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2018 January
Express Rail Link Fast-tracks Business Opportunities

Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link will commence operation very soon. It is expected to provide more business opportunities for Hong Kong. Specifically, tourism, medical services and cross-border trade will be the first beneficiaries, and this new link will give a strong boost to Hong Kong’s sustainable economic development.

 

Frederick Ma: Hong Kong Moves Towards High-speed Rail Era

The Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) and West Kowloon Station project is in full swing and has completed 98%. Recently, the co-location arrangements with Guangdong for implementing a joint checkpoint at Hong Kong’s XRL terminus was unanimously adopted by the NPC Standing Committee. With the second step of its “three-step process” completed, it is now waiting for the green light from the HKSAR Legislative Council this year. Hong Kong will then move towards the era of high-speed rail and integrate with the Mainland’s development.

 

Mainland’s vast high-speed rail network

Source: MTRFrederick Ma, Chairman of MTR Corporation, said that the total length of the Mainland’s high-speed rail network has now exceeded 22,000 km, or over 60% of the global high-speed rail network. It is expected to reach 38,000 km by 2025. In recent years, the UK, the US and Singapore have been constructing high-speed rails. Ma noted that the world has now entered the high-speed rail era and the Mainland is well ahead of other countries in this respect. In his view, the high-speed rail network is very important for the long-term development of Hong Kong’s business and industrial community as well as overall economy.

 

When the XRL Hong Kong Section is completed and in operation, up to 114 trains in both directions could be run on a total of 10 tracks daily, and citizens from both places as well as tourists can travel between the Mainland and Hong Kong within a day. By then, transportation will be very convenient. Short trips to Futian will take only 14 minutes and to Guangzhou South only 48 minutes. For long trips, it will take only three, four, and two to three hours to Changsha, Xiamen, and Shantou respectively. Even Shanghai and Beijing will take only seven or eight hours. Therefore, travel time will be greatly shortened. Ma said that because of air traffic control for flights, high-speed rail may even be more convenient than the plane in the future.

 

XRL promotes economic integration

Ma stressed that when the XRL officially commences operation, it would take less than one hour to travel from Hong Kong to Guangzhou and conveniently connect to other provinces and municipalities in the Mainland as well as other countries. It will not only facilitate people flow and logistics, but also benefit the development of the Greater Bay Area and the “Belt and Road” initiative. In his opinion, high-speed rail can shorten point-to-point distances to bring people closer together and make the world smaller. This is helpful for individual businesses or even the parallel development of various economic systems.

 

However, whether the XRL can achieve the goal of shortening traveling times still hinges on the co-location arrangements. Ma emphasized that the co-location arrangements will provide quick and convenient customs clearance for the public, and that the XRL terminus in Hong Kong is designed specifically for the joint checkpoint. The arrangement will maximize the economic benefits of Hong Kong’s high-speed rail.

 

Gearing up for opening of XRL

Source: MTRWith regard to the construction of the XRL HK Section, Ma said that the section is about 26 km long and 98% of the project has been completed. He is confident that it will open on schedule in the third quarter of 2018. West Kowloon Station is the XRL terminus in Hong Kong. Ma believes that its unique design will make it a landmark in Asia. The station’s atrium canopy is made up of more than 4,000 glass pieces of various shapes, and above the platforms there is a green plaza where people can go for a rest or walk even if they are not traveling on the XRL.

 

MTR Corporation is currently preparing for the opening up of the XRL. Ma disclosed that nine Qingdao-made high-speed trains have all arrived in Hong Kong and are undergoing tests. To prepare well for the opening, the company has also arranged drivers and technicians to receive training in the Mainland in several phases.

 

In conclusion, Ma stressed that when in operation, the Hong Kong section will be linked to the country’s high-speed rail network, thus greatly shortening the traveling time between the HKSAR and the Mainland. It will not only help strengthen Hong Kong’s ties and interaction with the Mainland, but also promote the collaboration and development of economy, trade, tourism and professional services, bringing enormous economic and social benefits for the various trades and industries of both places.

