Hong Kong's MTR has awarded a $745m contract to Chinese rail transport equipment manufacturer CRRC Nanjing Puzhen for the supply of 40 new light-rail vehicles (LRV).

Under the deal, the new LRVs will replace 30 of the existing Phase II LRVs in service since 1992, while adding another 10 to the current fleet size.

In 2019, the first batch is expected to be operational for passenger services, while the fleet size will be increased in phases to 150 by 2023.

According to MTR, this increase will help address continued development of the Light-rail network and cater to the growing passenger demand in the Northwest New Territories of Hong Kong.

MTR's operations director Adi Lau said: “MTR always strives for continuous improvements to provide passengers with more comfortable and reliable services.

“In view of the growing demand for public transport in the Northwest New Territories, we have decided to purchase more new vehicles to enhance the travelling experience of our passengers, as well as to meet the needs of the community for additional transport services.”

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Launch of the LRVs will help expand the overall carrying capacity of the rail network, including other amenities such as a new LED lighting system, increased number of passenger seats compared to the existing Phase II LRVs, as well as enhanced handrail and strap hanger arrangements.

MTR will be responsible for monitoring the production process of the new LRVs as well as conducting quality control checks.