International Railroad Discussion > Hong Kong's MTR CEO steps down

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Rail Operator MTR's CEO Stepping Down Year Before Contract Expires

Departure Comes After Report Criticizing Handling of Delayed Express-Train Project


HONG KONG—The American at the helm of Hong Kong's rail operator is stepping down a year before his contract expires following a harsh report that criticized the company's management for its handling of delays involving a high-profile express rail project.

MTR Corp., which runs subway and commuter train services in Hong Kong, London, Beijing and a handful of other cities, said Wednesday that Chief Executive Jay Walder will leave in August after just two-and-a-half years on the job.

Building on its reputation of delivering 99.9% on-time schedules, the company under Mr. Walder has been bidding to run subways in Europe, Asia and Australia. If it wins just a few pending bids, MTR will become the biggest operator of metro systems in the world.

But it was a big project close to home that led to Mr. Walder's departure. The high-speed rail line will be the first to connect Hong Kong to mainland China but it failed to keep to its tight completion schedule as costs ballooned. The project is now expected to cost more than US$10 billion and could be delayed by two years to 2017. The project was hit by a growing series of problems, including flooding caused by a big rainstorm that damaged a crucial tunnel boring machine.