is china high speed rail profitable

[60] Investigators found evidence that another 187million ($28.5million) was misappropriated from the $33billion BeijingShanghai high-speed railway in 2010. [54] The envisioned network, together with upgraded existing lines, would total 12,000km (7,456mi) in length. China Railway is the successor of the former Ministry of Railways. [184] According to the World Bank, a stable long term planning and standardization of technology and design used in the high-speed rail helps to reduce financial and operational cost. [104] But in the late summer, state banks began to cut back on lending to rail construction projects, which reduced funding for existing railway projects. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. [11], Many of the Passenger Designated Lines use ballastless tracks, which allow for smoother train rides at high speeds and can withstand heavy use without warping. [52][53] The government has justified the expensive undertaking as promoting a number of policy objectives. [158] CRIC retained 56.2 percent ownership on that line. Despite impressive ridership figures, virtually every completed line has incurred losses in its first years of operation. [54] Most of the lines follow the routes of existing trunk lines and are designated for passenger traffic only. [62], After the political shake-up, concerns about HSR safety, high ticket prices, financial sustainability and environmental impact received greater scrutiny in the Chinese press. Rail Vehicle Market Restraints, Segments and Regional - MarketWatch Critics both in China and abroad have questioned the necessity of having an expensive high-speed rail system in a largely developing country, where most workers cannot afford to pay a premium for faster travel. [citation needed] As of years ending 2008, 2009 and 2010, the MOR's debt-to-asset ratio was respectively, 46.81%, 53.06% and 57.44%,[105] and reached 58.58% by mid-year 2011. How fast is bullet train in China? [12][13] However, a Paulson Institute research had estimated that the net benefit of the high-speed rail to the Chinese economy to be approximately $378 billion and an annual return on investment at 6.5%. Through five rounds of "Speed-Up" campaigns in April 1997, October 1998, October 2000, November 2001, and April 2004, passenger service on 7,700km (4,800mi) of existing tracks was upgraded to reach sub-high speeds of 160km/h (100mph).[26]. However, these patents are only valid within China, and as such hold no international power. On April 19, 2008, HefeiNanjing PDL in the East opened with a top-speed of 250km/h (155mph). The centerpiece of China's expansion into high-speed rail is a national high-speed rail grid consisting of mainly passenger dedicated lines that is overlaid onto the existing railway network. [210][211][212][213], In October 2016 China's CRRC announced that it was beginning research and development on a 600km/h (373mph) Maglev train and would build a 5km (3.1mi) test track. Developing Profitability in High-Speed Railways - L.E.K. Consulting [155] The Beijing-Shanghai high-speed railway is one of the few lines that have been profitable, with profits steadily increasing after first breaking even in 2014, and achieving revenue of CNY 29.6 billion and net profit of CNY 12.7 billion in 2017. [187][53], The spread of high-speed rail has forced domestic airlines in China to slash airfare and cancel regional flights. In 2004, the Shanghai Maglev Train became the world's first commercially operated high-speed maglev. [21] In December 1990, the Ministry of Railways (MOR) submitted to the National People's Congress a proposal to build a high-speed railway between Beijing and Shanghai. This ambitious national grid project was planned to be built by 2020, but the government's stimulus has expedited time-tables considerably for many of the lines. The CRH380 series(or family) of trains was initially built with direct cooperation (or help) from foreign trainmakers, but newer trainsets are based on transferred technology, just like the Hexie and Fuxing Hao. China: length of high speed rail operation network 2021 | Statista China's Beijing-Shanghai high-speed rail operator is more profitable [117], On December 28, 2013, the total length of high-speed rail tracks nationally topped 10,000km (6,200mi) with the opening of the XiamenShenzhen, XianBaoji, ChongqingLichuan high-speed railways as well as intercity lines in Hubei and Guangxi. The "fastest" train commercial service can be defined alternatively by a train's top speed or average trip speed. The ballastless track technology, imported from Germany, carries higher upfront costs but can reduce maintenance costs. U.S. high-speed rail 'myths' debunked - CNN.com In the same year, the Ministry of Science and the MOR agreed to a joint