Toll plaza at the junction of National Highways G106 and G316 in Tongshan County, Hubei Nearly all Chinese expressways and express routes charge tolls, although they are not often networked from one toll expressway to another. Accessed January 18, 2023. https://www.statista.com/statistics/759691/china-toll-road-length-by-ownership/, Ministry of Transport of China. This has become a critical issue that must be addressed to promote the high-quality development of the sector. 53, no. (October 28, 2021). Collection of tolls is a significant part of the cost of operating an Expressway, particularly as each new section involves a different company. 1, pp. This is an open access article distributed under the. The Toll Roads have introduced a new discount program for prepaid FasTrak accounts. As a Premium user you get access to the detailed source references and background information about this statistic. 1, pp. Although the above arguments favor maintaining the principle of road tolling, a number of issues have arisen in the implementation of policy that may suggest improvements in application. Table 6 lists the parameter estimation results of equation (6) when the ratio of general budget expenditure in local public finance to regional gross domestic product is used as the proxy variable of administrative monopoly. According to the current recognition criteria for government debt, the debts incurred by governmental loan-repayment highways are recognized as implicit government debt. Over the years, nonprofit highway authorities have been restructured as enterprise groups, and regional transportation authorities have roughly developed two operation management systems for provincial governmental loan-repayment highways. If you are an admin, please authenticate by logging in again. A number of levels and institutions have been set up, and the increase in economies of scale is first shackled by the operating system. 12, pp. Two very important economic principles argue for charging for the use of high-standard roads. 19YJA790097). The single property right structure under the control of the state-owned government repayment roads severely constrains the resource allocation role of the market mechanism and provides objective conditions for the formation of an excessive administrative monopoly. T. Li, Study on the Expressway Management System of Jilin Province, Changchun University of Technology, Beijing, China, 2017. The country built its first modern expressway 23 years ago - a toll road that linked Shanghai to Jiading, a satellite town. Find out how to use toll roads and how much it could cost. 4, pp. A. N. Berger and L. J. Mester, Inside the black box: what explains differences in the efficiencies of financial institutions?, Journal of Banking and Finance, vol. And, CMHP is trading at 5.9 times earnings compared with Jiangsu Expressways eight times and Zhejiang Expressways 7.8 times. Annual average operating efficiency and index breakdown by province between 2013 and 2017 (with 2010 as the base period). 21, no. The academic literature widely accepts that highway infrastructure can promote regional economic development. 32, no. This has been partly offset by higher than forecast traffic growth rates. Foreign Companies Are Buying Up American Highways and Bridges Built by U.S. Taxpayers. M. C. Naughton and R. Frantz, X-efficiency, rent-seeking and social costs: comment, Public Choice, vol. Gaps remain in the Expressway network and continuation of the NTHS program is both sustainable and desirable. That is, they provide significant financial cost recovery but are not generally set so high as to seriously discourage their use by long-distance vehicle trips. The Toll Roads are owned by the state of California and operated by The Transportation Corridor Agencies (TCA). However, during 20102017, the compound annual growth rate of toll road mileage is 1.03%, while the annual compound growth rate of the SEC is only 0.56%, which is much smaller than the former. This work was supported by National Natural Science Foundation of China (grant nos. Hypothesis 2 is further verified from the perspective of industrial property structure. 34, no. All operators are under the auspices of Toll Road Regulatory Agency (Badan Pengatur Jalan Tol, BPJT) of the Ministry of . By the end of 2018, the total length of China's expressway network reached 142,500 kilometers, the world's largest expressway system by length, having surpassed the overall length of the American Interstate Highway System in 2011. This is an abridged translation of Cai Shenkuns article posted on the authors. Toll roads are operated by state-owned company and various private companies. 34, pp. Improving the supply quality and efficiency of public service has always been the core pursuit of government managers and scholars. Its headquarters are in Houston. 4, pp. Since then, analysts have touted the possibility of CMHP gradually acquiring more toll roads from its parent. Last week, Gamuda said it was in favour of accepting the federal government's offer to take over Lingkaran Trans Kota Holdings Bhd . Yong says that CMHPs announcement of an interim dividend of 2.5 cents a share for 1HFY2011 also helped stoke the positive sentiment. (STR/AFP/Getty Images), What Chinas Highway Robbery-Style Toll Roads Say About its Economy, a well-known Chinese economist and blogger, Facing public pressure, Sun Yonghong, the deputy director of the Ministry of Transportations Roads Bureau, explained in an interview with. You can only download this statistic as a Premium user. