Hong Kong-based MTR Corporation and the municipal government of Shenzhen in south China's Guangdong Province signed on May 26 a concession agreement on the investment, construction and operation of Shenzhen Metro Line 4. The deal signifies the official debut of MTR on the mainland.

The two sides signed on January 14, 2004 an agreement in principle on the cooperation and established a joint venture for the project with a registered capital of RMB 2.4 billion yuan.

According to the agreement, MTR will invest RMB six billion yuan and be responsible for the construction of the Phase 2 of Shenzhen Metro Line 4. It will also acquire the property development right at stations and depot along the line with a floor area of 2.9 million square meters in north Shenzhen's Longhua town. It is planned to build 29, 000 sets of apartments for residence and business in seven years. The profits are expected to exceed RMB 1.5 billion yuan.

The Phase 2 of Shenzhen Metro Line 4 extends about 15.8 kilometers with about 5-kilometer tunnels and 10.8 kilometers on the ground including viaduct. There are ten stops and one section for special vehicles. The line, to be completed at the end of 2008, will be a transport artery linking Hong Kong with the mainland via Shenzhen.

Chow Chung Kong, CEO of MTR Corporation Limited, said the company has started to seek cooperation on the mainland since one and a half years ago in the hope of making contribution to the country with Hong Kong's experience in metro operation. Chow believed the company will make the project a success with the most advanced management concept.

By People's Daily Online