Research On Financial Sustainable Development Of High-speed Railways

Construction of high-speed railways can not only satisfy the needs of socialproduction and development but also the the needs of travel. Nowadays, high-speedrailways in China are undergoing major development and network related are graduallytaking shape. But in terms of operating conditions of existing high-speed railways athome and abroad, the overall operating performance is not optimistic because many ofthem are in the state of a loss. On the one hand, high-speed railways have brought peoplecomfort and convenience, but on the other hand, we meet across the most pressing issueson how to realize the financial sustainability of high-speed railways. As a result, it is ofgreat practical and long-term significance to do overall research on high-speed rails.On the basis of the above considerations, this essay at first explains the developmenttendency of high-speed railways, the relevant concepts and basic theories related,including its concepts, features, connotation of financial sustainability and basic theoriesrelated. Secondly, this essay aims to discover the problems of financial sustainability ofhigh-speed railways, analyze the causes, put forward the countermeasures andsuggestions so as to promote the sustainable development of high-speed railwaysaccording to the basic construction and investment situation of high-speed railways inChina, situation of sources of funding and systematic analysis of condition of financialsustainability of high-speed railways in operation. At last, through the typical case study,this essay discusses the problems of financial sustainability of WG high-speed railway,verify and supplement the previous statements and put forward the countermeasures andsuggestions for the financial sustainability of the high-speed railway.Through the study of this essay, it is learned that financial risks of high-speedrailways mainly result from the reasons that the operation income can hardly make up thepressures of debt servicing coming from the operational expenditure and massiveconstruction funds in the initial stage or in a given period. Deficit risks will graduallyshow up if it continues for a long time. And also it is not beneficial for financialsustainability. Therefore, to promote the financial sustainability, first of all, high debts asa result of the construction of high-speed railways must be properly coped with.Governments must increase inputs, subsidize the construction of high-speed rails, raisethe support to the construction of high-speed rails and cut down the cost of debtfinancing.Meanwhile, high-speed railways enterprises themselves should makecontinuous improvements to increase their management abilities, achieve good economicbenefits to promote the financial sustainability.