[34] These concerns have prevented the construction of the proposed extension of the maglev to Hangzhou. Read how federal. "Michael Forsythe "Letter from China: Is China's Economy Speeding Off the Rails? When considering route strategy, HSR's market share versus other modes must be well understood. Public Transportation & Mobility Services, Intercity rail services in the United States, Get the best reports to understand your industry, World Rail Market Study - Executive Summary 2020. How fast is bullet train in China? The line cost 20.42billion to build, and 1.8billion per annum to operate, including 0.6billion in interest payments on its 10billion of loan obligations. [60] Sheng announced that all trains in the high-speed rail network would operate at a maximum speed of 300km/h (186mph) beginning on July 1, 2011. 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. New rail lines are simply not going to be as profitable as more mature rail lines that have reached their planned capacity targets. China's busiest high-speed rail line handles 1.35 billion passengers in The institution also found "a broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality. [30] [158] To prevent that eventuality, the MOR is trying to improve management of its rapidly growing HSR holdings. [180] In December 2014, the Henan provincial government imposed a rule requiring municipal authorities pay 70% of the deficit incurred by Henan's intercity lines with the provincial authorities paying the remainder 30%. 1st May 2023, 23:03 GMT+10. 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. [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]. Retrieved 2011-07-25", "First Chinese designed HS train breaks cover", "Keith Bradsher, "China Sees Growth Engine in a Web of Fast Trains". [42] They are known as CRH2A. [131], In 2016, with the near completion of the National 4+4 grid, a new "Mid-to-Long Term Railway Network" Plan was drafted. China's high-speed rail is not profitable, and it is steadily losing money. If you are an admin, please authenticate by logging in again. 'Rejuvenation') that based on indigenous technologies. [43] Trains with Alstom technology carry the CRH5 designation. The transferred technology includes assembly, body, bogie, traction current transforming, traction transformers, traction motors, traction control, brake systems, and train control networks. They became known as passenger-designated lines (PDLs). China Railway is the successor of the former Ministry of Railways. [101] From July to September, high-speed rail ridership in China fell by nearly 30 million to 151 million trips. 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]. The WuhanGuangzhou high-speed railway (Wuguang PDL), which opened on December 26, 2009, was the country's first cross-regional high-speed rail line. This is . China's once profitable railways records $900bn debt over push for growth What was once China's profitable high-speed railways is now heading towards a trillion-dollar disaster after reports of debt nearing a whopping $900 billion ANI Asia China's railway records $900 bn debt amid push for expansion Dedicated guideways eliminate shared tracks with slower freight, transit or Amtrak. 'Harmony') is for designs which are imported from other nations and designated CRH-1 through CRH-5 and CRH380A(L), CRH380B(L), and CRH380C(L). [51] In all, the state planned to spend $300billion to build a 25,000km (16,000mi) HSR network by 2020.[52][53]. [107], By early 2012, the Chinese government renewed investments in high-speed rail to rejuvenate the slowing economy. He said there are only a few examples of high-speed rail networks that turn a profit, due to a rare combination of passenger numbers and distance. As of March 2011, no major quality defects had been found in the system. Through five rounds of "Speed-Up" campaigns in April 1997, October 1998, October 2000, November 2001, and April 2004, passenger service on 7,700km (4,800mi) of existing tracks was upgraded to reach sub-high speeds of 160km/h (100mph).[26]. [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. [54] The envisioned network, together with upgraded existing lines, would total 12,000km (7,456mi) in length. You need at least a Starter Account to use this feature. [188] The impact of high-speed rail on air travel is most acute for intercity trips under 500km (310mi). [83] State-run Chinese media confirmed 40 deaths, and at least 192 people hospitalised, including 12 who were severely injured. Ministry held the power drafting policy on railroad transposition, development of the rail network and rail infrastructure in China. [184] According to the World Bank, a stable long term planning and standardization of technology and design used in the high-speed rail helps to reduce financial and operational cost. The weakness on intellectual property of Hexie Hao causes obstruction for China to export its high-speed rail related product, which leads to the development of the completely redesigned train franchise called Fuxing Hao (simplified Chinese: ; traditional Chinese: ; pinyin: Fxng Ho; lit. [63][65][66] This was in response to concerns over safety, low ridership due to high ticket prices,[67] and high energy usage. [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. While a number of high-speed railways in eastern China have started to be operationally profitable since 2015, the high speed railways in the midwest still operate at a loss. Photo . The line supports commercial train service at speeds of 200250km/h (120160mph), and has become a segment of the rail corridor between Beijing and Northeast China. By 2010, the truck system as a whole is predominantly Chinese. In China, high-speed rail service is competitive with road and air transport for distances of up to about 1200 km. Under political and public pressure, the National Audit Office (NAO) carried out an extensive investigation into the building quality of all high-speed rail lines. High-speed rail is also becoming relatively more affordable as fares have remained stable while worker wages have grown sharply over the same period. Kawasaki's cooperation with CSR did not last as long. More than 110,000 tourists from mainland China left Hong Kong on the first day . The ideal entry-level account for individual users. 