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Generally I'd agree that it's better to just let the government subsidise it (or just run it) and accept the cost in exchange for the economic benefits. Howeve
by aninhumer 9y ago
Generally I'd agree that it's better to just let the government subsidise it (or just run it) and accept the cost in exchange for the economic benefits.
However, there is one way to make it work privately, and that's to capture some of those economic benefits by buying the land around stations. If someone buys some relatively cheap land near a city and then builds a train line from there to the centre, the value of that land increases and so they can charge higher rents on any housing, offices or shop units built there.
- StudentStuff 9y agoThis is illegal nearly everywhere but China, as the rail company becomes the 500 pound, rent seeking gorilla that has dominion over large chunks of a city, or state.
- crocal 9y agoNo, it is not. Plenty of examples around the world, and it generally works better. Copenhagen and Hong-Kong come to mind.
- themaninthedark 9y agoJapan as well, If you go outside major train stations in the large city there are big department stores run by the train company. https://en.wikipedia.org/wiki/Kintetsu_Department_Store https://en.wikipedia.org/wiki/Kintetsu_Department_Store https://en.wikipedia.org/wiki/Isetan#Subsidiaries https://en.wikipedia.org/wiki/Isetan#Subsidiaries