Whimsically, the privatization of railways is unlikely to bring fares down

Mondo Finance Updated on 2024-03-04

Railwaysas a kind of publicTransportationSecurity is one of the most important considerations. EspeciallyHigh speedEMUsThe safety requirements are more stringent. One columnTrainsHundreds of people need to be transported, and if something goes wrong, it could be on the entire lineEMUsAffect the safety of passengers. So, forRailwaysThe requirements for train control system and scheduling management are extremely strict. In addition,RailwaysLarge-scale maintenance work is required at night to keep the line safe and running smoothly. Currently, the whole countryRailwaysThe companies are directly managed by China Railway Group, 18 companiesRailwaysThe company unconditionally cooperates to ensure the whole countryRailwaysThe safety and stability of the operation chart. This is a very important and absolutely intolerant thing for anything wrong. RailwaysThe safe operation is inseparable from the maintenance of the line, especially the rightHigh speedThe maintenance of the line must be meticulous down to the last point. High-speed rail typically operates between 6 a.m. and 12 p.m., with the remainder of the time spent on lines andEMUsmaintenance.

IfRailwaysPrivatization, will the private sector be able to carry out the maintenance of lines and vehicles in strict accordance with the requirements? Is it possible to replace the spare parts that need to be replaced in a timely manner? EMUsCan all levels of the process be strictly enforced? These questions need to be considered. At the same time, for example, you need to make a trip tomorrow morningEMUsAs a line inspection vehicle, can such a task be strictly implemented by private enterprises? Pairs are needed at nightEMUsOverhaul is a vital task for the safety of personnel, and there must not be the slightest sloppiness. From this point of view,RailwaysIt is more appropriate to be directly managed by the China Railway Group.

RailwaysSafety is always a top priority when people travel. Whether it's a long-distance or short-distance domestic trip,TrainsIt has always been considered one of the safest and most secure options. In particularHigh speedRailwaysSafety management has become more and more important. High speedEMUsYesTrainsAn important part of the operation has more stringent requirements for its safe operation. Once there isEMUsIf something goes wrong, it may be on the whole lineEMUsIt brings great challenges to the train control system and scheduling management. Hence the stateRailwaysThe group is responsible for the overall situationRailwaysThe operating model becomes an inevitable choice. Whether it's the maintenance of the line, or the rightEMUsStrict standards and specifications need to be maintained. RailwaysThe safe operation of the line also requires careful maintenance of the line, especially the high-speed rail line, and any defects cannot be tolerated. In order to ensure the safety of the line,RailwaysLarge-scale maintenance work will be carried out during the night, taking advantage of the temporary downtime to make changes to the line andEMUsCarry out overhaul to ensure smooth and smooth operation.

IfRailwaysWill privatization ensure that the private sector is able to carry out the maintenance of lines and vehicles as required? Is it possible to replace the spare parts that need to be replaced in a timely manner? Is it possible to ensure that the procedures at all levels are strictly enforced? These issues require attention. In addition, for some special circumstances, such as tomorrow morning, you need to make a tripEMUsAs a line inspection vehicle, can the private sector strictly implement such a task? Nighttime pairsEMUsOverhaul is a major event related to the safety of personnel, and any sloppiness cannot be tolerated. All things considered, it is directly managed by China Railway GroupRailwaysOperations are still the most suitable and safe option.

A lot of people question the current oneRailwaysThe ticket price is too high, think it isRailwaysReasons for privatization. They believe that if more competition is introduced,RailwaysTicket prices will go down. However, this is not the case.

First of all, some greenskins nowTrainsFares are almost at the same level as they were two decades ago, with the vast majority of lines costing only a few cents per kilometre. Greenskin, so to speakTrainsThe ticket price is already completely public welfare. However, from a market operation point of view, with the increase in maintenance costs and labor costs, which private company would not raise the ticket price? Take Guangzhou-Zhuhai intercityRailwaysFor example, the 115-kilometre-long line is not cheap, as it is the participation of local capital, which gives the lines their own pricing power. Guangzhou-Shenzhen Railway, Guangzhou-Zhuhai intercity and other high-speed rail lines, the fare is higher than the operating speedBeijing-Shanghai high-speed railwayMuch more expensive. This is the result of marketization. And to know these intercities in GuangdongRailwaysIt is under the jurisdiction of the Guangzhou Bureau, and they still have a certain right to speak, and if it is completely liberalized, the ticket price may be even more outrageous.

