In its paper Hong Kong Moving Ahead: A Transport Strategy for the Future, published in 1999, the Government of the HKSAR stated that railways would become the backbone of Hong Kong's transport system. It also emphasized the importance of rail links will play in Hong Kong's continued economic, social and land development. In the planning of Hong Kong's infrastructure development, railways will always occupy a place of priority.

According to another paper called Railway Development Strategy 2000, released on 16 May 2000, Hong Kong's existing rail network already accounted for over 30% of daily domestic passenger travel and over 80% of cross-border passenger trips. There was also a considerable amount of rail freight movement between Hong Kong and Mainland China.

Obviously, by shortening the rail transit times between Guangzhou and Hong Kong, the ERL will improve the coverage of people and goods. It will also strengthen Hong Kong's land links with the various provinces of Mainland China, and further support economic development.

"An hour of life circle"

The ERL will become part of the national express rail network. It will start at the New Guangzhou Station in Shibi, Guangzhou, pass through the aptly named New Shenzhen Station in Longhua, and terminate in Hong Kong. The travel time between Hong Kong and Guangzhou will be shortened from the present 1 hour 40 minutes to less than one hour. A concept - and a reality - called "Guangzhou, Shenzhen, Hong Kong: an hour of life circle" is being developed.

The completion of the ERL will provide even more momentum for the economic integration of the Pearl River Delta (PRD) area. In particular, it will increase the ties between the main cities in the area, extending business opportunities and opening the gateway for a greater range of investment projects. Manufacturers in Hong Kong, Guangzhou and Shenzhen will find their markets bigger, and industries such as tourism, logistics and trading will be given a positive boost.

Alex Fong, CEO of the Hong Kong Chamber of Commerce (HKGCC) says that the completion of the ERL will create an economic growth circle, drawing Guangzhou, Shenzhen and Hong Kong closer to each other. It will increase passenger flows between Mainland China and Hong Kong, and have a positive impact on areas such as tourism, discussion on business and cross-border business projects. The business ties between the various cities will also benefit from a more fluid and frequent interchange and human resources talent.

The "dedicated corridor": key to success

In 2002 the Government of the HKSAR and the China Ministry of Railways initiated a joint study that explored the possibility of establishing an express rail link between Guangzhou, Shenzhen and Hong Kong. The transit time between Hong Kong and Guangzhou was to be reduced from 100 minutes to less than 60 minutes. Both parties agreed on the routes for the mainland section of this Guangzhou-Shenzhen-Hong Kong line, choosing Shibi - at Panyu in Guangzhou - as the starting point, then going through Humen in Dongguan, on to Longhua in Shenzhen, then crossing the border via a tunnel at Huanggang, and terminating at Lok Ma Chau in Hong Kong.

At that time, Government of the HKSAR planned for the railway to run south after crossing the Shenzhen River, go through a short tunnel, utilize and share the Northern Rail Link, the Kowloon-Canton West Rail and the Kowloon South Line, and terminate at the West Kowloon Terminal. In an Executive Council meeting held in February last year, the study was approved and the "shared corridor" solution for Hong Kong section of the ERL was adopted. However in May this year, the Kowloon Canton Railway Corporation (KCRC) rejected the "shared corridor" solution and proposed the construction of a 30-km tunnel as the "dedicated corridor", which on completion will be one of the longest railway tunnels in the world.

Donald Tsang, Chief Executive Officer of the HKSAR, said that the main reasons for adopting the "dedicated corridor" were to shorten the journey between Hong Kong and Guangzhou to roughly one hour and consolidate Hong Kong's strategic position as the southern gateway to Mainland China. Tsang explained that the number of stations on the West Rail and the differences in track gauges (ie track width) were also important reasons for abandoning the "shared corridor" solution.

Speeding up the Pearl River Delta connection

The PRD is the fastest growing region in Mainland China, and this is the prime motivator behind the Guangzhou Government's plan to link up all the major cities in the area via an express railway system. Apart from connecting Guangzhou, Shenzhen and Hong Kong, the ERL will form an integral part of two major rail systems in Mainland China: the Beijing-Guangzhou Passenger Rail Line (connecting Guangzhou and Beijing) and the Hang-Fu-Shen Passenger Rail Line (connecting Shenzhen, Hangzhou and Fujian).

