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. [60] Zhang was estimated to have misappropriated to his personal overseas accounts the equivalent of $2.8 billion. More than 110,000 tourists from mainland China left Hong Kong on the first day . ", Bloomberg, Number of high-speed railways in China as of August in 2019, by profit status and speed Statista, https://www.statista.com/statistics/1218788/china-profitability-of-high-sped-railway-by-route/ (last visited May 01, 2023), Number of high-speed railways in China as of August in 2019, by profit status and speed [Graph], Bloomberg, August 18, 2020. The earliest example of higher-speed commercial train service in China was the Asia Express, a luxury passenger train that operated in Japanese-controlled Manchuria from 1934 to 1943. Alstom also won an order for 60 train sets based on the New Pendolino developed by Alstom-Ferroviaria in Italy. 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). (August 18, 2020). The CRH380AL train set, shown above at the, Growth of China's high-speed rail network, Early passenger-dedicated high-speed rail lines, Passenger-freight railways and connecting conventional lines. Most of China's hsr lines are actually quite busy. During the Sixth Railway Speed Up Campaign, 52 CRH trainsets (CRH1, CRH2 and CRH5) entered into operation. On April 19, 2008, HefeiNanjing PDL in the East opened with a top-speed of 250km/h (155mph). Length of express railways in China 2008-2021. 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. This percentage increased to 65%, 69% and 72% in the year of 2013, 2014 and 2015, respectively. At the same time, let those who say that China is very backward, and those who say that China's high-speed rail has no backrests, take a look! Overcrowding on existing rail lines, they said, could be solved by expanding capacity through higher speed and frequency of service. Suppliers and manufacturers blame each other for any problem detected in the trial operation, while tracking the construction process to every single detail is an almost impossible job for inspectors. Between June and September 2005, the MOR launched bidding for high-speed trains with a top speed of 350km/h (217mph), as most of the main high-speed rail lines were designed for top speeds of 350km/h (217mph) or higher. 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. [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. 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. High-speed rail service in China was introduced on April 18, 2007 and traffic has grown 30% per annum ever since, reaching 1.44 billion in 2016: four times of the HSR volume in Japan, nine times France's, and greater than north America's total air traffic. "[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). [11], Economically, there were initial concerns, particularly outside China, over the high-speed rail's cost, debt and profitability. [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. Moreover, State-owned corporation also uses bulk purchasing to reduce material prices. 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. China has built around 26,000 miles (42,000 kilometers) of dedicated high-speed railways since 2008 and plans to top 43,000 miles (70,000 kilometers) by 2035. A total of 400 new generation trains were ordered. [131], In 2016, with the near completion of the National 4+4 grid, a new "Mid-to-Long Term Railway Network" Plan was drafted. Is China High-Speed Rail profitable? Most of the new lines follow the routes of existing trunk lines and are designated for passenger travel only. Large construction debt-loads require significant revenues from rider fares, subsidies, and/or other sources of income, such as advertising, to repay. [75], On July 23, 2011, two high-speed trains collided on the NingboTaizhouWenzhou railway in Lucheng District of Wenzhou, Zhejiang Province. Fares are competitive with bus and airfares and are about one-fourth the base fares in other countries. [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). [130] The BeijingShanghai is particularly profitable reporting a 6.6 billion yuan net profit. 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. It opened for operations in March 2004, and transports passengers between Shanghai's Longyang Road station and Shanghai Pudong International Airport. [11], Many of the Passenger Designated Lines use ballastless tracks, which allow for smoother train rides at high speeds and can withstand heavy use without warping. New rail lines are simply not going to be as profitable as more mature rail lines that have reached their planned capacity targets. The China Star (DJJ2) train followed the same September with a new record of 321km/h (199mph). [37] It supplied the technology for the CRH3C, based on the ICE3 (class 403) design, to CNR's Tangshan Railway Vehicle Co. Ltd. 