The Kowloon Canton Railway Corporation (KCRC) and the Mass Transit Railway Corporation Limited (MTRC)

by Tsui, Shuk-ting

(Uncorrected OCR) Abstract of dissertation entitled

Merging

the Kowloon-Canton Railway Corporation (KCRC) and the Mass Transit Railway Corporation Limited (MTRC)

submitted by

Yvonne Tsui Shuk Ting

for the degree of Master of Arts in Transport Policy and Planning

at The University of Hong Kong

in June 2003

The possible merger of the Kowloon-Canton Railway Corporation (KCRC) and the

Mass Transit Railway Corporation Limited (MTRCL) has aroused extensive debates

that cut across many sectors in society. This study aims at examining the key issues

surrounding the proposed merger; the pros and cons of such an exercise and the

factors governing a successful merger. Based on the study findings, some initial

observations are drawn on the possible merger of the two railway corporations.

To cater for the characteristics of the railway corporations, which are public entities,

the study first examined the key elements of a merger of commercial companies.

The study then developed a conceptual framework to facilitate an analysis of the

elements of a merger of public corporations and their relevance in the case of the two

railway corporations in Hong Kong. Limited by the available information and the

inherent commercial nature of such a process, the study findings cannot be claimed

to be absolutely objective. Furthermore, since the proposed merger will be the first

of such a scale to be carried out in Hong Kong, many of the perceived benefits

ansmg from the merger can only be assessed after the merger IS actually

implemented.

Though not a full-scale case review, the study has looked into the possible reasons

that are driving the merger. The study has also investigated the likely benefits of the

merger, reviewed the characteristics of the railway corporations in the context of

Hong Kong's public transport sector, and has culminated the key factors into an

analysis of the perceived private/social gains arising from the merger. The initial

observations from the analysis are that from the viewpoints of the two railway

corporations, and the Hong Kong Government, which is the main share holder of the

two corporations, the merger is a worthwhile pursuit. As for the community, the

likely benefits will be subject to the role that the merged company will assume in

Hong Kong's public transport business and the performance of the new company in a

very competitive commercial environment.