Hong Kong experience in rail system investments

Interesting speeches and presentations were made at the Istanbul Finance Summit, where speakers and participants from nearly 50 countries participated. The capital markets session was attended by Istanbul Stock Exchange President Dr. Apart from İbrahim Turhan, President of Frankfurt Stock Exchange, Nasdaq and NYSE-Euronext Board of Directors and President of Abu Dhabi Stock Exchange were also present as speakers.

What was spoken here was important in terms of the future prospects for the cooperation between securities exchanges. ISE President Dr. Compliments İbrahim Turhan received from Nasdaq Vice Chairman Sandy M. Frucher, Dr. It showed that Turhan was a recognized and respected figure among the international stock exchange managers in a short time.

The sessions and speakers of the Istanbul Finance Summit on capital markets were not limited to stock exchange managers. Another special guest speaker's presentation of the technical field of liquidity in the capital markets had a very important platform content for Turkey. Lincoln Leung, Hong Kong city rail system administration Vice President of MTR, talked about his MTR experience. Digression Turkey, especially the very important experience for Istanbul. You ask why? The Hong Kong Rail System Administration (MTR) has solved the traffic problem of Hong Kong with the rail system investments it has made since 1979 and has paid back the initial investment and also made a $ 28 billion supplement to the state's coffers.

MTR model

Let's take a brief look at MTR first. MTR has a total of 1979 kilometers of lines with train, light rail and bus line projects completed in Hong Kong at different stages since 218. 182 kilometers of train tracks consist of ten separate lines, 84 stops and approximately 2000 wagons and tractors. The total line length of the light rail system, which has twelve lines, is 36 kilometers. It has a warehouse, 68 stops and 141 vehicles. The bus system was set up to feed the metro system. It has seventeen lines and 143 buses. MTR also has a 45 percent share in Hong Kong traffic. It carries 5 million people a day. 99,9 percent reliability and the average fare proportional to the distance is 7,8 Hong Kong Dollars (1 TL)

MTR is a public company. The total market value of its shares is $ 21 billion. Its major partner is the Hong Kong government with a 77 percent share. The profit for 2011 was 1,4 billion dollars. Railway investments have two important features. The first is high investment amounts. Second, the size relationship between incomes and expenses prolongs the return on investment. Third, and most importantly, a significant amount of returns do not enter the investor's balance sheet (and income statement). Let's dwell on this third one. The commercial returns of railway investments are far below their total (economic) returns. We can show environmental pollution or time savings as the most standard example of this. However, there is another return of railway (and other transportation) investments: It adds value to its environment and "earns income." For example, when you connect a neighborhood to the city center by subway, the real estate prices in that neighborhood increase and trade develops. Here, MTR has made this last point a model. In the MTR model, the government grants MTR real estate development rights in return for its investment. In a sense, you can compare it to our TOKI model. MTR finances its railway investments to bring solutions to traffic congestion by developing real estate around the line by negotiating with the state. Indeed, 2011 percent of the company's 1,4 profit ($ 60 billion) was covered by real estate revenues (real estate development and rent). 20 percent came from the revenues from the stations, and the remaining 20 percent from transportation activities. After all, the investment required to solve Hong Kong's traffic problem is provided by the rent given to the operator. In the end, when it was made to the public, both the state made money on its first investment and the public became one of the owners of the operator. It would be correct to call this model state capitalism.

Source : http://www.zaman.org

📩 25/11/2018 14:23

Similar Ads

Be the first to comment

Leave a response

Your email address will not be published.