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WEBSITEMENUIntroductionChairman’s MessageCEO ly ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessMAINLAND OFCHINA ANDINTERNATIONALBUSINESSFrom our base in Hong Kong, we haveexpanded into the Mainland of Chinaand taken on a range of railway-relatedprojects and operations internationally,w ith presence in Austr alia, Swedenand the Unite d K ingdom . B as e d onthe succe s s f ul "r ail plus pr oper t y "development model in Hong Kong, wehave expanded into the Mainland of Chinawith proper t y businesses in Beijing,Shenzhen and Tianjin.IntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance Metrics9Number of railservices in operationoutside of Hong Kong 960 kmTotal operating routelength outside ofHong Kong140
WEBSITEMENUINTRODUCTIONIntroductionWe are exercising prudence in our approach to the expansion of our globalfootprint. When considering future plans outside of Hong Kong, we havea strong preference for consolidating our position in countries and citieswhere the Company already have a presence.Chairman’s MessageCEO LetterSafetyCustomersCommunityIn this section, we highlight the key sustainability performance of majorrailway operating subsidiaries around the world by location. Key performanceindicators (KPIs) for these railway operations are also available.Average weekday patronage by region:LEARN MORE. Mainland of China – 2.9m, Europe – ( 1.8m)(incl LOROL LOROL but not Stockholm commuter rail which concession onlystarts in December 2016)Refer to our Annual Report 2016 for detailed information on ourMainland of China and International Businesses.Environment Australia – 800kStaffSupply ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessSWEDENMAINLAND OF CHINAStockholm Metro Operated by MTR Tunnelbanan AB* Rolling stock maintenance by MTR Tech AB*Beijing Metro Line 4, Daxing Line,Beijing Metro Line 14 and 16 (Phase 1) Operated by Beijing MTR CorporationLimited#MTR Express intercity train service Operated by MTR Express (Sweden) AB*StockholmLondonBeijingStockholm commuter rail(Stockholms pendeltåg) Took over in December 2016 Operated by MTR Pendeltågen AB* Rolling stock maintenance by Emtrain AB#HangzhouShenzhenShenzhen Metro Line 4 (Longhua Line) Operated by MTR Corporation(Shenzhen) Limited*IntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance MetricsUNITED KINGDOMTfL Rail / Elizabeth Line Operated by MTR Corporation(Crossrail) Limited*London Overground Until November 2016 Operated by London OvergroundRail Operations Limited #Hangzhou Metro Line 1 and extension Operated by Hangzhou MTRCorporation Limited#AUSTRALIASydney Metro Northwest Operation will commence in 2019 Operated by Metro Trains Sydney Pty. Limited #SydneyMelbourne’s Metropolitan Rail Service Operated by Metro Trains Melbourne Pty. Limited #Melbourne* 100% owned subsidiary of MTR Corporation# Joint Venture/Consortium of which MTR Corporation is a shareholder141
WEBSITEMENUIntroductionChairman’s MessageCEO ly ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessIntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance MetricsManagement ApproachGUIDING FRAMEWORKGovernance of subsidiaries and associates outside of HongKongThe Chief Executive Officer is responsible for oversight on governance ofsubsidiaries and associates. He is supported by the Managing Director— Operations and Mainland Business, the Legal and European BusinessDirector and the Deputy Director – Australian Business.Notwithstanding these subsidiaries and associates are separate legalentities, the Company has implemented a management governanceframework (the “Governance Framework”) to ensure that it exercisesan appropriate level of control and oversight as a shareholder of thesesubsidiaries and associates.In 2016, we undertook a review of the Governance Framework to refine themanagement governance requirements and enhance the implementationprocess, promoting increased collaboration of the corresponding functionsat the Company on the one hand and the subsidiaries and associates onthe other hand.Pursuant to the Governance Framework, the Company exercises its controland oversight through formulation of a governance structure that is tailoredfor individual subsidiaries and associates through adoption of managementpractices and policies that are appropriate to the business nature and localsituation, taking into account of the management governance requirementsof the Company. The governance structures of the subsidiaries andassociates, as a result, will ensure adequate internal controls, consultationwith and notifications to the Company on important matters, andcomplemented by regular reporting and assurance. Compliance with therelevant management practices and governance structure is reported bysubsidiaries and associates with significant operations on an annual basis.Management DirectivesIn