Hong Kong experience in rail system investments

An interesting speech and presentations were made at the Istanbul Finance Summit, where speakers and participants from the country were close to 50. Chairman of the Istanbul Stock Exchange Apart from İbrahim Turhan, he was the President of the Frankfurt Stock Exchange, members of the Nasdaq and NYSE-Euronext Board of Directors, and the chairman of the Abu Dhabi Stock Exchange.

What was discussed here was important in terms of future cooperation between the stock exchanges. President of Istanbul Stock Exchange Ibrahim Turhan's Vice Chairman of Nasdaq Sandy M. Frucher'dan praises, Dr. Turhan's reputation among international stock market executives in a short period of time has been shown to be a figure.

The session and speakers of the Istanbul Finance Summit on capital markets were not limited to stock market executives. Another special guest speaker's presentation of the technical field of liquidity in the capital markets had a very important platform content for Turkey. Lincoln Leung, MTR Vice President of the rail system administration in Hong Kong, described the MTR experience. Digression Turkey, especially the very important experience for Istanbul. You ask why? The Hong Kong Rail System Administration (MTR) has solved Hong Kong's traffic problem with its rail system investments since 1979 and repaid 28 billion dollars.

MTR model

First, let's look at the MTR briefly. Since the 1979, MTR has a total of 218 kilometers in Hong Kong with various train, light rail and bus line projects. The 182 train tracks consist of ten separate lines, an 84 stop and an approximate 2000 wagon and tow truck. The total line length of the light rail system having twelve lines is 36 mileage. I have a repository, 68 stop, and 141 tool. Bus system was established to feed the metro system. Seventeen lines, 143 bus. MTR has a share of 45 in Hong Kong traffic. 5 per day carries millions of people. 99,9 Hong Kong Dollars (7,8 TL)

The MTR is a public company. The total market value of its shares is 21 billion dollars. The major partner, the 77 share with the Hong Kong government. 2011 was 1,4 billion dollars a year. Railway investments have two important features. The first is the high investment amounts. Second, the magnitude relationship between revenues and expenses extends the return on investment. Thirdly, and most importantly, a significant amount of returns are not included in the investor's balance sheet (and income statement). Let's stop a little over this third. The commercial returns of railway investments are far below the total (economic) returns. The most standard example of this is environmental pollution or time savings. However, there is another return of rail (and other transportation) investments: It adds value to the environment and gives kent rant. Mah For example, when you connect a neighborhood with the subway to the city center, the real estate prices in that neighborhood are rising and the trade is developing. MTR has made this last point a model. In the MTR model, the government gives MTR the right to develop property in return for its investment. In a sense, you can simulate the TOKI model. MTR is also financing the railway investments in the vicinity of the line by negotiating with the state and making a solution to the traffic density. As a matter of fact, the 2011 of the company's 1,4 profit (60 billion dollars) has been covered by real estate revenues (real estate development and rent). The remaining 20 20 percent of the revenue from the station came from the transportation activities. As a result, the investment required to solve Hong Kong's traffic problem is provided by the rent to the operator. When the ring was made to the public, the state made money on the first investment and the people became the owners of the operator. It would be right to say state capitalism to this model.

Source : http://www.zaman.org

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