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

[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. 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. ", "Freeman & Kroeber, "Opinion: China's Fast Track to Development", "High-Speed Railways in China: A Look at Traffic", "Shanghai, Shenzhen, Beijing Lead Prospects in ULI's China Cities Survey", "China's high-speed-rail network and the development of second-tier cities", "Japan Inc shoots itself in foot on bullet train", "The Pricing Conundrum for Chinese High-speed Rail", "China: profitability of high-speed railway by route", Shelley Smith "Yuan Bond Sales Climb to Record Led by Railways: China Credit", "China Daily Website - Connecting China Connecting the World", "Is Low-Cost Intercity Rail Possible? It was profitable every year between 2014 and 2019, according to national railway operator China State Railway Group Co. 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. There is no better way of transportation than China's high-speed rail," Solheim added at his Wechat public account on Wednesday. [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. To use individual functions (e.g., mark statistics as favourites, set The "fastest" train commercial service can be defined alternatively by a train's top speed or average trip speed. The line was electrified in 1998, and Swedish-made X 2000 trains increased service speed to 200km/h (124mph). These are also considered high-speed rail though they are not part of the national HSR grid or Intercity High Speed Rail. [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). [87][88] Quality and safety concerns also affected plans to export cheaper high-speed train technology to other countries. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. To better compete with foreign trainmakers, the central authorities arranged for the merger of the country's two main high-speed train-makers, CSR and CNR, into CRRC. 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. won an order for 40 eight-car train sets based on Bombardier's Regina design. [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. [22] At the time, the BeijingShanghai Railway was already at capacity, and the proposal was jointly studied by the Science & Technology Commission, State Planning Commission, State Economic & Trade Commission, and the MOR. 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. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. When considering route strategy, HSR's market share versus other modes must be well understood. In July 2016, the state planners reorganized the national HSR network including HSR lines in operation, under construction and under planning into eight vertical and eight horizontal high speed rail corridors, almost doubling the network.[189][190]. New rail lines are simply not going to be as profitable as more mature rail lines that have reached their planned capacity targets. [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. 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. Number of high-speed railways in China as of August in 2019, by profit status and speed [Graph]. Despite impressive ridership figures, virtually every completed line has incurred losses in its first years of operation. [43] Trains with Alstom technology carry the CRH5 designation. Those sections will carry a mix of passenger and freight. Work on the, Facilitates cross-city economic integration and promotes the growth of. Standardization of designs and procedures such as train tracks, rolling stocks, signal systems keeps the construction cost down. [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. 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. [188] Flights on routes over 1,500km (930mi) are generally unaffected. [59], In February 2011, Railway Minister Liu Zhijun, a key proponent of HSR expansion in China, was removed from office on charges of corruption. [37] The State Council turned to advanced technology abroad but made clear in directives that China's HSR expansion could not only benefit foreign economies and should also be used to develop its own high-speed train building capacity through technology transfers. 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. 'Rejuvenation') that based on indigenous technologies. China's high-speed rail network appears to be following this trend. [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). [132] The proposed completion date for the network is 2030. Show publisher information [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. [51] In response to the global economic recession, the government accelerated the pace of HSR expansion to stimulate economic growth. As of 2022, the China State Railway Group has had a debt of around $900 billion USD, according to Nikkei. Euro Carex (Europe Cargo Rail Express) is founded in April 2009 as an international non-profit association. [11], Economically, there were initial concerns, particularly outside China, over the high-speed rail's cost, debt and profitability. The ideal entry-level account for individual users. At the beginning of the 21st century China had no high-speed railways. [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. Most of the new lines follow the routes of existing trunk lines and are designated for passenger travel only. 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). [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. Elevated concrete prefab guideways that are above roads, water and other rail systems. High-speed rail developed rapidly in China since the mid-2000s. [89], The train collision exposed poor management by the railway company. [52][53] The government has justified the expensive undertaking as promoting a number of policy objectives. [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. 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. Profit from the additional features of your individual account. to incorporate the statistic into your presentation at any time. 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. [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%. The price tag of the Shanghai Maglev was believed to be $1.3billion and was partially financed by the German government. Develop an indigenous high-speed rail equipment industry. [178] To break even, the line must deliver 30 million rides annually. Supporters argued that high-speed rail would boost future economic growth. "[140], Experts expressed concern of the network's operational efficiency. [75], On July 23, 2011, two high-speed trains collided on the NingboTaizhouWenzhou railway in Lucheng District of Wenzhou, Zhejiang Province. According to Xinhua News Agency, the aggregate results of the six Speed Up Campaigns were: boosting passenger train speed on 22,000km (14,000mi) of tracks to 120km/h (75mph), on 14,000km (8,700mi) of tracks to 160km/h (99mph), on 2,876km (1,787mi) of tracks to 200km/h (124mph) and on 846km (526mi) of tracks to 250km/h (155mph). "[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]. 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. In the second year, ridership rose to 22.3million and revenues improved to 1.4billion, which narrowed losses somewhat to below 0.5billion. 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. [47] Kawasaki challenged China's high-speed rail project for patent theft, but backed off the effort.