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is china high speed rail profitable

is china high speed rail profitable

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. [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. 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. [59], In February 2011, Railway Minister Liu Zhijun, a key proponent of HSR expansion in China, was removed from office on charges of corruption. [131], In 2016, with the near completion of the National 4+4 grid, a new "Mid-to-Long Term Railway Network" Plan was drafted. Then you can access your favorite statistics via the star in the header. In May 2011, China's Environmental Protection Ministry ordered the halting of construction and operation of two high-speed lines that failed to pass environmental impact tests. Statista. [4] China's HSR accounts for two-thirds of the world's total high-speed railway networks. 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 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. 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. 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". [20] It was faster than the fastest trains in Japan at the time. 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. As of 2023[update], it remains the fastest commercial train in the world with peak speeds of 431km/h (268mph) and makes the 30.5km (19.0mi) trip in less than 7.5 minutes. [9] HSR lines with design speeds at 200250km/h (120160mph) are more common than higher speed lines. Once the designs are developed, a separate tender will be held for the actual construction of the rail link, which Russian Railways expects to cost 1.06 trillion rubles ($19.5 billion).[223]. In addition to track and scheduling improvements, the MOR also deployed faster CRH series trains. In July 2016, the state planners reorganized the national HSR network including HSR lines in operation, under construction and under planning into eight vertical and eight horizontal high speed rail corridors, almost doubling the network.[189][190]. It was profitable every year between 2014 and 2019, according to national railway operator China State Railway Group Co. [55][72] The CRH's high-speed trains are called Harmony and Rejuvenation. Maglev received a big boost in 2000 when the Shanghai Municipal Government agreed to purchase a turnkey TransRapid train system from Germany for the 30.5km (19.0mi) rail link connecting Shanghai Pudong International Airport and the city. The high-speed rail (HSR) network in the People's Republic of China (PRC) is the world's longest and most extensively used - with a total length of 42,000 kilometres (26,000 mi) by the end of 2022. A planned launch of the maglev train was set for 2025. [178] The terms of the loans range from 510 years at interest rates of 6.3 to 6.8 percent. [39] The MOR delayed the decision, broadened the bidding and adopted a diversified approach to adopting foreign high-speed train technology. 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. [187][53], The spread of high-speed rail has forced domestic airlines in China to slash airfare and cancel regional flights. [110] Five new lines totaling 2,563km (1,593mi) in length entered operation between June 30 and December 31, including the Beijing-Wuhan section of the Beijing-Guangzhou line. On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). 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. The high-speed rail (HSR) network in the People's Republic of China (PRC) is the world's longest and most extensively used with a total length of 42,000 kilometres (26,000mi) by the end of 2022. [155] The Beijing-Shanghai high-speed railway is one of the few lines that have been profitable, with profits steadily increasing after first breaking even in 2014, and achieving revenue of CNY 29.6 billion and net profit of CNY 12.7 billion in 2017. Work on the, Facilitates cross-city economic integration and promotes the growth of. [37] Alstom of France, Siemens of Germany, Bombardier Transportation based in Germany and a Japanese consortium led by Kawasaki all submitted bids. [60] Zhang was estimated to have misappropriated to his personal overseas accounts the equivalent of $2.8 billion. Standardization of designs and procedures such as train tracks, rolling stocks, signal systems keeps the construction cost down. [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. About 4050% of financing is provided by the national government through lending by state owned banks and financial institutions, another 40% by the bonds issued by the Ministry of Railway (MOR) and the remaining 1020% by provincial and local governments. [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. An extended version of the Fuxing bullet train is expected to . Those sections will carry a mix of passenger and freight. Intercity railways are designed to provide regional high-speed rail service between large cities and metropolitan areas that are generally within the same province. [47] Kawasaki challenged China's high-speed rail project for patent theft, but backed off the effort.[48]. 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. The Qinhuangdao-Shenyang Line showed the greater compatibility of HSR on conventional track with the rest of China's standard gauge rail network. [158], Overall, ridership is growing as the high-speed rail network continues to expand. [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. [178] In 2013, ridership totaled 25.85million. High-speed trains on PDLs can generally reach 300350km/h (190220mph). 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). This 405km (252mi) standard gauge, dual-track, electrified line was built between 1999 and 2003. 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 Published by Statista Research Department , Feb 3, 2023. 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). The signalling, track and support structures, control software, and station design are developed domestically with foreign elements as well. 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. [23] In 1995, Premier Li Peng announced that preparatory work on the Beijing Shanghai HSR would begin in the 9th Five Year Plan (19962000), but construction was not scheduled until the first decade of the 21st century. 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. 