action plan for the indigenous innovation of high-speed trains in China. [5][6] Almost all HSR trains, track and service are owned and operated by the China Railway Corporation under the brand China Railway High-speed (CRH). Many users want proof that high-speed rail can be a profitable, efficient job generator to help raise the sagging U.S. economy when compared with other types of transportation. [33] At the time, planners were divided between using high-speed trains with wheels that run on conventional standard gauge tracks or magnetic levitation trains that run on special maglev tracks for a new national high-speed rail network. [186] However, China's average income per capita is considerably lower than these other countries, so the high speed train fares remain unaffordable for most but the well-to-do. High-speed rail is a costly endeavor which requires massive investments in research and development and components that can range from $17 to $21 million per kilometer of rail. The non-stop express train from Beijing to Fuzhou shortened travel time from 33.5 to less than 20 hours. In mid 2015, China has signed up to design a high-speed railway between the Russian cities of Moscow and Kazan, one of the first concrete examples of the new business with China that Russian officials have been pursuing with renewed vigor since falling out with the West. [4] China's HSR accounts for two-thirds of the world's total high-speed railway networks. The refusal of the Transrapid Consortium to share technology and source production in China made large-scale maglev production much more costly than high-speed train technology for conventional lines. In May 2011, China's Environmental Protection Ministry ordered the halting of construction and operation of two high-speed lines that failed to pass environmental impact tests. [30] According to Xinhua News Agency, the aggregate results of the six Speed Up Campaigns were: boosting passenger train speed on 22,000km (14,000mi) of tracks to 120km/h (75mph), on 14,000km (8,700mi) of tracks to 160km/h (99mph), on 2,876km (1,787mi) of tracks to 200km/h (124mph) and on 846km (526mi) of tracks to 250km/h (155mph). IPO for China's most profitable high-speed train - Asia Times According to a World Bank paper published last week, China's high-speed rail so far has cost between $17m and $21m per kilometre, even though it has a high ratio of big-ticket viaducts and tunnels. Raymond Seow on Twitter: "What did the delicate girl do for the [220] In November 2009, the MOR signed preliminary agreements with the state's high-speed rail authority and General Electric (GE) under which China would license technology, provide financing and furnish up to 20 percent of the parts with the remaining sourced from American suppliers, and final assembly of the rolling stock in the United States. The grid is composed of eight high-speed rail corridors, four running northsouth and four eastwest, and has a total of 12,000km (7,456mi). "Number of High-speed Railways in China as of August in 2019, by Profit Status and Speed. State planning for China's current high-speed railway network began in the early 1990s under the leadership of Deng Xiaoping. [135] In 2025, the HSR network will reach a total lenght of 50.000km and will grow further.[136]. The line was electrified in 1998, and Swedish-made X 2000 trains increased service speed to 200km/h (124mph). Show publisher information China's once profitable railways records $900bn debt over push for growth [195] Additionally, another two lines are under construction, the Qingyuan Maglev and the Fenghuang Maglev. High-speed railway in China - statistics & facts | Statista Train travel between central and southern Chinas largest cities, Wuhan and Guangzhou, was reduced to just over three hours. data than referenced in the text. Despite unmatched advantage in speed, the maglev has not gained widespread use in China's high-speed rail network due to high cost, German refusal to share technology and concerns about safety. ", "High-Speed Rail: The Fast Track to Economic Development? 1st May 2023, 23:03 GMT+10. statistic alerts) please log in with your personal account. Alstom also won an order for 60 train sets based on the New Pendolino developed by Alstom-Ferroviaria in Italy. Once the designs are developed, a separate tender will be held for the actual construction of the rail link, which Russian Railways expects to cost 1.06 trillion rubles ($19.5 billion).[223]. Finally, residents living along the proposed maglev route have raised health concerns about noise and electromagnetic radiation emitted by the trains, despite an environmental assessment by the Shanghai Academy of Environmental Sciences saying the line was safe.

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is china high speed rail profitable