Fewer people take Beijing subway on first day of fare increase
10pc fall in passengers as capital scraps flat ticket price on heavily subsidised system
The Beijing subway saw a 10 per cent drop in passenger numbers on the first day of a fare hike yesterday.
The price rise, part of the capital's initiative to overhaul oversubsidsed public transport, also came as the city launched four new or extended lines to extend its subway network to 527km.
Beijing's public transport system cost 20 billion yuan (HK$25.25 billion) to operate last year.
Yesterday marked the end of the two yuan flat fare for all journeys. But even with the higher rates, the ticket price still only accounts for half the operating cost, which works out to about 8.5 yuan per passenger.
Transport Minister Yang Chuantang called for more market-driven reform of the public transport system, especially in infrastructure investment and financing.
He also urged more cooperation between public and private funding in the sector.
The two yuan fare had been in place since 2007. Under the new pricing scheme, passengers are charged more the farther they go. Fares start at three yuan for 6km and rise to six yuan at 32km. Another 20km is an additional one yuan.