A Successful Start to Rail Merger in Hong Kong
2008; International Union of Public Transport; Volume: 57; Issue: 3 Linguagem: Inglês
ISSN
1016-796X
Autores Tópico(s)Railway Systems and Energy Efficiency
ResumoHong Kong's two rail operators, the MTR Corporation and the Kowloon-Canton Railway Corporation (KCRC), merged operations in December 2007. This article describes the merger process and the benefits of the merger for the companies and for passengers. The merger first came under discussion in February 2004. The government set specific parameters that the two companies had to meet to ensure the public would benefit from the merger. After several reports and the passage of related legislation and regulations, the rail merger ordinance came into effect which empowered KCRC to grant a service concession to the MTR Corporation to operate its railroad, while the scope and length of MTR's franchise was expanded to enable it to take up the operation of KCRC's transportation services. An office then was set up to plan the complex integration of operations. Since issues related to human resources were the most challenging part of the merger, the two companies worked hard to ensure that the new conditions would have minimal impact on staff while allowing the merged rail operator to remain competitive. All frontline staff were assured of job security as it related to the merger integration process. Because the two companies had different cultures and working practices, workshops were offered to foster mutual understanding and united spirit. Another important issue was the integration of fares and ticketing systems. Modifications were required on over 5,000 automatic fare collection machines so that the system would operated flawlessly on the first day of the merger. Despite the challenges associated with merging, the new company will allow optimal connections and greater cost efficiency, benefiting both the rail operators and passengers.
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