A case study on MTR Asset Life Assurance Scheme

MTR Asset Management System has been one of the initiatives bringing strategic transformations. The MTR Asset Management System itself has been accredited to PAS55 since 2005. The ALA Scheme specifically aims at confirming the capability of individual assets in the MTR Operating Railway in meeting the operating demands of the required performance and safety standards for the rest of the assets' assured life. More importantly from an asset management perspective, it derives an ALA plan, which specifies the various life assurance strategies and measures for life extension or renewal. In addition, it stipulates the estimates of funding required over the project horizon. The ALA Scheme in MTR was launched in 2008. It proposes a more flexible approach to asset management other than rigidly linking the planned replacement of assets with their specified design life. The Scheme specifies a target life for individual assets, which is driven by an asset's capability to meet performance standards, through identifying the “life limiting factors”, and implementation of life assurance measures. The first programme took about 2 years to complete. Upon completion of the programme, the ALA Scheme was further fine tuned into a formal, structured and permanent asset management policy. The ALA Scheme for the MTR Operating Railway has been proved successful in achieving the objectives in maximising the useful life of an asset and optimising total life cycle costs whilst meeting the stringent technical and customer service performance requirements; essentially bringing real benefits to different stakeholders, be they the passengers, employees, investors, and regulators. ("EMU") running in the MTR Kwun Tong, Tsuen Wan, Island and Tseung Kwan O lines which serve the main urban areas of Hong Kong ("MTR Lines"), will be used as a