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                                                                    Exhibit 4.16

                                Deed of Vesting
                                ---------------

THIS DEED is made the 2nd day of January Two Thousand and Two BETWEEN the
Government of the Hong Kong Special Administrative Region (hereinafter referred
to as "the Government") of the one part and the Kowloon-Canton Railway
Corporation (hereinafter referred to as "the Corporation") of the other part

WHEREAS the Director of Lands is duly authorised to enter into these presents
in the name of the Government.

Pursuant to Section 7A of the Kowloon-Canton Railway Corporation Ordinance
(Cap. 372) (hereinafter referred to as "the Ordinance") and in consideration of
the Corporation entering into this Deed and payment of the annual rent
hereinafter reserved, the Government agrees and the Corporation covenants with
the Government the following:-

1.   Subject to the provisions contained in this Deed, there shall be vested
     absolutely in the Corporation the following situate at Lo Wu Terminal as
     shown on Plan No. RDM0224c (hereinafter referred to as "the Plan"):-

     (A) the land coloured pink and pink hatched black (hereinafter referred to
         as "the said land"), but excluding the border fence erected or to be
         erected between points NOPQ and TUVWXYZ (hereinafter referred to as the
         "the Border Fence") and that portion of Footbridge 'B' shown pink
         hatched black edged blue which shall remain in Government's ownership
         and possession; and

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     (B) the portions of Footbridge 'A' and the Railway Bridge both coloured
         yellow hatched black (hereinafter referred to as "the Bridges")
         together with the right to construct, inspect, maintain, repair,
         support and use the Bridges.

2.   There shall be reserved the following:-

     a.  to the Government an annual rent of an amount equal to 3% of the
         rateable value from time to time of the said land, which shall be
         payable from the date of this Deed until 30 June 2047, and shall be
         governed by the provisions of the Government Rent (Assessment and
         Collection) Ordinance, any regulation made thereunder and any amending
         legislation and also subject to a minimum rent of $1 per annum (if
         demanded);

     b.  to the Government, its contractors, servants and agents and those
         authorized by it a right to construct, re-construct, improve, widen,
         inspect, maintain, repair, support and use Footbridge 'B';

     c.  to the Government, the right to use and to permit the public to use the
         portion of Footbridge 'A' shown yellow hatched black on the Plan;

     d.  to the Corporation, the right to have, inspect, maintain, operate,
         remove, repair, replace and use the three existing borewells and the
         connecting pipelines (hereinafter collectively referred to as "the
         Borewells") in, under and within the Government land shown stippled red
         on the Plan provided that the Corporation shall remove or relocate the
         Borewells or any part or parts thereof upon demand by the Director of
         Lands; and

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         e.  to the Corporation, its contractors, servants and agents and those
             authorized by it a right of entry upon Government land in respect
             of the exercise of the rights conferred under clause 1(B).

     3.  The land shown coloured pink on the Plan shall be vested absolutely in
         the Corporation from the date of this Deed for a term of years ending
         on 30 June 2047.

     4.  The land shown coloured pink hatched black on the Plan, the land under
         Footbridge 'B' and shown coloured pink hatched black edged blue on the
         Plan, and the Bridges, shall be vested absolutely in the Corporation
         from a date to be specified by the Director of Lands in writing for a
         term of years ending on 30 June 2047.

     5.  In respect of the Government land adjacent to the said land, there
         shall be vested in the Corporation such rights as are appurtenant to
         the said land, being rights to continue to use such Government land for
         a purpose (being a railway purpose) for which the land was used
         immediately prior to the date of this Deed and, without derogation
         from the generality of the foregoing, such rights shall include:-

         a.  the right to discharge storm water upon such Government land in the
             places and manner in which such water was discharged, or capable
             of being discharge, as such date;

         b.  such rights of way over such Government land as may have been so
             used;

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     c.   where any power under any repealed Ordinance relating to the railway
          was exercised for the benefit of the railway over any such Government
          land, the right to continue to use the Government land for the
          purposes for which the power was exercised.

6.   There shall be reserved to the Government liberty:-

     a.   to construct vehicular and other ways on the said land over or under
          the railway, and over or under the portion of Footbridge 'A' shown
          yellow hatched black on the Plan, and intersecting at right angles or
          diagonally the railway and the portion of Footbridge 'A', and to use,
          and permit the public to use, such vehicular or other ways for any
          purpose whatsoever;

     b.   to lay mains, pipes, wires, cables and drains within or upon the said
          land and on the underside or supports of the Bridges, and to keep upon
          the said land and the Bridges any such mains, pipes, wires, cables and
          drains which existed upon the said land and the Bridges immediately
          prior to the date of this Deed and were used wholly or mainly for
          purposes other than railway purposes;

     c.   to cleanse, repair and maintain any works constructed under sub-clause
          (a) and sub-clause (b) and for its servants or agents to enter upon
          the said land and the Bridges for such purposes and for the inspection
          of such works or for the exercise of the rights conferred by this
          sub-clause;

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     d.   to exercise on the said land and the Bridges such rights appurtenant
          to the beneficial enjoyment by the Government or its successors of
          land and bridges retained by the Government, being rights to continue
          to use land and bridges for a purpose for which the land and the
          bridges were used immediately prior to the date of this Deed, and
          without derogation from the generality of the foregoing, such rights
          shall include:-

          i.   the right to discharge storm water upon the said land in the
               places in which such water was discharged, or capable of being
               discharged, at such date, and

          ii.  such rights of way as may have been so used.

