is china high speed rail profitable is china high speed rail profitable

Achieving indigenous high-speed rail technology has been a major goal of Chinese state planners. While maglev was drawing attention to Shanghai, conventional track HSR technology was being tested on the newly completed Qinhuangdao-Shenyang Passenger Railway. Service failures in the first month of operation drove passengers back to pre-existing slower rail service and air travel; airline ticket prices rebounded due to reduced competition. [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 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. 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. [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. 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. Higher-speed express train service allowed more trains to share the tracks and improved rail transport capacity. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 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. [37] The Japanese government touted the 40-year track record of the Shinkansen and offered favorable financing. They are built with the approval of the central government but are financed and operated largely by local governments with limited investment and oversight from the China Rail Corporation. [60] Zhang was estimated to have misappropriated to his personal overseas accounts the equivalent of $2.8 billion. The MOR then launched the CRH1-350 (Bombardier and BST, designated as CRH380D), CRH2-350 (CSR, designated as CRH380A/AL), and CRH3-350 (CNR and Siemens, designated as CRH380B/BL & CRH380CL), to develop a new generation of CRH trains with a top operation speed of 380km/h (236mph). Certain mixed use freight and passenger rail lines, that can be upgraded for train speeds of 250km/h (155mph), with current passenger service of at least 200km/h (124mph), are also considered high-speed rail.[18]. The train operated in commercially on conventional rail lines in southwest China from 2007 to 2010. As of February 2016, high-speed rails covered nearly 20,000km (12,427mi). The Qinhuangdao-Shenyang Line showed the greater compatibility of HSR on conventional track with the rest of China's standard gauge rail network. [106] As of October 12, 2011, the MOR had issued 160 billion of debt for the year. The global expansion of China's high-speed rail sector is particularly problematic because of its disregard for profit. 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. [131], In 2016, with the near completion of the National 4+4 grid, a new "Mid-to-Long Term Railway Network" Plan was drafted. [130] The BeijingShanghai is particularly profitable reporting a 6.6 billion yuan net profit. 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 HSR network reached 42,000km (26,000mi) in total length in December 2022[3] with plans to reach 70,000km (43,000mi) in 2035. 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. 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. 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. [182], The MOR faces a debt-repayment peak in 2014. They became known as passenger-designated lines (PDLs). Construction first started on this 1,318 km-line in 2008, and it opened for commercial service in 2011. Along with CRH3C, produced by Siemens and CNR Tangshan, CSR Sifang bid 60 sets of CRH2C. China's high-speed rail is not profitable, and it is steadily losing money. [221], In January 2014, the China Railway Construction Corporation completed a 30km (19mi) section of the Ankara-Istanbul high-speed railway between Eskiehir and nn in western Turkey.[222]. Railway officials lowered the top speed of trains on most lines that were running at 350km/h (217mph) to 300km/h (186mph). [209] At the end of 2018, cumulative passengers delivered by EMU trains is reported to be over 9 billion. [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. China has built the bulk of the world's . "[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). [183], China's high-speed railway network is by far the longest in the world. [209] In 2007, CRH EMU trains running on conventional track upgraded in the sixth round of the "Speed-up Campaign" carried 61 million passengers, before the country's first high-speed rail line, the BeijingTianjin intercity railway, opened in August 2008. [158] Some economists recommend further subsidies to lower fares and boost ridership and ultimately revenues. 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. China's HSR accounts for two-thirds of the world's total high-speed railway networks. IPO for China's most profitable high-speed train State to sell 15% of Beijing to Shanghai line to help fund less profitable rail services by KG Chan October 29, 2019 A bullet train departs Shanghai's Hongqiao Station. 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]. [129], By 2015, six high speed rail lines, BeijingTianjin, ShanghaiNanjing, BeijingShanghai, ShanghaiHangzhou, NanjingHangzhou and GuangzhouShenzhenHong Kong report operational profitability. The CRH380A/AL, the first indigenous high-speed train of the CRH series, entered service on the Shanghai-Hangzhou High-Speed Railway on October 26, 2010. [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. Moreover, State-owned corporation also uses bulk purchasing to reduce material prices. "Michael Forsythe "Letter from China: Is China's Economy Speeding Off the Rails? The completion dates are 2020 and 2021.[196]. COVID-19 outbreak disrupted rail transport [23] In 1995, Premier Li Peng announced that preparatory work on the Beijing Shanghai HSR would begin in the 9th Five Year Plan (19962000), but construction was not scheduled until the first decade of the 21st century. With a total length of 968km (601mi) and capacity to accommodate trains traveling at 350km/h (217mph), the Wuguang PDL set a world record for the fastest commercial train service with average trip speed of 312.5km/h (194.2mph). [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. [64] On June 13, 2011, the MOR clarified in a press conference that the speed reduction was not due to safety concerns but to offer more affordable tickets for trains at 250km/h (155mph) and increase ridership. [154] Conservative scholars and officials are worried that the indebted high-speed rail is further exacerbated by its unprofitability, operating at a daily loss of $24 million USD as of November 2021. By Global Times Published: Jun 22, 2021 10:38 PM. Maglev received a big boost in 2000 when the Shanghai Municipal Government agreed to purchase a turnkey TransRapid train system from Germany for the 30.5km (19.0mi) rail link connecting Shanghai Pudong International Airport and the city. [37] The State Council, MOR and state-owned train builders used China's large market and competition among foreign train-makers to force technology transfers of foreign high speed rail technology[citation needed]. [20] The steam-powered train, which ran on the South Manchuria Railway from Dalian to Xinjing (Changchun), had a top commercial speed of 110km/h (68mph) and a test speed of 130km/h (81mph). Those sections will carry a mix of passenger and freight. In 2004, the Shanghai Maglev Train became the world's first commercially operated high-speed maglev. The "fastest" train commercial service can be defined alternatively by a train's top speed or average trip speed. How fast is bullet train in China? 