 

Terence Chong: Building the PRD One-hour Living Circle

Both the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong Express Rail Link-Hong Kong Secion are scheduled for commissioning next year. As infrastructure in the west Pearl River region matures and the Humen 2nd Bridge completes, connection between Hong Kong and the Pearl River Delta (PRD) region will be strengthened and a foundation will be firmly in place for developing the Greater Bay Area. Terence Chong, Executive Director of Lau Chor Tak Institute of Global Economics and Finance, CUHK, says that traveling from Hung Hom Station in Hong Kong to Guangzhou currently takes 2 hours. A round trip would take more than 4 hours. When the XRL comes into service, passengers can travel from Hong Kong to Guangzhou or even Huizhou in less than an hour. Such swift transportation gives full scope to the “PRD One-hour Living Circle”.

 

Nationwide rail connections facilitate business operation

Source: Xinhua News AgencyChong commented, “The XRL system shortens distances between Mainland cities and enlarge the living circle of the Mainland public. It makes travels around China for business, visiting family and seeing friends faster and easier than before.” He cites the example that when he taught at Nanjing University, XRL was his usual choice of transport for visiting students or friends in Shanghai on holidays. This rail service is ideal for business day-trippers.

 

Chong expects the XRL to play a pivotal role in connecting Hong Kong with major Chinese cities and bolster new economic momentum. He said, “In the future, people in Hong Kong can save commuting time when they travel between cities in the PRD region. Business day trips to the PRD region, such as for business meetings to discuss collaboration projects and even contract signing or goods samples inspection, would be much more convenient. Whether conducting business affairs or exploring the mainland market, Hong Kong businesspeople will enjoy greater effectiveness.”

 

Promoting tourism and consumption

As for the first beneficiaries, Chong points out that the XRL will promote the development of tourism, particularly destinations with no direct flights or only infrequent flights. Not only does it help Hong Kong’s travel industry to introduce new tour routes and tourist attractions, it also encourages arrivals from regional cities due to easier accessibility.

 

Chong added, “As many of the XRL passengers have high spending power, this new rail service will benefit Hong Kong’s retail sector.” It will only take Mainland residents of the PRD region an hour to reach Hong Kong. Day-trip is likely to become a popular trend and there are also great potentials for a new medical tourism market, which is good news for private hospitals in Hong Kong.

 

Greater convenience for Mainland property owners

Regarding the issue that home ownership is getting increasingly difficult to many people in Hong Kong, Chong says the XRL will shorten the distances between many Mainland cities and Hong Kong. Young people who wish to own properties but cannot afford high prices can consider buying properties in cities along the XRL route. “In the future, traveling time from West Kowloon to Futian will be shortened to 14 minutes, and Guangzhou will be accessible within an hour. On both counts, it would be quicker than commuting from Tuen Mun or Fanling to a workplace in Central. Moreover, Mainland property prices are considerably lower than those in Hong Kong. I believe the XRL will not only make it easier for Hongkongers to visit the Mainland for pleasure or gatherings, but also provide a good alternative choice for home buyers.”

 

As for the co-location arrangement of XRL, Chong thinks it can further reduce immigration and interchange time. To the people of Hong Kong who demand high efficiency, it does more good than harm. “According to statistics published in a government report, based on a daily XRL passenger traffic of 99,000, co-location can save about one hour of immigration and interchange time per person when compared to separate customs, immigration and quarantine (CIQ) arrangements. In other words, about 3,900 hours can be saved annually. It is estimated that 70% of XRL passengers are Hong Kong citizens. Based on an average hourly wage of about $100 per person, total savings amount to $2.7 billion. In the long run, the figure will continue to grow. Coupled with all the opportunities created by the XRL project, it will generate huge economic benefits for Hong Kong.”