How 🇭🇰 Hong Kong Built the World's Best Transit

Summary

Hong Kong's public transportation system is a global model of efficiency, with 99.9% of passengers arriving on time daily. The city's MTR system is not only profitable but funds the government, offering affordable and convenient transit. Through its 'Rail + Property' strategy, MTR develops and leases prime real estate, significantly contributing to the city's economy. Despite this success, Hong Kong's housing crisis is exacerbated by land restrictions. While public transit has supported protests for freedom, it can also be manipulated by the government, highlighting how technology, even beneficial, can be misused.

Takeaways

• 😀 Hong Kong's public transportation is incredibly efficient, with 5.9 million daily riders, 99.9% of whom arrive on time.
• 😀 Unlike car-dependent countries like the U.S., Hong Kong prioritizes public transit with a significantly lower car ownership rate (92 cars per 1,000 people).
• 😀 Hong Kong offers diverse transit options, including the iconic double-decker trams, the Peak Tram, the Star Ferry, and the MTR system.
• 😀 The MTR is a major part of Hong Kong's transport infrastructure, with 12 lines and 93 stations, handling over 7.5 million people daily.
• 😀 Unlike most public transit systems globally, Hong Kong’s MTR is highly profitable, covering 185% of its operational costs.
• 😀 The MTR's success comes from a unique business model that combines transit with property development through its Rail + Property strategy.
• 😀 Through Rail + Property, MTR generates significant income by selling or leasing land around stations, even owning high-rise buildings like the Four Seasons Hotel and Ritz Carlton.
• 😀 Hong Kong’s MTR benefits from its proximity to profitable properties and is incentivized by the government to keep improving its services.
• 😀 Despite its success, Hong Kong faces a housing crisis, as land scarcity is exacerbated by the MTR’s and government’s focus on restricting supply to keep prices high.
• 😀 The transit system, though beneficial for public mobility, is sometimes used strategically during protests to hinder movement by closing stations.
• 😀 The video promotes Brilliant, an educational platform, encouraging viewers to learn advanced skills in technology and machine learning, which can help solve challenges in systems like Hong Kong’s transit.

Q & A

How many people use Hong Kong's public transportation daily?

5.9 million people use Hong Kong's public transportation daily.

What is the on-time performance rate of Hong Kong's public transit?

99.9% of passengers on Hong Kong's public transportation arrive on time.

How does Hong Kong's public transportation system compare to car culture in the U.S.?

While the U.S. has a car culture with 800 cars per 1,000 people, Hong Kong has a culture of public transit, with only 92 cars per 1,000 people.

What are some of the unique modes of transportation in Hong Kong?

Hong Kong offers unique transportation options like the fully double-decker tram system, the Peak Tram, the Star Ferry, buses, cable-cars, helicopters, and the longest outdoor covered escalator.

How does Hong Kong's MTR system maintain its affordability despite being highly profitable?

The MTR system is profitable due to its 'Rail + Property' strategy, where it develops and sells or leases land around its stations, generating significant revenue from property development and commercial businesses.

What is the Farebox Recovery Ratio of Hong Kong's MTR, and why is it significant?

The Farebox Recovery Ratio of Hong Kong's MTR is 185%, meaning it generates more money from fares than it needs for operating expenses, which is the highest in the world.

How does the MTR generate additional income apart from fares?

In addition to fares, the MTR generates income by leasing land around its stations to property developers, operating retail shops, and creating commercial spaces.

What role does Hong Kong's government play in the MTR's success?

The Hong Kong government owns 75% of the MTR and benefits from its profitability. It grants development rights around new stations, which the MTR uses to increase land values and generate profit.

How does Hong Kong's land lease system contribute to its housing crisis?

The Hong Kong government controls land leases and auctions land slowly, which limits housing supply, driving up property prices. This results in a severe housing crisis where small, expensive homes are in high demand.

How has Hong Kong's MTR been used to control protests?

During protests, stations in key protest areas are often closed to prevent access, effectively restricting the movement of protesters and blaming them for the disruptions.