Hong Kong's subway has a $2 billion profit, per year

Hong Kong's subway has a $2 billion profit, per year

Hong Kong’s subway is the part of the MTR (Mass Transit Railway Corporation). It is a publicly traded company that had $5.2 billion revenue last year! Every year, railway in the Hong Kong makes a profit of $2 billion. This is very rare, and interesting fact, especially if we know that New York’s subway has a serious funding gap!

The subway in Hong Kong is a real masterpiece. Every day it has 5 million commuters. Despite that, their on-time arrival rate is astonishing 99.9%! Maybe the even more interesting fact is that fares cover 175% of the operating expenses, despite they are cheap ($0.50-$3). This sounds very good, but MTR makes real profit using property development! Two of the tallest skyscrapers and 50 major properties are developed, managed and owned by MTR. The major shareholder of the MTR is Hong Kong government. They have a unique and effective relationship. The government is proving a free land, so MTR can use it. Then, this company starts developing the areas around their stations! Very simple and very clever.

Around stations on the surface, MTR built shopping malls, they have 13 of them! Rent is very expensive, last year it went up to 14%! Underground, every station is full with retail outlets. All of them pay rent to the MTR or share profit. This is also good for the people, because they have almost anything they need on or around their stations.

Currently MTR is expanding their lines in China, Sweden, Australia and the United Kingdom. In the near future, there will be more similar projects. According to some statement, MTR is going where the profit is!

 

What's New?The latest

Amber Heard donates $7 million settlement to charity

Amber Heard donates $7 million settlement to charity

Amber Heard’s divorce ordeal might have been painful for Johnny Depp and Amber but it was the complete opposite for two charity organizations that will receive the settlement money. The two organizations that she is sending the donations to are the American Civil Liberties Union, to aid in the…

CONTINUE READING

Are there pitfalls to online banking?

Are there pitfalls to online banking?

With easy access to the internet, anyone can have access to a multitude of things – we can get quick advice or more information of things, buy and sell things online, limitless choice of entertainment and even banking services, all at the tip of your fingers! It is all cyberspace, after all,…

CONTINUE READING

How to become a millionaire?

How to become a millionaire?

We all want to be rich some of us do not aspire to be a millionaire, but simply rich enough so they can live comfortably. And on the other hand you have those whose only goal in life is to become a millionaire, which is okay in case you don’t have any other dreams or aspirations. So if you…

CONTINUE READING