However, these patents are only valid within China, and as such hold no international power. The GuiyangGuangzhou high-speed railway and LanzhouXinjiang high-speed railway (where fares do not cover electricity costs) are both suffering from high maintenance cost due to harsh climate conditions and complicated terrain structure. [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]. While maglev was drawing attention to Shanghai, conventional track HSR technology was being tested on the newly completed Qinhuangdao-Shenyang Passenger Railway. [231], Media related to High-speed rail in China at Wikimedia Commons, For rail transport in China generally, see. [1][2][3] The HSR network encompasses newly built rail lines with a design speed of 200350km/h (120220mph). This text provides general information. Bombardier transfers advanced and mature technology to China, which we do not treat as an experimental market.[44] Unlike other series which have imported prototypes, all CRH1 trains have been assembled at Bombardier's joint-venture with CSR, Bombardier Sifang in Qingdao. The institution also found "a broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality. In June 2004, the MOR solicited bids to make 200 high-speed train sets that can run 200km/h (124mph). 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. Some intercity lines run parallel to other high-speed rail lines but serve more stations along the route. The nation seeks to increase its high-speed rail network to 50,000 kilometers by 2025. They are known as passenger-designated lines (PDL). China's high-speed railway between Beijing and Shanghai served 130 million people last year, and a shareholder says it made a net profit of $1 billion--its first since opening in 2011. [60] Investigators found evidence that another 187million ($28.5million) was misappropriated from the $33billion BeijingShanghai high-speed railway in 2010. 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. On April 19, 2008, HefeiNanjing PDL in the East opened with a top-speed of 250km/h (155mph). "Number of High-speed Railways in China as of August in 2019, by Profit Status and Speed. [37] The State Council turned to advanced technology abroad but made clear in directives that China's HSR expansion could not only benefit foreign economies and should also be used to develop its own high-speed train building capacity through technology transfers. After the founding of the People's Republic of China in 1949, this train model was renamed the SL-7 and was used by the Chinese Minister of Railways. In, Bloomberg. [215][216], Typical application of track technology in China high-speed lines, Chinese train-makers and rail builders have signed agreements to build HSRs in Turkey, Venezuela, Argentina,[217] and Indonesia[218] and are bidding on HSR projects in the United States, Russia, Saudi Arabia, Brazil (So Paulo to Rio de Janeiro) and Myanmar, and other countries. Please do not hesitate to contact me. 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. [52] In addition, high-speed rail fares are considerably more expensive than conventional rail service. 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. [188] Flights on routes over 1,500km (930mi) are generally unaffected. 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 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. 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. 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. The Beijing Shanghai route has been always full and making big money even during the pandemic. [59], In February 2011, Railway Minister Liu Zhijun, a key proponent of HSR expansion in China, was removed from office on charges of corruption. Several sections of the national grid, especially along the southeast coastal corridor, were built to link cities that had no previous rail connections. 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. [87][88] Quality and safety concerns also affected plans to export cheaper high-speed train technology to other countries. China has the world's only commercial maglev high-speed train line in operation. [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). China's high-speed rail construction projects are highly capital intensive. Moreover, State-owned corporation also uses bulk purchasing to reduce material prices. On mixed-use HSR lines, passenger train service can attain peak speeds of 200250km/h (120160mph). 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". Rail Vehicle Market Restraints, Segments and Regional - MarketWatch "Michael Forsythe "Letter from China: Is China's Economy Speeding Off the Rails? 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 . In the first three quarters of 2012, the line lost 1.87 billion. China Railway reports the number of passengers carried by high-speed EMU train sets and this figure is frequently reported as high-speed ridership, even though this figure includes passengers from EMU trains providing sub-high speed service. [188] As of October 2013, high-speed rail was carrying twice as many passengers each month as the country's airlines. ", "High-Speed Rail: The Fast Track to Economic Development? [60] Zhang was estimated to have misappropriated to his personal overseas accounts the equivalent of $2.8 billion. IPO for China's most profitable high-speed train - Asia Times Financial losses during the ramp-up period should not be surprising for new rail lines. [37] Alstom of France, Siemens of Germany, Bombardier Transportation based in Germany and a Japanese consortium led by Kawasaki all submitted bids. [69][70] In June, the MOR maintained that high-speed rail construction was not slowing down. The earliest PDLs built were sections of the corridors that connected large cities in the same region. [129], By 2015, six high speed rail lines, BeijingTianjin, ShanghaiNanjing, BeijingShanghai, ShanghaiHangzhou, NanjingHangzhou and GuangzhouShenzhenHong Kong report operational profitability. A planned launch of the maglev train was set for 2025. Is European high-speed rail profitable? 