Fast track to big economic benefits

High-speed rail projects on the mainland and in Hong Kong have been criticised by some for being too expensive, but they create broader economic benefits not measured in traditional cost-benefit analysis, according to a study by the World Bank.

Analysts agree.

"High-speed rail will push [mainland] China's economy forward significantly," said Anthony Wong, a former president of the Hong Kong Logistics Association, citing the Chinese proverb, "When the road is through, the money will flow".

The comments followed a report by the World Bank, which stated: "The wider economic benefits of high-speed rail in China seem more significant than in developed countries. [The projects] have the potential to deliver significant benefits."

The report said the high-speed railway between Guangzhou, in Guangdong province, and Nanning, in Guangxi, would generate benefits of 99 billion yuan (HK$122.9 billion) over the next 30 years. This comprises 50 billion yuan in direct benefits, including savings in passenger time and ticket sales, and 49 billion yuan in indirect economic benefits not captured in conventional cost-benefit analysis.

After the rail line opens later this year, travel time between the cities will be slashed from 11 hours to three.