To provide some (Spanish) figures for HSR which I
discussed previously here on UT:
It depends on what you build: GO Expansion is basically a full rebuild of the entire GO network, with a complete replacement of signals amd realignment of tracks - all of which under the moving wheel and under extreme space constraint. Greenfield HSR construction can operate under much less onerous constraints…
I don't fully buy that Spain analysis. Somewhat for Spain specifically, even more so for HSR in Canada and in general. China builds much less patronized HSR routes and somehow achieved 8% economic rate of return in 2015, and annual ROI of 6.5% in 2019.
For reference, HSR:
In 2015, China had 19,000 km, rest of world 13-18,000 km (depending on definition)
In 2019, China had 35,000 km, rest of world 15-24,000 km.
China currently has about 50,000 km.
World Bank, 8% EIRR in 2015, Page 20/101:
https://documents1.worldbank.org/cu...16/pdf/Chinas-High-Speed-Rail-Development.pdf
Regional benefits supporting document:
Yicai Global and Macro Polo, annual ROI of 6.5% in 2019, (I think this number is more reasonable, even if method unorthodox)
We first explain the approach and general assumptions used in our assessment, followed by details on how we derived the cost and benefit estimate for each component. General Approach and Assumptions To estimate the net present value of China’s high-speed rail (HSR) network that is operational at...
web.archive.org
digitalprojectsarchive.org
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I want to point out that a built up grid (China), rather than a few lines here and there, can yield increasing per-km returns. Their short-haul flight market is tiny compared to HSR.
I don't know every detail of the Betancor et Llobet paper, but I assume they're saying massive debt incurred to build HSR, is a drag on both the government and overall economy, not to mention the money could've been better spent elsewhere?
At first glance, the different methods used seem to be tailored to opposite conclusions on HSR investment. If you want to say HSR is good for people and the economy you go for the former. If you want to say it's a white elephant, you do Betancor et Llobet, or something similar.
I am aware of
some of the differences b/w methodologies and subject countries, but I can't make a definitive conclusion as it pertains to Canada right now.
EDIT: Notably, "regional benefits" (wider economic) seem to be missing from the Betancor paper (see document above). They only included time savings, willingness to pay of generated demand, avoided costs, accident reduction, and congestion reduction.
That in itself is a big oversight in my opinion. By my rough math, it would make social profit go positive for Spain.
Does someone else already have insight on this?