Bridging the transport gap with Smart and Green Mass Transit System in East Kowloon: A paradigm shift in urban mobility

By Highways Department

This article presents the strategic planning and implementation of the Smart and Green Mass Transit System in East Kowloon (SGMTS-EK), Hong Kong’s first medium-to-low capacity transit system designed to address longstanding transport challenges in a densely populated urban environment. Departing from conventional heavy rail solutions, SGMTS-EK embraces innovative technologies and a novel policy framework. The article details the technical evaluation, proactive stakeholder engagement, concurrent statutory processes, and robust public-private partnership model that underpin the project. It also discusses the remaining engineering and operational challenges, positioning SGMTS-EK as a benchmark for future sustainable transport infrastructure in complex urban settings.

Introduction: The transport challenge in East Kowloon

For decades, the steep topography of East Kowloon has presented formidable engineering challenges to conventional heavy railway extension. The northern uphill areas of East Kowloon, such as Choi Wan, Shun Lee, Sau Mau Ping, Po Tat and Lam Tin North, have been longing for an effective and convenient feeder transport connectivity. These communities are home to over 300,000 residents across more than 40 housing estates, together with 35 schools and over 50 social and medical facilities, including United Christian Hospital (UCH), clinics, elderly services, and rehabilitation centres for persons with disabilities.

Situated on hilly terrain, the residents rely almost exclusively on road-based feeder services (including franchised buses and green minibuses) to access the nearby MTR network and other districts. This dependency has led to chronic congestion at critical transport corridors, including the Choi Hung Interchange and Tseung Kwan O Road, resulting in unpredictable commuting times and reduced quality of life.

The growing population from new housing developments in the uphill areas, such as the Anderson Road Quarry Site, will further strain the existing transport network. Following comprehensive research in recent years, the Government pursued a forward-looking solution: the SGMTS-EK, a highly sustainable, innovative, and lightweight rail-based transport solution suited to East Kowloon’s hilly terrain. This strategic direction was formally announced in the 2023 Policy Address, marking a significant policy milestone and cementing the Smart and Green Mass Transit System (SGMTS) as a cornerstone of Hong Kong’s long-term transport infrastructure development. The SGMTS initiative was subsequently incorporated into the “Hong Kong Major Transport Infrastructure Development Blueprint,” promulgated by the Transport and Logistics Bureau in December 2023.

This article outlines the journey from conceptualisation to materialisation, focusing on the rationale for a new-generation transit model in Hong Kong, technical blueprint and performance logic, people-first design and outreach, policy advancement with parallel regulatory enablement, delivery strategy and funding arrangement, which drive SGMTS-EK toward its target commissioning by 2033. It aims to provide engineering professionals with insights into how a new class of transit system can be successfully introduced in a densely populated urban environment.

Fig 1. Layout of SGMTS-EK

Key technical features

From a transit network architecture perspective, the SGMTS outperforms traditional heavy rail in capital-expenditure efficiency and spatial integration within the East Kowloon uphill areas. This system effectively resolves localised corridor bottlenecks by bridging the transport gap as detailed below:

Fig 2. Conceptual arrangements of viaduct

Community-centric design and market engagement

A defining feature of the SGMTS-EK project has been its commitment to early, extensive, and iterative engagement with stakeholders and the market.

Industry outreach and harnessing market expertise  

Concurrently, the Highways Department initiated an Expression of Interest (EOI) exercise in the 2nd half of 2024 and an Early Engagement of Bidders at the end of 2025. These initiatives aimed to secure interest from local, Chinese Mainland, and overseas transport sectors possessing relevant expertise in SGMTS delivery, thereby refining the project’s technical and financial parameters to ensure the final reference design is both technically sound and market-responsive.

Fig 3. Stakeholder engagement and design evolution process

Shaping the scheme through public input

The Highways Department has consistently adopted a people-centric and proactive approach to advancing the SGMTS-EK project. Guided by the principles of active listening, comprehensive planning, and user-responsive engineering design, the project team engaged a broad spectrum of stakeholders, including Legislative Council and District Council members, residents’ representatives, green groups, and other key parties.

The project team organised and participated in over 20 consultation sessions and site visits in the first half of 2025 to capture community feedback and refine the baseline reference design of SGMTS-EK.

This process directly influenced three significant improvements:

• Additional intermediate station in Lam Tin North: Although residents have advocated for an intermediate station in the Lam Tin North area, the alignment scheme in the early project planning stage did not include a Lam Tin North Station due to uncertainty about the technical capability of various SGMTSs. With a detailed assessment of the technical capability of SGMTSs gathered from the EOI exercise and the geological profile of the Lam Tin North area through extensive ground investigation works, the project team was able to convert a section of the tunnel into a viaduct section running along Lin Tak Road and Pik Wan Road, and add Lam Tin North Station in the scheme without compromising alignment integrity.

