Untitled - HKU Libraries - The University of Hong Kong

4.5.12 The Port Development Strategy Study (PDSS) projected demand for annualcontainer traffic and traffic at public cargo working areas; these figures, as updatedin 1987, were used by CTS-2, and are also shown in Table 4.16. The container trafficis predominantly at Kwai Chung. There are nine public cargo working areas locatedround the harbour on Hong Kong Island and Kowloon, and each attracts a largenumber of goods vehicle trips.4.6 Funding of Transport investments4.6.1 The planning of a transport infrastructure programme requires estimates to be madeof available investment funds. This section reviews past expenditure and establisheslimits for future expenditure.Past Financing of Transport Investments4.6.2 Past investment in transport in Hong Kong has been financed in three differentways:(1) By public expenditure controlled through the Capital Works Reserve Fund(CWRF); most highways as well as the KCR modernisation programme havebeen funded in this way.(2) By private investors; this covers most transport equipment purchases such asrolling stock, as well as three major tunnel infrastructure projects; the existingCross-Harbour tunnel in 1970-72, the Eastern Harbour Crossing started in1986 and the recently started Tate's Cairn tunnel.(3) By borrowing on world capital markets; this has been the primary means offinancing the Mass Transit Railway (MTR).4.6.3 To establish the financial position of the Mass Transit Railway Corporation (MTRC)and to enable it to borrow on world markets, Government has contributed equity toMTRC. Strictly speaking, these contributions do not represent capital spending,since Government in theory can realise these funds in the future. In practice,however, the long term nature of the Government equity position is such that thesefunds must be regarded as being just as fully committed as investments in highways.Review of Past Expenditure4.6.4 Past investments in transport infrastructure are summarised in Table 4.17 for theperiod 1 971 to 1 988, with an estimate of expenditure for 1 989.4.6.5 Public expenditure is that made through the Capital Works Reserve Fund (CWRF).Highways expenditure is controlled by either Highways Department or TerritoryDevelopment Department. After a pause in the early 1980s, the programme built upagain and is expected to reach an all-time high in 1 989. Public railway expenditurecovers the Kowloon-Canton Railway (KCR) modernisation programme, whichstarted in the late 1970s and reached a peak in the early 1980s, and more recentlythe construction of the track bed for the Northwest LRT project. Other publicexpenditure includes ferry piers, bus termini, footbridges, car parks and alsotransport studies (a very small proportion).4.6.6 Private highway expenditure has included completion of the existing Cross Harbourtunnel in the early 1970s and the Eastern Harbour Crossing and Tate's Cairn tunnelin the late 1980s; both of which are still under construction. Private railwayexpenditure was dominated by the massive investments in the Mass Transit Railway(MTR) (including a share of the Eastern Harbour Crossing), but also includesinvestments in the Northwest LRT system. It can be noted that the outstanding debton the construction costs of the MTR was about $17 billion at the end of 1988,compared with total costs of $21 billion.69