In the bustling world of urban transportation, city (suburban) railways (CSR) are the lifeblood of many metropolitan areas, providing essential connectivity and supporting economic growth. However, the financial sustainability of these systems often hinges on operating subsidies, a topic that has been meticulously analyzed by TENG Jing, a researcher at the College of Transportation, Tongji University, Shanghai, China. The study, published in ‘Chengshi guidao jiaotong yanjiu’ (Urban Rail Transit Research), delves into the intricacies of these subsidies and their impact on the future of urban mobility.
TENG Jing’s research focuses on two key examples: the renovated Shanghai Jinshan Railway and the newly-built Chengdu-Dujiangyan Railway. These case studies highlight the cooperative development model between national railways and local governments, a model that is uniquely Chinese and crucial for the sustainable development of CSR.
The Shanghai Jinshan Railway, for instance, operates under a government service purchasing model. This approach ensures that the railway receives subsidies based on the services it provides, aligning its operations with public service goals. “The government service purchasing model has been instrumental in maintaining the financial stability of the Jinshan Railway,” TENG Jing notes. “It ensures that the railway can continue to operate efficiently while providing essential services to the public.”
In contrast, the Chengdu-Dujiangyan Railway employs a deficit-oriented subsidy model. This model focuses on covering the operational deficits of the railway, ensuring that it can continue to function even if it does not generate sufficient revenue. “The deficit-oriented model is particularly useful for newly-built railways that may not yet have a stable revenue stream,” TENG Jing explains. “It provides a safety net that allows these railways to develop and grow over time.”
However, the research also identifies several challenges in the current subsidy models. One of the primary issues is the imbalance between revenue and expenditure, especially under low fare models. Additionally, there is a lack of dedicated systems and standards for CSR, and the asset boundaries in upgraded existing lines are often unclear. These challenges can hinder the efficient operation and development of CSR systems.
To address these issues, TENG Jing proposes several recommendations. These include enforcing local government payment responsibilities, developing cost accounting standards for CSR, and quantifying the positive externalities and overall performance of CSR. Furthermore, fostering transit-oriented development (TOD) industrial chains through station-city integration is suggested as a way to enhance the commercial viability of CSR.
The implications of this research are far-reaching. As urban populations continue to grow, the demand for efficient and sustainable transportation systems will only increase. By understanding and optimizing the subsidy models for CSR, cities can ensure that these systems remain financially viable and continue to support economic growth. This, in turn, can have a significant impact on the energy sector, as more efficient transportation systems can reduce energy consumption and lower carbon emissions.
TENG Jing’s work, published in ‘Chengshi guidao jiaotong yanjiu’ (Urban Rail Transit Research), provides a comprehensive analysis of the current state of CSR operating subsidies and offers valuable insights into how these systems can be improved. As cities around the world grapple with the challenges of urban mobility, this research offers a roadmap for ensuring the sustainable development of CSR, paving the way for a more connected and efficient future.