Rail route: Secretary for Transport & Housing Eva Cheng explains the Guangzhou-Shenzhen-Hong Kong Express Rail Link project to the media.

The Executive Council has agreed to ask the MTR Corporation to proceed with further planning and design of the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, Secretary for Transport & Housing Eva Cheng says.

The section will be a 26km underground rail line that runs from the terminus in West Kowloon to the boundary at Huanggang, where it will connect with the link's Mainland section.

Briefing the media today, Ms Cheng said the link will reinforce the city's position as the transport hub in southern China and integrate Hong Kong into the country's rapidly growing express rail network.

Hi-speed dedicated track

The Hong Kong section will run on the city's first high-speed dedicated track with a maximum speed of 200kph. This will cut the Hong Kong-Guangzhou traveling time to just under 50 minutes - twice as fast as the Guangzhou-Hong Kong through trains on the East Rail alignment.

The link's two termini will be at West Kowloon in Hong Kong and Shibi in Guangzhou. Intermediate stations include Futian and Longhua in Shenzhen, and Humen in Dongguan.

With the adjoining Airport Express Kowloon Station and West Kowloon Station of the Kowloon Southern Link, the link's terminus will turn West Kowloon into a major rail hub. Linkages will be provided to facilitate commuters.

"The location also has a point-to-point connection with the heart of Central via the existing MTR network. Together with the Kowloon station's new commercial development, it is set to become a prime business centre," Ms Cheng said.

Cultural district extension

The Hong Kong terminus will partly extend into the 3.3-hectare underground area of the West Kowloon Cultural District to provide convenient access. Flexibility of the above-ground planning will be maintained.

This integration will greatly enhance the prominence of the rail terminus as the gateway to Mainland China, and the WKCD as a regional cultural hub, Ms Cheng said, adding more visitors to the proposed arts, culture and tourism facilities there will promote cultural tourism.

The Mainland terminus at Shibi, where the new Guangzhou Station is located, is one of the four largest passenger transport centres in the country.

In future, commuters will be able to switch to such express long-haul services as the proposed Beijing-Guangzhou Passenger Line at Shibi and the Hangzhou-Fuzhou-Shenzhen Passenger Line at Longhua. The two passenger lines are also due to complete around 2015.

Travel time cuts

Hong Kong commuters will be able to travel express to several Mainland cities, reaching Shanghai in eight hours and Beijing in 10 in future, as compared with over 20 hours now, Ms Cheng said.

The link is due to carry about 100,000 passengers daily in 2020 and 120,000 passengers in 2030, saving 40 million hours of traveling time and generating $83 billion in economic benefits over the next 50 years. The economic internal rate of return is about 9%.

The project is expected to create 5,000 construction jobs and 10,000 more during its operation. Works are due to start in 2009 for completion in 2014 or 2015.

"After careful consideration of both the operational and financial implications, the Government has decided to adopt a concession approach to fund the estimated construction cost of $39.5 billion," she said.

"Upon completion, the MTRC will be granted a service concession for the subsequent operation and pay the Government annually for the concession," Ms Cheng noted.

Gov't to fund construction costs

Since the Government will fund the construction cost, the development rights for the site above the Hong Kong terminus will not be granted to the MTRC.

Ms Cheng hoped the detailed design would be ready within this year and her bureau will seek funding from the Legislative Council as soon as possible.

MTRC Chief Executive Officer CK Chow welcomed the decision, adding high-speed rail has been attractive to commuters in other countries.