It is no secret that China is modernising and urbanising beyond recognition in comparison to twenty years ago. Everyday dozens of new projects are announced by its government or wealthy entrepreneurs, keen to bulldoze capital into China’s increasingly consumer-driven economy. However, arguably one of China’s most impressive achievements in the past five years has been its high-speed rail expansion program, which is really something quite out of the ordinary even by Chinese standards.
With many smaller nations in the West (such as the UK over its HS2 proposals) remaining trapped in inertia over whether to proceed with high-speed rail or not, China has not held back in investing in and executing its plans to expand its railways. Since China opened up its first high-speed track in 2008, its government has overseen the construction of 6,200 miles worth of high-speed rail infrastructure – that equates to more than the whole of Europe’s entire equivalent network.
So what will change with high-speed rail?
Now the largest and fastest program of its kind in the world, central investment has helped ensure that most city-to-city journeys in China are nearly 80% faster than previously. For example, to travel from Xiamen to Shenzhen a year ago took fifteen hours and several transfers. Now, via so-called ‘bullet train’, you can do the 520km journey (more than the distance between Montreal and New York) in just over three hours at a cost of just 150 Yuan (US$25). With links between Xiamen, Fuzhou, Hangzhou and Shanghai already in place, Chinese domestic infrastructure is making huge strides towards integrating this massive nation.
The main intended benefits of high speed rail are of course economic. As Chinese cities become increasingly important international business hubs, there needs to be easy- access to them – not to mention that in order to do business purely in China in the modern era, most companies cannot simply rely on one city.
In addition to helping to modernise working life in China, the rail lines will provide a cheap, easy and relaxing way for friends and family to visit one another across the nation. China’s urbanised generation are spread far and wide due to work and study, and with the high speed rail lines stopping at multiple towns and cities along the way to their final destinations, casual day or weekend trips are now fully accessible to much of the Chinese population – particularly in the east.
Of course the lines will not purely be used to transport people; trade in China and its neighbours will also benefit, with the lines already earmarked as major cargo routes. Speeding up these lines will create a faster flow of goods in and out of China, reaching more regions than ever.
Is all this investment really worth it?
Whilst of course travelling between cities via aeroplane will always result in a faster journey time, plane travel in China can often be accused of unreliable organisation and running late – something which high-speed rail has avoided and subsequently been commended on across the board. That’s not to mention that with rail, there are no check-ins, no thirty minute waits for take-off and no arrival gates, all of which significantly reduce the gap between the overall time of a plane and that of a train journey.
Of course, crucially for companies and commuters alike, rail is also much cheaper than flying and even some coach journeys. Looking back to the Xiamen-Shenzhen example, a 150 Yuan second-class high speed rail journey on this line is 40 Yuan cheaper than a coach service, and under 25% of the price of a flight. These lines therefore are hardly looking as though they’ll be short of demand.
In comparison with its Western counterparts, China’s high-speed lines offer great value for money. For example, whereas a 260 mile trip from Beijing to Jinan will cost you roughly US$30, taking just over an hour and a half; if you were to take the Acela train from Washington DC to New York City of roughly the same distance you will be paying at least US$150 for a journey nearly double the time.
Are there any plans for further expansion?
The Ministry of Transport (the project was formerly under the jurisdiction of the now-dissolved Ministry of Railways) has more big plans for high-speed rail. The ministry expects to have all major lines completed by 2020, with a further 25,000km worth of railway in place by that year and some trains capable of speeds reaching 350km/h. It is estimated that the overall cost of the campaign will exceed an astounding $300 billion, however, in the long run it may well turn out to be worth every penny.
The project currently remains a primarily domestic one but China has announced plans to expand the network abroad. The previously fractious relationships between China and its neighbours has somewhat wavered, and connecting the countries through collaborative high-speed rail projects promotes greater ties among them.
The railway will first travel through Laos to the south and onto Thailand, with ultimate aim being for the lines to reach Singapore at the foot of the south-east Asian mainland. Cambodia, Myanmar and Vietnam will also be included by the lines, so you can see just how expansive the network is due to become. Many of these nations lack significant infrastructure and industry, and thus the plans are likely to boost trade in the entire ASEAN region, with the cost of imports and exports set to significantly drop because of the project.
The lines could particularly benefit nations with low GDPs such as Laos, whose Deputy Prime Minister, Somsavat Lengsavad, is hopeful of “turning Laos from a landlocked country to a landlinked one” which would attract the foreign investment many of its neighbours have received. Though Laos is due to take on a large amount of debt to help fund the project (prompting heavy criticism about its affordability from some quarters), its government remains confident it will result in long-term success to add to China’s US$4 billion worth of investment in the country since 1989.
What is sure for now is that however ambitious the projects are for China, thus far the network is going to plan. Integrating China both nationally and internationally will surely benefit domestic and regional trade, moving south-eastern Asia ever-closer to a European Union-like arrangement. Only time will tell whether the investment will truly pay-off, but either way, from a business and traveller perspective, the network can only be seen in a positive light.
If you have any questions concerning high-speed rail in China or any other issues related to Chinese infrastructural investment, please feel free to email us at info@maxxelli-consulting.com
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