• Relocation of Shun On Station: There is also growing public demand for improved pedestrian connectivity between Shun On Station and United Christian Hospital (UCH), an important healthcare resource in East Kowloon. Members of the Legislative Council, the District Council, and local stakeholders suggested in the public engagement events that the SGMTS-EK could provide more direct access for East Kowloon residents to UCH. Moreover, given that the UCH is currently undergoing expansion, enhanced connectivity with SGMTS-EK would enable medical services to be provided to the East Kowloon community more conveniently.

• Integrated pedestrian infrastructure and accessibility: Under the SGMTS-EK project, round-the-clock pedestrian links at the stations, including tens of escalators and lifts, will provide convenient uphill and downhill access routes to enhance connectivity among communities and support accessible mobility for the elderly and those in need.

Policy innovation: Concurrent statutory processes

To achieve the aggressive implementation timeline with construction commencement in 2027 and commissioning by 2033, the Government adopted a “dual innovation” strategy: technological innovation through SGMTS, and policy innovation through concurrent processing of statutory procedures, while fully complying with all statutory requirements and safeguarding public rights.

Accelerated implementation schedule

Driven by the explicit Policy Address commitment, the Highways Department has strategically compressed the implementation timeline by concurrently executing various technical studies, assessments, and three crucial statutory procedures:

• Scheme gazettal and authorisation of the project under the Railways Ordinance (Cap. 519).

• Approval of the Environmental Impact Assessment (EIA) Report under the Environmental Impact Assessment Ordinance (EIAO) (Cap. 499) and the subsequent acquisition of the Environmental Permit (EP).

• Secured Town Planning Board’s agreement on the land-use zoning amendments for commercial/residential development cum public transport facilities at the Ma Yau Tong Depot Site under the Town Planning Ordinance (Cap. 131).

Notably, during the Scheme gazettal process, the proposed alignment had no public objections. The Secretary for Transport and Logistics officially approved it in August 2025, within three months from the first gazettal to authorisation.

All three crucial statutory procedures were successfully completed within 18 months after commencement of the detailed project planning and design stage in July 2024. This remarkable milestone demonstrates overwhelming support from the public and local communities, achieved without compromising the statutory opportunities for public inspection, comment and objection.

Streamlined building control regime

To speed up processing of SGMTS infrastructure submissions under the Buildings Ordinance (Cap. 123), the Buildings Department and Highways Department established a streamlined building control framework that combines administrative optimisation with statutory delegation.

• Dedicated Railway Checking Unit (RCU): Statutory approval powers for railway structures such as viaducts and tunnels are delegated to a newly established RCU within the Highways Department. A dedicated departmental vetting body, RCU, consolidates technical oversight and shortens review cycles.

• Integrated inter-departmental governance: Centralised inter-agency committees act as a one-stop regulatory platform across the design, construction, and operational phases. This unified interface resolves multidisciplinary compliance issues concurrently and streamlines statutory commentary.

These regulatory enhancements speed up approval timelines and enhance implementation efficiency for railway and SGMTS projects.

A strategic procurement and financial model

Recognising the scale of investment and the need to leverage private sector expertise, the Government has designed a bespoke procurement and financial framework.

Build-Operate-Transfer (BOT) model

The Government aims to use a BOT franchise through a competitive open tendering to deliver the project. Key features include:

• Franchisee responsibilities: Financing, detailed design, construction, testing, operation, and maintenance for a 20-year franchise period.
• Government oversight: Prescribed performance, operational and maintenance requirements.
• Asset transfer: Upon franchise expiry, the SGMTS is to be handed over to the Government in good operational condition and at no cost.

By integrating the full asset life cycle within the 20-year franchise, this arrangement aligns design and construction standards with long-term operational resilience and asset reliability. It also harnesses private-sector financial capacity and technical innovation to optimise system efficiency throughout the franchise period.

An integrated financial arrangement

The operating revenues from the SGMTS-EK, while expected to be sustainable, are insufficient to cover the substantial upfront capital costs. To bridge this gap, the Government will grant the franchisee property development rights at three sites in East Kowloon, namely Ma Yau Tong Deport Site, Kai Tak Site and Cha Kwo Ling Road Site, primarily for residential use.

This approach enables property development revenues to fund the substantial upfront capital expenditure required during design and construction, while driving urban vitality and sustained patronage along the corridor.

Fig 4. Integrated financial model – BOT with Property development rights

Particularly, under the SGMTS-EK project, the transit-oriented development (TOD) approach is adopted to plan the proposed Ma Yau Tong Station and Depot cum topside developments with a view to achieving the following visions:

• Unlocks value: Realises the development potential of the proposed Ma Yau Tong Depot at green belt area, enhancing the growth and vitality of the areas served by Ma Yau Tong Station and, in turn, strengthening ridership.