order to ensure good corporate governance and management offinancial and reputational risks, we exercise oversight over our subsidiariesand associates. Beyond this, we are committed to promoting best practicesin all areas where we have substantive control or influence.Our wholly-owned and majority-owned subsidiaries are mandated to adopta set of management directives relating to internal controls, consultationand reporting: Internal controls — implement appropriate procedures and managementsystems to ensure compliance with relevant laws and regulations, aswell as the Company’s specific requirements on safety, enterprise riskand asset management, among other issues. Consultation — headquarters must be consulted on matters relatingto material variation of the concession or franchise agreement,appointment of senior managers, litigation and non-compliance withrelevant laws and regulations, amongst others. Reporting — provide timely reporting on financial, operational and safetyperformance.Operating AgreementsOur subsidiaries and associates participate in various forms ofagreements with local authorities, including Operations & Maintenance(O&M), Public-Private Partnerships (PPPs), and Build-Operate-Transfer(BOT) arrangements. Our ability to influence the environmental, socialand governance impacts through the activities of our subsidiaries andassociates is largely determined by the specific terms of these agreementsas well as the local conditions and circumstances.Fair and ethical businessWe promote a culture of fair and ethical business practices. With respect toprevention of bribery and illegal practices, whenever the laws or customsof another country impose stricter standards than our own anti-briberyregime in Hong Kong the higher standard always prevails.142
WEBSITEMENUIntroductionChairman’s MessageCEO LetterSafetyCode of ConductLearning and sharingAll members of staff, irrespective of their location of employment, areexpected to abide by the Code of Conduct. They should not only conductthemselves in accordance with the highest ethical standards at all times,but also to identify and address any instances of behaviour by othermembers of staff that are not in accordance with the Code.In order to promote the flow of information and development of an open,trusting relationship, staff across the Company are encouraged to developrelationships with their counterparts and implement a culture of sharingand learning.SafetyKEY PRINCIPLES AND PROCESSESCustomersCommunityEnvironmentStaffSupply ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessIntroductionMTR in Mainland of ChinaMTR in EuropeRisk ManagementWe require subsidiaries and key associates to establish Enterprise RiskManagement (“ERM”) system as an integral element of the corporategovernance framework. Measures are taken to identify, evaluate andmanage significant risks arising from recurrent and growth businesses andfrom the constantly changing business environment, and covers a range ofcategories from financial and business environments, safety and health,security, service and business performance, environment, reputation aswell as political issues. Risks are captured in risk registers for regularreview and monitoring.We have an enhanced corporate safety governance framework basedon a benchmarking study of international best practices. The resultingenhancements to the framework include providing independent riskassessment from headquarters to cover major operational changes, andrequiring businesses to plan and achieve specified maturity levels.We collaborate and communicate with Risk Managers from differentbusiness units through the annual in-house “Audit & Risk Forum” held inHong Kong, and periodic teleconference meetings for cross-learning of thelatest developments in risk management and risk management challenges.Assurance and auditWe conduct thorough assurance and regular audits, including a safetyassurance assessment and enterprise risk management review, before thestart of operations and following any substantive change in operational orbusiness activity.MTR in AustraliaLocal talentPerformance MetricsIn general, our subsidiaries and associates are run by local teams;whenever possible, we bring on board people who share our values andcontribute to fostering our unique corporate culture in their local context.143
