MTA Chairman Jay Walder Resigns... To Work For Hong Kong Subway System

One MTR safety campaign involved The Powerpuff Girls!!!!

Two years ago, MTA Chairman Jay Walder joined the agency, boasting credentials from his time working with the London Underground, emphasizing that the MTA "must restore the public trust and confidence in this organization," and compensated with a hefty pay package ($350,000/year!). Now, he's leaving the financially precarious MTA for Hong Kong, to head up that city's subway system, the MTR, which reported a profit of over $1 billion (the MTA has a $10 billion shortfall for its latest budget).

Walder said in a statement, "In challenging times, we brought stability and credibility to the MTA by making every dollar count, by delivering long overdue improvements and by refusing to settle for business as usual," and a press release (see below) includes his accomplishments as "[introducing] efficiency measures that are expected to yield $3.8 billion in cumulative savings by 2014" and "[driving] a customer service agenda that showed customers a new vision for 21st century transit service even as costs were reduced," with countdown clocks at 150 stations, security cameras being brought online, the revamp of the MTA.info website, pilot of all-electronic tolls and testing of smartcards, and introducing Select Bus Service. Of course, the economic climate has also meant various "Doomsday" scenarios over the years, including fare hikes, though Walder, a former McKinsey consultant, has been able to buy a $1.6 million condo.

Hong Kong's MTR is a much younger system—it was founded in 1975, whereas the MTA's beginnings were in 1904—and boasts more modern features, like air-conditioned platforms, glass enclosures for many tracks, and a SmartCard (the Octopus) system. The MTR is also a public-private partnership, with much of its revenue stemming from developing real estate around its stations. The MTR has 10 lines and 108 stations, a fraction of what NYC Transit has...and then MTA also has Metro-North and Long Island Rail Road.

MTA press release about Jay Walder's resignation
Jay H. Walder today informed Governor Cuomo of his intention to resign his position as Chairman and Chief Executive Officer of the Metropolitan Transportation Authority effective as of the close of business on October 21st, 2011. Mr. Walder will be joining the MTR Corporation in Hong Kong as Chief Executive Officer and a member of the Board of Directors. The MTR is a publicly-traded company that operates rail services in Asia and Europe, and is involved in a wide range of business activities, including consulting and property development.

“I want to thank Governors Cuomo and former Governor Paterson for the honor of serving the people of New York State,” Walder said. “The MTA’s transportation system is the foundation of the metropolitan region and we are fortunate to have thousands of dedicated men and women who work so hard to provide these critically important transportation services to millions of people each and every day. I believe that we have accomplished quite a lot in a short period, with the support of two Governors, the Mayor, a hard-working Board and many others.”

Walder joined the MTA in October 2009, and in less than two years led an unprecedented overhaul of how the MTA operates, bringing fiscal stability and advancing a series of projects that are improving the daily experience of the MTA’s 8.5 million riders.

Under the banner of “Making Every Dollar Count,” Walder introduced efficiency measures that are expected to yield $3.8 billion in cumulative savings by 2014. The effort focused on streamlining the MTA’s seven companies, consolidating functions and eliminating redundancies. In the face of a fiscal crisis, contracts were renegotiated with suppliers, healthcare arrangements were rebid and administrative costs were reduced across the board.

At the same time, Walder drove a customer service agenda that showed customers a new vision for 21st century transit service even as costs were reduced. Countdown clocks were activated at more than 150 stations, security cameras were brought online, a new user-friendly web site was introduced, an all-electronic tolling pilot was launched and new smart card technology was tested and is moving forward for the entire transportation system. The introduction of Select Bus Service on the busiest bus route in the country - along with bus-lane enforcement cameras - demonstrated the promise of the MTA’s bus system. Real-time bus information debuted in Brooklyn and will reach Staten Island by the end of the year.

“In challenging times, we brought stability and credibility to the MTA by making every dollar count, by delivering long overdue improvements and by refusing to settle for business as usual,” Walder said.