• Creates synergy: Puts the Ma Yau Tong Depot Site and the topside property development in the hands of the same party to achieve coherent, synchronised implementation that smooths complex interfaces between the SGMTS-EK project and developments atop, enhancing the overall business case.

• Balances interests: Provides adequate and stable returns to the franchisee while safeguarding public interest. Franchisee also has a strong incentive to complete the project early to strengthen the business case.

New regulatory framework

Although various SGMTS technologies serve similar transport functions and share comparable technological and operational characteristics, a new, technology-neutral regulatory regime is being developed to accommodate them. This framework will:

• Shorten lead times: Provide a standardised approval pathway for future SGMTS projects, including granting of franchises and related authorisations.

• Enable flexibility: Allow for rapid adaptation to technological advancements and evolving operational models.

• Ensure safety and service quality: Establish clear requirements for safety, service monitoring, and operational standards applicable across all SGMTS technologies.

Procurement underway

Following the completion of all statutory procedures and the Chief Executive in Council’s approval of the financial arrangements leveraging the TOD approach, tenders for the 20-year BOT franchise were officially invited in July 2026. The tendering exercise adheres strictly to established Government procurement guidelines to ensure transparency, fairness, and value for money.

Pending the completion of tender evaluations and award approvals, the franchise agreement is slated for execution in 2027, with detailed design and construction works commencing immediately thereafter. This execution will mark a momentous milestone in the advancement of SGMTS in Hong Kong.

Addressing the challenges ahead

The executed BOT franchise agreement will forge a robust partnership critical to ensuring that all design parameters, construction works, and system performance metrics satisfy stringent technical, safety, and environmental standards. The project team and consultants will work in seamless lockstep with relevant departments to tackle the challenges ahead: 

Opportunities for innovation

The SGMTS-EK project incentivises the franchisee to incorporate innovative designs and operational arrangements, as well as advanced construction techniques and materials, to improve its business case. The franchisee is also encouraged to integrate intelligent passenger interfaces, IoT-enabled station management systems, and digital mobility tools to improve operational efficiency and the commuter experience.

To expedite construction progress, the franchisee is encouraged to use new construction materials and adopt suitable advanced construction technologies, such as:

• Modular Integrated Construction (MiC): Prefabrication of station modules off-site for rapid on-site assembly.
• Design for Manufacture and Assembly (DfMA): Optimising component design for efficient manufacturing and installation.
• Multi-trade Integrated Mechanical, Electrical and Plumbing (MiMEP): Factory-based prefabrication and integration of MEP services to enhance quality and speed.

Fig 5. Construction challenges and innovative solutions

Challenges in construction

• Extensive temporary traffic management for multiple work fronts: The SGMTS-EK is a large-scale infrastructure project that necessitates extensive earthworks to create platform areas and access roads, as well as to carry out foundation works and the construction of the superstructure. When multiple work fronts are established to accelerate the programme and enable early commissioning, the management of temporary traffic management works becomes exponentially more complex. Major alignment sections are located above or adjacent to heavily trafficked roads, such as Clear Water Bay Road and Lin Tak Road. Advanced traffic management schemes will therefore be essential to mitigate disruption and maintain road safety throughout the construction period.

• Underground utilities diversion and protection: Existing urban roads are underlain by a complex web of utility services. These typically include, but are not limited to, water mains, foul and stormwater sewers, gas pipelines, electricity cables, telecommunications fibre-optic cables, and street lighting conduits. Over decades of ad-hoc installation and repair, the spatial arrangement of these utilities can become congested. To avoid project delays, cost overruns, and unacceptable disruption to the public, timely approvals must be obtained from the relevant utility undertakers and their respective work programmes for the diversion and protection of their utilities coordinated. This is a significant administrative and logistical step that must be strictly adhered to for the successful delivery of the project.

Conclusion: A model for future urban transport

The Government is firmly committed to commissioning the SGMTS-EK by 2033. This target guides the planning, design, and construction efforts over the coming years. Achieving this milestone will surely require sustained collaboration among the Highways Department, the franchisee, and all relevant departments to keep the SGMTS-EK project on schedule and within budget, while meeting the highest standards of safety, quality, and environmental sustainability.

Beyond the SGMTS-EK project, the Government, with active participation from the Highway Department, will explore whether SGMTS can be adopted in other areas of Hong Kong with similar topographical and transport challenges. Feasibility studies and cross-departmental assessment will be carried out to identify potential corridors where SGMTS would offer a cost-effective and sustainable alternative to conventional heavy rail solutions, thereby contributing to the long-term resilience and connectivity of Hong Kong's mass transit network.

Acknowledgement

The Highways Department extends its sincere gratitude to the project consultants, Arup-AIS Joint Venture and their subconsultants, for their technical expertise and unwavering commitment. We also acknowledge the invaluable contributions of Legislative Council and District Council members, community stakeholders, and government colleagues whose collaborative efforts have been instrumental in advancing this landmark project.