Hong Kong experience in rail system investments

Interesting speeches and presentations were made at the Istanbul Finance Summit, where speakers and participants from nearly 50 countries participated. The capital markets session was attended by Istanbul Stock Exchange President Dr. Apart from İbrahim Turhan, President of Frankfurt Stock Exchange, Nasdaq and NYSE-Euronext Board of Directors and President of Abu Dhabi Stock Exchange were also present as speakers.

What was spoken here was important in terms of the future prospects for the cooperation between securities exchanges. ISE President Dr. Compliments İbrahim Turhan received from Nasdaq Vice Chairman Sandy M. Frucher, Dr. It showed that Turhan was a recognized and respected figure among the international stock exchange managers in a short time.

The sessions and speakers of the Istanbul Finance Summit on capital markets were not limited to stock exchange managers. 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, Hong Kong city rail system administration Vice President of MTR, talked about his MTR experience. Digression Turkey, especially the very important experience for Istanbul. You ask why? The Hong Kong Rail System Administration (MTR) has solved the traffic problem of Hong Kong with the rail system investments it has made since 1979 and has paid back the initial investment and also made a $ 28 billion supplement to the state's coffers.

MTR model

Let's take a brief look at MTR first. MTR has a total of 1979 kilometers of lines with train, light rail and bus line projects completed in Hong Kong at different stages since 218. 182 kilometers of train tracks consist of ten separate lines, 84 stops and approximately 2000 wagons and tractors. The total line length of the light rail system, which has twelve lines, is 36 kilometers. It has a warehouse, 68 stops and 141 vehicles. The bus system was set up to feed the metro system. It has seventeen lines and 143 buses. MTR also has a 45 percent share in Hong Kong traffic. It carries 5 million people a day. 99,9 percent reliability and the average fare proportional to the distance is 7,8 Hong Kong Dollars (1 TL)

MTR is a publicly traded company. The total market value of its shares is $21 billion. Its major partner is the Hong Kong government with 77 percent. Its 2011 profit was 1,4 billion dollars. Railway investments have two important features. The first is high investment amounts. Second, the magnitude relationship between revenues and expenses prolongs the return on investment. Third, and most importantly, a significant amount of returns does not enter the investor's balance sheet (and income statement). Let us dwell for a moment on this third. The commercial returns of railway investments are well below their total (economic) returns. The most standard example of this is environmental pollution or time. kazanwe can show them. However, there is another return on railway (and other transportation) investments: It adds value to its environment and “rents”. kazanyelling.” For example, when you connect a neighborhood to the city center by metro, the real estate market values ​​in that neighborhood increase and trade develops. MTR has made this last point a model. In the MTR model, the government grants real estate development rights to MTR in return for its investment. In a sense, you can compare it to our TOKİ model. MTR finances the railway investments it has made to solve the traffic density by bargaining with the state, by developing real estate around the line. As a matter of fact, 2011 percent of the company's 1,4 profit ($60 billion) came from real estate revenues (real estate development and rent). 20 percent came from the revenues at the stations and the remaining 20 percent came from transportation activities. After all, the necessary investment to solve Hong Kong's traffic problem is provided by the rent given to the operator. And when it is made to the public, as a result, both the state makes money on its initial investment. kazanand the public has become one of the owners of the operator. It would probably be correct to call this model state capitalism.

Source : http://www.zaman.org

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