Northern Link Budget Cut to HK$86.2 Billion Full Line Targeted for 2034 Launch

The Hong Kong government has officially approved the project agreement for Part 2 of the Northern Link (NOL), bringing the total projected cost for both the Main Line and Spur Line down to HK$86.2 billion—a 28% reduction from initial estimates.

Following the Chief Executive in Council’s financial approval on Tuesday, Secretary for Transport and Logistics Mable Chan and MTR Corporation Chairman Jacob Kam Chak-pui signed the comprehensive agreement. The entire railway network is scheduled to open simultaneously in or before 2034.

Chan highlighted that joint government and MTR efforts over the past year successfully optimized costs and accelerated the timeline. Key initiatives include implementing the Hong Kong Railway Standards to encourage advanced technologies, materials, equipment, and systems, alongside creating a specialized Railway Checking Unit to audit plans. This streamlined unit is expected to slash design approval times by 30% to 50%.

Additionally, the proposed Northern Metropolis Development Bill seeks to cut administrative red tape, such as simplifying noise permit requirements and procedures. Merging the Main Line and Spur Line into a single unified project yielded cost savings while advancing the Spur Line’s completion target by two years.

The construction cost for Part 2—encompassing underground tunnels, stations, a maintenance depot, and associated electrical/mechanical infrastructure—is estimated at HK$54.8 billion. Combined with Part 1, the overall outlay reaches HK$86.2 billion (at July 2025 price levels), representing a 28% reduction from earlier forecasts.

Official documentation shows that Part 2 capital expenditure will be spread across roughly a decade, with expected spending reaching HK$1.1 billion in 2027, HK$2.9 billion in 2028, and HK$5.9 billion in 2029.

To support financing, the Executive Council approved granting eight development sites totaling around 46 hectares to MTR under the established "Rail-plus-Property" model. These sites span Ngau Tam Mei Areas 3A, 3D, and 4A; San Tin Areas 2A and 2G; Kwu Tung North Areas 23 and 26 East; and a residential portion within the Au Tau New Development Area.

MTR Chairman Jacob Kam emphasized that the Northern Link will serve as a vital transit spine for the Northern Metropolis, addressing local commuter needs while strengthening integration with Shenzhen and the wider Guangdong-Hong Kong-Macao Greater Bay Area.

The 10.7 km underground Main Line will comprise five stations. Kam Sheung Road and Kwu Tung will function as key interchange stations for the Tuen Ma Line and East Rail Line, with intermediate stops at Au Tau, Ngau Tam Mei, and San Tin. Upon completion, peak-hour transit between Kam Sheung Road and Kwu Tung will be dramatically reduced from around 60 minutes to just 12 minutes.

The Spur Line will feature approximately 6 km of underground rail branching from San Tin Station, including a 1.1 km segment within Shenzhen. Serving three stops—intermediate stations at Chau Tau and the Lok Ma Chau Loop, ending at the Huanggang Port terminus—it will shorten travel time between San Tin and Huanggang Port to roughly 11 minutes.