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Mainland of China and International Business

Introduction

MTR Corporation Shenzhen (MTRSZ), a wholly-owned subsidiary, has operated Line 4 of the Shenzhen metro network since July 2010. Also known as the Longhua Line, our service runs north-south from an interconnection with the East Rail Line in Hong Kong at the Futian Checkpoint to Qinghu in the Longhua New District. It intersects with four other lines in the Shenzhen metro network that are managed by another operator.

Shenzhen Line 4 was built in two phases between 1999 and 2011. We designed and built phase 2 and will operate the whole line for 30 years under a Build-Operate-Transfer (BOT) Agreement with the Shenzhen Municipal Government. Although the line is designed to carry six-car trains, we decided initially to operate shorter four-car trains at a higher frequency in order to provide greater convenience for our passengers. Following the rapid expansion of Shenzhen’s population and the overwhelming popularity of the metro network with the city’s residents, the Longhua Line has experienced a growth in patronage of over 20 per cent per annum.

Key Facts and Figures for about MTRSZ in 2014

Number of Passenger Trips (Millions)

2013 2014
140169

Composition of our Workforce

Age (Years)
Below 30 30–49 50 and above Total
Female 253 148 1 402
Male 586 340 3 929
Total 839 488 4 1,331

Total Electricity Consumption (MWh)

2013 2014
65,16673,987

Incidence of Legal Non-compliance

Management Highlights

Traditionally a less developed part of the municipality, Longhua New District is fast becoming popular as a residential area due to rising costs of living in the Central Business District (CBD) and good connectivity with the city using the Shenzhen metro network. Line 4 is primarily a commuter service for white collar workers moving in and out of Shenzhen’s CBD at rush hours. As a consequence of this, our management challenges are mostly associated with the weekday patronage profile, which has significant implications for the safety and comfort of passengers.

Conversion from Four to Six Car Trains

We made a decision at the end of 2012 to increase the length of trains running on Line 4 from four to six cars in order to ease congestion during rush hours. Following a year of preparation to implement this project, MTRSZ began the process of introducing six-car train services in early 2014. For several months, a mix of four- and six-car trains were in service but by the end of January 2015 the project had been declared a technical and customer service success with all trains having been converted safely, ahead of schedule and with minimal disruption to passengers.

Operational Performance

In 2014, MTRSZ continued to deliver its train services to a very high standard, achieving 99.99 per cent of passenger journeys on time, 99.86 per cent train punctuality and 99.95 per cent train service delivery.

Operational Performance for MTRSZ

2014
Passenger journeys on time100%
Train punctuality99.9%
Train reliability15,852,883 revenue car-km/incident
Train service delivery100%

Investing in Our Stations

MTRSZ is responsible for the maintenance and upkeep of stations along Line 4 and works together with other operators of the Shenzhen metro network to ensure smooth management of Line 4 platforms in interconnecting stations. During 2014, MTRSZ continued to invest in sustaining a high standard of general appearance and good facilities in all its stations, including public toilets.

Safety Performance for MTRSZ

Passenger and Public - Fatality

2013 2014
00

Staff - Fatality

2013 2014
00

Contractor - Fatality

2013 2014
00

Passenger and public - No. of injuries per million passenger journey

2013 2014
1.361.07

Staff - Lost time injuries per 100,000 man-hour

2013 2014
0.140.18

Contractor - Lost time injuries per 100,000 man-hour

2013 2014
0.160.07

Engaging with Passengers on Safety

MTRSZ has developed a tailored programme of engagement with customers to promote safe and comfortable journeys. For example, we work with schools located in the vicinity of our stations to encourage children to become ambassadors for safe and considerate behaviour, such as holding the handrail on escalators, queuing appropriately on platforms and refraining from sitting on the floor of trains. In our experience, children are receptive to these messages and are often enthusiastic to influence the behaviour of parents and other adults.

A significant proportion of our passengers are inexperienced in the use of escalators. This is particularly the case for those who have newly arrived or are visiting the city from rural areas. Safety Ambassadors have been trained to provide assistance to passengers in need, and particularly to guide them to use the lifts when travelling with bulky luggage. We also have a special programme of engagement with large factories located in the vicinity of our stations to provide assistance for crowd control at peak times, such as around Chinese New Year when many migrant workers travel home to be with their families.

Staff

Good quality training and career development opportunities for our staff are key components of our strategy to recruit and retain talent in Shenzhen’s competitive market for skilled labour. In 2014, MTRSZ developed a new partnership with a Shenzhen-based training institute to provide internship opportunities for young people. We hope that in addition to helping us develop a pool of talented young people for recruitment into our business, this initiative will also provide valuable learning opportunities for young members of our community.

Social Performance for MTRSZ

Total Employees

2013 2014
1,2891,331

Voluntary Staff Turnover (%)

2013 2014
12.98.3

Training Days per Employee

2013 2014
1.51.8

Environment

As the operator of a single line in the Shenzhen metro network, MTRSZ has minimal direct impacts on the environment. In 2014, electricity consumption increased by 14 per cent on account of higher passenger numbers and greater energy demand from longer six-car trains. Over the past three years, water consumption has been reduced by 21 per cent as a result of effective water conservation measures.

Environmental Impacts from MTRSZ

Greenhouse Gas Emissions (Tonnes CO2e)

2013 2014
Scope 1259236
Scope 253,77361,349

Total Water Consumption (m3)

2013 2014
222,071183,813

Community

MTRSZ developed a community plan in 2014 to underscore that we are operating a community railway. The plan focuses on youth development, community outreach and public art.

 

Did you know?

 

The sales office for our Tiara property development officially opened in November 2014. Tiara is modelled on our Telford Gardens and Telford Plaza complex in the Kowloon Bay area of Hong Kong. Situated above the depot of the Shenzhen Metro Line 4 in Longhua New District, this is our first property development project in the municipality of Shenzhen and will be managed by our wholly-owned subsidiary, MTR Property Development (Shenzhen) Company Limited.

Preparations are underway to launch Phase 1 pre-sales in the first half of 2015, subject to market conditions. This phase offers a total developable gross floor area of approximately 206,000 square metres. The next phase of the project, involving development of Lot 2, is currently in the planning stage.