Many countries offer subsidies to their railways because of the social and economic benefits that it brings. The economic benefits can greatly assist in funding the rail network. Those countries usually also fund or subsidize road construction, and therefore effectively also subsidize road transport. Rail subsidies vary in both size and how they are distributed, with some countries funding the infrastructure and others funding trains and their operators, while others have a mixture of both. Subsidies can be used for either investment in upgrades and new lines, or to keep lines running that create economic growth.
Rail subsidies are largest in China ($130 billion), Europe (€73 billion) and India ($35.8 billion), while the United States has relatively small subsidies for passenger rail with freight not subsidized.
Railways channel growth toward dense city agglomerations and along their arteries. These arrangements help to regenerate cities, increase revenue from local taxes, [1] boost housing values, and encourage mixed use development. By contrast, a policy of highway expansion, which is more typical in the U.S., promotes the development of suburbs at the periphery, contributing to increased vehicle miles traveled, carbon emissions, development of greenfield spaces, and depletion of natural reserves. [2] [3]
European development economists have argued that the existence of modern rail infrastructure is a significant indicator of a country's economic advancement: this perspective is illustrated notably through the Basic Rail Transportation Infrastructure Index (known as BRTI Index). [4]
Total EU rail subsidies amounted to €73 billion in 2005. [6]
Country | Subsidy in billions of Euros | Year | Billion passenger-km travelled in 2014 [7] |
---|---|---|---|
Germany | 17.0 | 2014 [8] | 79.3 |
France | 13.2 | 2013 [9] | 83.9 |
Italy | 7.6 | 2012 [10] | 39.7 |
Switzerland | 5.8 | 2012 [11] | 18.4 |
Spain | 5.1 | 2015 [12] | 24.5 |
United Kingdom | 9.2 | 2016 [13] | 65.1 |
Belgium | 2.8 | 2012 [14] | 10.8 |
Netherlands | 2.5 | 2014 [15] | 17 |
Austria | 3.7 | 2021 | 11.4 |
Denmark | 1.7 | 2008 [5] | 5.8 |
Sweden | 1.6 | 2009 [16] | 6.1 |
Poland | 1.4 | 2008 [5] | 11.9 |
Ireland | 0.91 | 2008 [5] | 1.7 |
Note that several operators that do not receive subsidies also exist, including virtually all long-haul and high-speed services in France and Germany.[ citation needed ]
In 2015, total domestic rail spending by China was $128 billion and was likely to remain at a similar rate for the rest of the country's next Five Year Period (2016-2020). [17] A planned 8,000 kilometres (about 5,000 miles) of track will be added domestically, with a goal of better connecting existing domestic track with other foreign railway systems.
The Indian railways are subsidised by around Rs 2.4trillion ($35.8 billion), of which around 60% goes to commuter rail and short-haul trips. [18] [19] [20]
Current subsidies for Amtrak (passenger rail) are around $1.4 billion. The rail freight industry does not receive direct subsidies.
In total, Russian Railways receives 112 billion rubles (around US$1.5 billion) annually from the government. [21]
The privatized rail network in Japan requires few subsidies. The three biggest companies, JR East, JR Central and JR-West (which account for 60% of the passenger market) receive no state subsidy. [22]
The railway system in Great Britain is the oldest railway system in the world. The first locomotive-hauled public railway opened in 1825, which was followed by an era of rapid expansion. Most of the track is managed by Network Rail, which in 2017 had a network of 9,824 miles (15,811 km) of standard-gauge lines, of which 3,339 miles (5,374 km) were electrified. These lines range from single to quadruple track or more. In addition, some cities have separate metro, light rail and tram systems. There are also many private railways, which are primarily short lines for tourists. The main rail network is connected with that of continental Europe by the Channel Tunnel and High Speed 1, which fully opened in 1994 and 2007 respectively.
As a densely populated country in a central location in Europe and with a developed economy, Germany has a dense transport infrastructure.
Rail transport is a means of transport using wheeled vehicles running in tracks, which usually consist of two parallel steel rails. Rail transport is one of the two primary means of land transport, next to road transport. It is used for about 8% of passenger and freight transport globally, thanks to its energy efficiency and potentially high speed.
The vast majority of passenger travel in the United States occurs by automobile for shorter distances and airplane or railroad for longer distances. Most cargo in the U.S. is transported by, in descending order, railroad, truck, pipeline, or boat; air shipping is typically used only for perishables and premium express shipments. Transportation is the largest source of greenhouse gas emissions in the United States.
Transport in Norway is highly influenced by Norway's low population density, narrow shape and long coastline. Norway has old water transport traditions, but road, rail and air transport have increased in importance during the 20th century. Due to the low population density, public transport is somewhat less built out in rural areas of Norway, however public transport in, and around cities is well developed.
