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Enhanced Train Services My schedule is more flexible with the Enhanced Train Services. Shared Journeys 26 MTR Corporation It’s convenient You will find a new to take the new Public Toilet Lift to the station! over there! Annual Report 2012 27 Executive Management’s Report MTR’s sustainable transport system underpins the Hong Kong economy Hong Kong Transport Operations Added Train frequencies of Added Airport Express 231 improved to 1,200 Seats Train Trips at 50 stations per week 10minutes 28 MTR Corporation Total patronage on our Domestic Service reached a record 1,431.0 million, a 4.7% increase over 2011, supported by solid economic growth and increased tourist arrivals. Our Domestic Service comprises the Kwun Tong, Tsuen Wan, Island, Tung Chung, Tseung Kwan O, Disneyland Resort, East Rail (excluding Cross-boundary Service), West Rail and Ma On Shan lines. The Cross-boundary Service to Lo Wu and Lok Ma Chau reported patronage of 109.7 million in 2012, a 5.6% increase over 2011. Passenger traffic on the Airport Express increased by 7.6% as compared with 2011 to 12.7 million, supported by an increase in air travel to and from Hong Kong as well as service frequency enhancement. Passenger volume on Light Rail and Bus services in 2012 was 213.2 million, a 3.9% increase over 2011, while patronage on Intercity service was 4.0 million, increasing by 6.4%. Average Weekday Patronage Average weekday patronage for all of our rail and bus passenger services in Hong Kong rose by 4.5% to 5.07 million trips in 2012. Excluding Intercity service, average weekday patronage would have increased by 4.5% to 5.06 million trips. The Domestic Service again accounted for the majority of this patronage, recording a rise of 4.5% to 4.15 million trips per weekday. Market Share The Company’s overall share of the franchised public transport market in Hong Kong increased further in 2012 to 46.4%, as compared to 45.4% in 2011. Within this total, our share of cross-harbour traffic rose to 66.7% from 66.2%. Our market share of Cross-boundary business declined slightly from 54.5% to 54.2% due to strong competition, particularly from buses. The Company’s market share to and from the airport was maintained at 21.8% for 2012. Our transport operations in Hong Kong performed well in terms of both operational and financial results. Financially, total revenue in 2012 from our Hong Kong transport operations, comprising predominately fare revenue but also including rail related ancillary income, was HK$14,523 million, a 7.5% increase over 2011. Operating costs of our Hong Kong transport business increased by 6.5% to HK$7,829 million, resulting in the operating profit for this business increasing 8.8% to HK$6,694 million, with an operating margin of 46.1%. Patronage Total patronage from all of our rail and bus passenger services in Hong Kong grew by 4.7% to a record 1,770.6 million in 2012. Excluding Intercity service, total patronage would have The Operations Control Centre plays a key role in ensuring efficiency increased by 4.7% to 1,766.6 million. Annual Report 2012 29 Executive Management’s Report • Hong Kong Transport Operations Fare Revenue Market Shares of Major Transport Operators in Hong Kong Total Hong Kong fare revenue in 2012 was HK$14,389 million, The Company’s overall market share increased from 45.4% in 2011 to a 7.7% increase over 2011. Of this total, Domestic Service 46.4% in 2012. accounted for HK$10,035 million or 69.7%. Average fare per (Percentage) passenger on our Domestic Service increased by 2.9% to HK$7.01. Fare revenue of the Cross-boundary Service for 2012 was 2.8 2012 HK$2,847 million, an increase of 8.1% over 2011. Fare 14.6 revenue of the Airport Express was 5.9% higher at HK$795 3.1 15.0 46.4 million. Average fares per passenger on the Cross-boundary 11.5 11.4 45.4 Service and the Airport Express were HK$25.95 and HK$62.59 respectively. Light Rail and Bus fare revenue in 2012 was 25.1 MTR HK$578 million, a 5.7% increase over 2011, while fare revenue KMB from Intercity was HK$134 million, increasing by 6.3%. 24.7 Other buses 2011 Green minibus Under the Fare Adjustment Mechanism (“FAM”), on 17 June Trams and ferries 2012 a weighted average increase of 5.4% was made to applicable fares. This adjustment was accompanied by a package of fare promotions which included the popular “Ride 10 Get 1 Free”, “10% Discount for Every Same-day Second Trip”, Market Shares of Major Transport “Tung Chung – Hong Kong Monthly Pass”, “Free Child Travels Operators Crossing the Harbour on Weekends and Public Holidays”, and HK$20 MTR Shops The Company’s market share of cross-harbour traffic rose to 66.7% . (Percentage) coupons for monthly pass purchasers. Under our Operating Agreement, the FAM can be reviewed once every five years and Government initiated discussions on such a review in August 2012. In the review process, we recognise the importance 4.2 2012 of a fair and transparent mechanism that is acceptable to stakeholders, including shareholders and the travelling public. 