The ERL will also link up to the PRD Intercity Express Rail Network. At the same time, the Shenzhen Municipal Government is planning the construction of a Shenzhen-Hong Kong city-based railway . When the ERL is completed, Hong Kong will be effectively connected directly to China's national railway network.

Three cities in an economic circle

The Guangzhou-Shenzhen-Hong Kong ERL will certainly offer greater business opportunities to entrepreneurs in Mainland China and Hong Kong. Businessmen, planners and consultants are unanimous in their positive assessment of the benefits that the ERL will bring.

Alex Fong has said that the faster the completion of ERL, the greater the benefit to the Hong Kong economy will be. He added that the completion of the ERL will create different roles for Hong Kong, Shenzhen and Guangzhou. Hong Kong will be the springboard by which the small and medium enterprises of Mainland China can reach international markets; Guangzhou will rise up as the provincial capital; and Shenzhen will become the special economic zone. The three cities will form the main economic mass of the PRD area, and the ERL will be the most vital link between these cities. Supported by the CEPA, they will create a "greater economic circle", and be in a much better position to face the challenge of other regions.

Dennis Yau, Director-General of The Federation of Hong Kong Industries, also agrees that the ERL will be the catalyst for stronger growth and development in Hong Kong, Shenzhen and Guangzhou. He believes the railway will facilitate the integration of Hong Kong and the PRD, and make it one of the world's major metropolitan areas. Yau notes that as transport becomes more convenient, Hong Kong manufacturers will be setting up more offices in Hong Kong, Shenzhen and Guangzhou to seek business opportunities. The three dynamic metropolitan areas will effectively become a single, vast trading centre driving the economic development of the PRD.

Anthony Wong, Chairman of the Hong Kong Logistics Association, believes the ERL will help a wide range of industries and boost investment across the board in all the centres that it will link. In short, he says, better transportation services means greater wealth.

Can rail cargo be developed?

Initially, the ERL will focus on passenger traffic between the major cities in links, and to date the Government has not announced any specific plans to use this rail link for the development for logistical purposes.

Fong is cautious about whether the ERL will ever be used by the logistics industry. Fong said the value of the ERL to the logistics industry will depend on the completion date of the ERL and how the ERL will be connected to the ports and airport in Hong Kong.

Anthony Wong agrees that the ERL will initially be focused on passenger traffic, and that its main role will be to make travel between Hong Kong and Guangzhou more convenient for citizens and business commuters. He also points out that the extent to which the ERL will be used for freight does depend on the development of other ancillary resources - for example, the allocation of land alongside the rail for freight storage, and the quality of the links from these storage areas to ports and airports.

However, Dr. Hung Wing Tat, Associate Professor of Civil and Structural Engineering Department, the Hong Kong Polytechnic University, says that if the ERL adopts the "dedicated corridor" solution it should be used for cargo transport and the development of the logistics industry. The geographical location of Hong Kong means transportation costs will significantly increase if container trucks are travelling further than 300km. In addition, he says, container truck is severely limited in the amount of freight it can carry, so the ERL can definitely provide significant benefits for the logistics industry.

Fortunes are made by better access

Hu Jintao, President of the People's Republic of China, has made the construction of rail links an important part of national development policy. The Qingzang Railway is a good example of the old trading adage, "Fortunes are made by better access". Since its inauguration, tourist numbers have doubled and the economy of the Tibet Autonomous Region is experiencing double digit growth.

The construction of the ERL will at last make Hong Kong a node in Mainland China's national rail network and that will mean a massive improvement in the transport services between Hong Kong and major mainland cities like Beijing, Shanghai and Fujian. In addition, the further development in infrastructure and port facilities in the cities will facilitate the integration of the Greater Pearl River Delta area. The ERL will provide a more efficient and convenient access between Guangzhou and Hong Kong. It will not only improve the logistics, but also enhance passenger traffic and facilitate the implementations of CEPA. The ERL will bring about a win-win situation for the economic development of both Mainland China and Hong Kong.