Book

The Need for High-Speed Rail

2016

Synopsis

High-Speed Rail is seen as the single most viable competitor to the airline industry.

Investing in high speed rail is a central planning decision. The government decides the introduction of a new rail technology which allows trains running at a speed of 300-350 kilometers per hour (though the average commercial speed is substantially below the technically feasible speed). At the beginning of 2008 there were about 10,000 kilometers of new high speed lines in operation around the world and, in total (including upgraded conventional tracks), more than 20,000 kilometers of the worldwide rail network was devoted to provide high speed services.

The case for the HSR is strongly dependent on the volume of traffic where the new lines are built, the time savings and generated traffic and the average willingness to pay of passengers, the release of capacity in congested roads, airports or conventional rail lines and the reductions of external effects. The magnitude of the traffic volumes and shifts depends heavily on whether infrastructure costs are included in rail fares or financed by taxes. If rail infrastructure charges are based on short-run marginal cost, intermodal substitution will be dramatically affected by HSR public investment decisions. In this case ex ante cost-benefit analysis of HSR investment is, more than ever, a key element of transport policy.

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