377, no. The burden of such fees is almost entirely passed on to the public, and mainly to the poor. The above data are mainly from the public database of Chinas National Bureau of Statistics, the Wind database, and provincial statistical yearbooks under the China Economic and Social Development Statistics Database. statistic alerts) please log in with your personal account. Use Ask Statista Research Service. Financing Expressways is currently the policy priority. As the reference of each period is the same frontier, the calculation obtained is a single Malmquist index: Among these, represents the input for period , and the output vector indicates the DEA efficiency value with the global leading edge as the reference plane. The company had accumulated some RMB 1.2 billion in cash reserves that it used, along with a bank loan of HK$1.4 billion ($231.3 million), to pay for the purchase of its Yongtaiwen stake, Jiang explains. Expressway feasibility studies should estimate a matrix of traffic levels, traffic diversion and toll income at various toll rates taking account of elasticity of demand to price of tolls relative to specific alternative roads. Zhang Tao / China Daily The toll for a car on the Beijing Airport Expressway is 10 yuan. Get full access to all features within our Corporate Solutions. Y. Pu and H. F. Wang, Effect mechanism of ownership structure on technical efficiency of agricultural listed company, Technology Economics, vol. Facing public pressure, Sun Yonghong, the deputy director of the Ministry of Transportations Roads Bureau, explained in an interview with Caijing that 80 percent of toll roads income went to pay principal and interest on loan debts. As the development of the Expressway system reaches a more mature stage (a total of about 108,000 km is targeted for 2015) some voices in China have been raised against either the principle of road tolls, or their practical application, or both. A. By the end of 2018, China's toll highways extended for a cumulative distance of 168,100 km, including 93,300 km of governmental loan-repayment highways, accounting for 55.5% of all toll highways in the country. As soon as this statistic is updated, you will immediately be notified via e-mail. In particular, governmental loan-repayment highways have such characteristics as franchising, monopoly, and one highway by one company. Hence, this study concentrates on the relationship between economic performance, administrative monopoly, and scale efficiency with respect to toll highways, and explores how the China-specific administrative monopoly affects the transformation of toll highways from scale to efficiency. 565, no. Therefore, no significant scale effect has emerged in the toll highway sector over a long period. But strangely, this profitable monopoly industry reports huge losses year after year. The unique management system of toll highways produces the market structure and property rights structure with Chinese characteristics. 9, pp. The. The first is the ratio of the scale of governmental loan-repayment toll highways to the total scale of toll highways, since governmental loan-repayment toll highways are affected by administrative monopoly more significantly in terms of fund source, debt structure, and operation, compared with operating toll highways. 514518, 2019. 3, 2019. 3, pp. Yet, the long-term profitability of toll-road operators isnt easy to judge. Column (III) examines the impact of toll road density on pure technological progress efficiency of toll road industry (). History. China chalks up $667-billion debt pile over toll roads By Reuters Staff 2 Min Read SHANGHAI (Reuters) - China's toll roads have stacked up a debt pile of 4.45 trillion yuan ($666.96. First, what of the idea that Expressways and other high standard roads are a social good and should be provided free of charge, paid out of taxes? 11, p. 2947, 2020. J. Q. [33] conducted an empirical study and found that the impact of private hospital entry on the efficiency of the medical industry is not significant. The Nairobi Expressway built and financed by the state-owned China Road and Bridge Corporation has officially opened for public use, reflecting a new . If we can do a placement, we reduce our gearing by half.. If we distribute RMB200 million, like we have been doing, we still have RMB 300 mil to service interest and pay the principal.. By end-2010, China had 65,055km of expressways. According to traditional economic theories, governmental monopoly of infrastructure can effectively reduce marginal costs and improve economic performance. H. Y. Lu and Y. Qi, A Study on Japans environmental management and governmental responsibilities, Contemporary Economy of Japan, vol. Learn more about how Statista can support your business. 