Mr. Walder assumes his position as Chief Executive Officer of MTR on January 1st, 2012. He will become both a Member of the Executive Directorate and a Member of the Board of Directors. To ensure a smooth transition, Mr. Walder will be appointed as CEO Designate on November 1st, 2011.

“This is an exciting opportunity for me to lead a publicly-traded, multi-national corporation with a broad set of business activities,” Walder said. “The MTR Corp. is widely recognized for its world-leading rail systems and the innovative property developments that are built around stations.”

The MTR operates commuter rail in Hong Kong and intercity rail services from Hong Kong to Beijing, Shanghai and Guangdong in China. The MTR is also building new rail lines in Hong Kong and China. In addition, the MTR operates rail systems in London, Stockholm and Melbourne and provides rail consultancy services in Asia, Australia, the Middle East and Europe. Beyond its transportation services, the MTR is involved in a wide range of business activities, including a successful property development business that creates fully integrated commercial and residential communities around stations. It has completed developments at 27 rail stations with nearly 75,000 housing units constructed and operates more than 18 million square feet of commercial space. MTR shares have been traded on the Hong Kong Stock Exchange since October 2000. The corporation announced total revenue of $3.8 billion in 2010 with $1.1 billion of underlying profit.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on July 21, 2011 4:34 PM

Comments [rss]

Raymond Yeung

I always felt the workers and straphangers in America in the most general sense have least bit concern for public property/interest in this society that's all "me me me" individual freedom expression this and that first. The stations are in shambles because few are hired to maintain it and those hired have such low esteem and never take their job serious. Another thing is, hardly anything ever gets done unless someone is making an obscene amount of money, I mean in a number of nation states, the rich are welcomed to make as much as they can so long they contribute to public works, and so why not here? It's not communism, its investing in a better future for all, happier citizens equals healthy economy equals better economic future, but I guess I don't have an econ doctorate and am too naive.

Stephen Holding

The MTR is actually one of the cleanest and most efficient subway lines you'll find anywhere...I give it one year before every station looks like the Broadway G stop.

Shabazz Stuart

you realize that Walder has been in NYC for only two years right? He came from London. I don't know how you associate the worst NYC subway stations with him

yahoo-ONOFI3OVKJN5BHXIHTFF7BP5KY

The pros of having a subway built in the last part of the 20th Century are immeasurable! I just moved to Singapore after 17 years in NYC...the stations here have A/C, there are countdown clocks everywhere, swipeless fare cards. It's clean, as one would expect here. They are building new lines. Oh, and it's run by "private" listed companies (2 in fact, tho not sure why; quotes because the biggest shareholders of both is the gov't).

Only downside is it shuts at midnight...

Why does anyone question why one might want to go to a system that is profitable and growing, and make a larger salary to boot?

T. Funke

I just moved to NYC after 17 years in DC, a clean, new, comfortable system that costs $3-$5 per trip (depending how far you go). You have to swipe to get on AND to get off. Yeah, its nice to have a system that doesn't smell like a toilet, but like you said about Singapore, it shuts down around 1 AM. And if you try to eat or drink, its an automatic arresting. I'd take a functional system like the MTA any day.

colonelcasey

The reason Singapore is so clean is because their government is extremely strict about littering and dirt. I wouldn't mind if NYC got stricter about littering. Asian transit systems can also employ hundreds of low-wage cleaners to keep everything shiny.

ANGRYGOD11

Other American cities have learned form our mistakes. Miami banned food and drink to keep things clean and they will ticket/arrest you if you refuse to follow the rules.

silver

Your tongue will be ordered to be cut off by a judge if you spit gum on the ground. If you want to party in Singapore you can't, you have to goto the Islamic Republic next door if you want girls, booze, and blow.

yahoo-ONOFI3OVKJN5BHXIHTFF7BP5KY

Why does my name not show up??? lol

JW

PicoPhreako69

Because.... you posted through Yahoa(x)?
Probably.

