1977-1978 — Page 15

Source and Application of Funds

53.

The amount of funds generated from KCR activities during 1977/78 as in the previous year did not cover the full amount of capital expenditure and resulted once more in a reduction in working capital, the amount in 1977/78 being $4.259 m. The balance in the Treasury Current Acount at 31st March fell from $10.202 m in 1977 to $4.606 m in 1978.

54.

The Business Statement at Appendix VI shows that the net contribution from freight receipts towards joint costs remains at a much greater level than those from passenger traffic. The ratio for 1977/78 is about 5:1 compared to about 8:1 in 1976/77.

55.

The percentage ratio of standard first and ordinary class tickets issues against total issues given in Appendix VII illustrates the growth of this business compared to other sectors. Passengers journeys have increased from 63.35% to 66.36%, passenger kilometres from 65.77% to 69.37% and revenue from 65.11% to 69.6% the trend being for more passengers taking longer journeys and consequently paying higher fares. In the summary at Appendix VIII the comparison of bookings to and from Lo Wu to total bookings illustrates the previous point as the increases in numbers carried is 0.85%, in passenger kilometres is 0.97% and in revenue is 1.85%.

56.

From the Analysis of Goods Receipts at Appendix IX the percentage ratio shows that the trend of increasing amounts of general merchandise being invoiced to and from Lo Wu is still continuing. Imports of livestock also show a continual upswing, the number of heads increasing by 16.38%. There was a decline in the import of diesel oil charged weight fell by 10.65% and revenue by 18.83%, the reason was due to irregular supplies to Fo Tan.

MECHANICAL AND ELECTRICAL ENGINEERING

57.

All locomotives, carriages and wagons, electrical and mechanical equipments, machineries and plants were maintained to a good standard during the year.

Locomotives

58.

The availability factor of diesel locomotives was 85.1% as compared with 87.9% in the previous financial year. The slight drop was due to greater incidences of locomotive overhauls and modifications carried out during the year. Maintenance cost dropped from $1.684 per km. in 1976/77 to $1.590 in 1977/78.

59.

The average consumption of diesel oil rose from 3.74 kg. per locomotive in 1976/77 to 3.80 kg. in 1977/78, reflecting the heavier weight of trains. The total average cost of maintenance and oil consumption per locomotive km. dropped from $4.07 in 1976/77 to $3.98 in 1977/78.

Carriages and Wagons

60.

The availability factor of carriages rose from 89.93% in 1976/77 to 91.60% in 1977/78 and the maintenance cost per passenger coach km. dropped from $0.331 in 1976/77 to $0.300 in 1977/78.

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