TNAG-1061-FCO40-1311-The-Kowloon-Canton-Railway-1981 — Page 8

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CONFIDENTIAL

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For discussion

on 15th September 1981

ANNEX TO XCC(81)116

XCC(81)102 Copy No.

MEMORANDUM FOR EXECUTIVE COUNCIL

THE FUTURE ORGANISATION OF THE KOWLOON-CANTON RAILWAY

DI(ER) POK

40

Purpose

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The purpose of this memorandum is to seek Council's approval in principle for a change in the status of the Kowloon-Canton Railway (KCR) from a Government Department to a Public Corporation and to indicate the preliminary measures necessary to achieve this.

ATAS A

Background

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The Government is undertaking a major construction programme at a cost of some $3,500 million to modernize and electrify the KCR. Work is progressing satisfactorily. The inner suburban electrified service from Kowloon to Sha Tin is scheduled to commence in the spring of 1982, and total electrified services to Lo Wu are to follow at the end of that year.

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From then onwards, to meet the needs of the new towns and developing northern New Territories, fast and frequent services will increase passenger capacity of the railway tenfold; while freight capacity should go up at least three times,

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All this has obviously involved a concentration of effort on the construction programme over the last few years. But this now has to be complemented by the development in parallel of an effective management organisation to make sure that the new railway is operated efficiently so as to meet its commercial targets. The organisational structure of the KCR astos has, however, changed very little since the War, and it will not be able to

cope with the challenge of operating much expanded and more sophisticated electrified services with out substantial strengthening and a major overhaul of structure and functions.

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Future Management Objectives

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The objectives of the Management of the new KCR must be:- : vtladirelt me, evn drip-wb

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CONFIDENTIAL

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機密

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