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makes 2 billion a year on public transportation No, they make money on real estate to offset their losses on transit.
by masonic 8y ago
makes 2 billion a year on public transportation
No, they make money on real estate to offset their losses on transit.
- samatman 8y agoThe value of that land is its adjacency to public transportation, I don’t see this statement as the slam-dunk you seem to think it is. When Google ‘loses money’ on search to make it up with ads, everyone thinks this is very clever. What Hong Kong is doing is no different.
- masonic 8y agoThe value of that land is its adjacency to public transportation Source? In SV, land value is generally orthogonal to nearness to public transportation (because of demographics if nothing else). And along transit lines, the only uptick is near to stations. (If you live next to rail between stations, it's a disadvantage because of noise and added travel in accessing neighborhoods on the other side of the tracks, since you are limited to established crossings.
- so33 8y agoActually, no. The MTR’s farebox recovery is over 100%. They make a profit on fares and make even more money on real estate.
- masonic 8y agoOkay, that wasn't stated... and that's unheard-of among US transit systems AFAIK.
- MrTonyD 8y agoI remember reading that they were able to cover all the costs because of accounting categorizations that they could consider only because they had the real estate. But I don't really know - that's just what some article was saying.