A faster way of travel but with higher cost, high-speed rail in China continues to undergoing doublt.
The 2,298-kilometer line which links five regional economic centers including Beijing, Zhengzhou, Wuhan, Changsha and Guangzhou, largely shortens the traveling time between Beijing and Guangzhou to eight hours. But many people complain that tickets for the high-speed railway are too expensive. The top price for a ticket from Beijing to Guangzhou is more than 2,000 yuan, or 317 U.S. dollars, comparable to the price of an air ticket.
Many people have asked what determines high-speed rail ticket prices—the operation costs or people's consumption ability. What is the reason behind the high prices of high-speed trains?
Zhao Jian, a professor at Beijing Jiaotong University, explains.
"The cost of the high-speed railway includes construction and operating costs. The technological standards of the high-speed railway are very high. Therefore, it has had high costs for construction and operation. Certainly, the ticket prices of bullet train are definitely high."
Zhao Jian says he believes the high-speed line between Beijing and Guangzhou will see a big loss, because all of China's other high-speed lines are currently in the red.
The annual operating costs of the Beijing-Tianjin bullet train have been 1.8 billion yuan since the line started running in August 2008. It lost 700 million yuan during its first year of its operation. After the second year of operation, the high-speed line nearly broke even. And the high-speed railway between Beijing and Shanghai will not see a profit until 2016.
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