TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 252

COMMERCIAL-IN-CONFIDENCE

Brief No 8/2

SECRETARY OF STATE FOR TRADE'S VISIT TO HONG KONG

BRIEF ON RAILWAY PROJECTS

Summary

A number of major railway projects are currently in hand or under consideration by the Hong Kong Government. UK firms have secured a substantial share of the business so far awarded and are well placed to secure further contracts. Background notes on the various projects the Mass Transit Railway, the Hong Kong section of the Kowloon-Canton line, the Island extension to the MTR and the Tuen Mun Light Railway - are attached.

Line to Take

The British Trade Commission are keeping OPG fully informed of developments

but it would be useful to know more about the Hong Kong Government's thinking

on:

a)

the Island Corridor Extension

the most doubtful of the current projects.

b) longer term development of the railway network.

BACKGROUND NOTES

The Mass Transit Railway

1

The MIR system is intended to relieve the increasing road congestion in the Colony. It was first proposed in 1967 and a master plan was subsequently produced by Freeman Fox and Partners. In 1975 tenders were issued on a multi-contract basis for the first-stage 15.6 km Initial System (total cost some £700 million) linking the Central District of Hong Kong Island with Kwun Tong in Kowloon. Contracts for the line, which involves the construction of 12 underground and 3 surface stations were let in 1976 for Completion this year. British firms secured 25% of the contracts, including the most importeat one for the supply of 140 rail cars which was won by Metro Cammell (with GEC as principal sub-contractor). Met Cam also secured an option for the supply of a further 70 cars which was subsequently taken up.

2

In 1978, the Hong Kong Government gave to go ahead for a 10.7 km, 11 station extension to the growing town of Tsuen Wan, (total cost £500 million). UK firms have again picked up a substantial share of the contracts including the key rolling stock contract 150 cars, (worth £50 million approximately) with an option for a further 70 - which went to Met Cam in spite of fierce Japanese competition. Other UK successes included a $10 million power supply contract von by GEC and a £7.5 million signalling contract won by Westinghouse, In addition Henry Boot have secured a £2 million trackworks contract against local and Japanese competition. The civil works contract was awarded to the Japanese. The total project is within budget and slightly ahead of programme.