So far improvements to the railway had been incremental in nature. In the 1970s it became clear that a radical rethink was needed if the railway was to cope with future demands. In 1972 the government set up a steering group to examine the need for future short-term and long-term improvements to the railway given the growth in freight and passenger traffic to China, coupled with the government's plans to construct large new towns at Sha Tin, Tai Po, Sheung Shui and Fanling in the New Territories that would further increase domestic travel demand.