WEBSITEMENUMTR IN THE MAINLAND OF CHINAIntroductionThe table below summarises our main businesses in the Mainland of China.Click on the name of each line for more information about the operation.Chairman’s MessageCEO LetterOur Main Businesses in The Mainland of China at a GlanceSafetyRailway Construction, Operation and unityEnvironmentStaffSupply ChainFinancial and EconomicPerformanceCorporate GovernanceBusiness ModelCommencementof Franchise/ExpectedDate of Commencementof OperationFranchise/Concession Period(years)Number ofStationsRoute Length(km)Projects in operationBeijing MTR Corporation LimitedBeijing MetroLine 4 ("BJL4")49%Public-PrivatePartnership ("PPP")September 2009302428.2Daxing Line ofBJL449%Operations andMaintenance ("O&M")ConcessionDecember 2010101121.8Building Our FutureMainland of Chinaand InternationalBusinessPhase 1 West Section:May 2013Beijing MetroLine 14 ("BJL14")49%PPPPhase 2 East Section:December 201430 Note 11Phase 3 Middle Section:December 2015IntroductionPhase 1 WestSection : 7Phase 1 WestSection : 12.4Phase 2 EastSection : 12 Note 1Phase 2 EastSection : 14.8Phase 3 MiddleSection : 11 Note 1Phase 3 MiddleSection : 16.6Phase 1 : 10 Note 2Phase 1 : 19.6Phase 1 : 5Phase 1 : 4.5Phase 2 : 10Phase 2 : 16MTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance MetricsBeijing MetroLine 16 ("BJL16")49%Operations andMaintenance ("O&M")ConcessionPhase 1 : Dec 2016Until full line opensNote 2MTR Corporation (Shenzhen) LimitedShenzhen MetroLonghua Line100%Build-OperateTransfer Note 3Phase 1 : July 2010Phase 2 : June 201130144
usiness ModelCommencementof Franchise/ExpectedDate of Commencementof OperationChairman’s MessageHangzhou MTR Corporation LimitedCEO LetterHangzhou MetroLine 1 ("HZL1")49%PPPNovember 2012CustomersHZL1 Extension49%O&M ConcessionNovember 2015CommunityProjects In ProgressEnvironmentBeijing MetroLine 14, MainlandChina49%PPPFull Line: After 2018Beijing MetroLine 16, MainlandChina49%PPPFull Line: After 2018SafetyStaffSupply ChainFinancial and EconomicPerformanceCorporate GovernancePropertiesIntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance Metrics25Number ofStationsRoute Length(km)314835.730 Note 11Full Line : 37Full Line : 47.330 Note 12Full Line : 29Full Line : 49.8End together withHZL1 concessionProperty Development, Rental and ManagementBuilding Our FutureMainland of Chinaand InternationalBusinessFranchise/Concession Period(years)MTRCorporationShareholdingBusiness ModelAward land use right/Commencement ofservicesGross Floor Area(sqm)Property Development andManagement services2011 206,000Property rental andmanagement services2006 30,000MTR Property Development (Shenzhen) Company LimitedTiara100%MTR (Beijing) Commercial Facilities Management Co. Ltd.Ginza Mall100%Note 1:Note 2:Note 3:BJL14 Phase 2 East Section has 12 stations, 11 opened (1 are currently bypassed). BJL14 Phase 3 Middle Section has 11 stations, 9 opened (2 are currently bypassed).The O&M concession of BJL16 Phase 1 will run until full line opens, now has 10 stations and 9 opened (1 is currently bypassed).Shenzhen Metro Longhua Line Phase 1 assets are owned by the Shenzhen Municipal Government and MTR Corporation (Shenzhen) Limited took over the operation ofPhase 1 in July 2010.Note 11: BJL14 PPP concession started on 31 December 2015.Note 12: BJL16 PPP concession will start after full line opens.145
WEBSITEMENUShenzhen Metro Line 4 (Longhua Line)IntroductionIntroductionChairman’s MessageCEO LetterSafetyCustomersCommunityEnvironmentMTR Corporation Shenzhen (MTR (SZ)), a wholly-owned subsidiary, hasoperated Line 4 of the Shenzhen metro network since July 2010. On 16June 2016, MTR (SZ) celebrated its fifth anniversary. Also known as theLonghua Line, our service runs north-south from an interconnection withthe East Rail Line in Hong Kong at the Futian Checkpoint to Qinghu in theLonghua New District. It intersects with six other lines in the Shenzhenmetro network that are managed by other operators.KEY FACTS AND FIGURES FOR LINE 4 (LONGHUA LINE) IN 2016 1 rail lineStaff 15 stations Total route length 20.5 kmSupply ChainIntroductionMTR in Mainland of ChinaPerformance Metrics50 and above574199 million396400TOTAL ELECTRICITY CONSUMPTION (MWh)2002015 89,879Year-on-year decrease of1.2%28.2%INCIDENCE OF LEGAL NON-COMPLIANCENOhealth & safety cases20002016 88,768MTR in EuropeMTR in Australia30-49600Total passenger tripsCorporate GovernanceMainland of Chinaand InternationalBusinessTOTAL WORKFORCE BY AGE GROUPBelow 30Financial and EconomicPerformanceBuilding Our FutureFollowing the rapid expansion of Shenzhen’s population and theoverwhelming popularity of the metro network with the city’s residents,the Shenzhen Line 4 has experienced a steady growth in patronage, whichaccount for 17% of the total patronage of the Shenzhen metro network.NOcorruption casesare female18350FemaleMale(Total 383)(Total 975)57.0%are aged below 30 years0.4%are aged 50 and aboveNOenvironmental fines146
