is china high speed rail profitable

[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. By Global Times Published: Jun 22, 2021 10:38 PM. Retrieved 2011-07-25", "First Chinese designed HS train breaks cover", "Keith Bradsher, "China Sees Growth Engine in a Web of Fast Trains". [133], Since 2017, with the introduction of the Fuxing series of trains, a number of lines have resumed 350km/h operations such as BeijingShanghai HSR, BeijingTianjin ICR, and ChengduChongqing ICR. 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. [209] At the end of 2018, cumulative passengers delivered by EMU trains is reported to be over 9 billion. Opponents noted that high-speed rail in other countries were expensive and mostly unprofitable. [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. In 2018, annual ridership on EMU train sets, which encompasses officially defined high-speed rail service as well as certain sub-high-speed service routes, accounted for about two-thirds of all regional rail trips (not including urban trains) in China. The Economist estimates Liu accepted 1billion of bribes ($152million) in connection with railway construction projects. [60] Zhang was estimated to have misappropriated to his personal overseas accounts the equivalent of $2.8 billion. With the exception of Siemens which refused to lower its demand of CN350million per train set and 390million for the technology transfer, the other three were all awarded portions of the contract. And almost lines along Eastern coast are busy and profitable. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. The most important key figures provide you with a compact summary of the topic of "High-speed rail in China" and take you straight to the corresponding statistics. Tentative services began operation in 2003,[7] while the China Railway High-speed (CRH) was introduced in April 2007 and the Beijing-Tianjin intercity rail, which opened in August 2008, was the first passenger dedicated HSR line. This statistic is not included in your account. Alstom also won an order for 60 train sets based on the New Pendolino developed by Alstom-Ferroviaria in Italy. The signalling, track and support structures, control software, and station design are developed domestically with foreign elements as well. [209] This EMU passenger figure includes ridership from certain D- and C-class trains that are technically not within the definition of high-speed rail in China, as well as ridership from EMU train sets serving routes on conventional track or routes that combine high-speed track and conventional track. [15], A 2019 World Bank study estimated the rate of economic return of China's high-speed rail network to be at 8 percent, which is well above the opportunity cost of capital in China for major long term infrastructure investments. Statista. [55][56], By January 2011, China had the world's longest high-speed rail network with about 8,358km (5,193mi)[57] of routes capable for at least 200km/h (124mph) running in service including 2,197km (1,365mi) of rail lines with top speeds of 350km/h (217mph). Length of express railways in China 2008-2021. On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). As of March 2011, no major quality defects had been found in the system. [60] Investigators found evidence that another 187million ($28.5million) was misappropriated from the $33billion BeijingShanghai high-speed railway in 2010. At 309 million (about $377 million) per mile, the U.K.'s High Speed 2 line, which is currently under construction, is the most . [11], Economically, there were initial concerns, particularly outside China, over the high-speed rail's cost, debt and profitability. The institution also found "a broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality. 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]. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). High-speed rail developed rapidly in China since the mid-2000s. The HSR network includes new mixed passenger-freight lines with a design speed of 200250km/h (120160mph). [110] Over the course of the year, the MOR's budget rose from $64.3 billion to $96.5 billion. The order had a similar delivery structure with three shipped directly from Savigliano along with six kits assembled by CNR's CRRC Changchun Railway Vehicles, and the rest locally made with transferred technology and some imported parts. "Number of high-speed railways in China as of August in 2019, by profit status and speed." In common parlance, high-speed train service in China generally refers to G-, D- and C-class passenger train service. [178] In September 2010, daily ridership averaged 69,000 or an annual rate of 25.2million. [43] Trains with Alstom technology carry the CRH5 designation. Show publisher information Several HSR lines planned and built as a regional high-speed railway under the 2008 Revisions have since been incorporated into the 8+8 national grid. [179] [89], The train collision exposed poor management by the railway company. [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. 