MTR lands another Shenzhen line

A subsidiary of MTR Corp has been awarded a contract to operate the Shenzhen Metro Line 13 for 30 years in partnership with a state-owned railway company.

MTR Consulting (Shenzhen) and China Railway Electrification Bureau (Group) will sign an agreement with the Shenzhen government for the private-public project costing about 4.91 billion yuan (HK$5.44 billion).

Apart from the investment in and building of Line 13, the MTRC will also be granted a 30-year term of the line's operations after it is completed.

The 22.4-kilometer line will comprise 16 stations from Shenzhen Bay Port in Nanshan district to Shangwu North in Baoan district. It is expected to commence service in 2023.

To take on the project, MTR Consulting and CREB will form a new joint venture, with an effective interests of 83 percent and 15 percent. The remaining 2 percent will be owned by a subsidiary of the Shenzhen government.

They will be responsible for track laying, rolling stock, electrical and mechanical systems such as the signaling system and automated fare collection system during construction.

Civil construction will be carried out by Shenzhen Metro Group, which is also a state-owned enterprise.

This will be the eighth subway construction project in the mainland that MTRC's subsidiaries have taken part in. Previous projects include four lines in Beijing, one in Shenzhen and two in Hangzhou.

The company is also behind the operation of the light rail Taipa Line in Macau, as well as several lines in the UK, Sweden and Australia.

"Building on our proven expertise in operating international railway services and experience in serving commuters in Shenzhen since 2010, we look forward to delivering safe, reliable and convenient metro services to serve more commuters in this city," its CEO Jacob Kam Chak-pui said.

The MTRC has undergone a rocky year locally, as it has been dragged into a row over its role in year-long protests.

It was accused of helping the police lay siege to protesters and in arrests, resulting in boycotts and disruption of its train services

A salary freeze was announced for all staff in July, the first time since 2003, which the MTRC said was due to the unrest and the pandemic. This came after it warned that it was facing a HK$400 million net loss in the first half, a sharp reversal from the HK$5.5 billion net profit seen a year ago.