Are high-speed rail systems profitable?
With the right commercial strategy, high-speed rail (HSR) routes can be profitable, with some lines achieving modal shares of up to 65%. The right commercial strategy for each route depends on a number of factors, including public policy, the cost of alternative modes and consumer attitudes to rail travel.
Is China high-speed rail profitable?
It was profitable every year between 2014 and 2019, according to national railway operator China State Railway Group Co. 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.
Is European high-speed rail profitable?
From a financial standpoint, only two HSR lines in the world are profitable: Paris-Lyon in France and Tokyo-Osaka in Japan. A third line, Hakata-Osaka in Japan, breaks even. The majority of high-speed rail lines require large government subsidies from both general taxpayers and drivers. HSR is very expensive to build.
How fast did China build high-speed rail?
380 km/h
Construction of the high-speed railway between Beijing and Shanghai, the world’s first high-speed rail with a designed speed of 380 km/h (236 mph), began on April 18, 2008. In the same year, the Ministry of Science and the MOR agreed to a joint action plan for the indigenous innovation of high-speed trains in China.
Why are high speed rail lines so profitable?
Moving passengers to high-speed lines frees up older railways to carry more freight, which is more profitable for railways than passengers. Advertising revenues. Billions of ‘impressions’ to passengers whose average income is 30–50% higher than the national average. Concession revenues (food and drink).
Which is the fastest high speed train in the world?
On mixed-use HSR lines, passenger train service can attain peak speeds of 200–250 km/h (120–160 mph). 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.
What is the status of high speed rail around the world?
The following fact sheet provides a brief history of international high-speed rail developments and a comparison of the status of HSR deployment around the world, along with a discussion of issues that policymakers and business leaders may want to consider in their long-term planning for future U.S. transportation infrastructure.
How is high speed rail more energy efficient than cars?
Energy savings. Reducing the number of cars on roads and highways translates into big energy savings and a reduced demand for oil. According to International Union of Railways (UIC) data, high-speed rail is more than four times as energy efficient as driving in cars and nearly nine times more efficient than flying.