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Is High Speed Rail Profitable?

Maya Lin-Takahashi • • 6 min read
Is High Speed Rail 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.

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Consequently, does high speed rail make money?

High-speed trains can generally reach 300–350 km/h (190–220 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.

One may also ask, is the Japanese bullet train profitable? Most of the cases, Shinkansen is profitable. For some JR companies, this is the most of their income. 85% of the income of JR Central is from the Tokaido Shinkansen. Thanks to the Tokaido-Sanyo-Kyushu Shinkansen, JR West and JR Kyushu is now become profitable in railway business.

Also know, is Chinese high speed rail profitable?

The rail company booked a full-year net profit of 10.2 billion yuan (US$1.4 billion) in 2018, up more than 13 per cent from 2017, according to the filing. In 2018, the line carried 192 million passengers, or about 6 per cent of all those who travelled by high-speed rail in the country.

How much would a high speed rail system cost?

But since $10 billion of bonds were approved by voters more than a decade ago to jumpstart the line, it's been beset by cost overruns, construction delays and lawsuits by property owners and taxpayer groups. The California High Speed Rail Authority had estimated the full line would have cost $77 billion to complete.

Related Question Answers

What countries have high speed rail?

Many countries have built and developed high-speed rail to connect major cities, including Belgium, China, Denmark, France, Germany, Italy, Japan, Morocco, The Netherlands, Russia, Saudi Arabia, South Korea, Spain, Sweden, Taiwan, Turkey, the United Kingdom, and Uzbekistan.

Are high speed trains safe?

Rail, high speed or not, is one of the safest ways to get around. According to a National Safety Council review of 10 years of transportation fatalities, for every mile traveled, car drivers and passengers are more than 10 times as likely to die in accidents as passenger rail riders.
Maya Lin-Takahashi
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Maya Lin-Takahashi

Maya is a hardware enthusiast who tests and reviews smart home devices, smartphones, wearables, and audio gear. She focuses on practical consumer value and build quality.