMENT FORECAST REALISTIC

*****

A TOTAL OF 532 MILLION PASSENGERS WERE CARRIED BY THE MASS TRANSIT RAILWAY IN 1986, WHICH IS AN INCREASE OF 15 PER CENT OVER THE 463 MILLION CARRIED IN 1985, THE ACTING FINANCIAL SECRETARY THE HON JOHN YAXLEY SAID IN THE LEGISLATIVE COUNCIL MEETING TODAY (WEDNESDAY).

TABLING THE ANNUAL REPORT AND ACCOUNTS OF THE MTRC FOR 1986 MR YAXLEY SAID THE CORPORATION'S TOTAL REVENUE, DERIVED MAINLY FROM FARES, ROSE BY MORE THAN 21 PER CENT FROM $1.4 BILLION TO $1.86 BILLION AND ITS PROFIT BEFORE INTEREST AND FINANCE CHARGES INCREASED BY 27 PER CENT FROM $372 MILLION TO $472 MILLION.

+THESE FIGURES DEMONSTRATE THAT COSTS WERE CONTROLLED EFFECTIVELY, HE SAID.

HE SAID THAT THE FINAL SECTION OF THE ISLAND LINE WAS OPENED TO THE PUBLIC ON MAY 23, 1986.

+THE PRINCIPAL SOURCE OF FINANCE FOR THE CORPORATION'S INVESTMENT OF $24 600 MILLION IN ITS THREE RAILWAY LINES MAS BEEN LOANS WHICH AGGREGATED $19 200 MILLION AT DECEMBER 31, 1986.+

WITH COMPLETION OF CONSTRUCTION. INTEREST ON THESE LOANS BECAME FULLY CHARGEABLE TO THE CORPORATION'S PROFIT AND LOSS ACCOUNT IN 1986.

/+THESE CHARGES