is china high speed rail profitable

Meanwhile, the United States has just . 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. How profitable is China's high-speed rail? - Quora The nation seeks to increase its high-speed rail network to 50,000 kilometers by 2025. "Number of high-speed railways in China as of August in 2019, by profit status and speed." Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. Are high-speed rail systems profitable? - KnowledgeBurrow.com The line cost 20.42billion to build, and 1.8billion per annum to operate, including 0.6billion in interest payments on its 10billion of loan obligations. More than 110,000 tourists from mainland China left Hong Kong on the first day . "[4], Lastly, the HSR network includes newly built rail lines with a design speed of 200250km/h (120160mph) that can carry high-speed passenger and express freight trains.[4]. High-speed trains on HSR Corridors can generally reach 300350km/h (190220mph). 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. This line between northern China's two largest cities, was the first in the country to accommodate commercial trains with top speed of 350km/h (217mph) and featured the CRH2C and CRH3C train sets. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. The plan envisions a larger 8+8 high speed rail grid serving the nation and expanded intercity lines for regional and commuter services for large metropolitan areas of China. These are also considered high-speed rail though they are not part of the national HSR grid or Intercity High Speed Rail. When considering route strategy, HSR's market share versus other modes must be well understood. [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. You only have access to basic statistics. Why High-Speed Rail is Such a Heavy Lift - Railway Age Then you can access your favorite statistics via the star in the header. As a Premium user you get access to background information and details about the release of this statistic. China's high-speed railway between Beijing and Shanghai served 130 million people last year, and a shareholder says it made a net profit of $1 billion--its first since opening in 2011. [22] In December 1994, the State Council commissioned a feasibility study for the line.[22]. How profitable is China's high-speed rail? - by Glenn Luk Is high-speed rail travel on a track to nowhere? - BBC News This is . Despite impressive ridership figures, virtually every completed line has incurred losses in its first years of operation. [100] To stimulate ridership, on August 16, 2011 ticket prices on high-speed trains were reduced by five percent. China's Experience with High Speed Rail Offers Lessons for Other Countries The high-speed rail (HSR) network in the People's Republic of China (PRC) is the world's longest and most extensively used with a total length of 42,000 kilometres (26,000mi) by the end of 2022. [106] Affected lines included Xiamen-Shenzhen, Nanning-Guangzhou, Guiyang-Guangzhou, Shijiazhuang-Wuhan, Tianjin-Baoding and Shanghai-Kunming high-speed rail lines. Instead, a conventional subway line was built to connect the two airports, and a conventional high-speed rail line was built between Shanghai and Hangzhou. But high-speed trains often have to share tracks with slower, heavy freight trains in some cases with as little as 5 minutes headway. During the Sixth Railway Speed Up Campaign, 52 CRH trainsets (CRH1, CRH2 and CRH5) entered into operation. It opened for operations in March 2004, and transports passengers between Shanghai's Longyang Road station and Shanghai Pudong International Airport. The ideal entry-level account for individual users. The HSR network includes new mixed passenger-freight lines with a design speed of 200250km/h (120160mph). [74] From July 20, 2011, the frequency of train service from Jinan to Beijing and Tianjin was reduced due to low occupancy, which renewed concerns about demand and profitability for high-speed services. For example, the BeijingTianjin intercity railway in its two full years of operation, delivered over 41 million rides. A Whopping $900B Debt - China's Once-Profitable High-Speed Railways Now [219] China is also competing with Japan, Germany, South Korea, Spain, France and Italy to bid for California's high-speed rail line project, which would connect San Francisco and Los Angeles. Profit from the additional features of your individual account. [144] In addition, it is hard to identify problems in the construction process, given the distribution resource planning system needed for rapid railway building and assembling. China is the third country, after Japan and France, to have one billion cumulative HSR passengers. [63][65][66] This was in response to concerns over safety, low ridership due to high ticket prices,[67] and high energy usage. [121][122], In response to a slowing economy, central planners approved a slew of new lines including Shangqiu-Hefei-Hangzhou,[123] Zhengzhou-Wanzhou,[124] Lianyungang-Zhenjiang,[125] Linyi-Qufu,[126] Harbin-Mudanjiang,[127] Yinchuan-Xi'an,[123] Datong-Zhangjiakou,[123] and intercity lines in Zhejiang[128] and Jiangxi. HSR provides fast, reliable and comfortable means of transporting large numbers of travelers in a densely populated country over long distances,[147][148] which: One major concern of the high-speed rail network is the high amount of debt incurred. The transferred technology includes assembly, body, bogie, traction current transforming, traction transformers, traction motors, traction control, brake systems, and train control networks. The Shanghai Maglev is the world's first high-speed commercial magnetic levitation ("maglev") line, whose trains run on non-conventional track and reach a top speed of 430km/h (267mph). August 18, 2020. Moreover, State-owned corporation also uses bulk purchasing to reduce material prices. [102][103] By October, work had halted on the construction of 10,000km (6,200mi) of track. "China to Bid on US High-Speed Rail Projects" A.P. According to an analysis conducted in 2019, only five out of 15 fast 350 kilometers-per-hour high-speed railway lines in China could cover all costs, including operating and capital costs.. In, Bloomberg. Despite setting speed records on test tracks, the DJJ2, DJF2 and other domestically produced high-speed trains were insufficiently reliable for commercial operation. