[Of the economic trends]

Iron losses: the system into a "black hole"
Lu Jing

High Speed Rail and prosperity, "behind", seems the other side of the little-known hidden.
Operating Beijing-Tianjin Intercity High Speed Rail's Railway Co., Ltd. ("the Beijing-Tianjin High Speed Rail") is a letter of enterprise , when a complete "financial year" after the past Beijing-Tianjin high-speed railway expected the "loss" or to the company's senior management is very depressing.

Regardless of the amount of loss is 700 million yuan or 800 million yuan, as a financing platform for building owners side, operations management side of Beijing-Tianjin high-speed rail from the Ministry of Railways, the company earnings only got the "distribution" down operating income, while high amount of electricity costs, security investment and bank loans of the payment of interest, but by the Beijing-Tianjin high-speed rail bear - a loss behind, but also a rail system, "cause trouble."
700 million or 800 million?
"Those who have already launched high-iron, do not have a no loss of." Who asked not to be named to the Beijing-Tianjin high-speed rail insiders " China Business Journal" reporter said, while journalists from a number of high-speed rail Operation of the "partners" office learned that the "high iron loss" is the high-speed railway corporations have often mentioned the "situation."

Press information available shows that the Ministry of Railways will be the year of the operation of each of the stations, summarized the situation, and related documentation as an annex issued. For the operations of the Beijing-Tianjin high-speed rail, the material displayed on the annex to the form data - loss of 800 million yuan.

Earlier, some media quoted the calculation of those who rail system, said the Beijing-Tianjin high-speed rail lines operating loss a year for the 700 million yuan, but "China Business" by the multi-press confirmation, could not confirm the accuracy of this figure.

In this regard, high-speed railway, a senior leader told reporters that the loss amount is 700 million yuan, whether or 800 million yuan, is not accurate. But when asked by reporters the exact amount of loss, he just said, wait until the high-speed railway company to achieve listing the day, the amount of all losses and cost inputs will be in accordance with the requirements of publicly listed companies.
The reporter called the Ministry of Railways confirmed that the above situation, he was high-speed railway construction is in full swing, good and rejected all operations.
" Project in the initial construction project when we do a lot of data, the present concrete evidence, we had high operating costs estimated iron is too low, in fact, higher than expected costs, but we were only Volume measured with a simple income, income expectations are too optimistic. "who asked not to be named, high-speed rail company executives told reporters.
NDRC figures show, the Beijing-Tianjin high-speed rail invested 21.5 billion, high-speed railway construction investment of about 12 billion yuan, nearly 56% of the total input
. Reporter in the high-speed railway construction company confirmed that it is the largest project the cost of inputs, get the response is, "the Ministry of Railways is now the most emphasis on high-speed rail security, rail security so high maintenance costs are also alarmingly high proportion."
System "loss making"
Behind the high iron losses, one by the Ministry of Railways, High Speed Rail Corporation, the local government constitute the interests of the chain, gradually clear up, this time, the traditional rail system became operational losses of the main reason for High Speed Rail one.

"China Business" reporter has learned that high-speed railway company to high-speed rail by the Ministry of Railways, the Ministry of Railways on the full responsibility for railway operations, the Ministry of Railways would be through the Finance Department monthly billing system will come out each line of the income account, and then assigned to the High Speed Rail Corporation. But the problem is, the Ministry of Railways to the High Speed Rail Corporation points each month the money is only enough to pay interest on bank loans, high-speed railway company not only had no income, needs to pay for their own car, operating and maintenance costs.
To solve the deficit, "A fare increase is not so simple." Beijing Railway Bureau, one insider told reporters. It is understood that the institutions as the Ministry of Railways is Zhengqiheyi its internal billing system also maintained a program economy when the old system. Not only high-speed rail, and even the number of ordinary income each year by the Railway Ministry of Railways have the final say. "They give us the number of points, we take as many, as to how this figure is computed from, we do not know."
In fact, the high-speed rail project land acquisition and late pre-operating costs is "noble consumption ". To ensure high-speed railway construction, high-speed rail company had to pay high compensation for demolition.

At the same time, the interests of coordination with local governments, also contributed to the high iron status of the company operating the reason - due to high iron consumption is very large, so the local government to increase revenue, the supply of high-speed rail is not used for living or industrial electricity use electricity, but the commercial use of electricity.
Informed sources, when the Beijing-Tianjin high-speed rail and local governments negotiate electricity price , the local government was also "black" a bit, and finally Beijing-Tianjin high-speed rail to get the electricity prices in the local commercial power is even higher.

It is understood that electricity prices were divided into four, the minimum cost of residential electricity, commercial electricity up. Beijing business electricity prices from 1.2 to 1.5 yuan / kWh, power consumption is only 0.48 yuan / kwh. Beijing-Tianjin high-speed rail's electricity prices are far beyond the power of the price level.

"Every place in the tariff is set by the local power supply bureau of their own, and there is no fixed standard, high-speed rail cars traveling to different places, had to follow local government regulations of price data." Within the Ministry of Railways officials said.
Embarrassment to the owner
Construction of the main high-speed rail - High Speed Rail Corporation, after the completion of construction of high-speed rail, it becomes awkward position up.

Beijing-Tianjin High Speed Rail Corporation was originally proposed by the Ministry of Railways, Beijing Municipal Government, Tianjin Municipal Government, respectively 38.57%, 37.14%, 24.29% of the proportion of joint venture established. After serving as a social capital CNOOC announced its participation in the high-speed rail investment, the Beijing-Tianjin intercity high-speed rail was 19.5% of the shares.

Because the local high-speed railway lines, Beijing Railway Bureau, Ministry of Railways discretionary unified management and co-ordination, and Beijing Infrastructure Investment Co., Ltd. and Tianjin Infrastructure Investment Group and as a representative of Beijing and Tianjin Municipal Government jointly invested High Speed Rail project.

High Speed Rail's personnel allocation is basically: the local railway bureau sent to shareholders on the company of officers and staff together constitute the distribution. Take for example the Beijing-Tianjin High Speed Rail: Beijing Railway Bureau to appoint a Deputy Secretary as the High Speed Rail Corporation of others in accordance with the proportion of all investors holding staff allocation.

"How many high-speed rail line, there are number of high-speed rail company." Former Bureau of the Ministry of Railways told reporters. As the huge investment in high-speed railway, the Ministry of Railways have with high-speed rail through the city's local government and some form of social capital common High Speed Rail Corporation. Come forward by the High Speed Rail Corporation financing, construction. Such a view, the High Speed Rail High Speed Rail Corporation has become an owner side.

The owners of the owners nor that. High Speed Rail Corporation in the financing, construction, after the high-speed rail line must be the full return to the Ministry of Railways operations, since high-speed railway company is no longer the "owner" of. "We want high-speed railway is completed to enter the scene, or in high sections of the action about to take a small shovel of soil is impossible." A high-speed rail company employees told reporters.

Although the registered capital of Beijing-Tianjin high-speed rail is 8.7 billion High Speed Rail Company in accordance with the one-kilometer high-speed rail cost about 100 million yuan calculated length of 120 km Beijing-Tianjin high-speed rail, light rail infrastructure investment needed 12.0 billion. It's not car, maintenance, operation, security, cost and other mandatory spending.

It is understood that the Beijing-Tianjin high-speed rail line of credit more than 5 billion yuan more. Curiously, all of which commercial loans, before the transfer was uproar in the national development bank intervention is not practical. China Development Bank to introduce an internal, national development bank, has only 15 billion yuan loans used to develop high-speed train technology development, railway construction and for real there is no scheme.

(From: China Business Network)