both HSR and airline are boosting right now
With developing economy,more people are travelling around, with more demand of transportation.
HSR only make short distance flight hard to survive, like less than one hour flight.
Long distance flight and HSR are all boosting.
China used to have shortage of electricity .
But now we have very good supply and low cost of electricity. So we don`t worry about that.
Electricity is pretty cheap in the operation cost.
Actually the biggest operation cost will be labor and bank loan interests.
Hi Landlord and rich man!
With developing economy,more people are travelling around, with more demand of transportation.
HSR only make short distance flight hard to survive, like less than one hour flight.
Long distance flight and HSR are all boosting.
China used to have shortage of electricity .
But now we have very good supply and low cost of electricity. So we don`t worry about that.
Electricity is pretty cheap in the operation cost.
Actually the biggest operation cost will be labor and bank loan interests.
We are happy to see Chinese people has better means of transport , especially to go home for New Year holiday.
I guess with development of HSR, airliners must compete hard to survice, and offer more reasonable price.
Electricity is a clean energy, it's not the problem, but huge electricity consumption by HSR is problem.
Cost of HSR is not only the building cost but, sadly the operating cost ( electricity as you find more )
Hi Landlord and rich man!
Yes, ultimately it is the market that dictates all, travelers decide, not builders/financers.
People can choose from flying, HSR or driving, the more options the better for travelers to fit their ever changing needs. In my case, I use HSR frequently, sometimes I drive, sometimes I fly, whatever I feel convenient.
Economically speaking, take my usual Shanghai-Jinan ground distance 915km as example, the HSR passage is 50% cheaper than flying, 80% cheaper than driving. I invested on an apartment near KunShan station (昆山站) along the HSR, return on asset 35% over 2 years, less financing costs return on investment is 103%.
For builders/financers, crunch your numbers, as long as it gives good ROI, do it, otherwise forget it. Just bear in mind, in mega projects like HSR, economic benefits may come in form of (1) direct revenue in passenger and freights (2) land price/tax increase.