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Is high-speed rail a good investment?

This investment has spurred economic benefits around California and across the country. Investment in high-speed rail is supporting jobs, labor income and economic output across a number of California's regions, including some of those hardest hit by the Great Recession.



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High-Speed Rail Is Too Expensive Building the 48,000-mile Interstate Highway System cost about $500 billion (in today's dollars). Paid for entirely out of user fees, it carries about 25 percent of all passenger travel and 15 percent of all freight in the United States.

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The 5 higher-speed rail projects taking shape in the U.S.
  • Amtrak's Acela high(er)-speed trains.
  • Brightline West.
  • California High-Speed Rail.
  • The Texas high-speed train.
  • Cascadia.


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I cover advanced transportation and climate-oriented technology. Brightline's planned Las Vegas to Los Angeles railway could be the first true high-speed train in the U.S., running at speeds over 185 mph.

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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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High-speed rail (HSR) provides social and economic benefits to cities by facilitating the rapid movement of people and goods. Regarding HSR profitability, the state-owned China Railway Corporation (CRC) has reported an annual operating loss of about 30 billion yuan for the past two consecutive years.

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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.

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In a world becoming ever more urbanised, rail travel is well matched to urban needs. High-speed rail can serve as an alternative to short-distance air travel, and conventional and freight rail can complement other transport modes to provide efficient mobility.

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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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China: Surpassing the Rest of the World Due to generous funding from the Chinese government, high-speed rail in China has developed rapidly over the past 15 years. China began planning for its current high-speed rail system in the early 1990s, modeling it after Japan's Shinkansen system.

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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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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.

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