Calculating the Return on Investment for China's High-Speed Rail (HSR) : Operation and Profitability Model
According to a report by the National Bureau of Statistics, China's railroad mileagehasreached 131,000 kmbythe end of 2018, a five-fold increase from the end of 1949, of which 29,000 km were high-speed railroads, accounting for more than 60% of the world's total high-speed railroads. China has built the world's largest high-speed railroad network, which hasmadean impact far beyond the railroad industry itself and brought changes in urban development patterns,promotingtourism and regional economic growth. In the development of high-speed rail, it is important to balance the broader economic and social benefits of improved connectivity with financial viability. This project examines the economics of high-speed rail construction and operation from the perspective of theoperationmodel of rail transportation. We analyze the profitability of HSR as a single company by combining the organizational structure of the railroad system with the railroad as one of the components of the transportation system and the HSR as one of the components of the railroad network system. We also aim todeepen the investment and financial analysis based on the profitability model to propose a profitability model and comprehensively analyze the return on investment of HSR.