Adam Moreira

BTW, in his new job, Walder will make the equivalent of $924,000 US.

nvk

Walder is likely tired of the red tape and immovable objects that mean nothing gets done here. I don't blame him one bit, trying to teach people here what the benefits of infrastructure are is like trying to teach a rock how to be animate and full of life.

soothsayer

he pussied out. asshole.

whitecastlerock

Amen-he was just another scumbag in a suit. They'll find another one...

AndySydor

Good riddance. Rather than address the chronic problems caused by the State and City cutting budgets, he did their bidding, and raised fares while cutting service. I could have done without the count-down clocks, thank you (which FAILed in yesterday's heat wave, BTW...) Subway riders pay a higher proportion of the budget with their fares than ANY other transit users, ESPECIALLY drivers, who are the great spoiled brats of transit. (You hogs have NO IDEA what it costs to keep your roads together.) The subways are more jammed, and with less service than in years. He screwed us, all the time with that godawful grin permanently plastered on his face.

ohhleary

It was the STATE that stole dedicated transit funds from a lockbox, neglected to find alternative revenue streams, and refused to approve East River Bridge tolls that would make drivers pay their fare share. Meanwhile, the unions were awarded a massive payraise by a judge in the midst of a recession while the MTA was facing a huge deficit. There were no other options but raising fares and cutting service.

Every single thing you're blaming Walder for was something he had no control over.

AndySydor

Chris, both STATE AND CITY cut budget to the MTA. Don't let Bloomberg off the hook. Under him, the city's contribution to the MTA is less than under Koch (you don't even have to adjust for inflation!) So the State and City (AS I STATED) served us up a big platter of crap, and Jay Walder is the waiter who brought it to our table. As for the "massive payraise" that was awarded the TWU, that had already been agreed to by the city; the City was trying to renege on the contract and, shock of shocks, found that that was illegal. The judge awarded them nothing but the contract they had already agreed on. BTW the "massive payraise" (3%) was less than inflation. I know it must pain you for working people to get even a modest salary increase, but it happens occasionally, and it's a good thing. As for alternatives, you could tax the rich, (again, both Bloomberg and Cuomo are guilty of not doing this) and Bloomberg could also have made a bigger find to get our funding from Albany, as he promised to do in his last "election;" but, since he had cut the City's portion himself, he had no real argument.

Whenever bureaucrats fail, they claim they had "no control" over anything. Again, I say good riddance. Give me someone with spine, and a mission to help the riders rather than give the City and State a smokescreen to screw us.

ohhleary

The MTA fought the TWU payraise, not the city. And that 3% payraise came at a time when working stiffs like me in the private sector were dealing with pay freezes and furloughs. Jay Walder spearheaded the fight against the payraise; he was trying to keep labor costs down at a time when he foresaw a state deficit eating into his agency's budget. The fact that the TWU is celebrating Walder's departure speaks volumes.

Walder also managed to cut nearly $1 billion in controllable annual costs from the MTA during his tenure, unlike most of his predecessors. Without him, the cuts could have been much worse, and our fare could already be at $3.

But please, explain to me what Walder could have done to prevent the state and city from making the cuts they did. During his tenure, he also lobbied for a transit lockbox bill that passed this session, and he managed to get the state to restore some funding for student Metrocards. He hands are tied when the clowns in Albany, and yes, City Hall are screwing transit riders left and right.

Yet again, in your reply to me, you seem to make Walder a scapegoat when the problems he faced weren't of his doing.

AndySydor

I'm sorry that so many in the private sector got screwed. But there's no way that screwing government workers is ever going to help you. It'll just make the anti-worker environment we're working in far worse, and that'll make the private sector suffer MORE. You will get ahead but finding for improved pay and benefits for yourself and your associates; hoping that others join you in suffering will bring you no gain.

Walder was an enabler of bad policy. It didn't have to be this way.