7.   In the exercise of the rights conferred upon it by clause 6, the Government
     shall:-

          a.   not, without the consent of the Corporation (which consent shall
               not unreasonably be withheld), do anything which might adversely
               affect the operation or safety of the railway and in the event of
               any injurious affection make reasonable compensation therefor;

          b.   do as little damage as possible and make reasonable compensation
               for all damage done;

          c.   reimburse the Corporation for any expenses incurred by it in
               undertaking works to facilitate, or enable the Government to
               exercise, such rights.

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8.   The Corporation shall not interfere with, or do anything which may
     injuriously affect, any works kept or constructed by the Government in
     accordance with the rights reserved under clause 6, with any road or way
     constructed for the use of the public without the consent in writing of the
     Director of Lands, which consent shall not unreasonably be withheld,
     provided that such consent shall not be withheld should the Corporation
     desire to affix cables, pipes and signalling equipment for the operation of
     the railway to the underside or supports or any bridge or to any retaining
     wall, but the Director of Lands may, in granting his consent, impose
     reasonable conditions for safeguarding the structure of the bridge or wall,
     or the users thereof.

9.   The Corporation may use and permit the use of the said land, the Bridges
     and the Borewells for railway purposes and for purposes ancillary thereto,
     excluding staff housing and including, within station premises only, the
     provision of services or articles for the use or enjoyment of passengers on
     the railway, and may not use the said land, the Bridges or the Borewells,
     or any portion thereof, for any other purpose without the consent in
     writing of the Director of Lands who may, in granting such consent, impose
     such conditions as he thinks fit including the payment by the Corporation
     of a reasonable premium to the Government as consideration for the grant of
     such consent.

10.  The Corporation shall not assign, underlet, part with possession or
     otherwise dispose of the said land, the Bridges or the Borewells, or any
     part thereof or any interest therein, or enter into any agreement so to do,
     for a period in excess of 3 years without the consent in writing

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     of the Director of Lands.

11.  The Corporation shall keep the railway, Footbridge 'A', the Borewells and
     other works and erections made or erected on the said land, save and except
     Footbridge 'B' and its supporting structure and the Border Fence, in good
     and substantial repair.

12.  The Government may at any time enter upon any cutting, embankment or
     retaining wall on the said land which, by reason of its condition,
     injuriously affects or is likely to affect any Government land or bridge
     and execute such work thereon as may be reasonably necessary to prevent
     such injurious affection. The reasonable costs so incurred shall be a debt
     owing by the Corporation to the Government.

13.  The Corporation shall maintain in good and substantial repair fences, save
     and except the Border Fence, erected or to be erected on the said land and
     the Bridges to prevent access to the railway by members of the public or
     livestock and, in places where such fences are required for the protection
     of the public or livestock and were not in existence immediately prior to
     the date of this Deed, shall construct fences adequate for such purpose and
     so maintain them.

14.  The Corporation shall be liable to pay a reasonable portion of all expenses
     incurred by the Government, and the Government a reasonable portion of all
     expenses incurred by the Corporation, in repairing and rebuilding and
     cleansing all party walls, fences (save

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     and except the Border Fence), sewers, drains, roads, pavements and other
     things, the use of which is common to the said land and to any adjoining
     land held by the Government.  In the absence of agreement on the sum the
     Government or the Corporation shall pay, this shall be determined in
     accordance with the Arbitration Ordinance (Cap. 341) by reference to 2
     arbitrators, one to be appointed by each party.

15.  The Government shall have the right to such facilities as it may reasonably
     require for police, immigration or customs purposes on railway premises,
     provided that nothing in this clause shall require the Corporation to carry
     out any building or other works otherwise than at the expense of the
     Government.

16.  Any reference to the Government or the Corporation shall where the
     reference relates to any right to go onto any land or do anything thereon
     be deemed to refer also to their servants, agents or those authorized by
     them.

17.  In this Deed, the expression "railway premises" shall have the meaning
     assigned to it by the Kowloon-Canton Railway Corporation Ordinance Cap.
     372, references to "the railway" shall be construed as referring to the
     Kowloon-Canton Railway and references to "railway purposes" shall be
     construed accordingly.

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                                             Witness


/s/ R. D. Pope                               /s/ Helen Poon
---------------------------                  -----------------------------
R. D. Pope                                   Helen Poon
Director of Lands                            Secretary to Director
                                             Lands Department


The Seal of the Kowloon-Canton Railway Corporation is hereunto affixed by
authority of the Managing Board; and signed by

                                                                          [SEAL]

/s/ K. Y. Yeung                              /s/ D. A. Fleming
---------------------------                  -----------------------------
Authorized Signature                         Authorized Signature
K. Y. Yeung                                  D. A. Fleming
Chairman & Chief Executive                   Company Secretary


In the presence of


/s/ Flora Chan                               /s/ Esther Lo
---------------------------                  -----------------------------
Witness                                      Witness
Flora Chan                                   Esther Lo

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