Mainland China ¡E
Mainland China continues to offer potential as both a market for our services and a resource centre for rail products supply. To date, our activities include rail consultancy on the operation and management of urban transit systems, joint ventures in building and operating rail networks, property development under the Corporation's rail + property business model, technical and management training programmes and the sourcing of rail products for sales worldwide.
Our overarching strategy is to grow with communities there and to bring people to a rail transport network through innovative urban planning and infrastructure design based on the tenets of sustainability. Our proven expertise in integrating rail and community provides the roadmap. As well, with our broad spectrum of expertise, we offer the opportunity to transform proven strategies into sustainable business models applicable to the Greater China market.
Bringing such models into practice necessitates active stakeholder engagement, education and partner buy-in to the principles of sustainability at all stages of project planning and development. Priority areas, such as safety, quality, environment and in the near future, employment practices, have been identified and initiatives are in place under our Management Directives for Growth Business strategy to establish effective systems and programmes for best practice.
Urban planning ¡E
Shenzhen Metro Line 4 marks our first rail+property model application and the introduction of a new mindset in how to plan urban environments. Working with the principles of the layout and environmental initiatives employed for the Tung Chung development in Lantau and the ¡¥Dream City¡¦ of Area 86 in Tseung Kwan O, pedestrianisation takes precedence and environmental and spatial restraints are creatively addressed with sustainable community living as the priority outcome. Our master plan for this rail line and the some 2.9 million square metres of gross floor area for development along the line proposes a unified network consisting of "green fingers" incorporating the natural environment together with a "green rail spine" in which new communities link via a primary rail line supported by a series of secondary transport roads.
In Beijing we are engaged in a joint venture agreement to undertake the general E&M fit out of the Beijing Metro Line 4. Under the terms of the concessionary agreement, the Corporation will operate this line for a term of 30 years from completion of the line. Our priority is to ensure the safety, quality and integrity of the operating asset.
Managing risk ¡E
Our experience in building and operating rail systems prioritises safety in the development of a risk strategy. We have established in mainland China a fit for purpose framework for managing health and safety on site, building the safety culture amongst the workforce and participating in early stages of development to assure the future integrity of the rail asset. Additional training and monitoring programmes are underway with the objective to embed best practice across operations using our Hong Kong standards as a reference model.
Under the recently introduced Corporate Safety Policy, the China and International Business (C&IB) Division Safety Committee was formed. This committee, comprising key managers from Hong Kong, Europe and mainland China provides the leadership and support for the development of safety management systems that are effective, efficient and measurable. The Committee is currently developing a business-specific safety manual in anticipation of the required manpower and construction commitments for activities in mainland China. This manual provides the framework and methodologies for sustainable best practice under which we will build and manage current and future projects there.
Procurement and supply chain ¡E
The realities of the managing the procurement process, supply chains, sub-contracting on our sites, quality control and partnering are overriding factors affecting the long-term sustainability strategy of our operations. To this end we are in dialogue with well established multinationals that are at the forefront of best practice as well as our established partners in mainland China to address these and other issues. While we have yet to commence a substantial presence in mainland China we are committed to develop a Procurement Code of Ethics and implementing a compliance-based process to ensure conformity with local laws as well consistency with the International Labour Organisation's directives.
European markets ¡E
Working with our strong reputation as a world-class mass transit railway, we seek opportunities in the European market in anticipation of the general trend in rail privatisation and the increased use of Public Private Partnerships in developing transport systems. Recent experiences with bids in the UK and the European Union presented a steep learning curve in participating in these mature markets and have identified for us our strengths and weaknesses as a partner of choice. We are currently expanding our horizons in Europe through increased tendering activities across a wide range of rail transport opportunities that will optimise our strengths as industry leader in building and operating integrated mass transit systems.
