Overseas expansion of MTR Corporation Limited

Expanding markets outside Hong Kong is part of the MTR Corporation’s development strategy. The introduction of railway development and property management expertise to the Chinese and international markets is also a core element of the MTR Corporation's continued growth strategy. Mainland China is the focus of MTR Corporation's business development strategy, mainly focusing on the development and investment of urban railways, and providing railway operations, property management and consulting services to the mainland. The Beijing MTR Line 4 project is progressing smoothly. The MTR Corporation is also preparing for the approval of the Shenzhen Rail Transit Line 4 project, and continues to look for more projects in major cities such as Hangzhou, Suzhou, Tianjin and Wuhan, as well as Beijing and Shenzhen. Similar investment project opportunities. Shanghai Metro

As early as 2002, the MTR Corporation established a joint venture in Shanghai called "Shanghai MTR Construction Management Co., Ltd." to be responsible for project management of Shanghai railway construction. The company is the project management and owner representative for the first phase of Shanghai Metro Line 9. It is responsible for the design and construction of Line 9, and provides design consultation for Line 8 and Line 11. The first phase of Line 9 from Songjiang Xincheng Station to Guilin Road Station was opened to traffic at the end of December 2007, and the section from Guilin Road Station to Yishan Road Station was completed at the end of 2008.

Beijing Metro

A company formed by the MTR Corporation and its public-private partners signed a "Concession Agreement" for the Beijing Metro Line 4 project with the Beijing Municipal Government on April 12, 2006. Agreement", the total investment amount of the project is approximately 15.3 billion yuan, which is an important milestone in the development of the group's overseas business.

Beijing Metro Line 4 is not only one of the largest investment projects in Beijing-Hong Kong cooperation, but also the first railway project in China to be invested in a public-private partnership (PPP) model.

Approximately 4.6 billion yuan or 30% of the total cost is borne by the public-private joint venture "Beijing-Hong Kong Metro Co., Ltd." jointly formed by the MTR Corporation, Beijing Infrastructure Investment Co., Ltd. and Beijing Capital Entrepreneurship Group Co., Ltd. , the three parties have 49, 2 and 49 interests in the joint venture respectively. The remaining construction costs are provided by the Beijing Municipal Government. The joint venture will be responsible for the electromechanical railway system and trains of Beijing Line 4, and will obtain a franchise right to operate the railway for 30 years.

Beijing Jingang-Hong Kong Metro Co., Ltd. also entered into an agreement on November 27, 2008 with Beijing Rail Transit Daxing Line Investment Co., Ltd., which is wholly owned by the Beijing Municipal Government, regarding the construction of the 22-kilometer-long Beijing Metro Daxing Line. A memorandum of understanding was signed for the operation and maintenance projects. Since the Daxing Line is an extension of Line 4, the joint venture company can operate the Daxing Line after its completion until the concession is completed.

Beijing Line 4 has a total length of 29 kilometers and 24 stations. It starts from Gongyi West Bridge Station on the South Fourth Ring Road in Fengtai District in the south and ends at Anheqiao North Station in Haidian District in the north. The expected construction project It will be completed in September 2009 and open to traffic in the fourth quarter of 2009; while the Daxing Line will be completed in 2010.

Shenzhen Metro

In May 2005, the MTR Corporation signed an agreement with the Shenzhen Municipal Government for the construction of the second phase of Shenzhen Rail Transit Line 4 (now known as the Longhua Line) and the entire line 30 The 2016 concession agreement adopts a financing arrangement based on a "rail and property" model (i.e., the MTR Corporation is responsible for property development projects along Line 4.) and is wholly owned by a build, operate and transfer (BOT) Model construction and operation, and established a wholly-owned subsidiary "MTR Rail Transit (Shenzhen) Co., Ltd." to manage the entire project with a total investment of 5.8 billion yuan.

In 2008, the entire project of Shenzhen Line 4 was approved by the National Development and Reform Commission. The relocation of relevant public facilities and land acquisition have begun. The preliminary preparations are nearly completed, and the main civil engineering works can begin immediately. . On March 18, 2009, MTR Rail Transit (Shenzhen) Co., Ltd. and the Shenzhen Municipal Government formally signed a "Franchise Agreement" for the Line 4 project. According to this "Concession Agreement", the MTR Corporation is responsible for investing and constructing the second phase of Line 4, and is responsible for all operations, maintenance and asset management expenses of Line 4, and the Shenzhen Municipal Government will provide appropriate financial support. And has been operating the entire line for 30 years.

