Kai Tak green transit system set to cut costs by 40pc with simple fare mechanism: Mable Chan

The Smart and Green Mass Transit System in Kai Tak is expected to cut construction costs by around 40 percent compared with heavy rail and will feature a simple and direct fare adjustment mechanism, Secretary for Transport and Logistics Mable Chan said on Sunday.

Her remarks came after the project recently closed its tender with two bids received. Speaking on a TV program, Chan said the responses met government expectations, as both bids came from teams with expertise in railway construction, engineering consultancy, and operations.

The 3.5-kilometer elevated transit system will feature six stations connecting Kai Tak MTR Station to the Kai Tak Cruise Terminal. Construction is expected to begin within this year, with a targeted opening date in 2031. 

Chan explained that as a medium-capacity system built on elevated structures, the project avoids complex underground drilling, tunneling, and intricate signaling systems, significantly reducing construction time and costs by around 40 percent.

She said construction and operations will be bundled under a signed contract, with an incentive and penalty mechanism built in to encourage timely completion and early launch. 

Chan said initial base fare proposals from both bidders complied with government requirements. The fare adjustment mechanism will take into account public affordability, competitiveness and the project’s financial sustainability. 

To support the heavy initial capital investment, the government will grant three commercial land parcels to the operator under a transit-oriented development model for a 20-year franchise. Chan said it is an optimal timeframe, after which the system will revert to the government for re-tender or extension to ensure long-term operational quality. 

She added that the future fare adjustment mechanism will draw reference from the MTR’s current model to prevent uncapped cumulative increases and provide clear guidelines for all parties. 

On service reliability and delay penalties, Chan said the system’s integrated design, construction and operation will allow for flexible train dispatching. The government will establish appropriate mechanisms to ensure overall network reliability and maintain service standards.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