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
Dallen Shakespear
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