Risking Multi-billion Decisions on Underground Railways: Land Value Capture, Differential Rent and Financialization in London and Hong Kong

Becky Loo, John Bryson, Meng Song, Catherine Harris

    Research output: Contribution to journalArticlepeer-review

    10 Citations (Scopus)
    19 Downloads (Pure)

    Abstract

    Rapid urbanization has brought the needs to minimize negative transport externalities in cities to the forefront. The development of metros is a response to urban sustainability challenges, but the construction of underground infrastructure often requires massive excavation and long construction time, disrupts the economy and people’s everyday living, and is highly capital intensive. As such, these multi-billion-dollar investment decisions require political vision and determination, careful traffic analysis, and the ability to raise sufficient funds to cover not only capital construction costs but also future operations and depreciation. Underground infrastructure projects must, therefore, balance the engineering aspects of a proposed project with the development of a resilient and sustainable business model. This paper is the first to develop a comparative longitudinal analysis of the finance and funding models of two underground systems (London Underground and Hong Kong’s Mass Transit Railway) with a focus on the development of a conceptual framework for understanding land value capture (LVC) based on differential rents and financialization. The focus is on exploring the supply-side aspects of underground transport infrastructure including finance or capital investment and the relationship with funding or revenue streams and the creation of financially sustainable business models.
    Original languageEnglish
    Pages (from-to)403-412
    Number of pages10
    JournalTunneling and Underground Space Technology
    Volume81
    Early online date6 Aug 2018
    DOIs
    Publication statusPublished - Nov 2018

    Bibliographical note

    This is an open access article under the CC BY license

    Fingerprint

    Dive into the research topics of 'Risking Multi-billion Decisions on Underground Railways: Land Value Capture, Differential Rent and Financialization in London and Hong Kong'. Together they form a unique fingerprint.

    Cite this