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. 'Harmony') is for designs which are imported from other nations and designated CRH-1 through CRH-5 and CRH380A(L), CRH380B(L), and CRH380C(L). High-speed trains on HSR Corridors can generally reach 300350km/h (190220mph). Suppliers and manufacturers blame each other for any problem detected in the trial operation, while tracking the construction process to every single detail is an almost impossible job for inspectors. However, these patents are only valid within China, and as such hold no international power. China Railway assumed control of complete railway network that was built by the dissolved Ministry of Railways. Please do not hesitate to contact me. In the first three quarters of 2012, the line lost 1.87 billion. There is no better way of transportation than China's high-speed rail," Solheim added at his Wechat public account on Wednesday. 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. The WuhanGuangzhou high-speed railway (Wuguang PDL), which opened on December 26, 2009, was the country's first cross-regional high-speed rail line. 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. [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. . The price tag of the Shanghai Maglev was believed to be $1.3billion and was partially financed by the German government. [106] As of October 2011, the MOR was reportedly concentrating remaining resources on fewer high-speed rail lines and shifting emphasis to more economically viable coal transporting heavy rail. But high-speed trains often have to share tracks with slower, heavy freight trains in some cases with as little as 5 minutes headway. [94][95] A commission was formed to investigate the accident with a directive to report its findings in September 2011. [159] CRIC has also raised some capital through equity offerings; in the spring of 2010, CRIC sold a 4.5 percent stake in the BeijingShanghai high-speed railway to the Bank of China for 6.6billion and a 4.5 percent stake to the public for 6billion. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Some 295 stations have been built or renovated to allow high-speed trains.[31][32]. In the second year, ridership rose to 22.3million and revenues improved to 1.4billion, which narrowed losses somewhat to below 0.5billion. China's once profitable railways records $900bn debt over push for growth What was once China's profitable high-speed railways is now heading towards a trillion-dollar disaster after reports of debt nearing a whopping $900 billion ANI Asia China's railway records $900 bn debt amid push for expansion [52][53] The government has justified the expensive undertaking as promoting a number of policy objectives. More than 110,000 tourists from mainland China left Hong Kong on the first day . Published by Statista Research Department , Feb 3, 2023. China's high-speed rail network appears to be following this trend. Higher-speed express train service allowed more trains to share the tracks and improved rail transport capacity. Some of the Hexie Hao train sets are manufactured locally through technology transfer, a key requirement for China. Total investments in new rail lines including HSR reached $49.4billion in 2008 and $88billion in 2009. In 1993, commercial train service in China averaged only 48km/h (30mph) and was steadily losing market share to airline and highway travel on the country's expanding network of expressways. Signals malfunctioned, causing another train to rear-end the stalled train. [139] However, according to The New York Times, the Chinese high-speed rail network is "one of the worlds safest transportation systems. [4], China Railway High-speed (CRH) () is the major high-speed rail service provided by state-owned railway manufacturing and construction corporation China Railway. An investigation of 23 railway construction companies in August 2011 revealed that 70% of existing projects had been slowed or halted mainly due to shortage of funding. On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). [158] Some economists recommend further subsidies to lower fares and boost ridership and ultimately revenues. It opened for operations in March 2004, and transports passengers between Shanghai's Longyang Road station and Shanghai Pudong International Airport. Trains can operate at 200km/h (124mph) on many of the conventional main lines. While a number of high-speed railways in eastern China have started to be operationally profitable since 2015, the high speed railways in the midwest still operate at a loss. [40] These trains, designated CRH1A, were delivered in 2006. A total of 400 new generation trains were ordered. According to the filing, published by the China Securities Regulatory Commission on Friday, Beijing-Shanghai High Speed Railway, which operates the 1,300km (807 mile) line, booked a net profit of . statistic