11 November 2003

MTR and Octopus Move a Big Step Forward in Their International Business

MTR Corporation Limited and Octopus Cards Limited, a subsidiary of the Corporation, have made another successful step forward in expanding their business abroad in securing a series of contract with Thales, one of the members of the East-West Consortium, to provide the Central Clearing House System Software as well as its expertise in the operation for a new public transport e-ticketing system in the Netherlands. The new transport smartcard system will be the first in the world to be implemented on a national scale and will offer integrated travel across covering all modes of public transport including train, bus, tram, metro and ferry.

In celebration of the success in exporting Hong Kong's expertise to the world, MTR Corporation and Octopus are joined by the Hon John C. Tsang, Secretary for Commerce, Industry and Technology, and Mr André C. Brouwer, Consul-General of the Netherlands in Hong Kong.

The Hon John C. Tsang said in the ceremony, "Octopus' continuous innovations have built up for itself a worldwide reputation and have helped raise Hong Kong's profile as a leading digital city. Octopus is an excellent example of the entrepreneurship and creativity that we are keen to encourage and promote among the local industry." He wishes to see many more Hong Kong companies following Octopus' footstep and gaining international recognition.

The new public transport e-ticketing system in the Netherlands is an initiative of five major public transport companies, namely, Nederlandse Spoorwegen, the national rail operator; RET, Rotterdam public transport operator (buses, metros and tramways); Connexxion, the national bus operator; GVB, Amsterdam public transport operator; and HTM, the Hague light train public transport operator. When the system is in full operation, more than two million passengers per day are expected to use the national transport smartcard system. The implementation of the first phase of the project in the Rotterdam area is planned for September 2004. The project is co-ordinated and tendered by Translink, the Joint Venture of the public transport companies. They have selected the East West consortium led by Thales, Accenture and Vialis, with Octopus and MTR as key partners – to supply equipment and services and ensure the interoperability of the system.

The service contract for the Netherlands has added a new dimension to the MTR's external consulting business. "In the last few years, MTR has successfully capitalized on our accumulated experience by offering railway consultancy services covering the full range of our activities to metros, their investors and suppliers all over the world," said Mr. Phil Gaffney, Acting Chief Executive Officer of MTR Corporation.

"The drive generated by the ever-rising expectation of our customers and the competitive environment in Hong Kong allows us to continuously scale new heights in service quality.," said Mr. Gaffney. "We are confident that this will be the first of many and the name of MTR and Octopus will be instantly recognized around the world as the leader in this field."

The international consulting service business of the MTR Corporation was formally launched in 1998 and has now been extended to more than 20 cities around the world from Australia, China, India, Malaysia, the Netherlands, Singapore, Thailand and the United Kingdom.

"We are delighted to win the assignment with our partners to introduce a multi-purpose contactless electronic payment smartcard system for the Netherlands," said Mr. Eric Tai, Chief Executive Officer of Octopus, "It is our aspiration to share Octopus' successful implementation in Hong Kong and bring unparalleled experience and expertise to help other countries in doing the same. Our aim is to make people's lives simpler and more convenient, not only in Hong Kong but also in other parts of the world."

Hong Kong's Octopus smartcard system was launched in 1997. The high level of reliability and convenience enables Octopus diversified applications. Nowadays, virtually all public transport modes accept Octopus. Its savvy use also covers parking, retail, vending machines, kiosks, leisure facilities and access control for residential and commercial buildings. Currently, 10 millions Octopus cards are in circulation, with the Octopus System handling about 8 million transactions per day, amounting to HK$54 million.

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