Profitability and debtOne major concern of the high-speed rail network is the high amount of debt incurred. As of 2022, the China State Railway Group has had a debt of around US$900 billion, according to Nikkei.
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According to the latest data, as of the first half of 2022, the total liabilities of China National Railway Group totaled 6 trillion yuan, and in the first half of 2022 alone, it has lost 80.4 billion yuan, with an average loss of 400 million yuan per day.
A Whopping $900B Debt – China's Once-Profitable High-Speed Railways Now Heading Towards A Trillion Dollar Disaster. China's long-distance high-speed rail (HSR) is hailed as the fundamental tenet of its initiatives to recover the country's coronavirus-affected economy.
However, a Paulson Institute research had estimated that the net benefit of the high-speed rail to the Chinese economy to be approximately $378 billion and an annual return on investment at 6.5%.
The interstate highway system cost $129 billion — roughly $290 billion in current dollars — and took 35 years to complete, running from 1957 to 1992. The $1.2 trillion infrastructure bill enacted in 2021 has $102 billion for rail, but none of the money is set aside for high-speed rail.
Highways (as well as aviation) became the focus of infrastructure spending, at the expense of rail. This trend has continued, and not the least because highways require continuous maintenance, while the US's growing population demands more lanes and roads to relieve congestion.
Implementing high-speed rail will keep billions of dollars in the U.S. economy by decreasing the amount of oil that the U.S. consumes. According to the International Association of Railways (UIC), high-speed rail is eight times more energy efficient than airplanes and four times more efficient than automobile use.
That works out to $200 million a mile for hilly areas. At these costs, Obama's original high-?speed rail plan would require well over $1 trillion, while the USHSR's plan would need well over $3 trillion. Building a system longer than China's would cost at least $4 trillion.
Kelly acknowledges that the $8-billion goal is “aggressive and rightly so” because California is paying for 84% of the cost so far. “If the national government wants to get a national cleaner, faster electrified rail system, it has to do better than 16%. And so we're going to make that case,” he said.
High-speed trains are European-standard high-speed inter-city trains, capable of typical ground speeds of 250 kph (or 155 mph). They currently run between Moscow, St.Petersburg, Helsinki, and Nizhny Novgorod. These trains are called Sapsan within Russia, or Alstom on the Helsinki – St.
– In the strongest show of a continued partnership, the California High-Speed Rail Authority (Authority) announced today receiving nearly $202 million from the U.S. Department of Transportation to expand construction of high-speed rail by completing six grade separations.
In 2008, California voted yes to build the nation's first high-speed railway. The plan is to build an electric train that will connect Los Angeles and San Francisco in two hours and forty minutes. But 15 years later, there is not a single mile of track laid, and there isn't enough money to finish the project.
Building high-speed rail systems require steel and concrete, the manufacturing of which typically generates greenhouse gases. Trucks, bulldozers, and other construction site equipment also consume energy. Thus, during their long construction phases, high-speed rail projects add greenhouse gases.
Funding for California high-speed rail has come from the legislative appropriation of state special funds and from federal competitive grants. No funding comes from traditional state sources, such as the gas taxes or general fund dollars.
The Great Depression of the 1930s forced some railroad companies into bankruptcy, creating hundreds of miles of disowned and subsequently abandoned railway properties; other railroad companies found incentive to merge or reorganize, during which excess or redundant rights-of-way were abandoned.