Iran has a long paved road system linking most of its towns and all of its cities. In 2011 the country had 173,000 kilometres (107,000 mi) of roads, of which 73% were paved. In 2008 there were nearly 100 passenger cars for every 1,000 inhabitants.
Transport in Europe provides for the movement needs of over 700 million people and associated freight.
The privatisation of British Rail was the process by which ownership and operation of the railways of Great Britain passed from government control into private hands. Begun in 1994, the process was largely completed by 1997. The deregulation of the industry was in part motivated by the enactment of EU Directive 91/440 in 1991, which aimed to create a more efficient railway network by creating greater competition.
The Western Railway Corridor is a term, used since c. 2003, for a partly disused railway line running through the west of Ireland. Currently two sections of the line, from Limerick via Ennis to Athenry and from Collooney to Sligo, see regular services, with other sections either closed or only technically classed as open.
In the context of European Union law, a public service obligation or PSO is an obligation imposed on an organisation by legislation or contract to provide a service of general interest within EU territories. PSOs may operate in any field of public service, but postal services, social services, energy, transport and banking are specific sectors where the concept is relevant.
Russian Railways is a Russian fully state-owned vertically integrated railway company, both managing infrastructure and operating freight and passenger train services.
Rail transport in Europe is characterized by the diversity of technological standards, operating concepts, and infrastructures. Common features are the widespread deployment of standard-gauge rail, high operational safety and a high share of electrification. Electrified railway networks operate at a plethora of different voltages AC and DC varying from 750 to 25,000 volts, and signaling systems vary from country to country, complicating cross-border traffic.
Transport in the European Union is a shared competence of the Union and its member states. The European Commission includes a Commissioner for Transport, currently Adina Ioana Vălean. Since 2012, the commission also includes a Directorate-General for Mobility and Transport which develops EU policies in the transport sector and manages funding for Trans-European Networks and technological development and innovation, worth €850 million yearly for the period 2000–2006.
Rail Baltica is an under-construction rail infrastructure project that is intended to integrate the Baltic states in the European rail network. Its purpose is to provide passenger and freight service between participating countries and improve rail connections between Central and Northern Europe, specifically the area southeast of the Baltic Sea. It is also intended as a catalyst for building the economic corridor in Northeastern Europe. The project envisages a continuous rail link from Tallinn (Estonia) to Warsaw (Poland), consisting of links via Riga (Latvia), Kaunas, and Vilnius (Lithuania). Its total length in the Baltic States is 870 kilometres (540 mi), with 213 kilometres (132 mi) in Estonia, 265 kilometres (165 mi) in Latvia, and 392 kilometres (244 mi) in Lithuania. Rail Baltica is one of the priority projects of the European Union (EU). It is part of the North Sea–Baltic Corridor of the Trans-European Transport Networks (TEN-T).
The Helsinki–Tallinn Tunnel is a proposed undersea tunnel that would span the Gulf of Finland and connect the Finnish and Estonian capitals by train. The tunnel's length would depend upon the route taken: the shortest distance across would have a submarine length of 80 kilometres (50 mi), which would make it longer than the current longest railway tunnel in the world, the 57 km Gotthard Base Tunnel. It has been estimated that the tunnel, if constructed, will cost €9–13 billion. It may open in the 2030s. The European Union has approved €3.1 million in funding for feasibility studies. A pre-feasibility study from 2015 proposed a 250 km/h top speed.
Transport or transportation is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land, water, cable, pipelines, and space. The field can be divided into infrastructure, vehicles, and operations. Transport enables human trade, which is essential for the development of civilizations.
The Gulf Railway, also known as the GCC Railway, is a proposed railway system to connect all six Gulf Cooperation Council member states in Eastern Arabia. The rail network will have a total length of 2,177 km. The project is estimated to cost US$250 billion. It was scheduled to be completed by 2025, although as of 2023, construction work has yet to start.
Správa železnic, státní organizace is the national railway infrastructure manager in the Czech Republic. Its main customers include passenger train operator České dráhy and its cargo subsidiary ČD Cargo.
The financing of the rail industry in Great Britain is how rail transport in Great Britain is paid for. Most of the industry's income comes from passengers, with the government also providing rail subsidies, and income from property and freight also providing a small proportion. The majority of the expenditure is spent by train operating companies on leasing/maintaining trains, paying staff, and purchasing fuel. Network Rail spends the other £6.6 billion on maintaining and upgrading track, stations, tunnels, signals and bridges.
Includes both "Railway subsidies" and "Public Service Obligations".
6.3 billion Swiss francs
£6.7 billion, consisting of £4.3billion to network rail, and £2.4billion to train operating companies (TOC) using average of £1=1.366 euros for 2015-16