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). Length of express railways in China 2008-2021. [214] In June 2020, a trial run was conducted at Tongji University. passenger dedicated lines (PDLs) with a design speed of 350km/h (217mph), regional lines connecting major cities with a design speed of 250km/h (155mph), and. Supports energy independence and environmental sustainability. The CRH's high-speed trains are called Harmony and Rejuvenation. The non-stop express train from Beijing to Fuzhou shortened travel time from 33.5 to less than 20 hours. [188] By the spring of 2011, commercial airline service had been completely halted on previously popular routes such as WuhanNanjing, WuhanNanchang, XianZhengzhou and ChengduChongqing. 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. [34] These concerns have prevented the construction of the proposed extension of the maglev to Hangzhou. "[140], Experts expressed concern of the network's operational efficiency. The trains have a top operational speed of 430km/h (267mph) and can reach a top non-commercial speed of 501km/h (311mph). Please do not hesitate to contact me. The BeijingShanghai high-speed railway, the second major cross-regional line, opened in June 2011 and was the first line designed with a top speed of 380km/h (236mph) in commercial service. The expansion into HSR is also developing China into a leading source of high-speed rail building technology. This statistic is not included in your account. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. For example, the BeijingTianjin intercity railway in its two full years of operation, delivered over 41 million rides. [102] New projects were put on hold and completion dates for existing projects, including the Tianjin-Baoding, Harbin-Jiamusi, Zhengzhou-Xuzhou and Hainan Ring (West), were pushed back. 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. Then you can access your favorite statistics via the star in the header. Are you interested in testing our business solutions? To increase transport capacity, the MOR ordered 70 16-car trainsets from CSR Sifang and BST, including 10 sets of CRH1B and 20 sets of CRH2B seating trains, 20 sets of CRH1E and 20 sets of CRH2E sleeper trains. Photo: People's Daily As a Premium user you get access to background information and details about the release of this statistic. 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. [178], The Shijiazhuang-Taiyuan PDL lost 0.8billion in its first year and is set to lose 0.9billion in 2010. [90][91] This fatal accident, which happened in the midst of corruption investigations into railway officials, led to greater scrutiny in the Chinese press and the populace concerning the HSR[63][64][92][93] and on the railway company. Business Solutions including all features. [73] Foreign manufacturers involved in Shanghai-Beijing high-speed link reported that their contracts call for maximum operational speed of 300km/h (186mph). [215][216], Typical application of track technology in China high-speed lines, Chinese train-makers and rail builders have signed agreements to build HSRs in Turkey, Venezuela, Argentina,[217] and Indonesia[218] and are bidding on HSR projects in the United States, Russia, Saudi Arabia, Brazil (So Paulo to Rio de Janeiro) and Myanmar, and other countries. [111] By the end of 2012, the total length of high-speed rail tracks had reached 9,300km (5,800mi), and ridership rebounded and exceeded levels prior to the Wenzhou crash. [52] In addition, high-speed rail fares are considerably more expensive than conventional rail service. After the founding of the People's Republic of China in 1949, this train model was renamed the SL-7 and was used by the Chinese Minister of Railways. In June 2002, a domestically made DJF2 train set a record of 292.8km/h (181.9mph) on the track. [69][70] In June, the MOR maintained that high-speed rail construction was not slowing down. Two-direction departures at five-minute intervals, but can be as short as 1 minute. Intercity HSR service speeds range from 200350km/h (120220mph). Is China high-speed rail profitable? The Economist estimates Liu accepted 1billion of bribes ($152million) in connection with railway construction projects. The Beijing Shanghai route has been always full and making big money even during the pandemic. Supporters argued that high-speed rail would boost future economic growth. 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. On one hand, the demand of high-speed rail in China steadily increases over time. [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. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. 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. Some of these new railways are being built to accommodate speeds of 200250km/h (120160mph) for both passengers and freight. 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. [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). [138], Despite having the second largest route-kilometer growth after Turkey since 2017,[145] there has been debate whether China's high-speed railway network is economically efficient. The study also noted a range of benefits which included shortened travel times, improved safety and better facilitation of tourism, labor and mobility, as well as reducing highway congestion, accidents and greenhouse emissions as some automobile travellers switch from car use to rail. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. [188] As of October 2013, high-speed rail was carrying twice as many passengers each month as the country's airlines. Kawasaki's cooperation with CSR did not last as long. Train speeds have increased from a maximum of 200 km per hour to 350 km per hour - the fastest in the world. The development of the HSR network in China was initially delayed by a debate over the type of track technology to be used. To date, China owns the largest HSR system in the world, with a total operating high-speed rail network of 40,000 kilometers in 2021. According to a World Bank publication on Chinese HSR, by the end of 2017 "the length of 300350 kph lines was about 10,000 km, and the length of 200250 kph lines was about 15,000 km. High-speed rail in China. It is the railway company that loses money, and the people and the whole country who profit. 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. 11, "China's Experience with High Speed Rail Offers Lessons for Other Countries", "China plans five-year leap forward of railway development ", "Bullet trains set to join fastest in the world", "International Railway Journal Rail And Rapid Transit Industry News Worldwide", "China slows its runaway high-speed rail expansion", "Hundreds protest Shanghai maglev rail extension", "Rail track beats Maglev in BeijingShanghai High Speed Railway", "BeijingShanghai High-Speed Line, China", "Violence flares as the Chinese rage at Japan", "Kawasaki Wins High-Speed Train Order for China", "China denies Japan's rail patent-infringement claims.