Collecting model railway systems is a passion for some in the UK, Europe, Canada and the USA. Called the "world's greatest hobby", model train collectors are nostalgic for the days of steam engines that rolled across countries carrying freight and passengers, while providing hours of fun for kids and adults alike.

Today, China is building high-speed trains to supplement its extensive railway network, and the "collecting fever" is catching there as well. Although not well-known as an alternative investment, collecting model trains and accessories can grow in value over time as older rail cars and other items become increasingly rare - especially model railways that are made from brass rather than plastic. Prices for vintage brass trains sets have been rising faster than the stock market in some instances, according to one reviewer on e-Bay.

One of the oldest and biggest model railway manufacturers is located in Hong Kong, Kader Industrial Company, headed by CEO and Executive Director Ivan Ting, a third-generation toy mogul. Kader has taken over older model train manufacturing names from Europe, especially Germany. The foundations are being built for a new generation of collectors on the mainland's large cities and the hobby is growing.

Ting explained, "Now, with new electronic technology, the layouts can have lots of moving parts, digital sounds of nature and train whistles, puffs of smoke coming out not only from the smoke stack but also from the wheels, cylinders and whistles, and the screech of the brakes as the train comes into the station. Now surround sound is possible, adding a lot of verisimilitude. The model stations can house several locomotives and cars and are also built to scale. Multi-track installations are common among the true hobbyists.

"Model railroad locomotives cast from brass can cost more than HK$200,000 a unit and are all hand-made, some with thousands of moving parts.

Some layouts are so elaborate that day turns to nighttime and lights come on, cars move along roads and honk their horns, animals seem to be grazing or eating and raise their heads as the train goes by", Ting said.

Some hobbyists speculate on the potential investment value of their collections over time and convene at model railway clubs to compare their layouts, paying thousands of dollars for pieces they don't own or adding to their collections with rare and unique engines or cabooses (the end car). Others, however, are the ones seeking the unusual, the antique, and the items that have some flaw, similar to collecting stamps or coins that were printed or overprinted with mistakes.

Most of Ting's customers come from Japan, the USA, UK and Germany because of the company's affiliation with well-known brands in those countries. They already have elaborate train networks throughout their landscapes that are used by almost everyone, either for passenger or freight journeys, so the nostalgia factor is high. Kader also sells to Italy, Spain and France - and Hong Kong is also a big market. The mainland is next on his list as he helps it develop the model railway hobby.

Some of the more popular model trains on the mainland include Qian Jin steam locomotives, that were once the workhorse during the post-war period. "The new high-speed railroad system that China has announced will boost the interest in trains there. We already manufacture a few of the main engines and cars of the existing railroad system", Ting said.

"But we see a growing interest in toys and model trains and railways from Chinese collectors as well as other parts in Asia, especially our new model of the Qinghai-Tibet railway. Right now people collect the locomotives and train cars for decorative purposes as they may not have the space to set up an elaborate railroad layout. They keep the model trains in their boxes or put them on the mantelpiece, as they do model cars".

Collectors may be generalists, who collect any type of train that suits their fancy, and the Internet is full of model train selling sites. Others specialize and search for only those trains made by a particular company or during a certain era. Some hobbyists, recognizing the value of their vintage trains, sell to other collectors and even speculate on the potential investment value of their collection. Entire layouts can fetch thousands of dollars, even if the parts are mostly low-cost plastic.

Ting said he is trying to raise the bar on the mainland by setting up a retail store in Shanghai and a nationwide network of distributors. He is fostering model railroad clubs where people can come and see large layouts with buildings and accessories to scale in order to pique interest.

He said, "I even take serious Chinese collectors to Inner Mongolia where a private hobbyist has set up a life-sized steam engine display, so they can experience the real train themselves. All of our representatives are collectors as well, so they are a great resource for the new collector." As China's train system grows, these early locomotives, freight and passengers cars will become more and more valuable over time.

Some collectors use their imaginations to create whole toy worlds. Ting said, "I have seen layouts with interactive farm animals, people getting married with photographers popping flash bulbs, people camping in the woods with smoky campfires, police attending to accidents on the road, cows with heads that seem to bob and eat grass - all sorts of scenes".

Kader is establishing a new generation of hobbyists by making information, brochures, catalogues and people with the expertise about collecting readily available, at least in the larger cities on the mainland.

(HK Edition 01/13/2011 page2)