Is China losing money in high-speed rail?
Is China losing money in high-speed rail? According to the latest data, as of the first half of 2022, the total liabilities of China National Railway Group totaled 6 trillion yuan, and in the first half of 2022 alone, it has lost 80.4 billion yuan, with an average loss of 400 million yuan per day.
Are French trains profitable?
The state-owned company's net profit of €2.4 billion is to be used to modernize the network and reduce the company's debt.
Is Japan high-speed rail profitable?
From a financial standpoint, only two HSR lines in the world are profitable: Paris-Lyon in France and Tokyo-Osaka in Japan. A third line, Hakata-Osaka in Japan, breaks even. The majority of high-speed rail lines require large government subsidies from both general taxpayers and drivers.
Is high-speed rail in Europe profitable?
From a financial standpoint, only two HSR lines in the world are profitable: Paris-Lyon in France and Tokyo-Osaka in Japan. A third line, Hakata-Osaka in Japan, breaks even. The majority of high-speed rail lines require large government subsidies from both general taxpayers and drivers.
How much debt would HSR cause?
However, it seems that the aggressive campaign to reap the lucrative economic dividends of HSR has increased the state-run operator's total liabilities, which as of the end of 2021 reached 5.91 trillion yuan ($882 billion), or roughly 5% of China's GDP, reported Asia Nikkei.
Does high-speed rail make a profit?
With the right commercial strategy, high-speed rail (HSR) routes can be profitable, with some lines achieving modal shares of up to 65%.
How profitable is the Chinese high-speed rail?
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%.
What is the most profitable railroad in the world?
Cumulatively, the top 10 railway companies in the world generated revenue of $237,432 million, with average revenue growth of 0.57%, the highest revenue was generated by Deutsche Bahn AG ($55,666 million), followed by SNCF Group ($41,094 million) and Indian Railways ($27,326 million), while Canadian National Railway Co ...
Will the US ever get high-speed rail?
CLIMATEWIRE | The first U.S.-made high-speed bullet trains will start running as early as 2024 between Boston, New York and Washington, with the promise of cutting transportation emissions by attracting new rail passengers who now drive or fly.
Does high-speed rail reduce poverty?
This paper highlights that HSR can help achieve accessibility of rural area and poverty alleviation simultaneously. An understanding of the effect is critical for policymakers to promote intra-regional development, balancing efficiency and regional equality.
Who is paying for high-speed rail?
Kelly acknowledges that the $8-billion goal is “aggressive and rightly so” because California is paying for 84% of the cost so far. “If the national government wants to get a national cleaner, faster electrified rail system, it has to do better than 16%. And so we're going to make that case,” he said.
What country is leading in building high-speed rails?
China: Surpassing the Rest of the World Due to generous funding from the Chinese government, high-speed rail in China has developed rapidly over the past 15 years. China began planning for its current high-speed rail system in the early 1990s, modeling it after Japan's Shinkansen system.
Will people actually use high-speed rail?
Americans really want high-speed rail. According to a new survey from the American Public Transportation Association, 62 percent of the 24,711 adults surveyed said they would probably or definitely use high-speed rail if it were an option. 11 percent said that they would definitely or probably not use the service.
Why is China building so much high-speed rail?
For China's ruling Communist Party and its leader Xi Jinping, high-speed rail is also a powerful tool for social cohesion, political influence and the integration of disparate regions with distinct cultures into the mainstream.
Why the US has no high-speed rail?
While the US was a passenger train pioneer in the 19th century, after WWII, railways began to decline. The auto industry was booming, and Americans bought cars and houses in suburbs without rail connections. Highways (as well as aviation) became the focus of infrastructure spending, at the expense of rail.
How much money is China losing on high-speed rail?
Wider Risks to the Chinese Economy In 2020, China Railway's final profit and loss statement recorded losses of ¥55 billion CNY (approx. ¥1.1 trillion JPY/ $7.9 billion USD), while in 2021, it was in the red by ¥49.8 billion CNY (approx. ¥1 trillion JPY/ $7.2 billion USD).