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. Roads also reduce rural isolation and improve citizens access to jobs, health facilities, education and social services. Many researchers contend that the management system of the infrastructure sector should be reformed by taking the paths of competitive intervention, privatization of public sectors, and diversification of public investors [5254]. His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.You can read more about Kyith here. 2630, 2013. Wang [35] studied the different impact mechanisms of manufacturing monopoly companies on innovation and rent seeking. Table 5 lists the parameter estimation results of equation (5) after toll highway density is replaced, where (I) and (II) are robust least squares estimation of heteroscedasticity using mixed cross-sectional data, (III) and (IV) are generalized method of moments (GMM) estimates of panel data. Many researchers analyzed the loss mechanism of the operational efficiency of toll highway enterprises from different perspectives, such as property rights structure [5], market structure [6], and administrative monopoly [4]. Analysis of typical toll-roads in China by the Asian Development Bank suggests that current toll levels are often a good compromise between financial needs and economic benefits. The research on administrative monopoly and economic performance has gradually expanded from qualitative analysis to quantitative analysis to empirical testing of specific impact mechanisms. 114, pp. Jiangsu Expressway Company has grown revenue from 7.8 billion CNY in 2012 to 9.4 billion CNY in 2017. Yong of DBS Vickers has a Buy rating on the stock, with a price target of $1.02. Regionally, the average operating efficiency of central provinces from 2013 to 2017 is 1.0524, which is higher than that of the rest of the country. The Toll business was founded in Newcastle, Australia in 1888 by Albert Toll when he began hauling coal by horse and cart. The operation management system of toll highways refers to the organizational form and the acting mechanism that are intended to ensure the normal operation of toll highways. Fan and L. J. Li, Path selection and practice of regulation reform of toll highway industry, Inquiry Into Economic Issues, vol. L. Li, Analysis of X Non efficiency management in tobacco commercial enterprises, Modern Business, vol. Yong is also confident that CMHPs high dividend yield of 8%, based on a projected distribution of five cents a share for the full year, would tempt more investors to buy more of the stock. The deputy directors explanation was nothing new. Accessed January 18, 2023. https://www.statista.com/statistics/759636/china-percentage-of-toll-roads/, Ministry of Transport of China. Here's a quick look at who owns which toll roads in the State of Florida Florida Turnpike Enterprise (covered by DeSantis program) Florida TurnpikeHomestead Extension (SR 821)Polk Parkway (SR 570)Suncoast Parkway & Veterans Expressway (SR 589)Sawgrass Expressway (SR JTSE operates 11.57 km length toll road connected to the toll roads operate by BMN, from the Tallo bridge to the Mandai Makassar intersection and providing direct access to the Sultan Hasanuddin International Airport. He writes columns for a number of prominent business websites and was named a Top Ten Influential Blog Writer on Phoenix Televisions website for three consecutive years. Again, government regulations and policies could be a key stumbling block here. Use Ask Statista Research Service. This is not a good scenario for both users and non-users. 6, pp. For a country such as China, with annual transport demand growing in double digits, a rapidly growing fleet of road vehicles, but a road network that is far from being complete, the critical policy focus is finance. But Jiang first needs to get investors sufficiently interested to drive shares in CMHP high enough for its controlling shareholder to back a placement of new shares. Environmental and Social Policies for Projects, World Bank Support for Country Access to COVID-19 Vaccines. Use of a common tolling system by Provinces may also have some advantages, and cost-effective to administer. 01:25 Xi sets tone for future Belt and Road development at Beijing forum On the one hand, the government has interfered too much with the market players, constraining the vitality and space of social capital and creating power rent-seeking and corruption. According to Chinas Ministry of Transportation, 95 percent of Chinas highways are toll roads. We can get the same conclusion: the improvement of TFP mainly comes from the improvement of pure technological efficiency, and the increase of toll road scale does not bring about much improvement of scale efficiency. 88107, 2019. In practice, the excessive administrative monopoly of the toll road industry leads to the coexistence of the offside and the absence of the functions of the government industry authorities. F. H. Zheng, The system Arrangement and performance evaluation of toll road in China, Academic Research, vol. The current operation management system of Chinas toll highways is characterized by one highway by one company and one highway by one management office. Specifically, for each newly built toll highway, an extra branch office or management office is set up under a group company or highway authority; then, toll management stations are set up under the management office, and toll stations are set up under the management stations. Conversely, the more essential the goods are to the poor, the greater the proportion of transport costs becomes, and the greater the burden to the public. However, because of the large number of Provinces and companies involved, there is considerable variability. You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker. Evidently, the inherent administrative monopoly in the toll highway sector, if controlled to an appropriate extent, can promote the development of the sector. 