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. [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). [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. ", "High-Speed Rail: The Fast Track to Economic Development? 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 China Railways DJF2 (Xianfeng) train was produced in 2001 and set a speed record of 292.8km/h (181.9mph) on September 10, 2002. certain regional "intercity" HSR lines with a design speed of 200350km/h (120220mph). liability for the information given being complete or correct. Currently, you are using a shared account. The Shanghai Maglev Train, a turnkey Transrapid maglev demonstration line 30.5km (19.0mi) long. [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). Two-direction departures at five-minute intervals, but can be as short as 1 minute. EMU trains operating on non-high speed track or otherwise but at speeds below 200km/h (124mph) are not considered high-speed rail. [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. Higher-speed express train service allowed more trains to share the tracks and improved rail transport capacity. [158] The Zhengzhou-Xian HSR since opening in February 2010 was expected to generate revenues of 0.6billion in its first full year but must make interest payments of 1.1billion. Later, we began to independently develop high-speed CRH trains with a maximum velocity of 300350 kilometers per hour, which eventually rolled off the production line in December 2007. This decision ended the debate and cleared the way for rapid construction of standard gauge, passenger dedicated HSR lines in China.[35][36]. At 309 million (about $377 million) per mile, the U.K.'s High Speed 2 line, which is currently under construction, is the most . [158] To prevent that eventuality, the MOR is trying to improve management of its rapidly growing HSR holdings. [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 report quotes an unnamed executive who . [110] Over the course of the year, the MOR's budget rose from $64.3 billion to $96.5 billion. In common parlance, high-speed train service in China generally refers to G-, D- and C-class passenger train service. In Saudi Arabia's Haramain High Speed Rail Project, Alstom partnered with China Railway Construction Corp. to win the contract to build phase I of the Mecca to Medina HSR line, and Siemens has joined CSR to bid on phase II. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. Photo . In June 2004, the MOR solicited bids to make 200 high-speed train sets that can run 200km/h (124mph). Top speed of 220 mph with some routes running as high as 250 mph. The HSR network reached 42,000km (26,000mi) in total length in December 2022[3] with plans to reach 70,000km (43,000mi) in 2035. [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%. To use individual functions (e.g., mark statistics as favourites, set This has allowed high-speed rail to attract more than 1.7 billion passengers a year from all income groups. [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. Get in touch with us. 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. Slow and often uncomfortable trains plodded across this vast country, with low average speeds making journeys such as. By Global Times Published: Jun 22, 2021 10:38 PM. After the completion of a third track in 2000 and a fourth in 2007, the line became the first in China to run high-speed passenger and freight service on separate tracks. 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. [103][104] Earnings from the more profitable freight lines helped to off-set losses by high-speed rail lines. Even the Beijing-Shanghai line, China's most profitable high-speed rail line, reported 56.6 percent less net profit in 2021 than in 2019. The nation seeks to increase its high-speed rail network to 50,000 kilometers by 2025. 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. [129], By 2015, six high speed rail lines, BeijingTianjin, ShanghaiNanjing, BeijingShanghai, ShanghaiHangzhou, NanjingHangzhou and GuangzhouShenzhenHong Kong report operational profitability. Alstom also won an order for 60 train sets based on the New Pendolino developed by Alstom-Ferroviaria in Italy. [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. Elevated concrete prefab guideways that are above roads, water and other rail systems. The expansion into HSR is also developing China into a leading source of high-speed rail building technology. Annual car sales worldwide 2010-2022, with a forecast for 2023, Battery electric vehicles in use worldwide 2016-2021, Annual gas prices in the United States 1990-2021, Automotive industry worldwide - statistics & facts, Motorcycle industry in the United States - statistics & facts, Profit from additional features with an Employee Account. [118], In 2014, high-speed rail expansion gained speed with the opening of the TaiyuanXi'an, HangzhouChangsha, Lanzhou-rmqi, Guiyang-Guangzhou, Nanning-Guangzhou trunk lines and intercity lines around Wuhan, Chengdu,[119] Qingdao[120] and Zhengzhou. When considering route strategy, HSR's market share versus other modes must be well understood. [30] 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. [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. [141][142] In 2016, Chinese railways carried almost 2 trillion ton-kilometers of freight and over 1 billion passenger-kilometer of passengers, making it one of the world's most intensively used freight and passenger railway networks in the world. Are you interested in testing our business solutions? [89], The train collision exposed poor management by the railway company. 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. Bloomberg. CRH trainsets are intended to provide fast and convenient travel between cities. The refusal of the Transrapid Consortium to share technology and source production in China made large-scale maglev production much more costly than high-speed train technology for conventional lines. This would later allow the Chinese government through CRRC to make the more reliable Fuxing Hao and Hexie Hao trains. Supports energy independence and environmental sustainability. [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. Please create an employee account to be able to mark statistics as favorites. [1][2][3] The HSR network encompasses newly built rail lines with a design speed of 200350km/h (120220mph). "[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). We are happy to help. [63][65][66] This was in response to concerns over safety, low ridership due to high ticket prices,[67] and high energy usage. 