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Conservative scholars and officials are worried about the profitability of high-speed railway construction. Trains on the Beijing-Tianjin high-speed line and a few other inter-city lines remained at 350km/h (217mph). It is the railway company that loses money, and the people and the whole country who profit. [54] Most of the lines follow the routes of existing trunk lines and are designated for passenger traffic only. China has built the world's largest bullet-train network Kawasaki won an order for 60 train sets based on its E2 Series Shinkansen for 9.3billion. The price tag of the Shanghai Maglev was believed to be $1.3billion and was partially financed by the German government. "Number of High-speed Railways in China as of August in 2019, by Profit Status and Speed. A Shanghai-Hangzhou maglev line was also initially discussed but later shelved in favour of conventional high-speed rail. [180] If the rail-backed loans cannot be fully repaid, they may be refinanced or the banks may seize ownership of the railways. 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. Mainland tourists said the high hotel prices and the fully resumed cross-border high-speed rail were factors in . There is no better way of transportation than China's high-speed rail," Solheim added at his Wechat public account on Wednesday. The trains G403/404 and G405/406 for the Beijing West (Beijingxi) - Kunming South (Kunmingnan) service (distance 2,760km (1,710mi), travel time about 10 1/2 hours), which began service on January 1, 2017, became the longest high-speed rail service in the world. The high-speed rail (HSR) network in the People's Republic of China (PRC) is the world's longest and most extensively used - with a total length of 42,000 kilometres (26,000 mi) by the end of 2022. A planned launch of the maglev train was set for 2025. "[16][17], High-speed rail in China is officially defined as "newly-built passenger-dedicated rail lines designed for electrical multiple unit (EMU) train sets traveling at not less than 250km/h (155mph) (including lines with reserved capacity for upgrade to the 250km/h (155mph) standard) on which initial service operate at not less than 200km/h (124mph). Supporters argued that high-speed rail would boost future economic growth. [121] The number of high-speed train sets in operation grew from 1,277 pairs in June to 1,556.5 pairs in December. It is also known as "the most profitable" rail line, with annual growth rate of profits registered at 39.4 percent from 2014 to 2019. High-speed ridership statistics in China are often reported as the number of passengers carried by high-speed EMU train sets, and such figures typically include passengers on EMU trains operating on non-high speed track or at service speeds below 200km/h (124mph).[19]. [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. [20] It was faster than the fastest trains in Japan at the time. The Beijing Shanghai route has been always full and making big money even during the pandemic. [83] State-run Chinese media confirmed 40 deaths, and at least 192 people hospitalised, including 12 who were severely injured. Is European high-speed rail profitable? On August 1, 2008, the BeijingTianjin intercity railway opened in time for the 2008 Summer Olympics. Opponents noted that high-speed rail in other countries were expensive and mostly unprofitable. A Japanese report envisioned a winner-take all scenario in which the winning technology provider would supply China's trains for over 8,000km (5,000mi) of high-speed rail. Overcrowding on existing rail lines, they said, could be solved by expanding capacity through higher speed and frequency of service. Work on the, Facilitates cross-city economic integration and promotes the growth of. Accessed May 01, 2023. https://www.statista.com/statistics/1218788/china-profitability-of-high-sped-railway-by-route/, Bloomberg. In June 1998, at a State Council meeting with the Chinese Academies of Sciences and Engineering, Premier Zhu Rongji asked whether the high-speed railway between Beijing and Shanghai still being planned could use maglev technology. Former senior UN officer praises Chinese high-speed railway The HSR network encompasses newly built rail lines with a design speed of 200-350 km/h (120-220 mph). [51] In all, the state planned to spend $300billion to build a 25,000km (16,000mi) HSR network by 2020.[52][53]. [60] Sheng announced that all trains in the high-speed rail network would operate at a maximum speed of 300km/h (186mph) beginning on July 1, 2011. Railway officials lowered the top speed of trains on most lines that were running at 350km/h (217mph) to 300km/h (186mph). The completion dates are 2020 and 2021.[196]. In 2004, the Shanghai Maglev Train became the world's first commercially operated high-speed maglev. As of February 2016, high-speed rails covered nearly 20,000km (12,427mi). 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. [43] Trains with Alstom technology carry the CRH5 designation. If you are an admin, please authenticate by logging in again. You need at least a Starter Account to use this feature. Even the more modest plan to extend the maglev to Shanghai's other airport, Hongqiao, has stalled. The Chinese firm will work alongside two Russian companies for on the designs for a total cost of 20.8 billion rubles ($383 million) over the next two years, according to Russian Railways. This percentage increased to 65%, 69% and 72% in the year of 2013, 2014 and 2015, respectively. Currently, the HSR extends to all provincial-level administrative divisions and Hong Kong SAR,[note 1][note 2] with the exception of Macau SAR. 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. As of 2023[update], it remains the fastest commercial train in the world with peak speeds of 431km/h (268mph) and makes the 30.5km (19.0mi) trip in less than 7.5 minutes. Currently, you are using a shared account. [37] The Japanese government touted the 40-year track record of the Shinkansen and offered favorable financing.

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