12531267, 2018. Yet, the long-term profitability of toll-road operators isnt easy to judge. The multilevel analysis and empirical test above show that these factors affect the transformation from sector scale to TFP or scale efficiency. Currently, you are using a shared account. C. Y. Statista. 3, pp. Many of the 15 are only traded in Shanghai, so US-based investors don't have access but it looks as though five of the 15 have US ticker symbols including the two largest companies in the space. At the initial stage of reform and opening-up, Chinas economic development first encountered a severe shortage of infrastructure. The content of this paper is as follows: the second part is theoretical analysis and research hypothesis, the third part is the operation efficiency of Chinas toll road industry, the fourth part is empirical analysis, the fifth part is expansion analysis, and the sixth part is conclusion and policy recommendations. Recently, shares in toll-road operators have been weighed down by speculation that government will lower toll rates. Toll Road Operatio in China industry statistics Biggest companies in the Toll Road Operatio industry in China Toll rate structures may be improved without dropping the tolling principle. statistic alerts) please log in with your personal account. For the construction of toll roads, charge management, maintenance, service area operations, etc., the market mechanisms can play a role, and the effective allocation of economic resources should be returned to the market to ensure the priority role of the market mechanisms in resource allocation. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. This is a list of toll roads in Indonesia grouped per province. He figures the threshold for this would be when shares in CMHP rise above their net asset value of 76 cents apiece. Use Ask Statista Research Service. That pushed its gearing up from zero to 40%. The five expressways are located in the provinces that are expected to benefit from the sustainable economic growth and strategic development of China. J. Y. Wang and H. C. Xu, Measurement and management of administrative monopoly in toll road industry, Academic Journal of Xian Jiao tong University, vol. 2, pp. According to Jiang, the highway could boost the companys annual cash flow to some RMB500 million, which he believes will enable it to service its debts, gradually repay its bank borrowings and continue paying decent dividends. 13, no. The government then began to build large-scale road, rail and canal systems using taxpayer money, and these are mostly free, as public infrastructure invested by public funds should be used by the people. The results of these calculations are shown in Tables 1 and 2 . [11] and Wei et al. A recent government directive sought to curb the acquisition and listing of state-owned toll roads, in particular in Guangdong province, that could be acquired. Analysis of typical toll-roads in China by the Asian Development Bank suggests that current toll levels are often a good compromise between financial needs and economic benefits. For the panel data selected in this paper, the global reference DEA-Malmquist index is used to measure the operational efficiency of Chinas toll roads from 2010 to 2017. This includes personalizing content and advertising. Disclaimer & Privacy Policy . Countries as diverse as Australia, Brazil, France, Germany (goods vehicles) India, Italy, Japan, Mexico, Switzerland and others have widely adopted road tolling (through various means). 1623, 2019. Second, it is necessary to realign the toll operations and management model. Statista. Roads in China may refer to Expressways of China, China National Highways, International Roads to China, as well as other streets and roads in China. 11, p. 2947, 2020. Toll Road Operatio in China industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. 47-48, 2011. Meanwhile, Jiangsu Expressway and Zhejiang Expressway distribute 70% of their earnings; Yuexiu Expressway distributes 60%; while Anhui Expressway and Shenzhen Expressway distribute 40% to 50%. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Use. As a result, the length of highway sections varies significantly, and the highway section operated by a small-scale branch office can be as short as a few dozen kilometers; hence, it is very difficult to allow full play to scale efficiency. Q. Li, Harm and breaking path of the administrative monopoly for tolling road, Highway, vol. 21, no. "Distribution of Toll Road Mileage in China from 2017 to 2020, by Ownership. Our accounts and passes make it easy to pay all your Queensland tolls, including . 06, pp. This algorithm, in turn, causes the decision units of different periods to lack the benchmark for vertical comparison. Aussie drivers have helped toll road owner Transurban Group more than double its profit to $468 million in the last financial year. Its another strategy devised by the communist regime to siphon wealth from the public, says Cai Shenkun, a well-known Chinese economist and blogger. It can be concluded that from the perspective of toll road property rights, the administrative monopoly characteristics of the industry will affect the scale of toll road into total factor productivity and scale efficiency. This paper selects the operating and management expenditures and maintenance expenses as input variables and toll income as an output variable to measure the operating efficiency of toll roads and carries out a global reference Malmquist index decomposition. Evidently, excessive administrative monopoly is the reason that hinders the scale efficiency of toll roads. It is also costly to Provinces in the imposition of premature reinstatement or replacement costs. That is, the increasing road scale