is china high speed rail profitable

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. ", Gerald Ollivier, Richard Bullock, Ying Jin and Nanyan Zhou, "High-Speed Railways in China: A Look at Traffic" World Bank China Transport Topics No. Please do not hesitate to contact me. On August 1, 2008, the BeijingTianjin intercity railway opened in time for the 2008 Summer Olympics. [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). 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. It is the western ward lines are losing money but that is narrowing too. As of 2007, the Qinhuangdao-Shenyang high-speed railway, which carried trains at top speed of 250km/h (155mph) along the Liaoxi Corridor in the Northeast, was the only passenger-dedicated HSR line (PDL) in China, but that would soon change as the country embarked on a high-speed railway construction boom. [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. In 2018, China Railway operated 3,970.5 pairs of passenger train service, of which 2,775 pairs were carried by EMU train sets. Ride to profitability for China-backed Indonesian rail project may take On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). 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. [76][77][78] The accident occurred when one train traveling near Wenzhou was struck by lightning, lost power and stalled. As of February 2016, high-speed rails covered nearly 20,000km (12,427mi). [134], The HSR network reached 37,900km (23,500mi) in total length by the end of 2020. Some of the Hexie Hao train sets are manufactured locally through technology transfer, a key requirement for China. [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]. As per the official statement of National High-Speed Rail . [68] 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. The COVID-19 epidemic hurt China's high-speed railway sector last year, but the Beijing-Shanghai section, which will turn 10 on Wednesday, remained profitable, spurring the introduction of a new model of Fuxing bullet train on the prime stretch, offering better services and safety, said senior executives of the company that operates the line . Bloomberg. [129], By 2015, six high speed rail lines, BeijingTianjin, ShanghaiNanjing, BeijingShanghai, ShanghaiHangzhou, NanjingHangzhou and GuangzhouShenzhenHong Kong report operational profitability. On 2011-07-24. statistic alerts) please log in with your personal account. [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. [130] The BeijingShanghai is particularly profitable reporting a 6.6 billion yuan net profit. He also introduced that a few days ago, he traveled from Chengdu to . Then you can access your favorite statistics via the star in the header. 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]. [141][142] In 2016, Chinese railways carried almost 2 trillion ton-kilometers of freight and over 1 billion passenger-kilometer of passengers, making it one of the world's most intensively used freight and passenger railway networks in the world. The Euro Carex is a truly European scale project that aims at using the existing high-speed . [188] By the spring of 2011, commercial airline service had been completely halted on previously popular routes such as WuhanNanjing, WuhanNanchang, XianZhengzhou and ChengduChongqing. [71] The CRH380A trainsets on the BeijingShanghai high-speed railway could reach a top operational speed of 380km/h (240mph) but were limited to 300km/h (186mph). CRH trainsets are intended to provide fast and convenient travel between cities. Initiated by MOR's 2004 "Mid-to-Long Term Railway Network Plan", a national grid composed of eight high-speed rail corridors, four running northsouth and four going eastwest, was to be constructed. High-speed trains on HSR Corridors can generally reach 300350km/h (190220mph). 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. 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. [11], Economically, there were initial concerns, particularly outside China, over the high-speed rail's cost, debt and profitability. 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. "Number of High-speed Railways in China as of August in 2019, by Profit Status and Speed. [30] 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. [22] In December 1994, the State Council commissioned a feasibility study for the line.[22]. Why China can build high-speed rail so cheaply [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. EMU trains operating on non-high speed track or otherwise but at speeds below 200km/h (124mph) are not considered high-speed rail. 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. [47] Kawasaki challenged China's high-speed rail project for patent theft, but backed off the effort.[48]. The HSR network includes new mixed passenger-freight lines with a design speed of 200250km/h (120160mph). 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! [55][72] 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. 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. Currently, you are using a shared account. It was profitable every year between 2014 and 2019, according to national railway operator China State Railway Group Co. [138], The safety issue that drew the attention of the public and the government was the Wenzhou train collision which happened on July 23, 2011, in which 40 people died, 172 were injured, and 54 related officials blamed and punished. [158], Overall, ridership is growing as the high-speed rail network continues to expand. 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. [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. [209], China Railway High-speed runs different electric multiple unit trainsets, the name Hexie Hao (simplified Chinese: ; traditional Chinese: ; pinyin: Hxi Ho; lit. [178] In September 2010, daily ridership averaged 69,000 or an annual rate of 25.2million. A total of 400 new generation trains were ordered. 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). 