Is Chinese high-speed rail profitable?


Is Chinese high-speed rail profitable? Calvin Yang. Indonesia's high-speed railway, a delayed multibillion-dollar project backed by China, is unlikely to be profitable, said observers, citing the line's far-out station locations and the high maintenance costs expected in future.


How many Chinese worked on US railroads?

From 1863 and 1869, roughly 15,000 Chinese workers helped build the transcontinental railroad. They were paid less than American workers and lived in tents, while white workers were given accommodation in train cars.


Why China is so good at building railways?

Moreover, China has cultivated the largest disciplined engineers and workers teams for almost every important field and industry. As a result, they can absorb advanced technology quickly and then start to innovate their own new technologies for every respects related to railway construction and operation.


Which HSR lines are 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%.


Why do so many Chinese work on the railroad?

The Central Pacific Railroad, which was tasked with constructing the western half of the Transcontinental Railroad, began hiring Chinese workers in 1864 after facing a labor shortage that jeopardized the railroad's completion.


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 ...


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.


Why the US should not invest in high-speed rail?

High-Speed Rail Is Too Expensive Building the 48,000-mile Interstate Highway System cost about $500 billion (in today's dollars). Paid for entirely out of user fees, it carries about 25 percent of all passenger travel and 15 percent of all freight in the United States.


Will high-speed rail hurt the economy?

Implementing high-speed rail will keep billions of dollars in the U.S. economy by decreasing the amount of oil that the U.S. consumes. According to the International Association of Railways (UIC), high-speed rail is eight times more energy efficient than airplanes and four times more efficient than automobile use.


Why hasn t the US build high-speed rail?

A story of US transportation Highways (as well as aviation) became the focus of infrastructure spending, at the expense of rail. This trend has continued, and not the least because highways require continuous maintenance, while the US's growing population demands more lanes and roads to relieve congestion.


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.


Does Russia have high-speed rail?

High-speed trains are European-standard high-speed inter-city trains, capable of typical ground speeds of 250 kph (or 155 mph). They currently run between Moscow, St. Petersburg, Helsinki, and Nizhny Novgorod. These trains are called Sapsan within Russia, or Alstom on the Helsinki – St.


Is the US developing high-speed rail?

I cover advanced transportation and climate-oriented technology. Brightline's planned Las Vegas to Los Angeles railway could be the first true high-speed train in the U.S., running at speeds over 185 mph.


How much would a US high-speed rail system cost?

That works out to $200 million a mile for hilly areas. At these costs, Obama's original high-?speed rail plan would require well over $1 trillion, while the USHSR's plan would need well over $3 trillion. Building a system longer than China's would cost at least $4 trillion.


Why doesn t america build high-speed rail?

Highways (as well as aviation) became the focus of infrastructure spending, at the expense of rail. This trend has continued, and not the least because highways require continuous maintenance, while the US's growing population demands more lanes and roads to relieve congestion.


Will California high-speed rail be profitable?

This chart displays the Breakeven Analysis on Phase 1 of the high-speed rail system assuming the horizon year of 2040, showing a 99.4 percent probability that Phase 1 would be profitable between $0 to $5.7 billion and a 0.6 percent chance of deficit between $220 million and 0.