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. Over the past decade, the country has added over 35,000 kilometers to its high-speed rail (HSR) network, with the total length that far exceeds the rest of the world combined. 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. In 2004, the Shanghai Maglev Train became the world's first commercially operated high-speed maglev. ", "High-Speed Rail: The Fast Track to Economic Development? 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). 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. The fastest commercial train service measured by peak operational speed is the, The fastest commercial train service measured by average train speed is the CRH express service on the, The fastest timetabled start-to-stop runs between a station pair in the world are trains G17/G39 on the, The top speed attained by a non-maglev train in China is 487.3km/h (302.8mph) by a, This page was last edited on 1 May 2023, at 05:10. [146], According to a costbenefit analysis by the Paulson Institute, the high-speed rail network benefits the Chinese economy by $378 billion, with an annual return on investment of 6.5%. Developing Profitability in High-Speed Railways - L.E.K. Consulting Are you interested in testing our business solutions? 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. [60] Zhang was estimated to have misappropriated to his personal overseas accounts the equivalent of $2.8 billion. Fares are competitive with bus and airfares and are about one-fourth the base fares in other countries. 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. 10 years on, Beijing-Shanghai line on fast track to high-speed glory 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. A planned launch of the maglev train was set for 2025. 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. Are China's Railways Profitable? - Here Comes China! China: passenger transport volume of highspeed rail 2021 - Statista A Whopping $900B Debt - China's Once-Profitable High-Speed Railways Now 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. [159] CRIC has also raised some capital through equity offerings; in the spring of 2010, CRIC sold a 4.5 percent stake in the BeijingShanghai high-speed railway to the Bank of China for 6.6billion and a 4.5 percent stake to the public for 6billion. Opponents noted that high-speed rail in other countries were expensive and mostly unprofitable. 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. [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. China's high-speed rail construction projects are highly capital intensive. We would like to show you a description here but the site won't allow us. Some high speed trains also continue on or run over connecting segments of upgraded conventional lines. Currently, the HSR extends to all provincial-level administrative divisions and Hong Kong SAR,[note 1][note 2] with the exception of Macau SAR. 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. The global expansion of China's high-speed rail sector is particularly problematic because of its disregard for profit. By 2008, as part of the infrastructure development plan that accompanied the country hosting the Olympic Games, high-speed trains between Beijng and Tainjin were introduced and set the world record for average journey speed at 313km/h . 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. China's railway diplomacy hits the buffers | Financial Times A high-speed rail line connecting Kunming to Vientiane, the capital of Laos, was opened after five years of construction. [102], In the first half of 2011, the MOR as a whole made a profit of 4.29 billion and carried a total debt burden of 2.09 trillion, equal to about 5% of China's GDP. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. [112][113] China's 1,580 high-speed trains were transporting 1.33 million passengers daily, about 25.7% of the overall passenger traffic. [10] In 2020, China started testing a maglev prototype train that runs at 600km/h (373mph) and planned a 2025 launch date. The GuiyangGuangzhou high-speed railway and LanzhouXinjiang high-speed railway are both suffering from high maintenance cost due to harsh climate conditions and complicated terrain structure. [104] But in the late summer, state banks began to cut back on lending to rail construction projects, which reduced funding for existing railway projects. [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. The route is part of China's Belt and Road Initiative, and the completed . China has built the world's largest bullet-train network As soon as this statistic is updated, you will immediately be notified via e-mail. State planning for China's current high-speed railway network began in the early 1990s under the leadership of Deng Xiaoping. Are high-speed rail systems profitable? - KnowledgeBurrow.com [178] In its first year of operation from August 1, 2008, to July 31, 2009, the line carried 18.7million riders and generated 1.1billion in revenues, which resulted in a loss of 0.7billion. During the Sixth Railway Speed Up Campaign, 52 CRH trainsets (CRH1, CRH2 and CRH5) entered into operation. "[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). Former senior UN officer praises Chinese high-speed railway The earliest PDLs built were sections of the corridors that connected large cities in the same region. 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. [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. The new trains reduced travel time between Beijing and Shanghai by two hours to just under 10 hours. 