MTR Corporation thrives with the urban development of Chinese mainland

Jacob Kam, CEO of MTR Corporation attended China Development Forum (CDF) 2024, and delivered a speech during the forum on March 25, 2024.

The China Development Forum (CDF) 2024, held on Sunday and Monday in Beijing, saw the participation of the CEOs of over 80 foreign companies from a large variety of industries. Jacob Kam, CEO of MTR Corporation attended the forum and delivered a speech on March 25, 2024.

During the forum, Kam contributed his thoughts on the sustainable development of China's economy.

He highlighted the encouraging recovery from the global pandemic and emphasized the resumption of the international cooperation and exchange between China and countries worldwide. Kam praised the implementation of supportive policies for foreign-invested companies, which have contributed to the stability and growth of the global economy.

Kam further acknowledged the timely introduction of the concept of "New Quality Productive Forces" by the Chinese government. This concept has provided a fresh impetus for sustainable economic growth and enhanced China’s international competitiveness in the fast-changing global landscape. The emphasis on technological breakthroughs, industrial transformation and international collaboration will drive China's new quality productivity and inject fresh vitality into its sustainable development.

Experiences worldwide have consistently demonstrated that the impact of robust public transportation development is far-reaching and extensive, and the case in China is even more telling. Kam highlighted the crucial role of an efficient transportation network in alleviating traffic congestion, improving air quality and fostering economic growth, urbanization and urban prosperity. Urban rail transit, particularly metros, has played a significant role in China's transportation ecosystem, with the total length of the urban rail transit network exceeding 11,000 kilometers and serving more than 30 billion passengers annually by the end of 2023. Additionally, the high speed rail boasts a network of 45,000 km across the country. These are strategic infrastructures that promote mobility and drives economic growth.

Kam mentioned that the service quality of Hong Kong's public transportation system is globally recognized. Over the past few decades, Hong Kong Special Administrative Region has successfully implemented a model of rail transit-driven urban development. In the 45-year history of the MTR Corporation, it pioneered the "Rail plus Community" approach, a sustainable development model that combines efficient railway services with unique shopping experiences at subway stations, effectively transforming massive passenger traffic into purchasing power.

Since 2009, MTR has been investing in the Chinese mainland’s rail transit system, currently operating over 300 kilometers of rail transit lines in Beijing, Hangzhou, Shenzhen and other cities through Private-Public Partnership or Operations and Maintenance Concession, with a total investment of more than 60 billion yuan ($8.32 billion). The Corporation is also exploring a station commercial business model in Chengdu and other Chinese mainland cities that may create further economic values.

Throughout its decade-long journey of investment and development in the Chinese mainland, MTR Corporation has witnessed the continuous improvement and optimisation of the country’s business environment. Kam highlighted the positive changes resulting from policies that relax foreign investment restrictions, streamline approval processes, enhance intellectual property rights protection, strengthen market supervision and transparency. These changes have opened up more market opportunities for foreign businesses and fostered a fairer and more transparent market environment. MTR's extensive engagement with central and local governments in Chinese mainland has deepened its understanding of the market and received positive responses and support from governments at all levels, leading to fruitful collaborations with its industry peers across the country.

Looking forward, Kam expressed great optimism about the future of China's urban rail transit market, characterised by extensive public transportation and consumption. As one of the strategic pillars of its corporate strategy, MTR Corporation is committed to sharing its experiences and actively participating in the urban development of the Chinese mainland.

The corporation expects to foster more collaborations with governments and industry peers in driving consumption growth and promoting green and sustainable development, thus making a meaningful contribution to China's continuous development.