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Repair a loss of hundreds of millions, few subways are profitable, why do major cities still need to build subways?

author:Zen Yanagi Yang P

Introduction: The subway is an important transportation facility in developed cities, and the city can build a subway, indicating that its development is relatively good, and the population is relatively dense, such as Beijing, Guangzhou, Shanghai and other cities in the mainland

Repair a loss of hundreds of millions, few subways are profitable, why do major cities still need to build subways?

Although the subway has brought great convenience to people, the cost of the subway is expensive, and the construction cost is billions, and it also includes the follow-up maintenance costs

According to data research statistics, almost all subways in the world are in a state of losing money, and only a very small number of subways can remain profitable. Is it really cost-effective to build a subway?

First of all, we need to understand the two costs of the subway, namely the construction cost and the operating cost, among them, the construction cost accounts for the highest proportion, and the construction of the subway mainly has three laying methods: underground, ground and elevated

Repair a loss of hundreds of millions, few subways are profitable, why do major cities still need to build subways?

The highest construction cost is the underground railway, because it is excavated by a large shield machine, so the cost is 1.5 times that of the ordinary elevated line, 3 times that of the surface line, and the hardware and construction costs used to lay the underground tunnel will also lead to an increase in cost

On the whole, the construction of underground subway sections has an average cost of 5~700 million yuan per kilometer, which can be like Metro Line 16 built in Beijing, with a cost of 1 billion yuan per kilometer

The cost of building a subway is staggering, but its operating costs are even more staggering, in the case of the Beijing subway, which in 2013 cost up to 1 billion yuan in electricity alone

Repair a loss of hundreds of millions, few subways are profitable, why do major cities still need to build subways?

In addition, there are 800 million yuan in maintenance costs, 2.78 billion yuan in labor costs and 8 billion yuan in depreciation expenses, and it will cost 14.7 billion yuan a year to make the subway operate normally

If you want to rely on the ticket money to return the cost, even if every carriage is full of people, it is estimated that it will be difficult to recover the cost, why not increase the ticket price of the high-speed rail, so as to recover the cost?

This is because China's subway construction is a public welfare project, and the funding mainly depends on government subsidies, so fares are priced under the leadership of the government, and in order to increase revenue, the subway company can only expand the channels

Repair a loss of hundreds of millions, few subways are profitable, why do major cities still need to build subways?

Like businesses to the subway advertising, will be handed over to the subway company advertising fees, but this cost is still minimal, but better than nothing, subway construction, although profitability is a problem, but the surrounding businesses and the real estate industry have been driven

If you look at these costs comprehensively, the loss of the subway is not so terrible, in fact, this situation is not only in the mainland, such as New York, London, Paris, Tokyo and other countries are in a state of loss, since the loss, why build the subway?

Repair a loss of hundreds of millions, few subways are profitable, why do major cities still need to build subways?

If a city wants to build a subway, it must meet at least three points: public financial revenue of more than 30 billion, urban population of more than 3 million, GDP of more than 300 billion, and no one that meets the standards can not apply for subway construction

After reaching such a level, the city is often faced with high traffic pressure, the traditional bus transport capacity is limited, can only transport 2000~5000 passengers per hour, but the subway can transport more than 30,000 passengers per hour

Repair a loss of hundreds of millions, few subways are profitable, why do major cities still need to build subways?

The emergence of the subway, but also greatly alleviate the city's traffic pressure, it is not difficult to see the importance of building the subway, the construction of the subway can not be from a single point of view, from the point of view of economics, the subway can drive the development of the surrounding economy, is very important for the development of the city, therefore, the major cities will be eager to build the subway

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