has an effect on the promotion of total factor productivity in the industry, but excessive administrative intervention greatly reduces the economies of scale. California Route 241 has always been considered "premier" by California residents but was recently acquired by the Australian Infrastructure Fund (AIXF) for $130 million. There have been five U.S. leases of toll roads under a long-term public-private partnership concession agreement. And finally, how much has been the annual collection of various tolls across the country over the years? Hidden in plain sight: Alabama toll roads. However, these are all arguments for a more scientific and market-sensitive basis for setting tolls and not arguments against road tolling itself. Published by Statista Research Department , Oct 7, 2022 In 2020, about 43.2 percent of overall toll road mileage in China were state-owned and 56.8 percent were privately owned. 10, pp. 1, pp. China chalks up $667-billion debt pile over toll roads By Reuters Staff 2 Min Read SHANGHAI (Reuters) - China's toll roads have stacked up a debt pile of 4.45 trillion yuan ($666.96. X. Mao, J. Gan, and X. Zhao, Debt risk evaluation of toll freeways in Mainland China using the grey approach, Sustainability, vol. 5263, 2015. The. This is because the cash flow of toll-road operators is higher than their net profit, Says Yong. Last year, Yongtaiwen reported earnings of RMB430 million. They have a good business model, says an analyst based in Hong Kong. October 28, 2021. R. Faer, S. Grosskopf, and R. Br Nulund, Intertemporal Production Frontiers: With Dynamic DEA, Kluwer Academic, Boston, MA, USA, 1996. 73, pp. 358367, 2016. J. Huang and J. Q. Liu, Morality: a good way to solve the problem of X inefficiency in family business governance, Journal of Urban Studies, vol. 310, no. Q. L. Wang, Y. R. Zheng, Z. Y. Qiu, and X. P. Li, Appropriate degree of paternalism in state-owned economy of toll road industry, Economic Problems, vol. Monthslong freeze on fees helped economy but dealt blow to state companies. In addition, it is rare to find papers that analyze the inefficient operation of the toll road industry from the perspective of economies of scale. ", Ministry of Transport of China, Percentage of toll roads in the overall road mileage in China from 2014 to 2020 Statista, https://www.statista.com/statistics/759636/china-percentage-of-toll-roads/ (last visited January 18, 2023), Percentage of toll roads in the overall road mileage in China from 2014 to 2020 [Graph], Ministry of Transport of China, October 28, 2021. W. Luo, Research on Internet Industry Innovation System and its Efficiency Evaluation, Beijing Jiaotong University, Beijing, China, 2014. Yet, the long-term profitability of toll-road operators isn't easy to judge. 1517, 2020. After overcoming a difficult and controversial beginning, Victoria's first private toll road has generated $5.78 billion in revenue since it opened in . As early as Dec. 24, 2014, The Beijing News questioned the validity of losses claimed by the toll roads bureau year after year. Much like other toll-road operators, the key attraction of CMHPs stock is its potentially high dividend payouts. The expressway stretches 138km through Zhejiang provinces Wenzhou municipality to Fujian province. Many of these infrastructure networks are also provided in China and elsewhere by the public sector but it is not presumed that users should not pay for using these networks. Chart. Using toll roads. The above data are mainly from the public database of Chinas National Bureau of Statistics, the Wind database, and provincial statistical yearbooks under the China Economic and Social Development Statistics Database. 396, no. In addition, X-inefficiency is also applied to the tobacco industry [24], Internet industry [25], family firms [26], National Defense Science and technology industry [27], insurance industry [28], forestry [29], etc. Implementing the optimization of the property rights structure is an important way to break the administrative monopoly of the industry. 93116, 2018. The results of the robustness test show that we can still obtain parameter estimation results that are highly consistent with those based on the reference after toll highway density (a proxy variable) is replaced. The administrative monopoly is found to increase the debt burden of the toll highway sector and to have a negative impact on the long-term sustainability of the sector. 11, no. Please create an employee account to be able to mark statistics as favorites. Before the administrative monopoly reaches the point of balance, its MR is greater than its MC. 152161, 2019. As noted, toll collection is currently decentralized based on the tolls established of individual companies or in some cases based on a provincial system under which tolls are collected by the Province and reallocated to the companies operating in the Provinces. The first is the ratio of the scale of governmental loan-repayment toll highways to the total scale of toll highways, since governmental loan-repayment toll highways are affected by administrative monopoly more significantly in terms of fund source, debt structure, and operation, compared with operating toll highways. In China, there is a special economic relationship between the central government and the local governments. CMHP can continue to leverage its parents network and connections to buy more quality toll-road assets either from CMG itself or other third parties.. The estimated coefficient of toll road density is 6.678, which is statistically significant at 1% level. Why is Chinas huge toll road system running massive losses despite billions of income from toll fees? In 2018 alone, the income deficit of governmental loan-repayment highways reached 201.85 billion yuan. Additionally, growing traffic levels will anyway reduce the average cost of collection per vehicle. The Spaniards "modernized" a huge network of Native American trails and roads from South America to Louisiana to California and north through Indian Territory during their colonial reign in the Americas. 