RailwaysThe issue of fares has always been the focus of attention. Many people think that the presentRailwaysFares are too high, advocating the introduction of competition in order to reduce fares. However, this is not the case.

First of all, some green skins at the momentTrainsThe fares are almost at the same level as 20 years ago, and the unit price per kilometer on most lines is only a few cents. Greenskin, so to speakTrainsThe ticket price has reached the level of public welfare. However, based on the experience of market operations, in the case of continuous maintenance costs and labor costs, which private company will not raise the ticket price? Take Guangzhou-Zhuhai intercityRailwaysFor example, the ticket price of the 115-kilometre line is not low, because it is the participation of local capital, which gives the lines the right to set their own prices. The same happensGuangzhou-Shenzhen Railwayand other high-speed rail lines, whose fares are higher and better serviceBeijing-Shanghai high-speed railwayto be significantly more expensive. This is the result of marketization. It should be pointed out that the specific situation of each region is different, for example, these intercity lines in Guangdong are managed by the Guangzhou Bureau, which also means that they have a certain say in fares. If it is completely privatized, the ticket price may become even more unacceptable.

Currently domesticRailwaysThe construction of the country is fully in line with the stateEconomydevelopment and strategic needs, especially in theMidwestbuilt on the high-speed rail line. But what if these construction projects were completed by the private sector?

to be under constructionSichuan-Tibet RailwayFor example, this article is strategicRailways, connecting Southwest China and **. IfRailwaysComplete privatization, can there be private enterprises willing to invest hundreds of billions to build such a strategic needRailwaysThis? Actually,MidwestA lot of places may only be extravagant, eitherRailwaysTransportation or high-speed rail travel. It is difficult for the private sector to afford to spend so much money on construction in these areas. In addition to this, the current oneHigh-speed rail ticketsThe price is actually close to the price of a second-class bus ticket, which is basically the same as the car ticket price more than 20 years ago. At that time, riding a car was a luxury for many people, let alone traveling long distances. PresentHigh-speed rail ticketsThe price is within a relatively reasonable range relative to people's income. It's just that a lot of people want to enjoyEMUsof comfort and convenience, but only willing to pay for the green skinTrainsfare.

The relationship between railway construction and strategic needs is inextricably linked. Currently domesticRailwaysConstruction is based on the stateEconomyDevelopment and strategic needs are planned and promoted. EspeciallyMidwestofRailwaysConstruction is of great strategic significance. to be under constructionSichuan-Tibet RailwayFor example, this oneRailwaysConnecting the southwest region of China and **, it has an important oneEconomydeveloped andTransportationConnectivity. However, ifRailwaysPrivatization, will there be private companies willing to invest huge sums of money to build such strategically significant onesRailwaysThis? Actually,MidwestA lot of places may only be extravagant, eitherRailwaysTransportation or high-speed rail travel. It is difficult for the private sector to be willing to spend huge sums of money on construction in these areas. In addition, the current oneHigh-speed rail ticketsIn fact, the price is close to that of a second-class bus ticket, which is basically the same as that of more than 20 years ago. At that time, many people traveled by car was considered a luxury. PresentHigh-speed rail ticketsThe price is within a relatively reasonable range relative to people's income. It's just that a lot of people want to enjoyEMUsof comfort and convenience, but only willing to pay for green skinTrainsfare.

To sum up, domesticRailwaysThe operating model is not suitable for privatization at this time. Railwaysas a kind of publicTransportation, whose safety and reliability are paramount and require absolute control from the state to ensure safe and smooth operation. At the same time, the current fare issue needs to be balanced and cannot be simply blamedRailwaysprivatization. Given the relationship between railway construction and strategic needs, the private sector may not invest a lot of money in building a strategically important oneRailways, causedMidwestYou can't enjoy the convenience of high-speed railEconomyThe dividends of development. Hence the current stateRailwaysDirect management by the groupRailwaysoperating model, more suitable for maintenanceRailwaysand provide high-quality transportation services.

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