Abstract: Hong Kong Mass Transit Railway (MTR) has demonstrated the effectiveness of fully-air-conditioned, high-speed rapid transit in some of the world's most heavily populated urban districts. MTR opened its first line in 1980 ahead of schedule and under budget. This was repeated in 1982 with the second line. Opened in May 1985 was the so-called Island Line that involved tunneling through all types of ground conditions and beneath roads and buildings. Narrow streets prevented cut-and-cover station construction and elsewhere a variety of tunneling techniques had to be used. The project management methods are also described, along with revenue collection and crime prevention. The project is privately financed and up to 10 percent of the cost is generated by joint development assessments.