As cities around the world struggle to expand their public-transit systems to accommodate their growing population, one city is uniquely rising to the challenge proving that profit, sustainability and good urban planning go hand-in-hand.
Hong Kong is home to what is widely regarded as one of the most efficient public transit systems in the world and at the helm is planning alumni Rex Auyeung (BES '77). He has served as Chairman of the majority government-owned public transport operator, Mass Transit Railway (MTR) Corporation Limited, which is at the same time, listed on the Hong Kong's stock exchange with a market capitalization of HK$164 billion. In addition to being a mass transit service provider, the Corporation also steers the city's sustainable growth and development. He takes us behind the scenes to share their unique approach to transit and future priorities.
Behind the scenes of developing transit and communities
"One of the success factors of MTR today is the unique business model called Rail plus Property," says Auyeung. "It's so unique that we have many countries around the world coming to Hong Kong to study this."
The Rail plus Property model integrates railway expansion with property investment. By using property development revenue to fund the construction and operation of the railway system, this approach establishes a self-sustaining model for transit infrastructure development. It has become a key driver of Hong Kong's urban expansion, leading to the development of new communities that are increasingly connected, technologically advanced, and sustainable.
"This model has been going on for the past 45 years," Auyeung says. "It's through this model we develop the community. Because we set up a new railway line, residential and commercial areas, schools and malls follow."
With transportation at the core of urban development, it's no wonder that more than half the population rides public transit, and it's become the affordable, sustainable option. Currently, the weekday patronage of MTR has reached over 5.6 million. A total of 1.9 billion passengers rode on the network in 2024.
Now, and in the future, sustainability is top of mind
Looking to the future, sustainability is top of mind as Auyeung wraps up his tenure. Subway systems are one of the highest users of electricity and he shares that finding alternatives and reducing the operation's environmental impact is a regular topic at the board level. They discuss how the corporation can continue to improve and meet their ambitious goals over the next five, ten and fifteen years.
"The Hong Kong Government has a 2050 carbon neutrality strategy. We are aiming to cut our emissions in half by 2030," he says. "I continue to look for what we call fit-for-future strategies. We are always on the alert for how we can leverage new tools, ideas and technologies that can improve our service, raise our efficiency and support our ESG goals."
In practice MTR has integrated low-carbon measures and adopted energy efficiency measures in its businesses to manage environmental footprint. The green design and initiatives of MTR Hin Keng Station make it the first railway station in the world to receive an "Excellent" rating under the Building Research Establishment Environmental Assessment Method (BREEAM) In-Use certification. Environmentally conscious features will also be incorporated in its future new stations. Meanwhile, to support renewable and new energy, solar PV systems have been installed at selected stations, depots and its shopping malls. Notably, its Pat Heung Depot equipped with over 2,100 flexible solar PV panels is the largest flexible solar panel system in a single building in Hong Kong. Besides, this transit operator is also progressively introducing electricity buses to make its feeder bus services greener.
"My board told me 2030 is not so far away,'" he laughs. "I told them I know, but we have to.' There are a lot of debates around if ESG (Environmental, Social and Governance) strategies are worth it, but from my perspective we have to do something. We have a responsibility to the world. Of course, the dollars we spend today we may not see anything back during my time. But I hope the generations in the future will see the benefits of exercising an ESG strategy."
Back to basics - and to Waterloo
"When I graduated, I got into the insurance world. For many years I did something completely different than what I studied at Waterloo. But today I am in a position to pick up my knowledge and now be Chairman of one of the major public transit operators in Hong Kong. It all comes around."
"I find it interesting that even though it's been 45 years from what I learned and what I am doing today, the basics are still there. The concept of protecting the environment and creating a sustainable future still sticks in my mind. They are all topics that I learned about at Waterloo."
But that's not the only Waterloo memory top of mind. Alongside academics, Auyeung recounts fond memories of his friends, working with professors like Dr. Saul Herzog, and watching basketball games. "It may have been a long time ago, but I still remember my Waterloo ID number," he jokes. Now as alumni, those memories continue to be added to.
"When I came to Hong Kong in 1993, I knew nobody. It was the alumni program that helped me. It was through this network that I was introduced to the business community in Hong Kong. It's why I want to stay involved."
"To me the alumni network plays a unique role because it links the generations together," he says. "I think the network is very important - to help each other and share experiences."
Building for the future, together
Sustainability, innovation, and community are at the heart of Hong Kong's transit success. Under Auyeung's leadership, MTR is proving that forward-thinking urban development isn't just about moving people it's about building stronger, more connected communities. As he looks ahead, his commitment to mentorship and knowledge-sharing ensures that future leaders will continue shaping cities that thrive for generations to come.