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]. [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. He also introduced that a few days ago, he traveled from Chengdu to . Conservative scholars and officials are worried about the profitability of high-speed railway construction. [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. China's most profitable high-speed rail line, reporting 6.6 billion yuan (over $1 billion) in net operational profit in 2015, connects Beijing to Shanghai, two major economic zones. [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. Clicking on the following button will update the content below. [94][95] A commission was formed to investigate the accident with a directive to report its findings in September 2011. [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. [69][70] In June, the MOR maintained that high-speed rail construction was not slowing down. Manufacturers of electric locomotives - based on market share 2013-2017, Market share of high-speed rail construction in China 2020, by leading player, Beijing-Shanghai High Speed Railway net profit 2017-2021, Public expenditure on transport infrastructure in China 2012-2022, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022. 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. [Online]. Two-direction departures at five-minute intervals, but can be as short as 1 minute. 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. On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). . The line was electrified in 1998, and Swedish-made X 2000 trains increased service speed to 200km/h (124mph). The CRH380 series(or family) of trains was initially built with direct cooperation (or help) from foreign trainmakers, but newer trainsets are based on transferred technology, just like the Hexie and Fuxing Hao. But high-speed trains often have to share tracks with slower, heavy freight trains in some cases with as little as 5 minutes headway. As soon as this statistic is updated, you will immediately be notified via e-mail. [14] In 2021, China's state railway company have also vowed to prioritise in reforms that aims to improve the productivity and efficiency of its high speed rail network, rather than focus on the expansion of track mileage. [195] Additionally, another two lines are under construction, the Qingyuan Maglev and the Fenghuang Maglev. [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). The Shanghai Maglev Train, a turnkey Transrapid maglev demonstration line 30.5km (19.0mi) long. Higher-speed express train service allowed more trains to share the tracks and improved rail transport capacity. Trains on the Beijing-Tianjin high-speed line and a few other inter-city lines remained at 350km/h (217mph). [188] As of October 2013, high-speed rail was carrying twice as many passengers each month as the country's airlines. This ambitious national grid project was planned to be built by 2020, but the government's stimulus has expedited time-tables considerably for many of the lines. Most of the components of the CRH trains manufactured by Chinese companies were from local suppliers, with only a few parts imported. 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. 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 institution also found "a broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality. On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). '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). [1][2][3] The HSR network encompasses newly built rail lines with a design speed of 200350km/h (120220mph). Some of these new railways are being built to accommodate speeds of 200250km/h (120160mph) for both passengers and freight. 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. [52][53] The government has justified the expensive undertaking as promoting a number of policy objectives. Within two years of cooperation with Kawasaki to produce 60 CRH2A sets, CSR began in 2008 to build CRH2B, CRH2C and CRH2E models at its Sifang plant independently without assistance from Kawasaki. 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. This text provides general information. 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. 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. [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. According to a World Bank publication on Chinese HSR, by the end of 2017 "the length of 300350 kph lines was about 10,000 km, and the length of 200250 kph lines was about 15,000 km. Railway officials lowered the top speed of trains on most lines that were running at 350km/h (217mph) to 300km/h (186mph). Even the more modest plan to extend the maglev to Shanghai's other airport, Hongqiao, has stalled. 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. Read how federal. August 18, 2020. [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. 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. 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. The line has a capacity of delivering 100million rides annually[180] and initial estimated repayment period of 16 years. [30] To attain higher speeds and transport capacity, planners began to propose a passenger-dedicated HSR network on a grand scale. A paid subscription is required for full access. [68] Number of high-speed railways in China as of August in 2019, by profit status and speed [Graph]. 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. In the second year, ridership rose to 22.3million and revenues improved to 1.4billion, which narrowed losses somewhat to below 0.5billion. Kawasaki won an order for 60 train sets based on its E2 Series Shinkansen for 9.3billion. [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. