The global leader in superfast rail networks could find it needs to slow down and have a think about it. It appears break-even for the system is a long way down the line
China now has the longest network of high-speed trains in the world, stretching 8,358km and growing.
So you would think the Chinese masses criss-crossing this large country to celebrate the Lunar New Year recently would be zipping across the nation in comfort.
But as always in China, the ground-level reality differs from the cheery news dished out by the officials. The queues of migrant workers trying to return home were as bad as ever and there was an active black market in train tickets, mainly the cheaper ones.
The truth is most Chinese cannot afford to take the high-speed trains because they come with high ticket prices, sometimes even more than the airfare for the same destination.
Evidence is emerging that the high-speed train system, while it looks good to foreigners and well-off Chinese, may be a white elephant project to which all centrally planned economies are prone.
The investment reality is these train systems are not only expensive to build, they are expensive to maintain.
This means there is not much hope in the foreseeable future of ticket prices coming down if the system is to break even at the operating level, let alone recoup the enormous investments being made.
The ministry of railways is investing 700 billion yuan (Dh390.14bn) a year and the network will increase by more than 30 per cent to about 13,000km by next year, which means the problem of breaking even will be exacerbated in coming years.
Faced with a public that is unwilling to subsidise the prestige by buying expensive tickets the railways, which are a monopoly, are doing what a monopolies are wont to do - cutting back the services of slow-speed trains so passengers will be forced on to the high-speed network.
Of course, the migrant workers, who already spend a good portion of their wages on transport back home for the only long holiday they get during the Chinese New Year, were not happy about this.
Unable to get the cheap train tickets, some of them started travelling on the buses, which are less suited for long-distance travel and further congest the roads.
For too long the "greens" and others concerned about the environment and the need for "alternative" energy have considered the railways and the fast-speed trains a panacea.
China is not only racing ahead with the trains connecting different cities but also with the metros connecting areas within cities.
There are about 1,400km of urban railways in China but the network is forecast to grow to 2,200km by 2015, and China is expected to overtake the US in having the longest urban railway network as early as next year.
The speed of construction is unprecedented and there are fears that even the respected Chinese engineering skills may be severely tested trying to maintain quality at such breakneck speeds.
The economic and environmental case for urban rail networks is better than that for the intra-city, high-speed trains.
But it remains to be seen whether the urban networks, extremely complicated projects at the best of times, built at great speed in China may be prone to problems in the future.
business@ thenational.ae
ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
MATCH INFO
New Zealand 176-8 (20 ovs)
England 155 (19.5 ovs)
New Zealand win by 21 runs
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
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About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
MATCH INFO
AC Milan v Inter, Sunday, 6pm (UAE), match live on BeIN Sports
Brief scoreline:
Tottenham 1
Son 78'
Manchester City 0
WITHIN%20SAND
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Rocketman
Director: Dexter Fletcher
Starring: Taron Egerton, Richard Madden, Jamie Bell
Rating: 3 out of 5 stars
The%20specs%3A%202024%20Mercedes%20E200
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FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press
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MORE ON IRAN'S PROXY WARS
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The Saga Continues
Wu-Tang Clan
(36 Chambers / Entertainment One)
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
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MATCH INFO
What: India v Afghanistan, first Test
When: Starts Thursday
Where: M Chinnaswamy Stadium, Bengalaru
Ant-Man and the Wasp
Director: Peyton Reed
Starring: Paul Rudd, Evangeline Lilly, Michael Douglas
Three stars
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47