wyliepoon
Senior Member
The Standard (Hong Kong)
Link to article
MTRC joint venture wins London bid
Benjamin Scent and agencies
Wednesday, June 20, 2007
MTR Corp (0066) has won its first contract outside the Greater China region, announcing a 50-50 joint venture with the UK's Laing Rail has been selected to operate an upgraded overground railway in east and north London for a minimum seven years.
"Winning this franchise is an important first step in the development in the MTR Corporation's European growth strategy," MTRC China and international business director Francis Lung Ka-kui said in a statement Tuesday.
"Going forward, we will continue to look for suitable opportunities to invest in both the United Kingdom and other parts of Europe, using our asset- light approach."
Laing Rail is owned by London- based asset management company Henderson Group.
The partnership has 5 million (HK$77.48 million) invested in "assets," an MTRC spokesperson said, without elaborating. Financial terms of the deal were not disclosed.
The franchise - to be known as London Overground - will be overseen by Transport for London, the municipal government agency that runs the city's buses and underground trains. It will be worth 700 million over the life of the project, which contains an undisclosed management fee for MTRLaing, the joint-venture company.
Such fees typically constitute 3 to 5 percent of the total cost of the project.
Laing Rail currently operates Britain's Chiltern Railways, MTRC said.
The joint venture was picked over three other bidders to run the concession. MTRLaing's operation of the lines will sta
rt November 11, and will run for seven years, with an option for a two-year extension, according to an announcement from London Mayor Ken Livingstone.
MTRLaing's franchise will be the first part of the London transportation network - whose signage is based on the classic "Underground" logo - to use the new moniker "Overground." The system will act as a crucial link for the 2012 Summer Olympic Games," said MTRC, majority owned by the Hong Kong government.
Transport for London is spending 1 billion to upgrade and extend the East London Line and buy new trains. The line is scheduled to be reopened in 2010.
The agency intends to revive the fortunes of the services covered under the new franchise, many of which had been in longterm decline and seen as relatively marginal.
MTRLaing submitted its bid in October 2006 and was shortlisted in December along with a competing bid.
The London Rail Concession currently serves 60 stations over 60 route miles in the Greater London region, and carries about 23 million passengers per year. The routes comprise an inner suburban commuter network serving the western, northern and eastern extremities of the metropolitan area. "We are looking forward to applying our knowledge to improve the experience of London rail passengers and assisting Mayor Livingstone in realizing his vision to deliver noticeable improvements," Lung said.
Some of the service improvements already planned include the introduction of a more comprehensive ticketing system, a phased program of station upgrades, and the introduction of a fleet of new trains starting in 2009.
A 50-50 joint venture between MTRC and Swedish railway company SJ is currently bidding for concessions in Sweden and Denmark.
*****
Transport Briefing (UK)
Link to article
London concession gives MTR UK rail breakthrough
Filed 19/06/07
Hong Kong Metro operator MTR Corporation has finally gained a foothold in the UK rail industry after years spent unsuccessfully bidding to become one of Britain’s train operators.
The company, through a partnership with Laing Rail, has been awarded a concession by Transport for London to run trains on the emerging London Overground network when National Express owned Silverlink Metro hands in the keys to North London Railway services this November. The final signing of the contract with MTR Laing will take place on 2 July 2007.
MTR has established a reputation for running a reliable Hong Kong metro service, a network that was originally set up with expertise from London Underground engineers. The new contract will be the first time the company, which has previously been shortlisted to run the Southeastern, GNER and South West Trains franchises, has had responsibility for trains outside its native China. MTR is majority owned by Hong Kong’s government and is building new lines for metros in Beijing and Shenzhen.
Laing Rail is owned by John Laing, parent company of train operator Chiltern Railways. The Rail arm of the company has played a key role in developing infrastructure projects such as the two Evergreen track capacity enhancements and construction of Warwick Parkway station.
When the contract begins on 11 November it will coincide with the handover of responsibility for funding and deciding on service levels for the routes from central government to Transport for London, the London Mayor’s transport body.
The concession, to be branded as London Overground, will run for seven years with an option for a two-year extension. It will cover the Richmond to Stratford North London Line, Gospel Oak to Barking services, Euston to Watford Junction local services and the Willesden Junction to Clapham Junction West London Line – all of which are currently run by Silverlink. It will also take in services running on the new East London Railway, due to open in 2010.
