Value Strategy

MTR Corporation is a conduit to promoting widespread economic value. Through our preferred rail plus property business model supported by sustainable business practices, the Corporation maintains profitability while investing in and building new rail projects.

Underlying this model is the financial objective, investing on a WACC+ (Weighted Average Cost of Capital) basis, a corporate premise announced at our public listing in 2000. The WACC+ approach guides assessment of rail project viability irrespective of development models. With expansion into international markets and more recently, in Hong Kong, alternative financial models in rail developments will be considered where property rights are not feasible. While the rail plus property business model remains the primary vehicle, utilising alternatives under the WACC+ basis widens our scope for business opportunities without compromising our value promise to shareholders.



In broader terms, we are a community asset. Our world-class transport infrastructure is recognised as a contributing factor to Hong Kong's status as an international business and financial centre. In addition to being the mainstream public transport provider, we support Hong Kong's service-based industries through our supply chain and significantly contribute to tourism with operations of the Disneyland Resort Line and Ngong Ping 360 Cable Car and tourist village. Our transport network, which connects commercial centres and residential developments across Hong Kong, provides the blueprint for an affordable quality of life in urban and community development.

The resilience of our rail strategy broadens our long-term economic value to the communities we serve. With the introduction of rail to older, more suburban communities, as seen with the South Island Line (SIL), the Corporation facilitates the revival of communities while keeping local heritage and identity intact. New stations are optimised for both social and economic value by soliciting early community input that leverages planning and design in terms of potential usage and development costs.

The rail merger introduces immediate economic benefit to our wider group of stakeholders, in particular, passengers and staff. In response to the five objectives underlying the merger agreement, fares have been cut across the board for commuters, the Fare Adjustment Mechanism affords transparency and objectivity and, jobs are guaranteed for the 80% of MTR Corporation staff holding front-line positions.