Port Rail Line

As well as the competition between the competing carriers and terminals, KCR freight trains were threatened by the increasing number of people on the rail, as the two classes of trains were needed to share tracks with the East Rail Line. In view of that, on the Railway Development Strategy (RDS 2000), KCR drew up plans for the Port Rail Line, which will link the border crossing of Lo Wu to the container terminal at Kwai Chung. Two routes were considered: The KCRC justified that the new rail link will reduce the reliance on trucks moving towards the port, but the study also found that the new line will only be viable if the level of cross-border traffic is about to grow.
 * The line from Lo Wu via the existing East Rail, then the mountains of the Hong Kong and it will connect to Kwai Chung.
 * The line from Lo Wu, to Lok Ma Chau Spur Line, connecting towards the Northern Link, to Kam Sheung Road, then share tracks with the West Rail.

The upwards trends of traffic were never materialised, despite a few major increases since 1999. The freight volume continued to slip down from 2.5 million in 1999 to 1.2 million in 2004.

The KCR announced in 2005 that there are plans to re-enter the freight business that it has been previously abandoned in 2000, managing the entire door-to-door transport of goods, instead of being a linehaul operator behind rail terminals. KCRC was motived by a desire to diversify their revenue beyond passenger trains and real estate developments, in preparation for the upcoming merger of Hong Kong’s two rail operators: the KCRC and the MTR Corporation.

The final decision was made on 29 October 2009, where the MTR had decided to exit the freight business from 15 June 2010.