MTR franchised to operate subway in Shenyang

Nov. 27, 2008 (China Knowledge) - MTR Corp Ltd<66>, the operator of Hong Kong's subway system, has entered into an agreement in principle with Shenyang Municipal Government and Shenyang Metro Group Co on two subway lines in the city, according to sources.

Under the 30-year agreement, MTR Corp won franchise to manage and maintain Subway Line 1 and 2, with a total length of 50 km, which have started construction since 2005 and will start operation in October 2010 and July 2012 respectively. The two lines are the first of 11 lines planned for Shenyang, capital of Liaoning province.

MTR Corp will hold 49% stake in the project, while Shenyang Metro Group Co, a subsidiary of the Shenyang Municipal Government will take the controlling 51%.

Meanwhile, MTR Corp has agreed to form a joint working group with Shenyang Municipal Government to study plans for other three lines, namely Line 4, 9 and 10, and the property development opportunities along Line 1 and 2, said MTR Corp.

Besides the subway project in Shenyang, MTR Corp also has won franchise to manage and maintain Subway Line 4 in Beijing, Line 4 in Shenzhen and Line 9 in Shanghai.