1517, 2020. They have a good business model, says an analyst based in Hong Kong. Finally, this study conducts an extended analysis of the relationship between operational efficiency and debt in the toll highway sector. After overcoming a difficult and controversial beginning, Victoria's first private toll road has generated $5.78 billion in revenue since it opened in . Details of financial statement are still not open to the public. Based on provincial panel data, this paper then discusses the relationship between toll highway scale and economic performance through system-generalized method of moments estimation and verifies the status quo of the transformation of toll highways from scale to efficiency. 18, no. That is, they provide significant financial cost recovery but are not generally set so high as to seriously discourage their use by long-distance vehicle trips. All operators are under the auspices of Toll Road Regulatory Agency (Badan Pengatur Jalan Tol, BPJT) of the Ministry of . 24, p. 104, 2015. Its another strategy devised by the communist regime to siphon wealth from the public, says Cai Shenkun, a well-known Chinese economist and blogger. Velinov et al. 125132, 2017. D. Donaldson, Railroads of the Raj: Estimating the Impact of Transportation Infrastructure, NBER Working Paper, London, UK, 2010. 11, no. 6572, 2019. B. H. Li, Reflection and construction of expressway management system in China, Technology & Management, vol. 895947, 1997. C. Xu, The fundamental institutions of Chinas reforms and development, Journal of Economic Literature, vol. Available: https://www.statista.com/statistics/759691/china-toll-road-length-by-ownership/, Distribution of toll road mileage in China from 2017 to 2020, by ownership, Available to download in PNG, PDF, XLS format, Fixed asset investment in China's highway 2016-2021, Investments in China's rail infrastructure 2009-2021, Investment in Chinese civil aviation's infrastructure 2014-2021, Fixed asset investment in China's waterways 2016-2021, Forecast: estimated value of investment in new transport infrastructure in China 2020, Length of roads in China 2018-2021, by road type, Number of road tunnels in China 2010-2021, Rail network length development in China 2010-2021, Rail network length in China 2020, by region, Length of express railways in China 2008-2021, Length of express railways by leading provinces in China 2021, Top cities in China with 10 or more high-speed railway stations 2021, Leading airports in China 2021, by take-offs and landings, Number of certified GA airports in China 2021, by region, Length of civil aviation routes in China 1995-2020, Inland waterway length in China 2021, by river, Length of navigable waterways in China 2020, by region, Number of berths for production in China's ports 2010-2021, by port type, Number of berths in coastal and river ports in China 2021, by cargo volume, Number of berths in main coastal ports in China 2020, by use type, Number of berths in main ports of inland rivers in China 2020, by type, Quay length in China's main coastal ports 2020, by use type, Distribution of toll road mileage China 2020, by road type, Share of toll roads in the total road network in China 2014-2020, French tolled motorway network length 2001-2018, Annual revenue from toll road passage fees in China 2010-2020, Length of road bridges on expressways South Korea 2021, by province, United Kingdom (UK): timeline of total motorway length 1990-2017, Combined length of motorways in Germany 1990-2018, Dirt road length in Saudi Arabia 2019, by region, Number of motorways toll payment systems in Italy 2015-2018, by type of payment, National highways South Korea 2021, by type, Combined length of motorways in Sweden 1990-2018, Combined length of motorways in Denmark 1990-2018, Revenue of toll roads & weigh stations in the U.S., 2008-2013, U.S. toll roads - average toll per transaction 2011-2012, Electronic toll collection - global market size 2013-2018, Find your information in our database containing over 20,000 reports. K. R. Shen and G. Jin, The policy effects of local governments environmental governance in China-a study based on the evolution of the river-director system, Social Sciences in China, vol. 17, pp. Hidden in plain sight: Alabama toll roads. Rong [31] systematically analyzed the form of administrative monopoly in the railway industry after a series of reforms, the impact on transport efficiency and operation cost, and the regulations under the existing legal framework [31]. October 28, 2021. The estimated coefficient of toll road density is 6.678, which is statistically significant at 1% level. IBM: Personal Computer Divison. Therefore, rationally defining the governments functions in the industry and formulating a scientific reform path is the focus of this research. 