China's railway system is experiencing a remarkable surge in both passenger transport and financial performance as of 2024. The China State Railway Group reported a net profit of 1.7 billion yuan (approximately US$239.6 million) for the first half of the year, recovering from a loss of 11.1 billion yuan during the same period in 2023. Although sales revenue slightly decreased to 579.4 billion yuan, freight revenue increased by 4.7%, reaching 484.1 billion yuan [88217b32].
In the first half of 2024, the railway network recorded 2.096 billion passenger trips, marking an 18.4% increase year-on-year. This surge in passenger travel is complemented by an average of 10,256 passenger train services operating daily, a 9.4% rise compared to the previous year. Notably, 887 million trips were logged in July and August alone, reflecting a 6.7% increase from the same period last year [79fca594][9f8c022b].
The railway department has also focused on expanding its infrastructure, with fixed asset investments reaching 337.3 billion yuan, up 10.6%. A total of 979.6 kilometers of new track was opened, enhancing connectivity across the nation. The introduction of new high-speed sleeper trains connecting major cities like Beijing and Shanghai with Hong Kong has significantly reduced travel times, further boosting passenger numbers [79fca594].
In addition to these developments, Shenzhen is constructing the Xili Transportation Hub, set to be completed in 2026 with a budget of 17.7 billion yuan (US$2.5 million). This hub is expected to handle 1.3 million people daily and will integrate multiple transport lines, further enhancing the efficiency of the railway network [9f8c022b].
Despite an increase in total debt to 6.2 trillion yuan, the debt ratio improved to 64.6%, marking a 10-year low. This indicates a positive trend in financial management as the railway operator continues to expand its services while maintaining a focus on profitability [88217b32].
The overall economic growth in China was reported at 4.7% in the second quarter of 2024, with the railway sector playing a crucial role in supporting this growth. The network also transported a record 332 million metric tons of cargo last month, showcasing its efficiency in freight operations [79fca594]. Looking ahead, China aims to expand its railway network to 200,000 kilometers by 2035, including 70,000 kilometers of high-speed rail, indicating a long-term commitment to enhancing its transportation infrastructure [9f8c022b]. The strong performance in both passenger and freight transportation underscores the resilience of China's railway sector in meeting the growing demand for efficient transport solutions [79fca594][88217b32].