WEBSITEMENUIntroductionChairman’s MessageCEO ly ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessIntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaManagement HighlightsTraditionally a less developed part of the city, Longhua New District isbecoming popular as a residential area due to rising living costs in theCentral Business District (CBD) and good connectivity with the rest of thecity using the Shenzhen metro network. Line 4 is primarily a commuterservice for workers moving in and out of Shenzhen’s CBD at rush hour. Asa consequence, our challenges are mostly associated with the weekdaycustomer travelling pattern and their demography.Conversion from 4- to 6-car Service InitiativeIn 2015 we completed the conversion to 6-car trains to ease congestionduring rush hours. The project was a technical and customer servicesuccess with all trains having been converted safely, ahead of schedule andwith minimal disruption to passengers. The conversion has been pivotal ineasing crowding on board during peak hours.Operational PerformanceIn 2016, MTR (SZ) achieved 99.99% of passenger journeys on time, 99.95%train punctuality and 99.96% train service delivery.We introduced a number of customer service improvement initiatives in2016, such as: Adding 60 train trips per month since June 2016, increasing overallcarrying capacity by some 110,000 passenger journeys per month; Adding 60 train trips per week since October 2016, further increasingoverall carrying capacity by some 500,000 passenger journeys permonth; Shortened train intervals during peak hours, the shortest headway hasbeen reduced to 2.5 minutesOperational Performance for Line 4 (Longhua Line)Service performance Item20152016Passenger Journeys on time99.99%99.99%Train punctuality99.91%99.95%Train reliability19,565,4124,986,119Train service delivery99.95%99.96%revenue carkm/incidentrevenue carkm/incidentInvesting in our stationsMTR (SZ) is responsible for the maintenance and upkeep of stationsalong Line 4. We also work together with other operators of the Shenzhenmetro network to ensure smooth management of Line 4 platforms ininterconnecting stations. During 2016, MTR (SZ) continued to invest insustaining a high standard of general appearance and good facilities in allits stations, including signalling system renewal, installation of additionalgate, and improvement to the ticketing system.Commitment to Customer ServiceBuilding on a strong foundation, we continue our efforts in enhancingcustomer service, including installing queuing guides, enhancing signageand the ticketing system, streamlining passengers flow. We have alsoincreased the number of platform assistant during peak hour and providedmore customer service training. To demonstrate our commitment tocustomer service, in 2016, we have reviewed our procedures on now torespond to incidents, including how to provide better assistance and betterinformation to affecter customers. In addition to direct engagement, wealso collect feedback from our customers through the annual customersatisfaction survey. Scrutiny by our customers drives us to improvecontinually.Performance Metrics147
WEBSITEMENUIntroductionChairman’s MessageCEO ly ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessIntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance MetricsCustomer Service Review MechanismAn internal review of our customer service mechanism put forward tofrontline staff in 2015 helped to identify areas for providing better servicequality. We have introduced “secret passengers” survey in stations, andin 2016, the survey has been expanded to cover more job roles in stations.All the findings were provided to stations for follow-up, and shared withMTR(SZ) senior managers. The “afternoon tea time” and “transparenttrain” are two new initiatives that open the dialogue between customersand MTR(SZ) representatives. It provides a platform to directly listen to ourcustomers, and drives us to improve continuously.Safety EngagementWe have developed a range of programmes to engage with customersto promote safe and comfortable journeys. We have posters in stationswarning our customers of different risk areas, such as gates, train doorsand staircases. A series of videos on escalator safety is broadcasted instations and on trains. Along with other safety promotion campaigns inthe community and in schools, our “Little Station Master” programme hasbeen upgraded to “Little Professionals”, to educate children on how totravel in safe and courteous manners, and encourage them to share theirlearnings with their friends and family.Safety Performance20152016Passenger Fatalities00Staff Fatalities00Contractor Fatalities00Passenger Injuries(per million passenger journeys)1.111.21Staff Injuries (per 100,000 man hours)0.210.08Contractor Injuries(per 100,000 man hours)0.120.23In collaboration with local government departments and other stakeholdersin the community, we held two emergencies drills in 2016. These drillsrehearsed how to collaborate with other departments including the FireDepartment and the Police, and prepared our staff on train and stationevacuation. It also helped us review the existing procedures and identifyroom for improvements.StaffWe continued our partnership with a Shenzhen-based training institute toprovide internship