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). [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). CRH trainsets are intended to provide fast and convenient travel between cities. [134], The HSR network reached 37,900km (23,500mi) in total length by the end of 2020. 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. 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. Kawasaki won an order for 60 train sets based on its E2 Series Shinkansen for 9.3billion. [220] In November 2009, the MOR signed preliminary agreements with the state's high-speed rail authority and General Electric (GE) under which China would license technology, provide financing and furnish up to 20 percent of the parts with the remaining sourced from American suppliers, and final assembly of the rolling stock in the United States. 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. It was profitable every year between 2014 and 2019, according to national railway operator China State Railway Group Co. 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]. How profitable is China's high-speed rail? - Quora 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. This is . As of 2010, the CRIC-bonds are considered to be relatively safe investments because they are backed by assets (the railways) and implicitly by the government. [158] CRIC retained 56.2 percent ownership on that line. [182], The MOR faces a debt-repayment peak in 2014. [230] It overtook the G529/530 trains for the Beijing West - Beihai (Beihai Railway Station [zh]) service (2,697km (1,676mi), 15 1/2 hours for southbound train, 15 3/4 hours for northbound train), which had set the previous record on July 1, 2016. High-speed ridership statistics in China are often reported as the number of passengers carried by high-speed EMU train sets, and such figures typically include passengers on EMU trains operating on non-high speed track or at service speeds below 200km/h (124mph).[19]. Most of the components of the CRH trains manufactured by Chinese companies were from local suppliers, with only a few parts imported. "[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]. [209] Nevertheless, by any measure, high-speed rail ridership in China has grown rapidly with expansion of the high-speed rail network and EMU service since 2008. [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. [52] They are competing directly with the established European and Japanese manufacturers, and sometimes partnering with them. According to the "Mid-to-Long Term Railway Network Plan" (revised in 2008), the MOR plans to build over 40,000km (25,000mi) of railway in order to expand the railway network in western China and to fill gaps in the networks of eastern and central China. The China Star (DJJ2) train followed the same September with a new record of 321km/h (199mph). 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. [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. [178] In September 2010, daily ridership averaged 69,000 or an annual rate of 25.2million. The new trains reduced travel time between Beijing and Shanghai by two hours to just under 10 hours. How much is a high speed train ticket in China? 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]. 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. [76][77][78] The accident occurred when one train traveling near Wenzhou was struck by lightning, lost power and stalled. [99] The speed of the remaining 350km/h (217mph) trains between Shanghai and Hangzhou was reduced to 300km/h (186mph) as of August 28, 2011. [68] The Shanghai Maglev Train, a turnkey Transrapid maglev demonstration line 30.5km (19.0mi) long. China Railway assumed control of complete railway network that was built by the dissolved Ministry of Railways. At 309 million (about $377 million) per mile, the U.K.'s High Speed 2 line, which is currently under construction, is the most . [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. [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). We are happy to help. [106] As of October 12, 2011, the MOR had issued 160 billion of debt for the year. Railway officials lowered the top speed of trains on most lines that were running at 350km/h (217mph) to 300km/h (186mph). 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. Published by Statista Research Department , Feb 3, 2023. Mainland tourists said the high hotel prices and the fully resumed cross-border high-speed rail were factors in . [100] To stimulate ridership, on August 16, 2011 ticket prices on high-speed trains were reduced by five percent. [106][147] The MOR, through its financing arm, the China Rail Investment Corp (CRIC), issued an estimated 1trillion (US$150billion in 2010 dollars) in debt to finance HSR construction from 2006 to 2010,[158] including 310billion in the first 10 months of 2010. In 2012, the average occupancy rate of high-speed rails in China was 57%. 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. 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. 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.
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