On track: The KCRC's total patronage and recurrent revenue hit record highs last year, with growth rates of 20.1% and 12.4%.

The Kowloon-Canton Railway Corporation's total patronage and recurrent revenue hit record highs last year, with growth rates of 20.1% and 12.4%. The Government, as the KCRC's sole shareholder, will receive a dividend of $172 million.

KCRC Chairman James Tien said the net profit after tax was $429 million, down 68.9% when compared with the net profit of $1.38 billion in 2003, adding there is no room for fare cut at the moment. However, to attract more passengers to the Ma On Shan Rail, a six-month pass scheme will be introduced on April 1, which will also be useable on the East Rail.

According to the KCRC's annual results released today, total patronage rose from 1,131,800 daily passenger trips in 2003 to 1,354,800 trips a day on average for 2004 mainly due to the increase in patronage of West Rail, the opening of the new Tsim Sha Tsui Extension and Ma On Shan Rail.

Patronage up

West Rail daily patronage rose over 70% to about 173,000 by December. East Tsim Sha Tsui Station currently handles 68,000 passengers a day while the Ma On Shan Rail carries 92,000.

The East Rail's domestic patronage surged 5.3% to an average of 566,000 passenger trips a day. Its share of the domestic market for North East New Territories to urban journeys remained relatively unchanged at around 40%.

In the cross-boundary market, the KCRC continued to suffer from severe competition from direct coaches, with market share falling from 68.6% in 2003 to 61.2% last year with an average of 232,500 passengers a day.

On intercity passenger services, the average daily passengers increased 37.5% to 8,000. The Guangzhou-Kowloon Through Train market share grew from 22.9% in 2003 to 25.4% in 2004.

Last year also witnessed a substantial increase in ridership for the Light Rail Transit, with daily patronage averaging 360,000, up 23.5% over the previous year.

Revenue up

Transport revenue rose 12.1% to $4.28 billion, as compared with $3.82 billion in 2003. Non-transport recurrent revenue, derived mainly from property rents, surged 14.5% to $695 million from $607 million in 2003.

However, net profit after tax was $429 million, down 68.9% when compared with the net profit of $1.38 billion in 2003. This was mainly due to the sharp increase in depreciation and operating costs resulting from the full year operation of the West Rail, and the opening of the Tsim Sha Tsui Extension and Ma On Shan Rail.

Operating costs before depreciation grew 31.8% to $2.81 billion while depreciation rose 118.2% to $1.63 billion.