7 ms·
+1 - add in that they also get a lot of money from developing land adjacent to their rail lines, and operating things department stores, apartments, bus lines,
by norgie 4y ago
+1 - add in that they also get a lot of money from developing land adjacent to their rail lines, and operating things department stores, apartments, bus lines, etc. They don't get all their money from providing rail services.
- csdreamer7 4y agoI barely remember that, but that is how the old dos game A-train was based off of.
- _dain_ 4y agoYeah, although IIRC some/many Japanese railways are still profitable even discounting the land development interests. Twitter trainman @380kmh has written about this but I can't find the thread right now. It's just the private version of transit-oriented development[1]. It's a good way to align incentives. The railway increases the value of the land around the stations, so the railway company gets to enjoy some of that benefit. Having the most salient product/service as a loss-leader for the real money-maker behind the scenes is a very common business strategy. Hell, it's how American railroads got built in the old West. It's how London became Greater London. Many governments seem to have forgotten this basic stuff ... they'll do silly things like keep restrictive low-density anti-retail zoning codes in the areas around train stations. And then they wonder why the promised benefits of the railway didn't arrive and people still drive everywhere. Or they won't see any benefit to pre-emptively expanding the network into new places because "nobody lives there", reversing cause and effect. [1] https://en.wikipedia.org/wiki/Transit-oriented_development https://en.wikipedia.org/wiki/Transit-oriented_development