1976-1977 — Page 17

65.

During the year an extensive publicity campaign was introduced to advise the public to avoid exposing themselves to danger when on the railway and new posters were exhibited at all stations. Additionally the availability of the public address system in all coaches enabled the Guard to warn passengers not to travel in dangerous locations. The introduction of a departure signal at stations was a further effort to improve public awareness of the need for greater safety.

FINANCE

66.

Operating expenditure increased by 15.1% from $23,298,218 to $26,825,806 due mainly to the increase in salaries for the additional staff for the new railway terminal at Hung Hom, a revision of salaries and the continuing escalation in the cost of materials. The gross operating profit fell from $12,221,977 to $4,693,646 whilst the net profit was $4,020,119 compared with $11,740,288 in the previous year. Accumulated Funds, excluding interest, rose to $64,624,443 at the end of the year.

67.

68.

The decrease in net profit was due mainly to :

(a)

a general decrease in the numbers of passengers and volume of freight traffic especially during the suspension of railway traffic between 25th August and 10th October, 1976 caused by the

subsidence of the railway bridge over the Shing Mun River.

(b) generally less imports from China especially of diesel

oil.

(c) higher cost of maintaining the terminus at Hung Hom.

During the year, additions to fixed assets totalled $8,297,662. The major increases included the acquisition of two new diesel electric locomotives and one landrover, capital expenditure included associated emer- gency work for bridge No. 11, improvement to Lo Wu Station and various improvements to existing facilities such as air-conditioning of four coaches and equipment for the maintenance of track.

69.

The accounts and supporting data are published in Appendices I to VIII in this report.

70.

The Operating Ratio, which consists of the percentage of operating expenditure to revenue rose from 65.59 to 85.11 largely due to the decline in revenue of $4 million and the increased Kowloon terminal cost of HK$1.68 million arising from the transfer from Tsim Sha Tsui to Hung Hom. The profit of HK$4.0 million may be regarded as satisfactory in view of the year events.

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