Earlier this year, CNN looked at why Hong Kong’s Mass Transit Railway (MTR) is so successful. CNN described MTR as the “most envied metro system” in the world (‘Hong Kong’s MTR: Taking a ride on the world’s most envied metro system‘).
MTR was established as a public entity in 1973-74 before it was privatized and listed on the Hong Kong stock exchange as MTR Corporation Ltd in 2000. At the time, the Hong Kong government sold its stake in public utilities, with the aim of reducing expenditure and boosting overall efficiency. But the government remained majority shareholder of MTR Corp.
MTR is both competitive and profitable, and able at the same time to serve the Hong Kong public efficiently.
99% on-time performance
“Hong Kong’s MTR is one of the best designed, best operated and most successful metro systems in the world,” said Robert Cervero, professor of city and regional planning at UC Berkeley.
The system is world class in terms of finance, operation service and transit-property integration, says Jin Murakami, an associate professor at City University of Hong Kong.
Hong Kong’s MTR carries more passengers (more than 5 million) than London’s subway and almost the same number as New York’s. This is despite Hong Kong having less track than London and New York.
Figures show that MTR runs about 20 hours and 8,000 train trips per day, and it boasts a staggering 99.9% punctuality rate.
In the first half of last year, MTR ran for 120 consecutive days without a single delay over 8 minutes, establishing a record for the company, if not the world.
In contrast, there have been 60 over breakdowns and delays over the past 2 years for Singapore’s MRT, since LG (NS) Desmond Kuek took over SMRT Corp from his predecessor, Saw Phaik Hwa:
The latest Singapore train service disruptions on Tuesday (7 Jul) affected 250,000 commuters at all 54 MRT stations on both the North-South Line and East-West Line, with many commuters taking their frustrations online, scolding SMRT – which runs both lines – and Desmond Kuek its CEO.
MTR helps London Overground enhance its punctuality
MTR’s reputation as one of the world’s top metros has attracted many international clients seeking its expertise.
MTR now operates the London Overground, 2 lines of the Beijing Metro, as well as parts of the Shenzhen and Hangzhou Metro systems in China, the Melbourne Metro in Australia and the Stockholm Metro in Sweden.
In 2014, it won a contract for a new rail project in Sydney. As part of the US$6.5-billion deal, MTR will deliver and operate the Australian city’s North West Rail Link, the largest public transport project in the country and its first fully automated rapid transit network.
MTR also provides consultation services to railway networks around the world. According to a 2013 Wall Street Journal report, these overseas operations have improved both the network’s punctuality at home, as well as its profitability. London Overground enhanced its punctuality from 88.4% in 2007 to 96.7% in 2013 after MTR took over its operations for a year.
Will the PAP government consider engaging MTR to help LG (NS) Kuek and his cohort of SAF officers? Or perhaps PAP thinks that SAF scholars and soldiers are better?
Continual investment in maintenance, upgrades and renewals to train system needed
Another key to MTR’s success in keeping Hong Kong’s subway in tip-top conditions is its willingness to continuously reinvest profits back into its MTR system.
“A railway requires ongoing investment and a lot of resources in order to keep it in tip-top form,” said Jacob Kam, the operations director of MTR. “Even for a system considered state of the art, in 10 years time, everything – signaling systems, urban railways – will have changed.”
Each year, US$645 million is invested in maintenance, upgrades and renewals to the MTR system. It’s a significant amount compared with many other cities and systems, said Prof Cervero.
In contrast, during the public inquiry in May 2012 into the major train breakdowns occurred in Dec 2011, previous CEO Saw Phaik Hwa became defensive when the COI questioned her about SMRT maintenance budgets.
AGC presented data showing SMRT did not raise its maintenance budgets in nearly 10 years since 2002, despite rising ridership, more frequent train runs and ageing assets. Ms Saw then stoutly defended the SMRT’s maintenance regime. She said SMRT had not only met, but exceeded, maintenance standards set out by rail manufacturers and the LTA. She claimed that money spent on mid-life upgrades for the trains had actually helped in saving maintenance cost.
When it was pointed out to her that the upgrades were mainly for the train cabins and air-conditioning units, Saw then said parts such as wheels and propulsion systems are “upgraded continuously” and are “changed on a regular basis.”
“If there is any need to upgrade, anything in the system, it would have been,” she added. Saw also blamed the new trains for the spike in train faults. The new trains were a source of bugs, she said. One of the COI panelists, Prof Lim of NTU, cited an SMRT internal report showing a 20% drop in maintenance cost per kilometer operated. Saw replied “that could be wrong numbers” or “errors in the parameters”.
She said the events that triggered the train breakdowns on Dec 15 and 17, 2011 were unprecedented. The trains stopped because a section of the electrical ‘third rail’ had dropped off after several support claws were dislodged. No power was being supplied to the trains. She said that nothing like that had happened before. Prof Lim then pointed out that the ‘third rail’ did sag in 2010 and before 2006. Saw said management was not aware of the seriousness of the events because the dropped claws were reinstated. To that, Prof Lim retorted, “You knew the risks, and you didn’t do enough. You implemented cable ties.”
High-tech tools to aid operations
MTR also invests and employs a range of high-tech tools to aid operations.
After the last trains depart from stations at about 1 a.m., more than 1,000 workers spring into action to maintain the system.
“Because of the high demand for track space and the small amount of down time, we need to quickly move engineering trains, deliver materials and provide space for people,” said Mr Kam. “We have an A.I. system that helps us optimize the use of space in a limited time.”
The A.I. program was specially designed and built for the MTR. “We also apply a lot of radio-frequency identification technology that helps monitor the condition of the trains and machinery and gives us an early warning in case of potential problems,” he explained.
Infrared monitors on tracks are used to detect cracks too small for the human eye to detect.
“We use man to do what machines can’t do, and machines to create efficiency and accuracy that’s beyond the reach of man,” said Mr Kam, summing up a principle that’s made Hong Kong’s MTR the envy of the world’s mass transit systems.
In the case of Singapore, it sounds more like a case of “What’s wrong with collecting more money?”
This is specially so on hearing what was revealed by the COI in 2012 that SMRT did not raise its maintenance budgets in nearly 10 years since 2002, despite rising ridership, more frequent train runs and ageing assets. In fact, COI reports showed that there was a 20% drop in maintenance cost per kilometer operated by SMRT.
A former SMRT staff even told TRE that many of the experienced engineering staff were “forced to retire” under the pretext of reorganization during Saw Phaik Hwa’s time. Apparently, these experienced engineering staff were deemed too “expensive” and their salaries would eat into SMRT’s profits.
He said, “I can tell that during Saw’s time many veteran ASP Trains were forced to retire under the pretext of Re-Org. Those officers with decades of rail experience were considered too costly. They hired younger and fresh diploma holders without rail experience but cheaper and with few benefits especially medical and leave benefits.”
What caused SMRT to degenerate into a “money worshiper” at the expense of public service?
Source: www.tremeritus.com
