Is high speed rail an appropriate solution to China’s rail capacity problems?

This paper addresses the question of whether the construction of new high speed lines is the most cost efficient way of solving the rail capacity problems of China. China has the most heavily used rail network in the world and rail traffic has doubled in the last 10years. Rail continues to have a major share of both passenger and freight markets. The need for a large increase in rail capacity seems clear. If volumes are high enough, there is an argument that system efficiency is maximised by segregating freight and passenger traffic in order to eliminate conflicts between the two and thus maximise capacity utilisation. In Europe this has often been achieved by building new high speed lines for passenger traffic, and leaving existing lines to freight and regional passenger services. It is argued that if a new line has to be constructed, then it is worth the additional cost of providing for high speeds for the extra benefits this brings.