alerts) please log in with your personal account. China Railway reports the number of passengers carried by high-speed EMU train sets and this figure is frequently reported as high-speed ridership, even though this figure includes passengers from EMU trains providing sub-high speed service. [180] Others warn that the financing side of the existing construction and operation model is unsustainable. For example, the BeijingTianjin intercity railway in its two full years of operation, delivered over 41 million rides. [37] The Japanese government touted the 40-year track record of the Shinkansen and offered favorable financing. [38] However, Chinese citizens angry with Japan's denial of World War II war crimes organized a web campaign to oppose the awarding of HSR contracts to Japanese companies. Some intercity lines run parallel to other high-speed rail lines but serve more stations along the route. Train speeds have increased from a maximum of 200 km per hour to 350 km per hour - the fastest in the world. [141] The government also articulated the importance and urgency of assuring the capacity of railway staff, especially their familiarity with telecommunication and signaling testing in the official investigation of the Wenzhou train collision. China's first line, the Qinhuangdao-Shenyang passenger railway, was opened in 2003. Kawasaki's cooperation with CSR did not last as long. The train operated in commercially on conventional rail lines in southwest China from 2007 to 2010. They became known as passenger-designated lines (PDLs). When considering route strategy, HSR's market share versus other modes must be well understood. [178], The Shijiazhuang-Taiyuan PDL lost 0.8billion in its first year and is set to lose 0.9billion in 2010. Are you interested in testing our business solutions? On August 1, 2008, the BeijingTianjin intercity railway opened in time for the 2008 Summer Olympics. Two-direction departures at five-minute intervals, but can be as short as 1 minute. COVID-19 outbreak disrupted rail transport [180] In December 2014, the Henan provincial government imposed a rule requiring municipal authorities pay 70% of the deficit incurred by Henan's intercity lines with the provincial authorities paying the remainder 30%. A high-speed rail line connecting Kunming to Vientiane, the capital of Laos, was opened after five years of construction. [158] The Southeast HSR corridor lost 0.377billion in its first year beginning August 2009. "China to Bid on US High-Speed Rail Projects" A.P. A notable example is the GuangzhouShenzhen railway, which in December 1994 became the first line in China to offer sub-high-speed service of 160km/h (99mph) using domestically produced DF-class diesel locomotives. It was profitable every year between 2014 and 2019, according to national railway operator China State Railway Group Co. China's high-speed rail is not profitable, and it is steadily losing money. As soon as this statistic is updated, you will immediately be notified via e-mail. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. The CRH380AL train set, shown above at the, Growth of China's high-speed rail network, Early passenger-dedicated high-speed rail lines, Passenger-freight railways and connecting conventional lines. [156] In an analysis conducted in 2019, only five out of fifteen high speed railway lines with travel speeds reaching 350 kilometers per hour, were able to cover all costs that included both the operating and capital costs.[157]. Conservative scholars and officials are worried about the profitability of high-speed railway construction. [106] As of October 12, 2011, the MOR had issued 160 billion of debt for the year. The Qinhuangdao-Shenyang Line showed the greater compatibility of HSR on conventional track with the rest of China's standard gauge rail network. The earliest PDLs built were sections of the corridors that connected large cities in the same region. The World Bank estimated in 2019 that currently, the average cost of the Chinese high-speed rail network was from 17 to 21 million dollars per km, which is one third less than the cost of most of Western countries. [27][note 4] In all, travel speed increased on 22,000km (14,000mi), or one-fifth, of the national rail network, and the average speed of passenger trains improved to 70km/h (43mph). China Railway Corporation, the state-owned rail operator and investor in the country's high-speed networks, has debts of Rmb3.8tn ($558bn), much more than the national debt of Greece. In 2004, the State Council in its Mid-to-Long Term Railway Development Plan, adopted conventional track HSR technology over maglev for the BeijingShanghai High Speed Railway and three other northsouth high-speed rail lines. On April 19, 2008, HefeiNanjing PDL in the East opened with a top-speed of 250km/h (155mph). [22] In December 1994, the State Council commissioned a feasibility study for the line.[22].

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