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. State planning for China's current high-speed railway network began in the early 1990s under the leadership of Deng Xiaoping. China's Beijing-Shanghai high-speed rail operator is more profitable "[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). China's railway diplomacy hits the buffers | Financial Times Large construction debt-loads require significant revenues from rider fares, subsidies, and/or other sources of income, such as advertising, to repay. 110,000 mainland Chinese tourists leave Hong Kong on first day of Supports energy independence and environmental sustainability. In June 2002, a domestically made DJF2 train set a record of 292.8km/h (181.9mph) on the track. Zhang Jianwei, President and Chief Country Representative of Bombardier China, stated that in a 2009 interview, Whatever technology Bombardier has, whatever the China market needs, there is no need to ask. [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 nation seeks to increase its high-speed rail network to 50,000 kilometers by 2025. The trains have a top operational speed of 430km/h (267mph) and can reach a top non-commercial speed of 501km/h (311mph). New rail lines are simply not going to be as profitable as more mature rail lines that have reached their planned capacity targets. 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. 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. 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. [24][25] The MOR focused modernization efforts on increasing the service speed and capacity on existing lines through double-tracking, electrification, improving grade (through tunnels and bridges), reducing turn curvature and installing continuous welded rail. The signalling, track and support structures, control software, and station design are developed domestically with foreign elements as well. [dead link][58] The MOR reportedly committed investment of 709.1billion (US$107.9billion) in railway construction in 2010 and would invest 700billion (US$106billion) in 2011 on 70 railway projects, including 15 high-speed rail projects. 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. 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. The global expansion of China's high-speed rail sector is particularly problematic because of its disregard for profit. Despite impressive ridership figures, virtually every completed line has incurred losses in its first years of operation. [158] CRIC retained 56.2 percent ownership on that line. [84][85][86] The Wenzhou train accident and the lack of accountability by railway officials caused a public uproar and heightened concerns about the safety and management of China's high-speed rail system. [180] Others warn that the financing side of the existing construction and operation model is unsustainable. 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]. Meanwhile, the United States has just . 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. [102][103] By October, work had halted on the construction of 10,000km (6,200mi) of track. The "fastest" train commercial service can be defined alternatively by a train's top speed or average trip speed. IPO for China's most profitable high-speed train - Asia Times As of 2021, the operation length of the high-speed rail (HSR) in China amounted to around . 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. [120] High-speed passenger rail service expanded to 28 provinces and regions. Those sections will carry a mix of passenger and freight. [103][104] Earnings from the more profitable freight lines helped to off-set losses by high-speed rail lines. 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. 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. [75], On July 23, 2011, two high-speed trains collided on the NingboTaizhouWenzhou railway in Lucheng District of Wenzhou, Zhejiang Province. [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. This is . High-speed railway in China - statistics & facts | Statista During the Sixth Railway Speed Up Campaign, 52 CRH trainsets (CRH1, CRH2 and CRH5) entered into operation. This statistic is not included in your account. 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. Published by Statista Research Department , Feb 3, 2023. [178] The terms of the loans range from 510 years at interest rates of 6.3 to 6.8 percent. This has allowed high-speed rail to attract more than 1.7 billion passengers a year from all income groups. [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). [182], The MOR faces a debt-repayment peak in 2014. 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). Observer Research Foundation | ORF 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. A planned launch of the maglev train was set for 2025. [83] State-run Chinese media confirmed 40 deaths, and at least 192 people hospitalised, including 12 who were severely injured. The price tag of the Shanghai Maglev was believed to be $1.3billion and was partially financed by the German government. 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. What did the delicate girl do for the first time in the high-speed rail? [187][53], The spread of high-speed rail has forced domestic airlines in China to slash airfare and cancel regional flights. Financial losses during the ramp-up period should not be surprising for new rail lines. China's flagship high-speed rail project in Indonesia is expected to become profitable 40 years after completion - not 20 as earlier projected - partly because plans to shift the capital to . Some 4,715 kilometres (2,930mi) of new high-speed railways would be opened, and by the end of 2011, China would have 13,073 kilometres (8,123mi) of railways capable of carrying trains at speeds of at least 200km/h (124mph). However, these patents are only valid within China, and as such hold no international power. [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. Rail Vehicle Market Restraints, Segments and Regional - MarketWatch Due to varying update cycles, statistics can display more up-to-date Achieving indigenous high-speed rail technology has been a major goal of Chinese state planners. This percentage increased to 65%, 69% and 72% in the year of 2013, 2014 and 2015, respectively.
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