FINANCIAL SUSTAINABILITY OF RAIL TRANSIT SERVICES

— CASE STUDY IN HONG KONG

Abstract

In many modern cities, rail transit services are not financially sustainable without subsidy. However, the situation in Hong Kong is different. It is believed that the high population density provides a suitable environment for the rail transit system to be financially sustainable. In this study, a preliminary analysis on the demand and supply pattern of the rail transit service in Hong Kong was undertaken to shed light on the threshold density below which the rail service cannot be sustainable without subsidy, considering its operations vis-à-vis the competing modes’ fares and services. We investigated the Mass Transit Railway (MTR) line in the new town Tseung Kwan O (TKO) in Hong Kong as a case study.