XN000022-1996-04-24 — Page 48

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In 1995, the KCRC carried over 1.1 million passengers each day, 5% more when compared with 1994. About two-thirds of the passengers travelled on the heavy rail and the remaining one-third on the light rail system.

The Light Rail system was extended to the centre of Tin Shui Wai new town in March 1995. The extension has provided an important transport service for the 85 000 residents of the new town.

Productivity improvements have made it possible for the Corporation to keep fares at an affordable level. Over the past five years, Kowloon-Canton Railway Corporation's fares have in fact declined 13% in real terms. In 1995, the KCR and Light Transit System met or exceeded almost all their performance pledge targets, and successfully obtained ISO certification across an extensive range of functions.

The Corporation continued to develop and expand the container freight services launched in 1994. These services link the industrial centres of China with the port of Hong Kong.

The Corporation also aimed at strengthening and improving the quality of cross-border services. At a cost of $309 million, electric locomotives and rolling stock have been ordered for a new double-deck through train service between Hong Kong and Guangzhou.

In response to the Government's invitation, the Corporation has submitted proposals to Government for the design, construction and operation of a new railway in the North-west New Territories. This will provide domestic and international passenger services and also carry freight from China to the container ports. The system will link up with the existing heavy rail and light rail systems, as well as the Mass Transit Railway and Airport Railway to enhance the existing rail network.

The Corporation maintained a satisfactory financial position in 1995. Total revenue rose to $2,973 million, representing an increase of 11% over 1994. Net profit for the year after tax was $901 million. Taking into account the Corporation's cash flow requirements and investment needs in the year ahead, the Government has not asked for any dividends.

The Corporation will invest $5.7 billion over the next five years in service improvements, including major projects such as automatic train protection, renovation of Hung Hom Station, and noise barriers.