is china high speed rail profitable

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. China's busiest high-speed rail line handles 1.35 billion passengers in 10 years. [34] These concerns have prevented the construction of the proposed extension of the maglev to Hangzhou. China's 'Most Profitable' High-Speed Rail Finally Makes Profit High-speed trains on HSR Corridors can generally reach 300350km/h (190220mph). By Global Times Published: Jun 22, 2021 10:38 PM. Ministry held the power drafting policy on railroad transposition, development of the rail network and rail infrastructure in China. The introduction of more non-stop service between large cities also helped to reduce travel time. You only have access to basic statistics. liability for the information given being complete or correct. [11], Economically, there were initial concerns, particularly outside China, over the high-speed rail's cost, debt and profitability. 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. [106][147] The MOR, through its financing arm, the China Rail Investment Corp (CRIC), issued an estimated 1trillion (US$150billion in 2010 dollars) in debt to finance HSR construction from 2006 to 2010,[158] including 310billion in the first 10 months of 2010. Almost all HSR trains, tracks, and services are owned and operated by the China Railway Corporation under the brand China Railway High-speed (CRH) with two exceptions being the Shanghai Maglev Train, which is operated by the Shentong Metro Group, and GuangzhouShenzhenHong Kong Express Rail Link (XRL), which is partially operated by the Hong Kong-based MTR Corporation. In October 2010, CRH service more than 1,000 trains per day, with a daily ridership of about 925,000.[193]. [22] In December 1994, the State Council commissioned a feasibility study for the line.[22]. "Number of High-speed Railways in China as of August in 2019, by Profit Status and Speed. 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. Construction of the high-speed railway between Beijing and Shanghai, the world's first high-speed rail with a designed speed of 380km/h (236mph), began on April 18, 2008. 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). Why High-Speed Rail is Such a Heavy Lift - Railway Age 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. [158] CRIC retained 56.2 percent ownership on that line. The transferred technology includes assembly, body, bogie, traction current transforming, traction transformers, traction motors, traction control, brake systems, and train control networks. [110] Premier Wen Jiabao visited train manufacturers and gave a vote of confidence in the industry. to incorporate the statistic into your presentation at any time. [30] To attain higher speeds and transport capacity, planners began to propose a passenger-dedicated HSR network on a grand scale. It is the western ward lines are losing money but that is narrowing too. Sanctions: Economic Weapon of the New Cold War - MR Online High-speed rail developed rapidly in China since the mid-2000s. It was profitable every year between 2014 and 2019, according to national railway operator China State Railway Group Co. China's once profitable railways records $900bn debt over push for growth 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. [111] The BeijingTianjin, ShanghaiNanjing, BeijingShanghai and ShanghaiHangzhou lines reported breaking even financially[114][115][116][117] The Shanghai-Nanjing line even reported to be operationally profitable,[116] operating with a 380 million yuan net profit. data than referenced in the text. In China, high-speed rail service is competitive with road and air transport for distances of up to about 1200 km. Is European high-speed rail profitable? ZhengzhouXi'an high-speed railway is estimated to run 59 trains in 2010 and 125 trains in 2018, yet in 2016 there are merely around 30 trains on operation, causing a 1.4 billion loss. 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. [102][103] By October, work had halted on the construction of 10,000km (6,200mi) of track. Top speed of 220 mph with some routes running as high as 250 mph. Slow and often uncomfortable trains plodded across this vast country, with low average speeds making journeys such as. [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]. [20] It was faster than the fastest trains in Japan at the time. 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. [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). [137] On the other hand, however, public concerns about the high-speed rail development have been raised from various perspectives. 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]. The following year, Siemens reshuffled its bidding team, lowered prices, joined the bidding for 350km/h (217mph) trains and won a 60-train set order. Train travel between central and southern Chinas largest cities, Wuhan and Guangzhou, was reduced to just over three hours. The Economist estimates Liu accepted 1billion of bribes ($152million) in connection with railway construction projects. Training of Indian engineers for Mumbai-Ahmedabad high speed rail Most of the components of the CRH trains manufactured by Chinese companies were from local suppliers, with only a few parts imported. Meanwhile, the United States has just . [101] From July to September, high-speed rail ridership in China fell by nearly 30 million to 151 million trips. [210] China currently holds many new patents related to the internal components of these trains, re-designed in China to allow the trains to run at higher speeds than the foreign designs allowed. [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. In common parlance, high-speed train service in China generally refers to G-, D- and C-class passenger train service. [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. Observer Research Foundation | ORF Despite setting speed records on test tracks, the DJJ2, DJF2 and other domestically produced high-speed trains were insufficiently reliable for commercial operation. Work on the, Facilitates cross-city economic integration and promotes the growth of. [83] State-run Chinese media confirmed 40 deaths, and at least 192 people hospitalised, including 12 who were severely injured. The route is part of China's Belt and Road Initiative, and the completed . [69][70] In June, the MOR maintained that high-speed rail construction was not slowing down. There have been numerous attempts to extend the line without success. Is China High-Speed Rail profitable? IPO for China's most profitable high-speed train - Asia Times A unit of Russia's state-owned JSC Russian Railways signed a contract with the design unit of China's state-controlled China Railway Group to come up with the plans for a 770 kilometer high-speed rail between the two Russian cities. 