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. The "fastest" train commercial service can be defined alternatively by a train's top speed or average trip speed. [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. China's high-speed rail expansion is entirely managed, planned and financed by the Chinese government. We would like to show you a description here but the site won't allow us. [144] In addition, it is hard to identify problems in the construction process, given the distribution resource planning system needed for rapid railway building and assembling. [34] These concerns have prevented the construction of the proposed extension of the maglev to Hangzhou. [73] Foreign manufacturers involved in Shanghai-Beijing high-speed link reported that their contracts call for maximum operational speed of 300km/h (186mph). 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. In 2004, the State Council in its Mid-to-Long Term Railway Development Plan, adopted conventional track HSR technology over maglev for the BeijingShanghai High Speed Railway and three other northsouth high-speed rail lines. 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. [110] Premier Wen Jiabao visited train manufacturers and gave a vote of confidence in the industry. Learn more about how Statista can support your business. The development of the HSR network in China was initially delayed by a debate over the type of track technology to be used. Kawasaki's cooperation with CSR did not last as long. Trains can operate at 200km/h (124mph) on many of the conventional main lines. [102] New projects were put on hold and completion dates for existing projects, including the Tianjin-Baoding, Harbin-Jiamusi, Zhengzhou-Xuzhou and Hainan Ring (West), were pushed back. In 2018, annual ridership on EMU train sets, which encompasses officially defined high-speed rail service as well as certain sub-high-speed service routes, accounted for about two-thirds of all regional rail trips (not including urban trains) in China. Length of express railways in China 2008-2021. [183], China's high-speed railway network is by far the longest in the world. As soon as this statistic is updated, you will immediately be notified via e-mail. The BeijingShanghai high-speed railway, the second major cross-regional line, opened in June 2011 and was the first line designed with a top speed of 380km/h (236mph) in commercial service. 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. In 2012, the average occupancy rate of high-speed rails in China was 57%. The order had a similar delivery structure with three shipped directly from Savigliano along with six kits assembled by CNR's CRRC Changchun Railway Vehicles, and the rest locally made with transferred technology and some imported parts. 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. Achieving indigenous high-speed rail technology has been a major goal of Chinese state planners. (August 18, 2020). A high-speed rail line connecting Kunming to Vientiane, the capital of Laos, was opened after five years of construction. China's high-speed rail network appears to be following this trend. 2016, CRH (China Railway High-speed) express service has been launched on trial in China's 505 cities where have access to the high-speed . As of 2022, the China State Railway Group has had a debt of around $900 billion USD, according to Nikkei. High-speed rail is also becoming relatively more affordable as fares have remained stable while worker wages have grown sharply over the same period. "[4], Lastly, the HSR network includes newly built rail lines with a design speed of 200250km/h (120160mph) that can carry high-speed passenger and express freight trains.[4]. With the right commercial strategy, high-speed rail (HSR) routes can be profitable, with some lines achieving modal shares of up to 65%. 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. Because public transportation is a service provided by the government, it serves for the entire national life and economic development. A paid subscription is required for full access. Signals malfunctioned, causing another train to rear-end the stalled train. [106] Affected lines included Xiamen-Shenzhen, Nanning-Guangzhou, Guiyang-Guangzhou, Shijiazhuang-Wuhan, Tianjin-Baoding and Shanghai-Kunming high-speed rail lines. Policy planners debated the necessity and economic viability of high-speed rail service. Some 295 stations have been built or renovated to allow high-speed trains.[31][32]. [141] The government also articulated the importance and urgency of assuring the capacity of railway staff, especially their familiarity with telecommunication and signaling testing in the official investigation of the Wenzhou train collision. [51] In response to the global economic recession, the government accelerated the pace of HSR expansion to stimulate economic growth. 1st May 2023, 23:03 GMT+10. Railway officials lowered the top speed of trains on most lines that were running at 350km/h (217mph) to 300km/h (186mph). [179] [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. 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. "[140], Experts expressed concern of the network's operational efficiency. [107], By early 2012, the Chinese government renewed investments in high-speed rail to rejuvenate the slowing economy. Another top official in the Railways Ministry, Zhang Shuguang, was also sacked for corruption. [97][98] The Minister of Railways announced further cuts in the speed of Chinese high-speed trains, with the speed of the second-tier 'D' trains reduced from 250km/h (155mph) to 200km/h (124mph), and 200km/h (124mph) to 160km/h (99mph) on upgraded pre-existing lines. [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. "Michael Forsythe "Letter from China: Is China's Economy Speeding Off the Rails? However, these patents are only valid within China, and as such hold no international power. [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. [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. [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%.

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is china high speed rail profitable