opportunities for young people. In addition to helping usdevelop a pool of talented young people for recruitment into our business,we hope this initiative will also provide valuable learning opportunities foryoung members of our community.Full-timeEmployees1,358Voluntary StaffTurnoverTraining Days perEmployee11.9%8.9EnvironmentAs the operator of a single line in the Shenzhen metro network, MTR (SZ)has minimal direct impact on the environment. In 2016, in spite of 5.3%passengers increase, we reduced our electricity consumption by 1.2%.This is achieved through various energy-saving initiatives, such as turningoff the standby train air conditioners and standby escalators, switching offstation fans during non-operation hours, etc.Over the past three years, water consumption has increased by 5% withthe rise of the passenger numbers. In 2016, we promoted waste sorting atoffice building. The Environmental Management Committee also organizedsite visit to the waste incineration power plant and relevant lecture to raisegeneral awareness amongst staff.148
WEBSITEMENUIntroductionChairman’s MessageCEO ly ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessIntroductionMTR in Mainland of ChinaENVIRONMENTAL PERFORMANCE FOR LINE 4(LONGHUA LINE)Greenhouse Gas Emissions (Tonnes CO2e)SCOPE 12015 3152016 310SCOPE 22015 85,2862016 84,232TOTAL WATER CONSUMPTION (m3)2015 185,935CommunityOur community plan underscores that we are operating a communityrailway and focuses on youth development, community outreach and publicart.In October, we launched an open day and invited public to join the “roleplay” as MTR (SZ) staff. Of over 500 overwhelming registrations, 60passengers were selected to play three different roles - customer servicestaff, train attendants and railway protection team member. Through thetrainings and communications, they have the chance to understand andrecognize our efforts in delivering good customer services, commitmentsto upholding safety procedures and other hard works behind the scene.In 2016, our employee volunteering scheme has organised several activitiesto help those in need. Volunteers donated curtains to primary schools inrural areas and helped with the installation as well. They also sent warmthto those travellers during peak season at spring festive. In addition,volunteers paid site visit to special orphans, bringing birthday parties andclothes to them.MTR (SZ) introduced the “Little Station Master” programme working withseveral primary schools along the line to promote safety education tochildren. In 2016, the programme was upgraded to “Little Professionals”which comprised of three sections – “Little Station Master”, “LittlePoliceman” and “Little Banker” in collaborations with local police andbank. After receiving trainings on sense of responsibility, safety tips,courteous behaviours and the emergency handling, 60 primary childrenaccompanied by the station frontline staff worked as “Little StationMaster”. The programme aims to educate children more on the importanceof responsibility and safety behaviours.MTR in EuropeMTR in Australia2016 195,709Performance Metrics149
WEBSITEMENUMTR IN EUROPEIntroductionIt has been ten years since we started our first rail operations in Europe.Since then, we have grown our presence with two main hubs comprisingour Europe railway business:Chairman’s MessageCEO Letter Sweden: MTR Nordic AB, which holds 100% control in MTR StockholmAB, MTR Tech AB (rolling stock maintenance for Stockholm Metro),MTR Express AB, MTR Pendeltågen AB (the operating entity forStockholm commuter rail), and 50% control in Emtrain AB (rolling stockmaintenance for Stockholm commuter rail).SafetyCustomersCommunityEnvironment United Kingdom: MTR Crossrail (for the concession of Elizabeth Line)and LOROL (for the concession of London Overground, which ended inNov 2016).European Railway Businesses at a GlanceRailway Construction, Operation and MaintenanceStaffSupply ChainFinancial and EconomicPerformanceCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessIntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaBusiness ModelCommencementof Franchise/ExpectedDate of Commencementof Operation100%O&M ConcessionMay 2015100%O&M Concession Note 5November 2009Open Access OperationMarch 2015 Note 7MTRCorporationShareholdingFranchise/Concession Period(years)Number ofStationsRoute Length(km)Projects in operationMTR Corporation (Crossrail) LimitedTfL Rail/ElizabethLine, UnitedKingdom840 (28) Note 411814 Note 6100110N/A Note 85 Note 9455MTR Tunnelbanan ABStockholm Metro,SwedenMTR Express (Sweden) ABMTR Express,Sweden100%Performance Metrics150