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. CRH trainsets are intended to provide fast and convenient travel between cities. [129], By 2015, six high speed rail lines, BeijingTianjin, ShanghaiNanjing, BeijingShanghai, ShanghaiHangzhou, NanjingHangzhou and GuangzhouShenzhenHong Kong report operational profitability. [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. [112][113] China's 1,580 high-speed trains were transporting 1.33 million passengers daily, about 25.7% of the overall passenger traffic. [45] According to CSR president Zhang Chenghong, CSR "made the bold move of forming a systemic development platform for high-speed locomotives and further upgrading its design and manufacturing technology. [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). (Chinese), provincial-level administrative divisions, electrical multiple unit (EMU) train sets, Campaign to raise the speed of railway travel in China, conventional high-speed rail line was built between Shanghai and Hangzhou, Sifang Locomotive and Rolling Stock Co (CSR Sifang), high-speed railway between Beijing and Shanghai, List of high-speed railway lines in China Four Vertical and Four Horizontal" network, WuhanGuangzhou high-speed railway (Wuguang PDL), GuangzhouShenzhenHong Kong high-speed railway, List of high-speed railway lines in China, GuangzhouShenzhenHong Kong Express Rail Link, upgraded in the sixth round of the "Speed-up Campaign", California's high-speed rail line project, "Length of Beijing-HK rail network same as Equator", "New high-speed trains on drawing board- China.org.cn", "Full speed ahead for China's high-speed rail network in 2019", "China builds the world's longest high-speed rail as a rail stalls in the U.S.", "China's fast track to high-speed rail exports", "China-Tibet bullet trains to commence operations before July", "China sets railway building spree in high-speed motion", "World's Longest Fast Train Line Opens in China", "China to step up testing on fastest-ever maglev train", "China's High-Speed Rail, the world's longest high-speed railway network, is now losing $24 million per day with a reported debt of $1.8 trillion", "China Railway's debt nears $900bn under expansion push", "Is this the end of the line for China's rapid railway investment? 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. [Online]. Are you interested in testing our business solutions? The biggest cost savings were found to be time saved by replacing automobile and air trips, which contribute to increased traffic and delays at each endpoint respectively. [135] In 2025, the HSR network will reach a total lenght of 50.000km and will grow further.[136]. The earliest PDLs built were sections of the corridors that connected large cities in the same region. [107], By early 2012, the Chinese government renewed investments in high-speed rail to rejuvenate the slowing economy. Financial losses during the ramp-up period should not be surprising for new rail lines. The China Star (DJJ2) train followed the same September with a new record of 321km/h (199mph). statistic alerts) please log in with your personal account. "[140], Experts expressed concern of the network's operational efficiency. 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). China Doesn't Need Another 125,000 Miles of High-Speed Rail - Bloomberg Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. China's HSR accounts for two-thirds of the world's total high-speed railway networks. This text provides general information. [10] In 2020, China started testing a maglev prototype train that runs at 600km/h (373mph) and planned a 2025 launch date. The completion dates are 2020 and 2021.[196]. [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 best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Number of train passengers in China 2009-2021, Passenger transport volume of highspeed railways in China 2008-2021, Share of high-speed rail network length among whole rail network in China 2014-2021, Fastest trains in the world by record speed 2022, Length of highspeed railway lines in use worldwide in 2021, by country, Length of the highspeed railway lines in operation worldwide in 2021, by country (in kilometers), High-speed train lines under construction worldwide in key countries 2022, High-speed lines under construction worldwide as of September 2022, by country (in kilometers), World's fastest trains in 2022, ranked by record speed (in kilometers per hour), Value of the largest rail infrastructure projects in the world in 2022, Value of the largest rail infrastructure projects worldwide as of February 2022 (in billion U.S. dollars), Forecast: estimated value of investment in new transport infrastructure in China 2020, Total estimated value of investment in new transport infrastructure in China 2020 (in billion yuan), Total volume of passenger transported by highspeed railways in China from 2008 to 2021 (in billions), Share of electrified railroad routes in China 2021, Degree of electrified railroad routes in China from 2005 to 2021, Length of express railways in China 2008-2021, Total length of operation network of high-speed railways in China from 2008 to 2021 (in 1,000 kilometers), Length of newly built express railways in China 2014-2021, Annual increase in the length of the operational high-speed rail network in China from 2014 to 2021 (in 1,000 kilometers), Share of China's high-speed rail operating network length in the entire railroad system from 2014 to 2021, Length of express railways by leading provinces in China 2021, Leading regions in China with high-speed rail networks exceeding 10,000 km by 2021 (in 1,000 kilometers), Number of high-speed trains in China 2013-2021, Number of high-speed trains in China from 2013 to 2021, China's high-speed train growth rate 2014-2021, Growth rate of high-speed trains in China from 2014 to 2021, Number of Fuxing Hao high-speed trainsets in China 