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. Ministry held the power drafting policy on railroad transposition, development of the rail network and rail infrastructure in China. Get in touch with us. [100] To stimulate ridership, on August 16, 2011 ticket prices on high-speed trains were reduced by five percent. [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%. On 2011-07-24. 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. Retrieved 2011-07-25", "First Chinese designed HS train breaks cover", "Keith Bradsher, "China Sees Growth Engine in a Web of Fast Trains". [179] 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. 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. China's HSR accounts for two-thirds of the world's total high-speed railway networks. China's high-speed rail is not profitable, and it is steadily losing money. 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. By the mid-1990s, average train speed in China was about 60km/h (37mph). The Economist estimates Liu accepted 1billion of bribes ($152million) in connection with railway construction projects. [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. [178], The Shijiazhuang-Taiyuan PDL lost 0.8billion in its first year and is set to lose 0.9billion in 2010. High-speed rail is a costly endeavor which requires massive investments in research and development and components that can range from $17 to $21 million per kilometer of rail. And almost lines along Eastern coast are busy and profitable. High-speed rail is also becoming relatively more affordable as fares have remained stable while worker wages have grown sharply over the same period. He set up what became known as the "high-speed rail dream" after his visit to Japan in 1978, where he was deeply impressed by the Shinkansen, the world's first high speed rail system. 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. Euro Carex (Europe Cargo Rail Express) is founded in April 2009 as an international non-profit association. [14] The report also found that the highest benefit high-speed rail hubs were the ones going through densely populated corridors such as Shanghai, Hangzhou, Beijing, Wuhan and Guangzhou, while the lowest benefit ones were remote locations such as Kunming, Nanning and rmqi.[14]. [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). Some of the Hexie Hao train sets are manufactured locally through technology transfer, a key requirement for China. [47] Kawasaki challenged China's high-speed rail project for patent theft, but backed off the effort.[48]. This would later allow the Chinese government through CRRC to make the more reliable Fuxing Hao and Hexie Hao trains. won an order for 40 eight-car train sets based on Bombardier's Regina design. Work on the, Facilitates cross-city economic integration and promotes the growth of. [178] To break even, the line must deliver 30 million rides annually. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. Along with CRH3C, produced by Siemens and CNR Tangshan, CSR Sifang bid 60 sets of CRH2C. [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. State planning for China's current high-speed railway network began in the early 1990s under the leadership of Deng Xiaoping. [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. ", Gerald Ollivier, Richard Bullock, Ying Jin and Nanyan Zhou, "High-Speed Railways in China: A Look at Traffic" World Bank China Transport Topics No. [143] However, the rail staff productivity upon railway track infrastructure index in China is less than 0.05, being the lowest among the countries with significant railway construction. In 2004, the Shanghai Maglev Train became the world's first commercially operated high-speed maglev. [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. At the beginning of the 21st century China had no high-speed railways. Train speeds have increased from a maximum of 200 km per hour to 350 km per hour - the fastest in the world. You only have access to basic statistics. Please do not hesitate to contact me. Currently, the HSR extends to all provincial-level administrative divisions and Hong Kong SAR,[note 1][note 2] with the exception of Macau SAR. 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. "[46] Since then, CSR has ended its cooperation with Kawasaki. 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. [22] In December 1994, the State Council commissioned a feasibility study for the line.[22]. [158] Some economists recommend further subsidies to lower fares and boost ridership and ultimately revenues. With the right commercial strategy, high-speed rail (HSR) routes can be profitable, with some lines achieving modal shares of up to 65%. [115][116] However in 2013, only few lines had yet become profitable. [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). [221], In January 2014, the China Railway Construction Corporation completed a 30km (19mi) section of the Ankara-Istanbul high-speed railway between Eskiehir and nn in western Turkey.[222]. Total investment in new rail lines grew from $14billion in 2004 to $22.7 and $26.2billion in 2006 and 2007. By 2010, the truck system as a whole is predominantly Chinese. 1st May 2023, 23:03 GMT+10. 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].

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