DocumentCode :
2995471
Title :
Discussion on operational risk and financial sustainability of Beijing-Tianjin high speed railway
Author :
Kuang Xu-juan ; Li Hong-chang
Author_Institution :
Dept. of Econ. & Manage., Civil Aviation Manage. Inst. of China, China
fYear :
2012
fDate :
20-22 Sept. 2012
Firstpage :
1800
Lastpage :
1805
Abstract :
High Speed Railway (HSR) is an environmental friendly green industry. With implementation of Medium-and-long Term Railway Network Plan, investment scale of railway construction in China expanded continuously. Other conditions kept constant, transportation volume increasing rate of High Speed Railway is lower than that of investment within certain period, which inevitably leads to the problem of railway operation risk and financial sustainability. Beijing-Tianjin Intercity HSR is the first dedicated passenger line with operation speed over 350km/h, and will confront with demand risk, competition risk, financial risk, etc., of which, financial risk refers to the risk of capital chain break and long-drawn loss. Empirical study shows that capital flow will reach balance within year set of [2020, 2024], breakeven point in 2024. Sensitivity analysis manifests that income and cost changes have minor effects on financial risk while speed value and proportion of equity-debt have significant impact. Thus, the essence of financial risk faced by Beijing-Tianjin intercity HSR and Chinese railway system lays heavily on construction scale, standard and process.
Keywords :
financial management; railway industry; risk management; sensitivity analysis; sustainable development; Beijing Tianjin intercity high speed railway; Chinese railway system; competition risk; demand risk; environmental friendly green industry; financial risk; financial sustainability; investment scale; operational risk; passenger line; railway construction; railway network plan; railway operation risk; sensitivity analysis; transportation volume; Economics; Government; Industries; Investments; Rail transportation; Rails; Beijing-Tianjin intercity HSR; financial sustainability; operational risk;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Management Science and Engineering (ICMSE), 2012 International Conference on
Conference_Location :
Dallas, TX
ISSN :
2155-1847
Print_ISBN :
978-1-4673-3015-2
Type :
conf
DOI :
10.1109/ICMSE.2012.6414416
Filename :
6414416
Link To Document :
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