2013-2021, Number of Fuxing Hao high-speed trainsets (standard EMU)* in China from 2013 to 2021, China: production of bullet trains by month 2020-2022, Production of bullet trains in China from February 2020 to February 2022, Cost distribution of China's Fuxing high-speed trainsets 2021, by component, Cost percentage distribution of China's Fuxing high-speed trainsets in 2021, by component, Largest high-speed railway stations in China 2020, Top 10 largest high-speed railway stations in China as of 2020, Revenue of the China State Railway Group (China Railway) 2017-2021, Revenue of the China State Railway Group Co., Ltd. (China Railway) from 2017 to 2021 (in trillion yuan), Number of China State Railway Group's high-speed trains 2017-2021, Number of high-speed trains owned by China State Railway Group Co., Ltd. from 2017 to 2021, Revenue of the China Railway Group (CREC) 2011-2021, Revenue of the China Railway Group (CREC) in China from 2011 to 2021 (in billion yuan), Operating revenue of CRRC Cor., Ltd. 2014-2021, Operating revenue of CRRC Cor., Ltd. from 2014 to 2021 (in billion yuan), Beijing-Shanghai High Speed Railway: revenue 2017-2021, Revenue of Beijing-Shanghai High Speed Railway Co., Ltd. from 2017 to 2021 (in billion yuan), Number of passengers on the Beijing-Shanghai high-speed rail line 2016-2021, Number of passengers transported on the Beijing-Shanghai High-speed rail line from 2016 to 2021 (in millions). [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. [76][77][78] The accident occurred when one train traveling near Wenzhou was struck by lightning, lost power and stalled. In addition to track and scheduling improvements, the MOR also deployed faster CRH series trains. It is the railway company that loses money, and the people and the whole country who profit. [110] Over the course of the year, the MOR's budget rose from $64.3 billion to $96.5 billion. 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]. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. [133], Since 2017, with the introduction of the Fuxing series of trains, a number of lines have resumed 350km/h operations such as BeijingShanghai HSR, BeijingTianjin ICR, and ChengduChongqing ICR. 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. [73] Foreign manufacturers involved in Shanghai-Beijing high-speed link reported that their contracts call for maximum operational speed of 300km/h (186mph). These are also considered high-speed rail though they are not part of the national HSR grid or Intercity High Speed Rail. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. The trains have a top operational speed of 430km/h (267mph) and can reach a top non-commercial speed of 501km/h (311mph). 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. 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). China has the world's only commercial maglev high-speed train line in operation. [185], In 2013 fares for China's high-speed rail service costs significantly less than similar systems in other developed countries, for comparison high speed rail tickets in France or Germany cost slightly over US$0.10 per kilometer and the various Shinkansen services hover above US$0.20 per kilometer. In 2018, China Railway operated 3,970.5 pairs of passenger train service, of which 2,775 pairs were carried by EMU train sets. 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. [120] High-speed passenger rail service expanded to 28 provinces and regions. China's Experience with High Speed Rail Offers Lessons for Other Countries Large construction debt-loads require significant revenues from rider fares, subsidies, and/or other sources of income, such as advertising, to repay. [38] However, Chinese citizens angry with Japan's denial of World War II war crimes organized a web campaign to oppose the awarding of HSR contracts to Japanese companies. [158] The Southeast HSR corridor lost 0.377billion in its first year beginning August 2009. Are you interested in testing our business solutions? [139] However, according to The New York Times, the Chinese high-speed rail network is "one of the worlds safest transportation systems. [188] By the spring of 2011, commercial airline service had been completely halted on previously popular routes such as WuhanNanjing, WuhanNanchang, XianZhengzhou and ChengduChongqing. Intercity railways are designed to provide regional high-speed rail service between large cities and metropolitan areas that are generally within the same province. As per the official statement of National High-Speed Rail . [49], On October 19, 2010, the MOR announced the beginning of research and development of "super-speed" railway technology, which would increase the maximum speed of trains to over 500km/h (311mph). 110,000 mainland Chinese tourists leave Hong Kong on first day of Then you can access your favorite statistics via the star in the header. [130] The BeijingShanghai is particularly profitable reporting a 6.6 billion yuan net profit. "Michael Forsythe "Letter from China: Is China's Economy Speeding Off the Rails? In 2004, the Shanghai Maglev Train became the world's first commercially operated high-speed maglev. China: length of high speed rail operation network 2021 | Statista [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. 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). Total investments in new rail lines including HSR reached $49.4billion in 2008 and $88billion in 2009. 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. The Beijing Shanghai route has been always full and making big money even during the pandemic. China Railway is the successor of the former Ministry of Railways. On October 26, 2010, China opened its 15th high-speed rail, the ShanghaiHangzhou line, and unveiled the CRH380A trainset manufactured by CSR Sifang started regular service. [178] To be able to repay principal, ridership would need to exceed 40million. There is no better way of transportation than China's high-speed rail," Solheim added at his Wechat public account on Wednesday. A Shanghai-Hangzhou maglev line was also initially discussed but later shelved in favour of conventional high-speed rail. 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. 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. The expansion into HSR is also developing China into a leading source of high-speed rail building technology.