Brian Cooke, chairman of passenger watchdog London TravelWatch, said: “We are pleased to hear the news that MTR Laing has been awarded this concession. Chiltern is one of the best run services in the country, and often tops satisfaction polls in London and the south-east. Additionally, MTR operates one of the best metros in the world, so we hope they can bring those skills and experience to running London Overground - a vital rail route around the capital.â€
Link to article
MTRC joint venture wins London bid
Benjamin Scent and agencies
Wednesday, June 20, 2007
MTR Corp (0066) has won its first contract outside the Greater China region, announcing a 50-50 joint venture with the UK's Laing Rail has been selected to operate an upgraded overground railway in east and north London for a minimum seven years.
"Winning this franchise is an important first step in the development in the MTR Corporation's European growth strategy," MTRC China and international business director Francis Lung Ka-kui said in a statement Tuesday.
"Going forward, we will continue to look for suitable opportunities to invest in both the United Kingdom and other parts of Europe, using our asset- light approach."
Laing Rail is owned by London- based asset management company Henderson Group.
The partnership has 5 million (HK$77.48 million) invested in "assets," an MTRC spokesperson said, without elaborating. Financial terms of the deal were not disclosed.
The franchise - to be known as London Overground - will be overseen by Transport for London, the municipal government agency that runs the city's buses and underground trains. It will be worth 700 million over the life of the project, which contains an undisclosed management fee for MTRLaing, the joint-venture company.
Such fees typically constitute 3 to 5 percent of the total cost of the project.
Laing Rail currently operates Britain's Chiltern Railways, MTRC said.
The joint venture was picked over three other bidders to run the concession. MTRLaing's operation of the lines will sta
rt November 11, and will run for seven years, with an option for a two-year extension, according to an announcement from London Mayor Ken Livingstone.
MTRLaing's franchise will be the first part of the London transportation network - whose signage is based on the classic "Underground" logo - to use the new moniker "Overground." The system will act as a crucial link for the 2012 Summer Olympic Games," said MTRC, majority owned by the Hong Kong government.
Transport for London is spending 1 billion to upgrade and extend the East London Line and buy new trains. The line is scheduled to be reopened in 2010.
The agency intends to revive the fortunes of the services covered under the new franchise, many of which had been in longterm decline and seen as relatively marginal.
MTRLaing submitted its bid in October 2006 and was shortlisted in December along with a competing bid.
The London Rail Concession currently serves 60 stations over 60 route miles in the Greater London region, and carries about 23 million passengers per year. The routes comprise an inner suburban commuter network serving the western, northern and eastern extremities of the metropolitan area. "We are looking forward to applying our knowledge to improve the experience of London rail passengers and assisting Mayor Livingstone in realizing his vision to deliver noticeable improvements," Lung said.
Some of the service improvements already planned include the introduction of a more comprehensive ticketing system, a phased program of station upgrades, and the introduction of a fleet of new trains starting in 2009.
A 50-50 joint venture between MTRC and Swedish railway company SJ is currently bidding for concessions in Sweden and Denmark.
*****
Transport Briefing (UK)
Link to article
London concession gives MTR UK rail breakthrough
Filed 19/06/07
Hong Kong Metro operator MTR Corporation has finally gained a foothold in the UK rail industry after years spent unsuccessfully bidding to become one of Britain’s train operators.
The company, through a partnership with Laing Rail, has been awarded a concession by Transport for London to run trains on the emerging London Overground network when National Express owned Silverlink Metro hands in the keys to North London Railway services this November. The final signing of the contract with MTR Laing will take place on 2 July 2007.
MTR has established a reputation for running a reliable Hong Kong metro service, a network that was originally set up with expertise from London Underground engineers. The new contract will be the first time the company, which has previously been shortlisted to run the Southeastern, GNER and South West Trains franchises, has had responsibility for trains outside its native China. MTR is majority owned by Hong Kong’s government and is building new lines for metros in Beijing and Shenzhen.
Laing Rail is owned by John Laing, parent company of train operator Chiltern Railways. The Rail arm of the company has played a key role in developing infrastructure projects such as the two Evergreen track capacity enhancements and construction of Warwick Parkway station.
When the contract begins on 11 November it will coincide with the handover of responsibility for funding and deciding on service levels for the routes from central government to Transport for London, the London Mayor’s transport body.
The concession, to be branded as London Overground, will run for seven years with an option for a two-year extension. It will cover the Richmond to Stratford North London Line, Gospel Oak to Barking services, Euston to Watford Junction local services and the Willesden Junction to Clapham Junction West London Line – all of which are currently run by Silverlink. It will also take in services running on the new East London Railway, due to open in 2010.
Brian Cooke, chairman of passenger watchdog London TravelWatch, said: “We are pleased to hear the news that MTR Laing has been awarded this concession. Chiltern is one of the best run services in the country, and often tops satisfaction polls in London and the south-east. Additionally, MTR operates one of the best metros in the world, so we hope they can bring those skills and experience to running London Overground - a vital rail route around the capital.â€