4.4 29.1 29.4 We continue to discuss with Government on this review in order to reach a solution acceptable to all stakeholders. 66.2 Promotions and Concessions 66.7 MTR A number of other promotions were offered to attract 2011 Buses people to use our network and support patronage and Ferries revenue growth. Several schemes were introduced to underpin the attractiveness of our cross-boundary services. A Lok Ma Chau Market Share of Airport Express advertising campaign was launched in December 2012 to The proportion of air passengers using the Airport Express maintained at 21.8%. encourage more leisure travel on the Shenzhen Metro via (Percentage) Lok Ma Chau Station, including advertisements and a travel e-book highlighting attractions in Shenzhen. At the same time, a similar advertising campaign was initiated in Guangdong Province to promote travel to Hong Kong via Lok Ma Chau 2012 Station. In addition, a 20% fare discount was offered between 21.8 April and June 2012 for passengers travelling to Lok Ma Chau 21.8 Station from catchment areas with a lower ridership including most Island Line stations. 78.2 To encourage more tourists to use our services, a tourist ticket promotion was introduced during the year, 78.2 encompassing discounts at major local attractions such as 2011 Airport Express Ngong Ping 360, Hong Kong Disneyland, Madame Tussauds Other and sky100. Other tourist ticket promotions included special editions of tourist tickets for Ocean Park and special offers from MTR shopping malls. 30 MTR Corporation Passengers and Fares (Hong Kong Fare Trend Transport Operations excluding Intercity) In past years, MTR fares have consistently lagged behind the growth in Hong Kong payroll but were in line with the long-term changes in Economic growth and buoyant tourist arrivals supported the consumer prices in Hong Kong. increase in fare revenue and patronage. 18 1,767 1,800 1,700 17 1,200 16 1,600 15 14.3 1,500 14 1,400 1,000 13 1,300 12 1,200 11 1,100 800 10 1,000 9 900 7.84 8.07 600 8 7.67 7.58 7.69 800 7 700 HK Payroll Index 6 600 400 5 500 Number of passengers (avg. 8.01% growth p.a) 4 400 (million) (right scale) Consumer Price Index (A) 3 300 Hong Kong Fare Revenue 200 (avg. 4.59% growth p.a) 2 200 (HK$ billion) (left scale) MTR System Average Fare 1 100 (avg. 4.22% growth p.a) 0 0 Average fare (HK$) 0 2008 2009 2010 2011 2012 1980 1985 1990 1995 2000 2005 2012 To promote travel on the Airport Express, we partnered for children during the main holidays, which helped generate with major financial institutions and offered discounts to incremental ridership. passengers who purchased tickets online with designated We now have more than 1.3 million MTR Club members. A credit cards. We also successfully launched a group tickets bonus point scheme was launched between April and July promotion, offering instant gifts, travel packages to various 2012 to encourage our Club members to ride and shop within destinations plus lucky draw prizes. Free rides were provided the MTR network and malls. The MTR network carries about 5 million people per weekday efficiently and safely Annual Report 2012 31 Executive Management’s Report • Hong Kong Transport Operations To encourage passengers further to use our train service, two new fare saver machines were installed during the year, Benchmarking Comparisons MTR Corporation maintained its strong position, particularly in service bringing the number of such machines operating in Hong reliability, against international benchmarks. Kong and Shenzhen to 33 as of 31 December 2012. MTR performance vs. Best Performance Service reliability (passenger journeys on time) Service and Performance 99.9 In 2012, we again well exceeded the targets set out in 99.9 the Operating Agreement and our own more demanding Punctuality (percentage of trains on time) Customer Service Pledges. Even though more trains operated 99.9 99.9 than ever before, our train reliability continued to improve and was in fact the best we have had since the rail merger. System utilisation (passenger km per capacity km) 70 Furthermore, train service delivery and passenger journeys 62 on-time across the network were all at 99.9%, a standard that Density (number of passengers per track km) puts MTR among the very best railways in the world.
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