Study On Investing And Financing Models Of Urban Rail

The urban rail mainly includes the metro, light rail, streetcar and aerotrain etc. Because the city urban rail has many characteristics such as big transportability, speediness, punctuality, less pollution, less traffic accidents and so on. Many big cities in the world all begin to use urban rail, in order to solve the problem of heavy traffic pressure. Nowadays along with fast develop speed of our country's economy, some big cities of our country also need urban rail imminently. But the investment of urban rail is very huge. The aim of this paper is to study the investing and financing models of urban rail. 1. Economic characteristics of the urban rail (1) The urban rail is quasi-public product The subway does not belong to the pure public product, also not belong to the private product. It has some public product's earmarks and private product's earmarks at the same time, so it belongs to the quasi-public product. (2) The exterior effect of the urban rail The urban rail has very strong exterior effect. It can mitigate city traffic pressure, lessen pollution and make the cities develop faster. Especially the urban rail cannot only arouse the price of the estate along the line, but also can flourish the commerce around the stations. (3) The urban rail belongs to the quasi-operating city facilities The urban rail can gain money by selling tickets and some related advertisement, business etc. But the cash flow is limited during the beginning of urban rail .So without the subsidy of government, the tickets income cannot support the operation and maintenance of urban rail. When urban rail maturate, it can gain profit margin. 2. Private capital takes part in investing and financing of urban rail (1) The problem of state-owned & state-run integral model On one hand because of the efficiency of management is low, every year the government needs to subsidize much money, so public finance bear heavy burden; On the other hand the new lines investing scale is very huge, government of public finance can't provide the construction period funds effectively. This is the problem of urban rail's financing. (2) The practicability of private capital participating urban rail item First, the nation encourage the private capital into the public enterprise section; Second, during more than 20 years of reforming and opening, our country economy develop quickly, the private section have amassed so much capital that can invest in city facilities such as urban rail; Third, private section can improve the efficiency of building and operating. 3. The model of PPP is in the application of the urban rail (1) The definition of the model of PPP The model of PPP is an institutionalization cooperation mode,including different social pioneers. Its aim is solving some complicated problems in some districts. Two meanings of it to fit the need of public products, first, building the cooperation between public sections and private sections; second, actualizing the good-sized public program on the cooperation. PPP can be divided into service contract, management contract, lease, concession, BOT/BOO and divestiture. (2) Beneficial attempts of PPP on urban rail in our country Olympics branch of Beijing metro 10 adopt BT (Build-transfer). "Four-Divided"of Shanghai, Its main principle is that investment, construction, operation and intendance allot to different social section. Beijing metro 4 adopts concession of PPP. Shenzhen metro 4 adopt BOT. (3) The risk problem of the model of PPP The participation of private sections makes the risk of urban rail program raised, so risk management become very important.4. The identification and allotment of urban rail risk (1) The risk of the city orbit transportation item identify The risk of the city orbit transportation item can be divided into two parts: the system risk and non-system risk. system risk mainly include:political and permissible risk, lawful risk and economic risk. Non-system risk mainly includes: finishing risk, operation and maintain risk and environmental protection risk. (2) The allotment of the city orbit transportation item risk The linear programs model We identify yi = yi ( ri 1 , ri 2,..., rim), i = 1,2,...,n, is the yield of i;ci = ci ( ri 1 , ri 2,..., rim) is the risk cost of i,it present the dislike of i;p i = yi ? ci present risk burden satisfaction of i. So linear program is: 1 11max ( ). . ( ), 1,2,...,n mj j ji i ii jnjiif y c rs t r const j j m= === ?= =∑∑∑ Levels analysis model Using the model allot the different factors into aim, principle and project, then 11 12 121 22 21 11 21 2[ , ,..., ][ , ,..., ]nT T nTmt t tnTtbb bC R V b b bV V Vb b bc c c? ′′′?= ′= ??? ′′′????? ′′′??=LLM M O ML is fuzzy matrix.