High-speed rail hurtles toward globalization
The new set of environmental regulations established in several European countries and recent efforts to jump-start the crisis-ridden economy have breathed new life into Europe’s domestic high-speed rail industry. In France alone, with over two thousand kilometers of dedicated railways today, the HSR network will more than double by 2020. In Western and continental Europe, high-speed solutions have been immensely successful, as proven by the popularity of the Eurostar, the Thalys and more recently the TGV Est jointly operated by SNCF and Deutsche Bahn. On a planetary scale now, many major projects are in the works, creating unprecedented opportunities in an industry long confined to continental borders.
ICE Train at Cologne Station
New opportunities
Barack Obama’s stimulus package is expected to give a major boost to passenger rail. An initial $8 billion is being invested specifically in high-speed transportation, representing the most notable change in U.S. public transportation since Eisenhower decided to build the country’s interstate highways in the fifties, as a secular response to, at that time, the nation’s old congested railway network. This initiative will also do a great deal to improve the profitability of America’s 240,000 miles of rail tracks, now used principally for freight, but at only 25 percent of its potential capacity.
But the most ambitious rail project in the world is on the drawing board in China, likely to drive the highest potential growth. Providing 1.3 billion Chinese with high-quality transportation will take extraordinary measures. Indeed, the country wants to lay 24,000 km of track by 2020 and invest over $300 billion in various types of rail infrastructure and equipment. In just a decade, China will produce over three billion trips a year, more than double the current traffic, with major links (Peking-Shanghai) served at over 300 km/hour. This historic decision will help modernize the Chinese nation and smooth over the impact of the recent economic recession. Read the full posting…
