Hong Kong’s MTR Corporation has posted its official invitation for companies to tender for its Hong Kong West Kowloon Station duty free contract, with the prequalification process for the terminal serving the cross-boundary Hong Kong-China Express Rail Link (XRL) set to take place next month.

 

The tender is being released one year ahead of the expected XRL opening, which MTR is now targeting ‘in the third quarter of 2018’.

 

This follows major progress in the construction of the West Kowloon terminal station, which MTR says is now ’substantially complete’. [It also follows an earlier embarrassing delay in completing the express line to mainland China, which pushed this project back a year-Ed].

 

STATION EXPECTED TO OPEN IN SEPTEMBER 2018

MTR said recently: “Architectural Builder’s Works and Finishes and building services works, including those relating to the Customs, Immigration and Quarantine areas for both the Mainland and Hong Kong sides, are underway in [the] West Kowloon Terminals (WKT).”

 

The Hong Kong Section of the Express Rail Link (XRL) runs from West Kowloon, heading north to the Shenzhen/Hong Kong Boundary, where it connects with the Mainland Section.

 

The MTR Corporation statement reads: “Expressions of interest are hereby invited from suitably qualified companies wishing to tender for Contract Q055421 for the operation of duty free business at the Hong Kong West Kowloon Station.

 

PREQUALIFICATION DEADLINE PROCESS NEXT MONTH

“The prequalification process for the tender will take place in September 2017. Only qualified companies with the relevant experience and financial capacity will be invited in September 2017 to submit tenders.

 

“In order to be considered for prequalification, interested companies are requested to express their interest, and write to: MTR Corporation Limited, 20/F., MTR Headquarters Building, Telford Plaza, Kowloon Bay, Hong Kong. Attention: Purchasing Manager – Property & Corporate Services.”

 

Interested companies are being asked to enclose the following information in an envelope marked “Expression of Interest for Operation of Duty Free Business at Express Rail Link Hong Kong West Kowloon Station (Q055421), on, or before 4 September 2017.

 

Meanwhile, MTR CEO Lincoln Leong said last month that the ‘XRL project’ has now achieved ‘several key milestones and is progressing towards our target’.

 

MTR RETAIL ‘REVENUE’ $247M IN HY1 2017

He said: “The Corporation will continue to support the Government in pushing forward the project for commencement of passenger services in the third quarter of 2018,” added Mr Leong.

 

His comments also coincide with MTR’s HY1 2017 results where the company said: “Despite the soft retail environment, station retail revenue for the period increased 5.1% to HK$1,935m ($247.3m).

 

“This reflects an increase in the number of shops following the opening of the extension of the Kwun Tong Line and the South Island Line, continuous trade mix refinements, positive rental reversions and increases in rents in accordance with lease contracts for the Duty Free Shops at Lo Wu and Hung Hom stations”. This refers to the existing Sky Connection duty free railway contract.

 

FIVE OUT OF NINE NEW TRAINS DELIVERED

As of 30 June 2017, MTR reported that it was leasing a total of 1,399 shops over 57,300sq m of station retail space. It also says that the new Hong Kong-China express link is progressing well: “The integrated testing and commissioning of the XRL project across the boundary has commenced in early July 2017.

 

“A Comprehensive Inspection Train arrived in Hong Kong last week to inspect railway infrastructure and systems, including tracks, overhead lines, signalling system and communications system of the Express Rail Link.

 

“The structural work at the Hong Kong West Kowloon Station is substantially complete. Architectural Builder’s Works and Finishes and building services works, including those relating to the Customs, Immigration and Quarantine areas for both the Mainland and Hong Kong sides are underway in the West Kowloon Terminal.

 

“Meanwhile, five out of the nine XRL trains have been delivered to Hong Kong from the manufacturer in Qingdao. The remaining four trains are expected to arrive soon.”

 

EXPANSIVE ‘BIDDER INFORMATION’ REQUIRED BY MTR

With the clock now ticking down to the anticipated opening next year, MTR has also listed the information requirements for those retailers wishing to prequalify for the new cross-border duty free concession at West Kowloon Station.

 

 

They include the following: company background and profile; date of incorporation; company organization; number of directors, key management and number of employees in the duty free business; shareholding and financial information together with Audited financial statements for last three years.

 

In addition, it is also seeking information on business performance, references from landlord(s) or licensor(s) and information on annual gross sales turnover for the past six years; relevant duty free business; total number of years in the duty free business; total number of sales outlets in Hong Kong or elsewhere; total number of greenfield duty free projects operated, information on any Holding Company, plus operational capability and relevant experience in operating duty free business along cross-boundary and international border business.

 

More detailed information can be obtained from the official MTR contract tender link here, which also leads to further links: https://www.mtr.com.hk/en/corporate/tenders/XRL_Q055421.html

 

For all other enquiries, contact Ms Phyllis Tong at 852-2993-8419, by fax 852-2993-7775.