1947-1948 — Page 2

APPENDIX H.H.

ANNUAL REPORT

GENERAL SURVEY.

1. Although the shortage of rolling stock, machinery and equipment prevented a restoration of the services to a pre-war standard, considerable progress towards rehabilitation was made during the year under review.

The Department also derived the full benefit from rehabilita- tion carried out during the eighteen months after the re-occupation which culminated in the introduction of a greatly improved train service in March, 1947. This augmented service enabled substantial increases in revenue to be made over the previous Financial Period of eleven months.

2. Gross and net revenue were $6,431,252 and $3,128,787 respectively as against $4,431,700 and $2,205,311 for the period ending in March, 1947. The increases were principally due to the growth in population of the Colony and Canton and the improved train service referred to in paragraph one. These factors together with the progress achieved in the economic rehabilitation of the Colony since the re-occupation resulted in the heaviest passenger traffic in the history of the Railway.

3. Operating Expenses were $3,302,465 compared with $2,226,389. The rise was due to additional expenditure on fuel owing to increased train mileage performed by British Section locomotives, increased expenditure on repairs and rehabilitation as materials gradually became available, and the general rise in salaries as a result of the Salaries Commission.

4. Rehabilitation Loan Expenditure amounted to $1,324,336 the principal items being repairs to Beacon Hill Tunnel, relaying of track in the tunnel, new machines and hand tools, and repairs. to buildings and rolling stock necessitated by enemy action.

5. The financial results of the year's working were affected by a strike of workshops personnel which lasted from August 16th to September 12th, 1947. The local service ceased to operate from the former date, and whilst a through service of two trains each way continued until August 21st, the trains being operated by Chinese Section engine crews, pressure was brought to bear on. them by the Unions, and this service ceased from August 22nd. The loss in revenue owing to the strike was estimated at $420,000, but a proportion of this was offset by savings in expenditure on fuel, etc., and wages to personnel on strike. This saving was approximately $80,000.

6. The principal traffic feature of the year was the record number of through passengers travelling between the Colony and Chinese Territory and vice versa. The total number conveyed, 1,908,416 was a record for the Railway being an increase of 9.64% above the previous highest in 1936.