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. [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. [41] Of the 60 train sets, three were directly delivered from Nagoya, Japan, six were kits assembled at CSR Sifang Locomotive & Rolling Stock, and the remaining 51 were made in China using transferred technology with domestic and imported parts. [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. [123], The government actively promoted the export of high-speed rail technology to countries including Mexico, Thailand, the United Kingdom, India, Russia and Turkey. [40] These trains, designated CRH1A, were delivered in 2006. [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). [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. [77][79][80][81][82] Several carriages derailed. [54] Most of the lines follow the routes of existing trunk lines and are designated for passenger traffic only. In 2021, China's high-speed rail network had covered 40,000 kilometers, connecting 93% of the country's cities with a population of over 500,000. [30] To attain higher speeds and transport capacity, planners began to propose a passenger-dedicated HSR network on a grand scale. 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. Due to varying update cycles, statistics can display more up-to-date Nowadays, China Railway no longer decides the railway policy, instead focus on the development of the rail network and rail infrastructure in China. [74] From July 20, 2011, the frequency of train service from Jinan to Beijing and Tianjin was reduced due to low occupancy, which renewed concerns about demand and profitability for high-speed services. 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 . [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). [231], Media related to High-speed rail in China at Wikimedia Commons, For rail transport in China generally, see. Business Solutions including all features. ", "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? [110] Over the course of the year, the MOR's budget rose from $64.3 billion to $96.5 billion. With the exception of Siemens which refused to lower its demand of CN350million per train set and 390million for the technology transfer, the other three were all awarded portions of the contract. [9], Notable HSR lines in China include the BeijingGuangzhou high-speed railway which at 2,298km (1,428mi) is the world's longest HSR line in operation, and the BeijingShanghai high-speed railway with the world's fastest operating conventional train services. [180] Others warn that the financing side of the existing construction and operation model is unsustainable. 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). Those sections will carry a mix of passenger and freight. [209] This EMU passenger figure includes ridership from certain D- and C-class trains that are technically not within the definition of high-speed rail in China, as well as ridership from EMU train sets serving routes on conventional track or routes that combine high-speed track and conventional track. China's high-speed railways plunge from high profits into a debt trap | ORF Most new HSR lines in China have witnessed a sharp decline in their "transportation density". Work on the, Facilitates cross-city economic integration and promotes the growth of. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. [134], The HSR network reached 37,900km (23,500mi) in total length by the end of 2020. We are happy to help. China is the third country, after Japan and France, to have one billion cumulative HSR passengers. "Number of High-speed Railways in China as of August in 2019, by Profit Status and Speed. Accessed May 01, 2023. https://www.statista.com/statistics/1218788/china-profitability-of-high-sped-railway-by-route/, Bloomberg. Bloomberg. Number of high-speed railways in China as of August in 2019, by profit status and speed [Graph]. [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. China's 'Most Profitable' High-Speed Rail Finally Makes Profit certain regional "intercity" HSR lines with a design speed of 200350km/h (120220mph). 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. China's HSR accounts for two-thirds of the world's total high-speed railway networks. You only have access to basic statistics. Finally, residents living along the proposed maglev route have raised health concerns about noise and electromagnetic radiation emitted by the trains, despite an environmental assessment by the Shanghai Academy of Environmental Sciences saying the line was safe. [18], Thus, high-speed rail service in China requires high-speed EMU train sets to be providing passenger service on high speed rail lines at speeds of not less than 200km/h (124mph). 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. Statista assumes no IPO for China's most profitable high-speed train State to sell 15% of Beijing to Shanghai line to help fund less profitable rail services by KG Chan October 29, 2019 A bullet train departs Shanghai's Hongqiao Station. How much is a high speed train ticket in China? [103][104] Earnings from the more profitable freight lines helped to off-set losses by high-speed rail lines. China's Experience with High Speed Rail Offers Lessons for Other Countries 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. [219] China is also competing with Japan, Germany, South Korea, Spain, France and Italy to bid for California's high-speed rail line project, which would connect San Francisco and Los Angeles. High-speed trains on PDLs can generally reach 300350km/h (190220mph). [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. China: profitability of high-speed railway by route | Statista In, Bloomberg. Policy planners debated the necessity and economic viability of high-speed rail service. Now, two-thirds of the world's high-speed rail is in China and passengers take 3.7 billion rides every year, more than half of that number on high-speed trains. [188] By the spring of 2011, commercial airline service had been completely halted on previously popular routes such as WuhanNanjing, WuhanNanchang, XianZhengzhou and ChengduChongqing. Show sources information Top speed of 220 mph with some routes running as high as 250 mph. 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. 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). (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? In October 2010, CRH service more than 1,000 trains per day, with a daily ridership of about 925,000.[193]. 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.