Total project costs for the Northern Link fell by 28% to HK$862 billion after the government and MTR Corporation signed a full project agreement.
Chief Executive in Council approved the second-part financial arrangements for the railway project, which includes an estimated cost of HK$548 billion for the second phase. To provide financial assistance, the government will grant MTR eight plots of land across Ngau Tam Mei, San Tin, Kwu Tung North, and Au Tau. These land parcels cover a total area of 46 hectares and will offer an estimated 25 million square feet of total gross floor area based on a 5-fold plot ratio, according to a research report published by UBS.
Did You Know? The 10.7-kilometer main line will feature five stations, reducing travel time between Kam Sheung Road and Kwu Tung from roughly 60 minutes down to just 12 minutes during peak hours.
MTR plans to manage expenditures through pre-planned construction
MTR stated that it plans to manage expenditures through pre-planned construction methods, increased use of prefabricated components, bundled or unified tendering, and technology to reduce errors. Company representatives reported that, based on current cash flow, they are confident in meeting the initial three-year expenses of approximately HK$10 billion.
Transport and Logistics Bureau Secretary, Chan Mei Bo, and MTR Chairman, Frederick Golden, witnessed the signing ceremony. Chan stated that the initiative aligns Hong Kong with the national 15th Five-Year Plan and summarizes the route’s mission as connecting the Northern Metropolis, converging two lines, and linking the Greater Bay Area.
Expert Insight: Financial analysts at UBS note that while the combined capital expenditure sits between HK$900 billion and HK$1.11 trillion depending on price-level adjustments, the large-scale land grants will require MTR to pay land premiums based on full market value after completion, prompting close investor scrutiny regarding future capital fundraising.
Authorities reduce building plan processing time for railway lines
Northern Metropolis Railway Commissioner, Ip Wai Man, explained in a radio interview that authorities established a dedicated railway approval unit that cuts building plan processing time by 30% to 50% via a centralized electronic platform.
The branch line will span approximately six kilometers from the San Tin station with three new stations, allowing travelers to reach the Huanggang Port in roughly 11 minutes. Both the main line and the branch line are scheduled to open concurrently by or before 2034.
Questions about Northern Link budget, land and travel time
What is the total estimated budget for the Northern Link?
The total project agreement budget is HK$862 billion, which represents a 28% decrease compared to initial estimates. This combined total encompasses both the first part and the second part budget of HK$548 billion.
How much land is the government granting to MTR?
The government is granting eight plots of land located in Ngau Tam Mei, San Tin, Kwu Tung North, and Au Tau. These parcels cover a total area of 46 hectares.
What are the travel time improvements after completion?
Travel time between Kam Sheung Road and Kwu Tung will drop from approximately 60 minutes to 12 minutes during peak hours. Travel from San Tin to Huanggang Port will take about 11 minutes.
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