Northern Link cost cut to $86.2b, full line targeted to open by 2034

The government has approved the project agreement for Part 2 of the Northern Link project, bringing the estimated cost of the combined Main Line and Spur Line to HK$86.2 billion, 28 percent below the original estimate. 

Following approval of the financial arrangements by the Chief Executive in Council on Tuesday, Secretary for Transport and Logistics Mable Chan and MTR Corporation Chairman Jacob Kam Chak-pui executed the comprehensive project agreement. The entire line is projected to open concurrently by 2034 or earlier.

Chan said the government and the MTR had spent the past year working to cut costs and speed up construction. Measures include introducing the Hong Kong Railway Standards to facilitate the use of innovative technologies, materials, equipment, and systems and establishing a dedicated Railway Checking Unit to review construction plans. The new process is expected to reduce the time needed to handle plans by 30 to 50 percent.

She said the Northern Metropolis Development Bill also proposes streamlining procedures, including simplifying the application process and requirements for construction noise permits. The Main Line and Spur Line were combined into a single project to reduce costs and bring the Spur Line’s opening forward by two years.

The construction cost for the second part—which covers railway tunnels, stations, a depot, and associated electrical and mechanical systems—is estimated at HK$54.8 billion. Factoring in Part 1, the total capital outlay stands at HK$86.2 billion in July 2025 prices, down 28 percent compared with previous estimates.

According to official project documents, the capital expenditure for Part 2 will be distributed over approximately 10 years, with projected outlays of HK$1.1 billion in 2027, HK$2.9 billion in 2028, and HK$5.9 billion in 2029.

The Chief Executive in Council has also approved granting the MTR eight sites for residential and commercial development under the “Rail-plus-Property” model. The sites cover about 46 hectares and are in Ngau Tam Mei Area 3A, 3D, and 4A; San Tin Area 2A and 2G; Kwu Tung North Area 23 and 26 East; and part of a proposed residential site in the Au Tau New Development Area.

Kam described the Northern Link as a strategic transport backbone for the Northern Metropolis, emphasizing that it will serve local commuter demand while reinforcing cross-boundary connectivity with Shenzhen and the broader Guangdong-Hong Kong-Macao Greater Bay Area.

The 10.7-kilometer underground Main Line will feature five stations. Kam Sheung Road and Kwu Tung stations will serve as interchanges connecting to the Tuen Ma Line and East Rail Line, respectively, supported by intermediate stops at San Tin, Ngau Tam Mei, and Au Tau. Once operational, peak-hour travel times between Kam Sheung Road and Kwu Tung are expected to drop from approximately 60 minutes to just 12 minutes.

The Spur Line will comprise about six kilometers of underground railway branching off from San Tin Station, including a 1.1-kilometer section in Shenzhen. It will have three stations: intermediate stations at Chau Tau and The Loop, and a terminus at Huanggang Port in Shenzhen. The journey between San Tin and Huanggang Port is expected to take about 11 minutes.

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