The MTR Corporation will also make arrangements to take over the first phase of Line 4.

About 12 months before the full opening of Line 4, MTR Rail Transit (Shenzhen) Co., Ltd. will start operating the first phase of Line 4 to prepare for the full opening of the line. The entire Line 4 project is expected to be completed and opened to traffic before Shenzhen hosts the 26th Universiade in 2011.

Shenzhen Line 4 is 20.5 kilometers long and has 15 stations. It starts from Futian Port and goes directly to Longhua New Town. Longhua New Town is where the new Shenzhen Station of the National High-Speed ??Railway is located. Line 4 connects to the MTR Lok Ma Chau Station, closely connecting the railway services between Shenzhen and Hong Kong. The first phase of Line 4 runs from Futian Port Station to Children's Palace Station and was opened to traffic in December 2004. The second phase is 16 kilometers long and has 10 stations, connecting Children's Palace Station to Qinghu Station.

Hangzhou Metro

MTRC submitted a capital raising proposal for Hangzhou Metro Line 1 to the Hangzhou Reform and Development Commission in May 2008, and was selected in July 2008 After becoming the "priority negotiation object" of the project, it signed an agreement in principle with the Hangzhou Municipal Government and Hangzhou Metro Group Co., Ltd. on January 16, 2009 to invest and construct the Hangzhou Line 1 project in a public-private partnership model. and 25 years of operation. The total investment amount of the project reaches 22 billion yuan. Hangzhou Line 1 is expected to be opened to traffic in 2011. The MTR Corporation also signed a strategic agreement with the Hangzhou Municipal Government to explore property development opportunities along the Hangzhou Metro line.

Shenyang Metro

The MTR Corporation signed an agreement with the Shenyang Municipal Government and Shenyang Metro Group Co., Ltd. in November 2008 to establish a franchise company to operate the 50-kilometer Shenyang Metro. Line 1 and Line 2. A joint cooperation group was established with the Shenyang Municipal Government to study the development of Shenyang Metro Lines 4, 9, and 10, as well as the extension of Lines 1 and 2. Shenyang Line 1 and Line 2 will be put into service in 2010 and 2012 respectively. In addition, the MTR Corporation signed another agreement to plan and discuss property development opportunities along Shenyang Lines 1 and 2. The MTR Corporation uses a low-investment strategy to compete for railway operating franchise contracts with lower capital requirements in the European privatized market.

London Railway

In January 2007, the MTR Corporation and Laing Rail jointly bid for the London Railway franchise and became one of the two bidders to enter the final selection process. The best and final offer was submitted in March 2007. On June 19, 2007, Transport for London granted the London Overground Rail Operations Limited (LOROL), a joint venture between the MTR Corporation and Laing Rail, the London Railway Franchise (now renamed "London Overground"), and successfully took over the franchise on November 11, 2007, bringing steady improvements to the railway. Operational performance has also improved, with 31 stations undergoing station improvement projects.

London Overground is an important railway network in London, serving west, north and east London, and will be an important transport system during the 2012 Olympic Games. Under the franchise, LOROL will operate train services in the Greater London area for a period of seven years, which can be extended by two years at the discretion of Transport for London.

Stockholm Metro

In August 2008, the MTR Corporation bid for the franchise of the Stockholm subway (Stockholms tunnelbana) in the Swedish capital. On January 21, 2009, the MTR Corporation The company was granted an eight-year franchise for the 108-kilometer railway system with a total of 100 stations. The MTR Corporation took over the franchise on November 2, 2009. The MTR Corporation is also seeking a railway operation franchise contract in the Australian market.

Melbourne Railway

In April 2009, the MTR Corporation bid for the franchise of Melbourne Metropolitan Rail (Melbourne Metropolitan Rail) in Australia.

The MTR Corporation and two local companies in Australia (John Holland Pty Ltd and United Group Rail Services Ltd) have formed a joint venture, Metro Trains Melbourne (MTM), and will likely be approved for this 372-kilometer-long, ***200-station project. A fifteen-year franchise for the railway system to handle the operation and maintenance of the railway. If the MTRCL successfully bids for the franchise, the franchise will come into effect at the end of 2009.