Inland Rail Project terminated

[old man emu]

No mass transport system for the carriage of humans makes a profit. It is freight that makes the profit because the costs of transport can be forwarded onto the end consumer of the freight.

[onetrack]

People pay big money to go for long train rides, and the aura and advertising associated with the "Great Train Journeys of the World" is very prominent. Both the Ghan and the Indian Pacific make money from passenger traffic.

These trips are advertised as "premium" tourism events, and the passengers pay high prices for premium accommodation, premium food and dining experiences, and associated events in towns that the lines pass through.

A company named Journey Beyond runs these train trips and the whole operation is quite highly profitable.

[old man emu]

10 hours ago, onetrack said:

These trips are advertised as "premium" tourism events

And one expects to pay premium prices, the same as one does on an ocean cruise or First Class airline flights. When it comes to mass transport of humans, there is no profit. Such systems must run to schedule. You can't have a commuter train standing on a siding while a profitable freight train goes by. Unless of course you are in the USA where AMTRAC trains give way to freight trains.

[onetrack]

The Japanese trains are quite profitable, despite Govt caps on fares charges. There is an urban legend doing the rounds that the Japanese rail companies are only highly profitable because their rail travel is subsidised by their other investments such as real estate, shopping malls and other enticements, by which they extract more money from rail travellers.

But the reality is that Japanese laws state, that rail accounting rules are not allowed to include cross-subsidisation from other company sources, so the urban legend is not true. AI will tell you it is true, but it's wrong.

[facthunter]

Small area and lot's of People. Complete OPPOSITE of our situation.  Look no further. Nev

[Jerry_Atrick]

Only the high density lines are profitable on a rail operating basis; most Japanese railway companies have diversified their income stream by investing in real estate and retail businesses. 

 

There are very few commuter and mass transit rail services that operate on a stand alone profit basis. The UK under Maggie tried it and it can be considered a failure with re-nationalisation starting now (although that is also a mixed bag at the moment). 

 

The reality is there is not a lot better as a mass transit system than rail. Between the big cities and bigger regional areas it makes sense. 

 

If stopping the Melbourne - Brisbane rail line is to recalibrate the project, that is a good thing. The sad thing about it is it i only intended for freight. A decent speed passenger service linking the two cities would be excellent and, assuming it wasn't extortionate to use, you could put me down for it. 

 

My bro and his wife did the Ghan in the lower of the premium service - was still about $5K each from memory.. They loved it. One of the good things I would guess over a car would be that when you pass through the vast expanses of nothingness, there is plenty you can do to while away the hours.. not much in a car.

 

Of course, my real preference would be in a 150kt aircraft at the helm, but the cost would probably be a bit more.. and the in flight service is pretty crap.