[48]. [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). What did the delicate girl do for the first time in the high-speed rail? [120] High-speed passenger rail service expanded to 28 provinces and regions. [citation needed]. ", "China's fastest high speed train 380A rolls off production line", "High-speed rail broadens range of options for China's New Year travel", "China finds 187 mln yuan embezzled from Beijing-Shanghai railway project", "Chinese rail crash scandal: 'official steals $2.8 billion', "China acts on high-speed rail safety fears", "China slows down showcase bullet trains", "World's longest high-speed train to decelerate a bit", "The Backlash Is Brewing Against Chinese High-Speed Rail: Here's Why It's In Trouble", "Beijing-Shanghai high-speed railway to run trials", "China not slowing high-speed rail construction", "Railway cuts bullet trains from schedule | Sunday Digest", "Train Wreck in China Heightens Unease on Safety Standards", "Crash raises doubts about China's fast rail plans", "Chinese bullet trains recalled in wake of fatal crash | World news", "Five Days Later, Chinese Concede Design Flaw Had Role in Wreck", "Un error en las seales caus el choque de trenes chinos", "La signalisation mise en cause dans l'accident du Pkin-Shangha", "La scurit des TGV chinois de plus en plus conteste", "First fatal crash on Chinese high speed line", "China train crash: Signal design flaw blamed", "China train crash kills 32 The Observer", "Outrage at Wenzhou disaster pushes China to suspend bullet train project", "China's High-Speed Rail Accident 'Struck a Nerve' | The Rundown News Blog", "China crashes into a middle class revolt", "China steps up train safety amid anger after cras", "China freezes new railway projects after high-speed train crash", "China train crash: Design flaws to blame safety chief", "China suspends new high speed rail plans", "Decision to slow trains met with mixed response|Nation|chinadaily.com.cn", "More high-speed trains slow down to improve safety|Society|chinadaily.com.cn", "CapitalVue News: China Cuts Ticket Price Of High Speed Rail", "China's high speed rail projects on hold due to cash crunch", Simon Rabinovitch, Chinas high-speed rail gets back on track Financial Times, "World's longest high-speed rail line makes debut", "China High Speed Train Development and Investment", "Sound financials recharge China's fast trains", "Bullet trains trigger profit growth for railways", "China's high-speed rail still reporting staggering losses", "China's railways mileage tops 100,000 km", "Chinese Trainmakers To Merge And Form Export Powerhouse", "China's Busiest High-Speed Rail Line Makes a Fast Buck", "China's high-speed rail lines top 37,900 at end of 2020 Xinhua | English.news.cn", "China to Expand High-Speed Rail Network to 50,000 Kilometers by 2025", "Despite a Deadly Crash, Rail System Has Good Safety Record", "Railway Efficiency An Overview and a Look at Opportunities for Improvement", "What is rail efficiency and how can it be changed? The trains have a top operational speed of 430km/h (267mph) and can reach a top non-commercial speed of 501km/h (311mph). [83] State-run Chinese media confirmed 40 deaths, and at least 192 people hospitalised, including 12 who were severely injured. While maglev was drawing attention to Shanghai, conventional track HSR technology was being tested on the newly completed Qinhuangdao-Shenyang Passenger Railway. [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. [195] Additionally, another two lines are under construction, the Qingyuan Maglev and the Fenghuang Maglev. 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 ballastless track technology, imported from Germany, carries higher upfront costs but can reduce maintenance costs. 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. Signals malfunctioned, causing another train to rear-end the stalled train. 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. [52] In addition, high-speed rail fares are considerably more expensive than conventional rail service. This text provides general information. As a Premium user you get access to background information and details about the release of this statistic. [178] The terms of the loans range from 510 years at interest rates of 6.3 to 6.8 percent. ", "High-Speed Rail: The Fast Track to Economic Development? 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. As of 2021, the operation length of the high-speed rail (HSR) in China amounted to around . Total investment in new rail lines grew from $14billion in 2004 to $22.7 and $26.2billion in 2006 and 2007. In the first three quarters of 2012, the line lost 1.87 billion. [181] The losses must be covered by the operator, which is usually subsidized by local governments. The completion dates are 2020 and 2021.[196]. The institution also found "a broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality. The transferred technology includes assembly, body, bogie, traction current transforming, traction transformers, traction motors, traction control, brake systems, and train control networks. statistic alerts) please log in with your personal account. We are happy to help. [citation needed] As of years ending 2008, 2009 and 2010, the MOR's debt-to-asset ratio was respectively, 46.81%, 53.06% and 57.44%,[105] and reached 58.58% by mid-year 2011. [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. 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. [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. It is the railway company that loses money, and the people and the whole country who profit. Train speeds have increased from a maximum of 200 km per hour to 350 km per hour - the fastest in the world. [51] In all, the state planned to spend $300billion to build a 25,000km (16,000mi) HSR network by 2020.[52][53]. [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. Another top official in the Railways Ministry, Zhang Shuguang, was also sacked for corruption. Total investments in new rail lines including HSR reached $49.4billion in 2008 and $88billion in 2009. [106] Affected lines included Xiamen-Shenzhen, Nanning-Guangzhou, Guiyang-Guangzhou, Shijiazhuang-Wuhan, Tianjin-Baoding and Shanghai-Kunming high-speed rail lines. 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. "China to Bid on US High-Speed Rail Projects" A.P. Overcrowding on existing rail lines, they said, could be solved by expanding capacity through higher speed and frequency of service. Most of China's hsr lines are actually quite busy. The HSR network includes new mixed passenger-freight lines with a design speed of 200250km/h (120160mph). Read how federal. [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. 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. [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. [107], By early 2012, the Chinese government renewed investments in high-speed rail to rejuvenate the slowing economy. [61] Bombardier, the first foreign train-maker to form a joint venture in China, has been sharing technology for the manufacture of railway passenger cars and rolling stock since 1998. [104], To ease the credit shortage facing rail construction, the Ministry of Finance announced tax cuts to interest earned on rail construction financing bonds and the State Council ordered state banks to renew lending to rail projects.