Financing Model Research Of Chengdu Metro

The underground railway which called subway, as the representative of modern urban transportation, has become the mainstream of global urban transport in late 20th century. In China, the volume of traditional low-traffic conveyance is far from the actual requirement of the citizens currently. Urban underground railway which is a public transit system based on our national conditions, is not only economic but also practical. Now the underground railway of our country is in a period of fast development, The accelerating urbanization and the current economic environment where domestic demand need to be stimulated, are providing more access to the construction. Droved by continued city expansion, the construction of underground urban rail transit has been continually processed, The MTR construction project is always the most important one in a city. With the rapid development of current metro Industry, we must also look through carefully the problems which we are facing in our country’s metro construction, so that we can plan a more rational and efficient underground rail transit system, construct a more scientific financing platform, and achieve the goal to make the urban underground railway industry operate in a sound way. Considering the status of urban subway construction and operation, the major problems of the subway project are huge investment, high costs, losing money in the formal run after completion of the project, single way of project financing, and financing difficulties. Chengdu is a city whose underground transportation system has just started and the relative experience is lacking in all sectors of the city. This problem is especially obvious. In order to ensure the smooth,on-time delivery and make benefits for the society, it’s so necessary and urgent,first to learn and master the advanced experiences and conceive of the international and domestic mature metro cities, second to find a financing model suit for the Chengdu subway construction, third to solve the problem of the most difficult part in the metro industry development -----the problem brought by the low payment rate upon the huge investment, and forth to provide the most scientific, rational and steady stream of financial support to the urban subway construction and operation of sustainable development.This paper analyzes the economic and operating characteristics of underground railway industry first, then puts forward a positive externality of its industry characteristics, combines and sums up the model adpoted by several representative subway cities home and abroad, including the single subject financial financing model, debt financing model under the guidance of the government finance, investment company’s diverse financing models and public-private partnership model. After studying the characteristics of all above models, this paper made a detailed analysis into the PPP and other models under the public & private cooperation. Then combined with the field survey, according to the development and programming of Chengdu Metro industry in recent years, this paper pointed out the problem that the existing financial model proposed by Chengdu Metro project depends too much on the government financial support and the financing model is too simple. In the summary and comparison with the financing model of advanced cities, this paper think that the future of Chengdu Metro financing model and commercial model can actively learn from the successful practice of the Hong Kong’subway, proceeds of the subway by the external transaction costs can be lower to achieve internalization, makes the output of the product to become a subway+properties of organic systems. Integration of the planning, conduct, design, construction and operation, to ensure that properties above MTR output the largest and best resource, breaking the direct exchange of capital with limited resources, to achieve benefits by virtue of resources to attract capital financing function. In short, the model can be summarized as the upgrade path from the loop, two of the ideas within, through proper selection and financing platform upgrade, build and optimize a sustainable profit model, as a starting point, with the actual situation of Chengdu, Chengdu Metro City Transit financing models propose ideas for further improvement and innovation, according to early stage of development, rapid development stage, mature stage of development to implement differentiated metro financing strategies.The contents of this report makes an appropriate strategies according to the rigorous and detailed data from enterprises in Chengdu subway platform upgrade, resource allocation and the various stages of development financing model. The main data comes from the National Bureau of Statistics, China’s underground network, Chengdu Metro Authority Limited Liability Company and other industry professionals and research institutions that belong to the actual owners of Chengdu Metro Project. The system integrates a number of authoritative data resources and expert resources, refining the data from a number of valuable information and combined with the environment in which the industry, from theory practice research and analysis, to conclusions and opinions and strive to achieve a certain forward-looking, practical and feasibility of unity. I hope it can be one of the most important basis when the relevant government departments make decisions and the subway owners in Chengdu grasp industry trends. I hope it has some reference value. However, this thesis was finished within a short time, the actual scope of the survey which based in Chengdu Metro, other metro cities in the immediate construction, operation, profitability, financing conditions have not carried out field surveys. In addition some parts of the data involved on this study still has some drawbacks, because of my knowledge limitations, some point of views are also need to be instructed by the relevant expert and to be tested by the practical situation.