Public transport in Hong Kong is profitable because the municipal transit agency also controls much of the real-estate development at the stations. This has been the case since the British colonial era, when the Hong Kong government began to invest in transport infrastructure to stimulate economic development. With an operating margin of more than 50%, the Mass transport Railway (MTR) is now one of the most profitable transport systems in the world. The MTR also has a sizable portfolio of commercial and residential real estate, which generates substantial revenue for the firm.The MTR’s success is owing in part to its efficient operations, but also to its ability to capture the value of the land surrounding its stations. The MTR has been able to establish a constructed environment that is very conducive to ridership growth by restricting the development of certain locations. The MTR has invested extensively in new rail lines and stations in recent years, which will continue to stimulate ridership growth and raise the value of the MTR’s real estate assets.