Sunday, October 9, 2011

Madrid-Barcelona operating profit margin is 20%

A rather handy graphic taken from a RENFE presentation to the CAHSRA this past June, page 50. This is simply further evidence that high speed rail pays for itself and doesn't require external operational subsidies.

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  1. So, what exactly are "infrastructure charges"? Are they enough to pay off the cost of actually building the infrastructure, or just maintaining it? Or is it just some semi-random number that's more complicated?

  2. I'm not entirely sure. I'm fairly positive that it is more than maintenance (about three times what I'd expect maintenance to be based on Madrid-Seville tolls of €10/train kilometer and average European annual maintenance of €30,000 per single track kilometer), but I don't know if that fully covers capital, finance, depreciation etc. Unfortunately my computer is suffering from a fit of catatonia at present which is hampering my ability to look further into it at present.

  3. The interesting thing here is the infrastructure:rolling stock ratio. I'd have expected it to be a lot higher.