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How much debt would HSR cause?

However, it seems that the aggressive campaign to reap the lucrative economic dividends of HSR has increased the state-run operator's total liabilities, which as of the end of 2021 reached 5.91 trillion yuan ($882 billion), or roughly 5% of China's GDP, reported Asia Nikkei.



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It Won't Help and May Hurt the Economy. Studies have found that high-?speed trains can generate new economic development near the stations where the trains stop. However, the same studies show that economic development slows in communities not served by such trains.

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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%.

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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.

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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.

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High Speed Rail is the world's safest form of transportation proven by decades of operations all around the world. Japan was the first nation to build high speed rail in 1964, and has since transported 10 billion passengers without a single injury or fatality!

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With the right commercial strategy, high-speed rail (HSR) routes can be profitable, with some lines achieving modal shares of up to 65%. When considering route strategy, HSR's market share versus other modes must be well understood.

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CLIMATEWIRE | The first U.S.-made high-speed bullet trains will start running as early as 2024 between Boston, New York and Washington, with the promise of cutting transportation emissions by attracting new rail passengers who now drive or fly.

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The population density is too low across much of the US. The urban areas are either too small, or too far apart to be viable in most of the country except for in a few regions of the county, and some of those “viable regions” exist in single states, or two at most unless you're in New England.

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In 2022, there were more than 1,000 train derailments in the U.S. There were at least 1,164 train derailments across the country last year, according to data from the Federal Railroad Administration. That means the country is averaging roughly three derailments per day.

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“Competition between state-owned train company Trenitalia and privately owned Italo on the main high-speed line has driven up quality and passenger numbers, but pushed down prices by between 20 and 25 per cent,” he explains. “It's to the benefit of everyone except domestic airlines.”

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In 2019 the Antequera–Granada high-speed rail line opened at a total cost of €1.4 billion.

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