is china high speed rail profitable

[63][64], In April 2011, the new Minister of Railways Sheng Guangzu said that due to corruption, safety may have been compromised on some construction projects and completion dates may have to be pushed back. [188] By the spring of 2011, commercial airline service had been completely halted on previously popular routes such as WuhanNanjing, WuhanNanchang, XianZhengzhou and ChengduChongqing. China's HSR accounts for two-thirds of the world's total high-speed railway networks. Those sections will carry a mix of passenger and freight. Moreover, State-owned corporation also uses bulk purchasing to reduce material prices. [102] In late October and November 2011, the MOR raised RMB 250 billion in fresh financing and construction resumed on several lines including the Tianjin-Baoding, Xiamen-Shenzhen and Shanghai-Kunming. The trains have a top operational speed of 430km/h (267mph) and can reach a top non-commercial speed of 501km/h (311mph). On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). Higher-speed train travel uses greater energy and imposes more wear on expensive machinery. "Number of High-speed Railways in China as of August in 2019, by Profit Status and Speed. Total investment in new rail lines grew from $14billion in 2004 to $22.7 and $26.2billion in 2006 and 2007. [182], The MOR faces a debt-repayment peak in 2014. [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. 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. Rail Vehicle Market Report is highly -intensive driven by high R&D investment and has strong product analysis to maintain growth and ensure long-term monetization with a forecast period of 2023-2029. [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). And almost lines along Eastern coast are busy and profitable. [178] In its first year of operation from August 1, 2008, to July 31, 2009, the line carried 18.7million riders and generated 1.1billion in revenues, which resulted in a loss of 0.7billion. [187][53], The spread of high-speed rail has forced domestic airlines in China to slash airfare and cancel regional flights. [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]. 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. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. [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). Over the past decade, the country has added over 35,000 kilometers to its high-speed rail (HSR) network, with the total length that far exceeds the rest of the world combined. Even the Beijing-Shanghai line, China's most profitable high-speed rail line, reported 56.6 percent less net profit in 2021 than in 2019. [183] In 2016, the high-speed rail revenue was 140.9 billion RMB Yuan (20 billion USD), while the same term interest from at least 3300 billion debt of its construction was 156.8 billion RMB Yuan (22.4 billion USD). China's first line, the Qinhuangdao-Shenyang passenger railway, was opened in 2003. [110] Over the course of the year, the MOR's budget rose from $64.3 billion to $96.5 billion. (August 18, 2020). The Shanghai Maglev Train, a turnkey Transrapid maglev demonstration line 30.5km (19.0mi) long. Within two years of cooperation with Kawasaki to produce 60 CRH2A sets, CSR began in 2008 to build CRH2B, CRH2C and CRH2E models at its Sifang plant independently without assistance from Kawasaki. In 2004, the Shanghai Maglev Train became the world's first commercially operated high-speed maglev. Policy planners debated the necessity and economic viability of high-speed rail service. In October 2010, CRH service more than 1,000 trains per day, with a daily ridership of about 925,000.[193]. data than referenced in the text. In, Bloomberg. [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 global expansion of China's high-speed rail sector is particularly problematic because of its disregard for profit. Railway officials lowered the top speed of trains on most lines that were running at 350km/h (217mph) to 300km/h (186mph). [citation needed]. [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. To use individual functions (e.g., mark statistics as favourites, set [47] Kawasaki challenged China's high-speed rail project for patent theft, but backed off the effort.[48]. CRH trainsets are intended to provide fast and convenient travel between cities. Most of the components of the CRH trains manufactured by Chinese companies were from local suppliers, with only a few parts imported. [51] In response to the global economic recession, the government accelerated the pace of HSR expansion to stimulate economic growth. [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. Dedicated guideways eliminate shared tracks with slower freight, transit or Amtrak. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. According to the "Mid-to-Long Term Railway Network Plan" (revised in 2008), the MOR plans to build over 40,000km (25,000mi) of railway in order to expand the railway network in western China and to fill gaps in the networks of eastern and central China. They became known as passenger-designated lines (PDLs). [52][53] The government has justified the expensive undertaking as promoting a number of policy objectives. [96] On August 10, 2011, the Chinese government announced that it was suspending approvals of any new high-speed rail lines pending the outcome of the investigation. The expansion into HSR is also developing China into a leading source of high-speed rail building technology. The 4+4 national HSR grid was largely completed by the end of 2015 and now serves as the backbone of China's HSR network. 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 . Slow and often uncomfortable trains plodded across this vast country, with low average speeds making journeys such as. At 309 million (about $377 million) per mile, the U.K.'s High Speed 2 line, which is currently under construction, is the most . [83] State-run Chinese media confirmed 40 deaths, and at least 192 people hospitalised, including 12 who were severely injured. 