The Executive Council has agreed that the Mass Transit Railway Corporation (MTRC) be asked to proceed with further planning and design of the Hong Kong section of the Guangzhou–Shenzhen-Hong Kong Express Rail Link (XRL).
     The Hong Kong section will be a 26-kilometre underground rail line that runs from the terminus in West Kowloon to the boundary at Huanggang, where it will connect with the XRL Mainland section. The XRL would reinforce Hong Kong's position as the transport hub in southern China and integrate Hong Kong into the country's rapidly growing express rail network. The Hong Kong section will run on a dedicated track with a maximum train speed of 200 km per hour.

     The two termini of the XRL will be at West Kowloon in Hong Kong and Shibi in Guangzhou. Intermediate stations include Futian and Longhua in Shenzhen and Humen in Dongguan. Together with the adjoining Airport Express Kowloon Station and West Kowloon Station of the Kowloon Southern Link, the terminus of XRL would turn West Kowloon into a major rail hub. The location also has a point-to-point connection with the heart of Central via the existing MTR network. Together with the new commercial development at the Kowloon station, it is set to become a prime business centre.

     The Hong Kong terminus will partly extend into the underground area of the West Kowloon Cultural District (WKCD) to provide convenient access. The integration into the WKCD will greatly enhance the prominence of the rail terminus as the gateway to Mainland China, and the WKCD as a regional cultural hub.
     The Mainland terminus at Shibi, where the new Guangzhou Station is located, is one of the four biggest passenger transport centres in the country. In future, commuters will be able to switch to such express long-haul services as the proposed Beijing-Guangzhou Passenger Line at Shibi and the Hangzhou-Fuzhou-Shenzhen Passenger Line at Longhua.

     After consideration of both the operational and financial implications, the Government has decided to adopt a concession approach to fund the estimated construction cost of HK$39.5 billion. Upon completion, the MTRC will be granted a service concession for subsequent operation and pay the Government annually for the concession.
     Since the Government will fund the construction cost, the development rights for the site above the Hong Kong terminus will not be granted to the MTRC. Works are expected to start in 2009 and be completed in 2014 or 2015.