4, pp. By the end of 2018, Chinas toll highways extended for a cumulative distance of 168,100km, including 93,300km of governmental loan-repayment highways, accounting for 55.5% of all toll highways in the country. Total length of express ways in China 2009-2021, Number of civil airports in China 2000-2021, Total length of public roads in China 2008-2021, Number of road bridges in China 2010-2021. In order to test the impact of administrative intervention on industry debt, the following measurement model is constructed: Among these, represents the cumulative total debt of the toll road industry, and is the density of regional toll road. For one thing, toll rates are determined by individual provincial governments. We want to create the conditions and gauge market support, he says. Profit from the additional features of your individual account. In the field of toll highways, a wide range of studies on administrative monopoly and economic performance mainly focuses on the form of administrative monopoly in the toll highway industry and the influence mechanism of administrative monopoly on performance. Global data and statistics, research and publications, and topics in poverty and development. Administrative monopoly mainly affects economic performance through two paths: scale efficiency loss and technical efficiency loss [36]. 8995, 2009. In economic terms a similar argument can be made; after an Expressway has been built, the capital cost of construction having been sunk (and irrecoverable) it can be argued that it makes sense to set tolls equal to short-term marginal cost only and maximize use of the new infrastructure. 173, no. 157179, 2019. [32] used absolute market concentration and relative market concentration to represent the administrative monopoly degree of civil aviation transportation industry, and empirically tested the relationship between administrative monopoly and production efficiency. Even in the USA, more than 4,000kms of the Interstate Highway system are tolled. 125130, 2015. Strengthening the governance structure in this way, and matching tolls to identified long-term needs in a transparent way, might also increase the public acceptability of road user charges. Subsequently, China underwent miraculous economic growth, during which the rapid development of highway infrastructure played a pioneering role. G. Duranton and M. Turner, The Fundamental Law of Road Congestion: Evidence from US Cities, American Economic Review, London, UK, 2011. 2020, Article ID 8885308, 2020. [3] stated that the operational efficiency of toll highways is the key to reducing operating costs and achieving sustainable infrastructure. It is not difficult to predict the consequences of removing tolls from expressways after the loans are repaid: premature road deterioration, worsening safety, congestion, and complaints from non-users. Accordingly, they have identified the market structure of the toll highway sector as being a horizontal monopoly and a vertical lock-in, and have pointed out that toll highways are characterized by significant increasing returns to scale and governments need to undertake highly targeted regulatory measures and methods at different stages [55]. As a Premium user you get access to the detailed source references and background information about this statistic. More innovative financing methods accessing private investment may be sought, though is not a full solution for funding Expressways where there is lower traffic density and/or more costly terrain, where financial returns may be lower and more risky. 198, no. Please create an employee account to be able to mark statistics as favorites. Because of lack of transparency in China, this problem is often not within the publics range of supervision. When the administrative monopoly reaches a degree where the MR is equal to the MC, the effect of the administrative monopoly on the toll highway sector is optimal or rather appropriate. Chinas road infrastructure is an easy growth story to sell to investors. Guihuang expressway is a good asset. The World Bank Group works in every major area of development. We use cookies to understand how you use our site and to improve your experience. Register in seconds and access exclusive features. We look more to growth in traffic, Jiang says. However, its role in transforming sector scale into TFP and scale efficiency is significantly weakened by the interaction between administrative monopoly in the sector and toll highway density. [56] contend that toll highways should be operated as enterprises through a shareholding reform to prevent various problems (e.g., ambiguity of power and responsibility, confusion about the functions of governments and enterprises, policy conflict between different departments, and inefficiency); Liu et al. The amount of Expressway toll charged therefore affects the traffic level on both roads. Share of toll roads in the total road network in China 2014-2020 Published by Statista Research Department , Oct 7, 2022 In 2020, toll roads made up a share of 3.45 percent of the overall. S. Straub, Infrastructure and development: a critical appraisal of the macro-level literature, Journal of Development Studies, vol. H. C. Xu, X. Wei, B. Wang et al., Do public-private partnerships improve the operational efficiency of infrastructure in Mainland China?, Advances in Civil Engineering, vol.
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