Why is Hong Kong’s MTR so good?

Writer - Nicholas

Photographer - Nicholas

Published March 30, 2025

For Hong Kongers, the metro system, or MTR, isn’t just a means of transportation; it is a lifeline that keeps Hong Kong in continuous operation as one of the world’s busiest cities. Since its inception, the MTR has gained worldwide renown for its cutting-edge features and efficiency.

In 2021, Hong Kong's railway system saw an average of approximately 4.4 million passenger journeys daily, a 23 percent uptick from the previous year. Before the COVID pandemic, daily average journeys surpassed five million.

The MTR’s reputation is unsurpassed, yet there isn’t a single reason for its popularity. Rather, it’s a culmination of factors that have shaped it into one of the world’s best public transport systems.

In the late 1960s, Hong Kong was on the rise of an economic miracle. Skyscrapers sprouted up like bamboo shoots, and the streets were filled with energy. Hong Kong was a city on the fast track toward prosperity. But, beneath the surface, a crisis was brewing. The city's roads, a tangled web of narrow alleys and congested boulevards, were choking under the weight of progress, unable to cope with the sheer amount of traffic now coming through the city. Commuters inched along the outdated road networks and nobody got anywhere fast.

The Hong Kong Government sought to improve the city's transport system, bringing it in line with the economic revolution happening in the city. In 1966, they summoned several British transport experts to help with this problem. The experts from the firm Freeman, Fox, Wilbur Smith & Associates were tasked with solving Hong Kong’s transport crisis.

Their findings were presented on September 1, 1967, in the very first Hong Kong Mass Transport Study. They presented their vision, a 64-kilometer-long rapid transit railway, made up of four separate rail lines in six carefully designed phases, aiming to create maximum efficiency.

The government pulled the trigger and signed off on the project in 1972 for constructing the Initial System, a scaled-down, modest 20-kilometer network that would eventually evolve into the arteries of the Kwun Tong Line, Tsuen Wan Line, and the Island Line.

A single, fixed-price contract was secured to build this rail system. A Japanese consortium led by Mitsubishi stepped up with a bid that matched the government's frugal budget cap of $5 billion and the project was underway.

The initial phase of the MTR, known as the Modified Initial System, was a cautious and calculated project, the plan was to create a smaller network, but one that could be expanded upon easily, if proven a success.

The project's initial construction faced several challenges; tunneling through the city's complex geological landscape, relocating piping and cabling for the city’s utility supplies, and minimizing the disruptions to the daily life of the densely populated urban areas.

Equally important was the financial strategy put in place to fund this massive project. The Hong Kong Government and the MTR Corporation devised the "Rail plus Property" model. This approach, the first of its kind, involved the creation of property developments over and around the planned stations. The revenue generated from these developments was then reinvested into the railway's construction and expansion.

This model proved to be financially astute and sustainable, allowing for the MTR's continuous growth without burdening taxpayers or requiring excessive fares from riders.

This business model has been applied extensively. As of 2016, buildings sat over about half of the system’s 87 stations, amounting to 13 million square meters of floor area.

The R+P (Rail + Property) model offers significant financial benefits that have been demonstrated over time. Instead of bearing the burden of construction costs and the risks associated with building a high-quality railway, the government can generate revenue from land premiums and profits from its majority stake in the company, which is publicly listed on the Hong Kong Stock Exchange. 

For instance, in the 2014 financial year, MTR paid $590 million in dividends to the government. Moreover, this model enables MTR to execute railway projects swiftly as it isn't reliant on competing for public funds.

The MTR officially commenced service in 1979, signaling the dawn of a new era for Hong Kong's public transportation. Its opening was met with enthusiasm and relief by the population, who were eager to embrace a faster, more reliable, and more comfortable way to travel across the city. The twice-daily commute was no longer a pain point for those working on the other side of the city.

Since that first stage of development, Hong Kong's MTR has been consistently expanded to meet the needs of a continuously growing metropolis. The first was the Tsuen Wan line expansion, green-lit in 1977. For the first time, the initial planning put in place to ensure the ease of growth was tested.

The new line added a 10.5-kilometer route, going through the heart of Kowloon and culminating in Tsuen Wan. Work started in November 1978, coming in with a cost of HK$4.1 billion, and was officially unveiled on May 17, 1982.

