Transport Policy ˇE
In Hong Kong, the general transport strategy is expressed under Government's Comprehensive Transport Strategy (CTS- 3) supported by the more specific rail strategy laid out in the Rail Development Strategy 2000 (RDS-2). The Government's overarching policy is to give rail the priority in transport infrastructure development so as to enable the two networks (MTR and KCR) to carry up to 40-50% of all public transport journeys by the year 2016. Under the supporting RDS the existing overall rail infrastructure network will increase by some 40% to meet these needs and expectations.
More recently papers published by the Council for Sustainable Development and Civic Exchange have called for a more proactive and cohesive approach to policy and transport planning moving forward from the CTS-3. It has been noted that many of Government's current strategies and polices have either failed or are inconsistent with sustainability goals. To realign with goals it is recommended to reduce road-based travel and curb new road construction by encouraging mass transit rail as the principal commuter service linking new city developments and to be the optimal alternative in transport in urban redevelopment. It was also recommended to improve bus-rail co-ordination to better utilize the respective operatorsˇ¦ system capacities while increasing the modal split in favour of rail. These strategies are intended to change the way people use transport, thus creating the long-term solutions to the negative environmental and social impacts of roads and commuter traffic.
Rail merger ˇE Government has taken a substantial step in this direction with the announcement of the propoased merger of the MTR Corporation adn Kowloon-Canton Railway Corporation (KCRC). The five objectives set out by Government seeks to enhance the public's benefit through lower fares and seamless interchange between the systems, introduce an objective, transparent fare-setting mechanism and assure job security for the frontline employees of both companies.
In April 2006, we entered into non-binding Memorandum of Understanding (MOU) with the Hong Kong SAR Government setting out the terms of the proposed merger of the two railwayˇ¦s operations together with the acquisition of a property package. In addition to meeting the five objectives, the Company will make an upfront payment of HK$4.25 billion for a Service Concession and for certain rail assets purchased from the KCRC, and HK$7.79 billion to acquire a property package that comprises development rights, investment properties and property management rights. Over the life of the Service Concession, the Company will offer KCRC an annual fixed payment of HK$750 million, plus an annual variable payment based on revenues generated from KCR rail and rail-related operations. Once the merger is accepted, the five objectives set out under the MOU ensure that intended benefits will flow to the travelling public, shareholders and staff.
Over the 2006 year, the critical issues pertaining to the sustainability of the new entity are being addressed and due diligence conducted accordingly. These include environmental assessments, network systems integrity testing, and changes in the organisational management structures.
Regional sustainability ˇE Regional and cross-border issues in transport sustainability form a component of the larger initiatives in the Pearl River Delta for pollution control and urban development under the Pearl River Delta Regional Air Quality Management Plan (the Management Plan) initiated in 2003. The framework of this plan sets out management of air through introduction of new standards for power plants, cleaner energy production, a network and system for monitoring air quality, a vehicular emissions management scheme and the planning of metro systems in major urban centres within the region.
To date studies have been conducted and recommendations tabled to move initiatives forward. However, many of these initiatives remain broadly at the discussion stages with some progress made in the framework for developing a pilot emissions trading scheme for power plants in Hong Kong and the Pearl River Delta, the reduction of vehicular emissions impact and the expansion of mass transit in both Guangzhou and Shenzhen. Our ˇ§Greenˇ¨ urban design master plan submitted for the Shenzhen Metro Line 4 aligns with this Management Plan.
Corporate initiatives ˇE In addition to our CSR and other initiatives discussed in our 2005 Report, we take an active role in fostering sustainable best practice for the benefit of our region and the global society. These include:
- Clean Air Charter
Over 200 companies have joined this voluntary scheme to work as a community to improve the air quality of the Pearl River Delta. Under the auspices of several business associations and government entities from Hong Kong and mainland China, the Charter lists six key areas in which businesses can make a difference to reduce air pollution. As a signatory member we adhere to these areas of commitment and seek to implement. The Charter builds on efforts we have started and reported on in our 2000 Environmental Report and our 2001 Corporate Sustainability Report.
- UITP
The Corporation currently chairs the UITP Sustainable Development Commission. The mandate of this Commission is to develop and promote a formalised industry policy on sustainability that takes into consideration all forms of public transport. In 2005 the Commission introduced a working paper on climate change that anticipates public and private transport inclusion into the registry of GHG control.
