XN000022-1990-05-23 — Page 13

WEDNESDAY, MAY 23, 1990

11

KCRC MAINTAINS ROBUST FINANCIAL POSITION

A

THE KOWLOON-CANTON RAILWAY CORPORATION CONTINUED TO MAINTAIN ROBUST FINANCIAL POSITION IN 1989, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

OPERATING REVENUE STOOD AT $1,359 MILLION, REPRESENTING A 14 PER CENT INCREASE OVER 1988, SIR PIERS SAID WHEN MAKING A STATEMENT ON THE CORPORATION'S ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING DECEMBER 31, 1989, WHICH WERE TABLED IN THE COUNCIL.

SIR PIERS SAID PROFITS AFTER DEPRECIATION AMOUNTED TO $285 MILLION.

AND INTEREST

"SINCE NO NEW PROPERTY DEVELOPMENT PROJECTS WERE COMPLETED IN 1989, NET PROFIT INCLUSIVE OF INCOME FROM OTHER COMMERCIAL ACTIVITIES WAS 49 PER CENT BELOW THE LEVEL OF 1988.

"HOWEVER, BORROWING WAS CONTAINED UNDER $1.5 BILLION WITH A DEBT TO EQUITY RATIO OF 1 TO 2.1," HE SAID.

SIR PIERS NOTED THAT THE CORPORATION HAD SET ASIDE $150 MILLION IN A DEVELOPMENT RESERVE FOR THE PURPOSES OF UPGRADING EXISTING FACILITIES AND MEETING NEW INFRASTRUCTURE REQUIREMENTS NECESSITATED BY GROWTH IN SERVICE DEMAND.

THE HEAVY RAIL CARRIED OVER 171 MILLION PASSENGERS DURING 1989, REPRESENTING AN INCREASE OF SOME 12 PER CENT OVER 1988 AND AVERAGE DAILY PATRONAGE FOR THE YEAR EXCEEDED 500,000, HE SAID.

"TO

TO FURTHER COPE WITH THIS LEVEL OF DEMAND, TRAIN CAPACITY WILL BE EXPANDED BY 51 PER CENT IN 1992, WHEN DELIVERY OF A PREVIOUS ORDER OF 54 TRAIN CARS AND AN ADDITIONAL ORDER FOR 42 NEW CARS WILL BE COMPLETED.

"FREIGHT TRAFFIC WAS SLIGHTLY CURTAILED DURING THE YEAR. WHILE IN-BOUND CARGO RECORDED A MODEST GAIN OF 2 PER CENT TO 3.2 MILLION TONNES, OUT-BOUND TRAFFIC DROPPED BY 8 PER CENT MILLION TONNĖS," SIR PIERS SAID.

TO 1.3

NOTING THAT THE LIGHT RAIL TRANSIT SYSTEM OPERATING IN THE NORTH WEST NEW TERRITORIES OFFERED SIX LIGHT RAIL AND EIGHT BUS ROUTES AT THE END OF 1989, SIR PIERS SAID AVERAGE DAILY PATRONAGE INCREASED BY 25 PER CENT FROM 181,000 AT THE END OF 1988 TO 227,000 BY THE END OF 1989.

"IN JUNE 1989, A NEW LIGHT RAIL ROUTE WAS INTRODUCED THE RESIDENTS OF TIN KING ESTATE.

"THE LRT WILL BE FURTHER ENHANCED BY THE END OF 1991 COMMISSIONING OF THREE REGIONAL EXTENSIONS IN TUEN MUN,"

ΤΟ SERVE

WITH THE SIR PIERS

SAID.

/THESE EXTENSIONS