hairman’s MessageMTR Pendeltågen ABCEO LetterStockholmcommuter 0%Business ModelCommencementof Franchise/ExpectedDate of Commencementof OperationO&M ConcessionNote 10December 2016Franchise/Concession Period(years)10Number ofStations53Route Length(km)241CommunityEnvironmentStaffSupply ChainFinancial and EconomicPerformanceNote 4:Note 5:Note 6:MTR Crossrail will manage 28 out of the total 40 stations in the Elizabeth Line network.Rolling stock maintenance is provided by our subsidary MTR Tech AB.In September 2015, the eight-year operating concession of Stockholm Metro was extended for another six years (from 2017 to 2023) to a total of 14 years by theStockholm authority.Note 7: MTR Express initial service commenced on 21 March 2015 with full schedule starting in August 2015.Note 8: The train path allocation is subject to renewal.Note 9: MTR Express is not responsible for the management of these stations.Note 10: Rolling Stock maintenance is provided by Emtrain AB, a 50:50 associate jointly owned by MTR and Euro Main Rail AB.Corporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessIntroductionDID YOU KNOW?TBT was established as a 50:50 joint venture between MTRSand Mantena AS to provide rolling stock maintenance for MTRStockholm. In February 2016, MTR Nordic completed the acquisitionof Mantena’s 50% share and renamed the company to MTR Tech AB,a MTR wholly-owned subsidiary.MTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance MetricsDID YOU KNOW?MTR Express2016 was the first year of full operation of MTR Express on the 455kmroute between Stockholm and Gothenburg, Sweden’s two largest cities,with 90 weekly services. MTR Express had a very high level of operationalperformance with punctuality consistently above market performance.Passenger numbers have continued to increase and customer satisfactionremains at high level. Overall in 2016, MTR Express was rated as thebest rail operator in Swden by an independent survey. Furthermore, MTRExpress continued to strengthen cooperation with infrastructure ownerTrafikverket.MTR Nordic was also awarded the concession for the Stockholmcommuter rail (Stockholms pendeltåg) for an initial period of 10years, that the government could extend for a further four years. Itis the second largest railway franchise in Sweden after StockholmMetro. We began operating the service in December 2016.151
WEBSITEMENUThe Stockholm MetroIntroductionIntroductionChairman’s MessageCEO LetterSafetyWe have experienced significant growth in Sweden in 2016: our presencein Stockholm is deepened as our operations of the Stockholm commutertrain commenced in December 2016; MTR Tech AB, renamed from TBT,which provides rolling stock maintenance for MTR Stockholm, has alsobecome a fully-owned subsidiary of MTR Nordic through acquisition.This year’s report will focus on the Stockholm Metro, operated by MTRTunnelbanan, and supported by MTR Nordic and MTR Tech AB.CustomersMTR NordicCommunityEnvironmentResponsible for:Staff Supply ChainFinancial and EconomicPerformanceManagement, follow-up, coordinationCulture/values, brand, policies, processesSpecialist expertiseBusiness developmentCorporate GovernanceBuilding Our FutureMainland of Chinaand InternationalBusinessMTR Tunnelbanan Operations of theStockholm MetroMTR Express Intercity servicebetween Stockholm andGothenburgMTR Tech Rolling stockmaintenance for MTRTunnelbananMTR Pendeltågen Operations of theStockholm commuterrailIntroductionMTR in Mainland of ChinaMTR in EuropeMTR in AustraliaPerformance MetricsMTR Tunnelbanan (MTRS), has operated the metro system in Sweden’scapital city since November 2009. According to our O&M agreement withStockholm’s public transport agency, AB Storstockholms Lokaltrafik (SL),we have full responsibility for passenger experience with the metro. Ourscope of work covers railway operations, stations, in-station services, andrelated projects. Fleet maintenance is handled by MTR Tech AB, formerlyknown as TBT.Stockholm’s population is increasing at the rate of 40,000 residents peryear, making it one of the fastest growing cities in Europe. In order tosatisfy the transportation demands of this dynamic and expanding city,we are committed, under the terms of our operating franchise, to achievehigh standards for safety, punctuality, cleanliness and customer service.We also work closely with SL to procure new technology for upgrading themetro system and to receive regular feedback on our performance.152
WEBSITEMENUIntroductionChairman’s MessageCEO LetterSince taking over the operation of the metro in 2009, MTRS has introduceda range of operational and customer service enhancements, includingincreasing the service punctuality from 92% to a record high of more than97% this year. On the 11th of December 2016 we added a new
Operations and Maintenance ("O&M") Concession Operations and Maintenance ("O&M") Concession September 2009 Phase 1 : July 2010 Phase 2 : June 2011 Phase 1 West Section: May 2013 Phase 2 East Section: December 2014 Phase 3 Middle Section: December 2015 December 2010 Phase 1 : Dec 2016 49% 100% 49% 49% 49% 30 30 30 . Note 11. Until full line .