1st May 2023, 23:03 GMT+10. New Delhi [India], May 1 (ANI): The training of Indian engineers and work leaders have started for the High-Speed Rail Track system for the Mumbai-Ahmedabad high speed rail corridor (MAHSR), for T-2 Package (covering 237 km between Vapi and Vadodara). If you are an admin, please authenticate by logging in again. Show sources information Then you can access your favorite statistics via the star in the header. The completion dates are 2020 and 2021.[196]. Although both classified as high-speed rail, the Shanghai Maglev often is not counted as part of the national high-speed rail network, while XRL is fully integrated into the national network of the CRH. Those sections will carry a mix of passenger and freight. A paid subscription is required for full access. Some intercity lines run parallel to other high-speed rail lines but serve more stations along the route. 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. Meanwhile, the United States has just . Signals malfunctioned, causing another train to rear-end the stalled train. [120] High-speed passenger rail service expanded to 28 provinces and regions. At the same time, let those who say that China is very backward, and those who say that China's high-speed rail has no backrests, take a look! Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Use Ask Statista Research Service, Public Transportation & Mobility Services, Fastest trains in the world by record speed 2022, Length of highspeed railway lines in use worldwide in 2021, by country, Passenger transport volume of highspeed railways in China 2008-2021, Revenue of the China Railway Group (CREC) 2011-2021, To download this statistic in XLS format you need a Statista Account, To download this statistic in PNG format you need a Statista Account, To download this statistic in PDF format you need a Statista Account. [69][70] In June, the MOR maintained that high-speed rail construction was not slowing down. The earliest example of higher-speed commercial train service in China was the Asia Express, a luxury passenger train that operated in Japanese-controlled Manchuria from 1934 to 1943. As of March 2011, no major quality defects had been found in the system. [209] Nevertheless, by any measure, high-speed rail ridership in China has grown rapidly with expansion of the high-speed rail network and EMU service since 2008. Under political and public pressure, the National Audit Office (NAO) carried out an extensive investigation into the building quality of all high-speed rail lines. [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. China's high-speed rail construction projects are highly capital intensive. [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. In 2007, travel time from Beijing to Shanghai was about 10 hours at a top speed of 200km/h (124mph) on the upgraded BeijingShanghai Railway. The weakness on intellectual property of Hexie Hao causes obstruction for China to export its high-speed rail related product, which leads to the development of the completely redesigned train franchise called Fuxing Hao (simplified Chinese: ; traditional Chinese: ; pinyin: Fxng Ho; lit. [115][116] However in 2013, only few lines had yet become profitable. Are you interested in testing our business solutions? [10] In 2020, China started testing a maglev prototype train that runs at 600km/h (373mph) and planned a 2025 launch date. 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]. We would like to show you a description here but the site won't allow us. 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. As of 2022, the China State Railway Group has had a debt of around $900 billion USD, according to Nikkei. You need at least a Starter Account to use this feature. Later, we began to independently develop high-speed CRH trains with a maximum velocity of 300350 kilometers per hour, which eventually rolled off the production line in December 2007. 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. About 4050% of financing is provided by the national government through lending by state owned banks and financial institutions, another 40% by the bonds issued by the Ministry of Railway (MOR) and the remaining 1020% by provincial and local governments. China's high-speed rail network appears to be following this trend. Develop an indigenous high-speed rail equipment industry. 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. [188] The impact of high-speed rail on air travel is most acute for intercity trips under 500km (310mi). The "fastest" train commercial service can be defined alternatively by a train's top speed or average trip speed. [118], In 2014, high-speed rail expansion gained speed with the opening of the TaiyuanXi'an, HangzhouChangsha, Lanzhou-rmqi, Guiyang-Guangzhou, Nanning-Guangzhou trunk lines and intercity lines around Wuhan, Chengdu,[119] Qingdao[120] and Zhengzhou. [180] If the rail-backed loans cannot be fully repaid, they may be refinanced or the banks may seize ownership of the railways. [178] To be able to repay principal, ridership would need to exceed 40million. The completion of the sixth round of the "Speed-Up" Campaign in April 2007 brought HSR service to more existing lines: 423km (263mi) capable of 250km/h (155mph) train service and 3,002km (1,865mi) capable of 200km/h (124mph). Higher-speed express train service allowed more trains to share the tracks and improved rail transport capacity. We are happy to help. Currently, you are using a shared account. [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%. [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. Get in touch with us. In Europe that figure is $25m-$39m per kilometre, while in California, the only US state currently planning a high-speed line, it's more like $56m/km. This decision ended the debate and cleared the way for rapid construction of standard gauge, passenger dedicated HSR lines in China.[35][36]. This stands over three times the HSR distance of the. [75], On July 23, 2011, two high-speed trains collided on the NingboTaizhouWenzhou railway in Lucheng District of Wenzhou, Zhejiang Province. It is the western ward lines are losing money but that is narrowing too. 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.

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