Exclusive interview of Dr. Jacob Kam, CEO, MTR Corporation, Hong Kong

Dr. Jacob Kam joined MTR Corporation in 1995 and had held various senior-level positions in Operations, Projects including International Business Divisions. He was elevated and appointed as the Chief Executive Officer (CEO) of the company on April 1, 2019, and has been a Member of the Board since then. He is responsible for all performances of the MTR Corporation and its group companies both in and outside of Hong Kong. In a recent conversation with him, Dr. Kam frankly talked about the MTR's strategy, achievements and role of digitalization in the Railway Industry. Here are edited excerpts:

Which part of MTR’s business are you most proud of?

Dr. Jacob Kam: MTR is a Hong Kong company that has expanded beyond our home base to operate railway services in Beijing, Shenzhen, and Hangzhou as well as in London, Stockholm, Melbourne and Sydney. In 2018, our average weekday patronage worldwide reached more than 12.7 million. We are proud of all of our businesses and we have more than 47,000 colleagues worldwide who are working hard every day to provide safe, reliable and efficient railway operations with a high standard of customer service for all of the communities that we serve. One of the key factors behind our success has been that we have evolved a business model based on the integration of rail and property that is financially sustainable in the long term. This model has been critically important in upholding our high-performance standard in Hong Kong, where we consistently deliver 99.9% of passenger journeys on time because it provides us with the financial resources that we need to continuously re-invest into our railway network to keep the whole system operating in prime condition.

Where are the key growth areas to explore for MTR and your rail operations across the globe?

Dr. Kam: Amid the continuing trend of urbanisation, there is an increasing demand for more and better train services in many parts of the world. In all of the hubs where we operate, there are significant new rail projects currently underway. In Hong Kong, we marked a new milestone in our transport development with the opening of the High-Speed Rail service in September 2018, which connects directly to the 29,000-km national high-speed rail network in the Mainland of China. This was the third new line we have opened in Hong Kong in the past three years. We have also submitted proposals for five more rail lines under the Hong Kong Government’s Railway Development Strategy 2014. We also see opportunities for further growth in and around our hubs in the Mainland of China, the U.K., Sweden, and Australia. This year, we have successfully launched the new Sydney Metro Northwest line and the first phase of Hangzhou Metro Line 5. Later in the year, we aim to commence service on Macau’s first railway, the Macau Light Rapid Transit Taipa Line. Moving forward, we see significant potential to work with partners to develop digital mobility platforms such as the Mobility-as-a-Service (“MaaS”) concept that would allow users to take multiple trips on various modes of travel with just one payment. We believe this could provide more convenient, accessible and sustainable travel incorporating regional services as well as first and last-mile journeys. We are also exploring innovative investment models to support sustainable railway development. The way that we integrate rail and property in Hong Kong is a good example of this but there are also other models that may better suit the needs of particular regions or cities.

What role can digitisation play in these key years for rail in Hong Kong and beyond?

Dr. Kam: Digital development is progressively bringing a new era of smart mobility to cities around the world. This is a very exciting time to be in the railway industry. At MTR, we are focused on leveraging the opportunities presented by technological advances to further improve our railway services. To mention a few examples, we have developed and continue to upgrade our award-winning apps to provide customers with real-time information and a range of location-based services for more personalised and enjoyable end-to-end journey experiences. Data integration and analytics are further improving our train service performance and asset reliability. We are also enhancing sustainability in new railway projects and pioneering innovative training solutions such as virtual reality simulations for our staff.

What steps can global railways leaders such as yourself take to encourage the growth of rail as the dominant mode of transport for passengers?

Dr. Kam: Public transport has become a driving force for the growth and progress of societies in many parts of the world, and passenger rail services play an essential role in this process by providing the most efficient and environmentally-friendly form of mass transit. As our cities expand and populations grow, the need for high-quality public services, including railway services, only increases. As an industry, we need to provide and sustain safe, efficient and reliable train services that can cater to the increasing patronage while also delivering the caring customer service that our passengers expect. As railway leaders, we need to work closely with city and national authorities and a range of business and community partners to devise effective models for the delivery of railway services that are truly sustainable – both environmentally and financially - for the long term. While every city has its own needs and circumstances, we believe the Hong Kong example of transit-oriented development based on the integration of rail and property can be a useful reference in these deliberations. Dr. Jacob Kam is going to attend RailLive 2020 which scheduled on from March 31-April 2, 2020 in Madrid, Spain. Urban Transport News is an official media partner of RailLive 2020.