"Feng, you mentioned yesterday that you want to build a high-speed railway across the East and West?" Eric saw no one was talking and started a conversation. He had come here because of this.
"We are investing in ports and piers, and we must also build logistics facilities. The United States is the country with the highest trade volume in the world, so we need efficient logistics channels to ensure the transportation volume. "
"High-speed railway. This is our opportunity. Once it is built, it will increase the US's logistics channels, and the operator of this railway will make money. "
Eric shook his head. "Feng, we had considered this, and there are a few points that you might not have considered."
"You are using Hua Xia's high-speed railway as a reference, right? Hua Xia's railway carries more than 2 billion passengers every year, and our railways only carry about 20 million passengers every year. There is a huge difference, and our railway mileage is double of Hua Xia's. "
"Hua Xia can earn back its capital through passenger transport, and freight is its main source of income. But the US's main source of income is freight, and there are not many passengers. "
The aviation industry in the United States was very developed, and basically every family in the United States had more than one car. Many people would choose to drive their own cars when they traveled, and they would take the plane for long distances. When they arrived, they would rent a car if they needed it. They were used to having a car.
It is not because the US cities are big. Most of the cities in the US only have a population of about 1 million. The area is about the same as Hong Kong and is not as big as Hua Xia's Beijing and Shanghai.
But the US's public transportation is not good. Even the subway is not popular, and the public buses are even worse. Other than the most prosperous areas, there are very few public transportation.
"Feng, I know you are trying to say that if we increase the speed, many people will choose to take the high-speed railway. This is because it is faster than flying for some distances."
"But this will affect the airline companies' profits. Can you understand what I am saying?"
If the speed of the railway increases, passengers will have more choices, and it will be a heavy blow to the airline companies. It is just like Hua Xia. When the high-speed railway and EMU trains were launched, the airline tickets were discounted because there are no more people to sell them.
Airports are usually located in the suburbs, and train stations are located in the city. It might not be very prosperous, but it is closer to the city than the airport.
The construction of the high-speed railway will harm the interests of the shareholders of the airline companies, which will form some resistance.
"Feng, this is not all. Think about it, the American automobile industry is in a cold winter. Both Auto and Chrysler are losing money. They can only survive with the help of the government. The only company that doesn't need the government's help, Ford, has sold you half of its branding business. "
"If the high-speed railway is built, it will have a great impact on car sales. So you don't have any objections? "
"There is another important point. The railway we are building cannot be on the original railway line, but it cannot be too far away either. This involves the issue of compensation. I don't know how much compensation is in Hua Xia, but in America, it's very high. "
That's because properties in the United States are all freehold, as long as you can afford the property tax. The resources dug out from a certain depth of the house belong to you, even if it's a diamond mine underneath.
That's why the compensation for demolition in the United States might be higher than Hua Xia. Americans will never ask for compensation. They will ask for more cash to buy a better house.
"Feng, you said one kilometer will cost about 30 million USD. But that is based on Hua Xia's expenses, right? If it is in the US, we will increase the expenses by at least 30%. That means one kilometer will cost about 40 million USD. "
"A distance of more than 4,000 kilometers will cost 160 billion USD. Do you think we can afford this amount? Fine. Even if we can afford it, how much is the economic benefit? Don't talk about national righteousness. Our consortium is not a philanthropist. We have a lot of employees to support. "
"That's why we can only afford slightly more than 10 billion USD. How much can you afford? We can only get loans from the banks for the rest. We will definitely be obstructed by automobile, airline, and other companies. Then, only our own bank can provide loans. Have you carefully evaluated the risks in this? "
Feng Yu paused for a second. He had not considered this carefully and neglected the other industries in the US. If Feng Yu wants to invest, he will surely get loans to invest. It's not worth it for him to make a loss.
The project's funds will be the biggest constraint, and the profits will be low. Will this cooperation be impossible? Then, the construction of their logistics network will be greatly restricted.
Li Zeju asked again. "Eric, we had talked about the port pilot project. Why can't the high-speed railway set up an experimental section first?"
Feng Yu's eyes brighten up. That's right. The high-speed railway can also set up an experimental section first.
Eric and Reid looked at each other. That was what they wanted to say too. First, release the news of setting up an experimental section and see the reactions of the other parties. After that, they will decide if it's worth building such a long high-speed railway.
The US is different from Hua Xia. Hua Xia is considering the overall situation. Even if the country is not making profits, it should be convenient for the people.
But in the US, this is a private investment, and they must consider profits. If it were two years ago, they might be able to ask the government for subsidies. But now, the US government has no money, and they had to sell their bonds to Hua Xia.
It's the same in the US and UK. Electricity, gas, transportation, telecommunications, etc. belong to different private companies. Even different regions have different levels of electrification. Even more than a decade ago, many states in the United States had different voltage standards. It was only at the end of the last century that they were unified. At that time, when you wanted to buy electrical appliances, you would have to tell the store what kind of equipment you needed or buy a household transformer.
In Hua Xia, they had already connected to the power grid. The local power grid also belongs to the country and must follow the country's standards. The purpose of promoting different standards was to make one's own products unique, thereby obtaining higher profits.
Everyone looked at the map for a while, and Eric suggested to build an experimental high-speed railway from Los Angeles to Las Vegas. It will pass through California.
Feng Yu and Li Zeju looked at each other and nodded. Next, they will wait for the US government's reply. Feng Yu will also communicate with China to set up a factory in the US.
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