8296, 2018. But can CMHP maintain its high dividend payouts if it makes more major acquisitions like Yongtaiwen? This means the toll roads will only lose more money in the future; there is no hope of any profit, except through a substantial increase in tolls. The excuse that the loan needed to be repaid and that there were huge maintenance fees has been used by central and local transportation management departments for a long time to quell public anger. [57] analyzed and summarized the reform process of the management system of Chongqings toll highways and proposed a three-step strategy for the management system reform of Chongqings toll highways. Find out what happens if you travel on a toll road without a valid account or pass. 79, no. Wang et al. However, the positive effect is weakened by significant fiscal decentralization. M. S. Qi, On the entropy effect of public administration systemon the law of decreasing management efficiency, The Journal of Yunnan Administration College, vol. T. H. Zhang and S. H. Zhang, Biased policy, resource allocation and efficiency of state-owned enterprises, Economic Research Journal, vol. In economic terms a similar argument can be made; after an Expressway has been built, the capital cost of construction having been sunk (and irrecoverable) it can be argued that it makes sense to set tolls equal to short-term marginal cost only and maximize use of the new infrastructure. The deputy directors explanation was nothing new. As early as Dec. 24, 2014, The Beijing News questioned the validity of losses claimed by the toll roads bureau year after year. In addition, a large amount of all kinds of fines are privately collected. Therefore, the suggestion is to actively pilot a 2-level operating and management mode of branch office-toll station and explore the management mode of large administrative regional branch company-management office-toll station. Adopting the operational model innovation by lowering the cost and increasing efficiency will lead to operational management intensification and help in achieving the goal of realizing industry operational efficiency with economies of scale. Paul Yong, an analyst at DBS Vickers, calls the acquisition of the Yongtaiwen expressway a transformational deal, because of the significant boost it will give to CMHPs top and bottom lines. Operationally, Chinas toll highway sector is characterized by an administrative monopoly. The operation management system of toll highways refers to the organizational form and the acting mechanism that are intended to ensure the normal operation of toll highways. Meanwhile, Jiangsu Expressway and Zhejiang Expressway distribute 70% of their earnings; Yuexiu Expressway distributes 60%; while Anhui Expressway and Shenzhen Expressway distribute 40% to 50%. If maintenance is inadequate it can deteriorate quite rapidly, particularly in adverse climates or with high axle loads. At the initial stage of reform and opening-up, Chinas economic development first encountered a severe shortage of infrastructure. The sign and significance level of the core explanatory variables and the main control variables have not changed significantly, which means that the conclusion is stable and credible from the perspective of industry structure. 34, no. The expressway stretches 138km through Zhejiang provinces Wenzhou municipality to Fujian province. In China, there is a special economic relationship between the central government and the local governments. Specifically, huge fund investment is required throughout the construction, operation, and maintenance of toll highways, and toll income alone cannot cover the huge debt burden. 5358, 2008. This outcome means that the increase in toll road mileage in the western and northeastern provinces has not improved scale efficiency. Considering the possible impact of administrative monopoly, we propose the following hypothesis: Hypothesis 1. "Percentage of toll roads in the overall road mileage in China from 2014 to 2020." The Malmquist model of the global reference proposed by Pastor and Lovell [69] is a Malmquist index calculation method. Published by Statista Research Department , Oct 7, 2022 In 2020, about 43.2 percent of overall toll road mileage in China were state-owned and 56.8 percent were privately owned. Provincial governments finance most road construction through debt, which is to be repaid by tolls. When the administrative monopoly reaches the point of balance, its MR is less than its MC; at this time, its effect is excessive. This strategy not only lacks social responsibility, but is also illegal. 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