Tuesday, March 13, 2012

On the right track


Last year Shenzhen made a great new addition to their metro-transit system.  The approaching XXVI Universiade Games gave them a deadline and motivation to better their public transportation system.  The main part of this story isn't actually the $900 million expansion, but rather how it came to be.  Public transportation systems have long been a money pit and this has proven true in many different countries.

Financing for these transportation systems have been provided by an exchange for land to be developed and the profits fund the railways, or just government grants.  The financing had not yet been decided, but was expected to reflect southern China's political development.  Many expected it to show maturity and the negating of risky ventures to make the venture profitable.

http://www.economist.com/blogs/schumpeter/2011/06/chinese-mass-transit

Dallen Shakespear

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