In December 1980 the Government then announced further plans to build the Island Line, and construction began in earnest in 1981. By May 1985, the line bridged Admiralty to Chai Wan, making Admiralty and Central stations new key interchanges within the MTR.

Then, the MTR achieved another first in 1984, with the Eastern Harbour Crossing. This tunnel served the dual purpose of accommodating both vehicular traffic and MTR trains, further extending the Kwun Tong line to Quarry Bay in 1989. This station became yet another interchange, linking the Kwun Tong and Island lines, with Lam Tin station added to the network soon after.

The Tung Chung Line was conceived in the early 1990s, and aimed to connect urban centers with the New Territories, notably facilitating access to Hong Kong International Airport. Strategically located stations optimized accessibility and connectivity, with interchanges to existing MTR lines.

The latest large expansion is the Disneyland Resort Line, a dedicated MTR line that connects the Hong Kong Disneyland Resort to the wider MTR network. Opened in 2005, this line provides direct and convenient access to the popular resort from various parts of Hong Kong, and the expansion strategy continues to develop the system beyond that. With 179 stations across 10 lines, the MTR now serves the major urban areas of Hong Kong Island, Kowloon, and the New Territories.

The marvel of the MTR's engineering, planning, and project management is a remarkable story, but it isn’t the only reason that this transport system is the best in the world.

Efficiency and reliability are hallmarks of Hong Kong's Mass Transit Railway system and part of what makes this a globally renowned public transit masterpiece.

It has an exceptional on-time rate of 99.9% for train journeys. When compared to other metro systems like the London Underground, which has an on-time rate of around 89.7%, you can see why the MTR is just better.

With trains running frequently, particularly during peak hours, passengers experience minimal wait times, ensuring swift and seamless travel experiences. This reliability is crucial in a city as bustling as Hong Kong, where the MTR efficiently handles over 4.8 million daily trips on its metro lines alone.

The system's capacity to manage such high passenger volumes is a great illustration of how good its infrastructure and operational efficiency are. The MTR is also known for its impeccable cleanliness. You would struggle to find a station that wasn’t absolutely spotless, even during peak hours, or late into the night. Stations are also equipped with free Wi-Fi, keeping people connected whilst they commute.

MTR stations in Hong Kong are often integrated with shopping malls or commercial developments, providing convenience and accessibility for commuters. For instance, the Lohas Park station boasts "The Lohas," a sprawling 480,000 square feet MTR mall. Similarly, upcoming stations like Tung Chung East and Tung Chung West will feature substantial retail and commercial spaces totaling over 327,000 square meters. This sort of integration, made possible by the Rail Plus Property model the MTR has always benefited from, enables passengers to access shops, eateries, and amenities seamlessly, without stepping outside the station premises.

Not only is the MTR impeccably modern, spotlessly clean, and convenient to its commuters, but it also offers some of the most affordable fares in the world. A single journey between central stations typically costs around HK$13, equivalent to approximately 1.7 USD dollars, significantly cheaper than similar journeys on the New York subway, which would go for 4 US dollars.

The MTR provides various fare options, including single journey tickets and day passes, catering to diverse passenger needs. Discounted fares are also available for children, seniors, and people with disabilities.

Additionally, the ubiquitous Octopus card system enables seamless payment across the entire public transport network, enhancing convenience and accessibility for commuters, built on the same principle as the London Underground’s Oyster system, but taken to another level.

In almost every single way the MTR stands above the world’s greatest public transit systems. A seamless combination of convenience, efficiency, and amenities that simply aren’t available on the London Underground, the Metro systems in New York Metro, Paris and Tokyo, or Berlin U-Bahn, for instance.

Since its inception in the 1970s, it has expanded from a simple but effective initial phase to connect the key districts of Hong Kong together, providing a simple route between the city and its outer areas.

The MTR is more than a transport system, it is the representation of Hong Kong’s development. It highlights the city’s rise from a colonial outpost to a global economic powerhouse. Overcoming logistical and geographical challenges, the MTR has adapted and grown to meet the needs of a city and wider region that has done the same.

This world-class transit system stands not only as a testament to the city's unparalleled growth but also as an essential lifeline that propels both the people and the vibrant economy of this dynamic metropolis forward.