China's Engineering Mega-Projects Dwarf the Great Wall 206
HughPickens.com writes:
David Barboza has an interesting article in the NYT about China's engineering megaprojects. For example, there's the world's longest underwater tunnel, which will run twice the length of the one under the English Channel, and bore deep into one of Asia's active earthquake zones, creating a rail link between two northern port cities, Dalian and Yantai. Throughout China, equally ambitious projects with multibillion-dollar price tags are already underway. The world's largest bridge. The biggest airport. The longest gas pipeline. Such enormous infrastructure projects are a Chinese tradition. From the Great Wall to the Grand Canal and the Three Gorges Dam, this nation for centuries has used colossal public-works projects to showcase its engineering prowess and project its economic might.
In November, for example, the powerful National Development and Reform Commission approved plans to spend nearly $115 billion on 21 supersize infrastructure projects, including new airports and high-speed rail lines. "Clearly, China's cost advantages are going to shrink somewhat over the longer-term and prices for projects are only going to rise," says Victor Chuan Chen. "I think the government has done an admirable job in getting many of these projects off the ground while the economics were still very favorable." China is pushing the boundaries of infrastructure-building, with ever bolder proposals. The Dalian tunnel looks small compared with the latest idea to build an "international railway" that would link China to the United States by burrowing under the Bering Strait and creating a tunnel between Russia and Alaska.
But whether China really needs this much big infrastructure — or can even afford it — is a contentious issue. Some economists worry that China might eventually be mired in enormous debt (PDF) and many experts say such projects also exact a heavy toll on local communities and the environment, as builders displace people, clear forests, reroute rivers and erect dams. "It makes sense to accelerate infrastructure spending during a downturn, when capital and labor are underemployed," says David Dollar. But "if the growth rate is propped up through building unnecessary infrastructure, eventually there could be a sharp slowdown that reveals that the infrastructure was really not needed at all."
In November, for example, the powerful National Development and Reform Commission approved plans to spend nearly $115 billion on 21 supersize infrastructure projects, including new airports and high-speed rail lines. "Clearly, China's cost advantages are going to shrink somewhat over the longer-term and prices for projects are only going to rise," says Victor Chuan Chen. "I think the government has done an admirable job in getting many of these projects off the ground while the economics were still very favorable." China is pushing the boundaries of infrastructure-building, with ever bolder proposals. The Dalian tunnel looks small compared with the latest idea to build an "international railway" that would link China to the United States by burrowing under the Bering Strait and creating a tunnel between Russia and Alaska.
But whether China really needs this much big infrastructure — or can even afford it — is a contentious issue. Some economists worry that China might eventually be mired in enormous debt (PDF) and many experts say such projects also exact a heavy toll on local communities and the environment, as builders displace people, clear forests, reroute rivers and erect dams. "It makes sense to accelerate infrastructure spending during a downturn, when capital and labor are underemployed," says David Dollar. But "if the growth rate is propped up through building unnecessary infrastructure, eventually there could be a sharp slowdown that reveals that the infrastructure was really not needed at all."
Infrastructure (Score:4, Insightful)
It's easy for us in the US to decry China building massive projects, when we already have our transcontinental rail, interstate highways, panama canal, etc. which would require so much 'environmental review' today, (just look at the difficulty of building modern nuclear power plants.)
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Re:Infrastructure (Score:4, Interesting)
Many roads benefit taxpayers whether they use them or not, for example, roads that carry freight, or roads that take the load away from other roads that the taxpayer does use. So while a taxpayer may not be willing to pay in the hopes that somebody else will, the taxpayer still better pay. That is why having a government and tax laws is not necessarily all bad.
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I don't think anybody doubts that. But the important question is whether each road is a net benefit. (A "net" benefit is when the benefit exceeds the cost.)
When we pay for roads with user fees, it's a simple thing to determine whether they are worth the cost (simply calculate revenue minus costs to the supplier), but it's almost impossible to tell when we pay for them with non-user taxes.
The other problem that occurs when we don't ask people to pay f
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I just hope some
Re:Infrastructure (Score:4, Informative)
It's easy for us in the US to decry China building massive projects
We shouldn't decry them. We should envy them. I wish America was still capable of doing stuff like this. Here in California, it will take 30 years to complete our high speed rail at a cost of $500,000 per seat. The Chinese built the longer Shangai-to-Beijing line in three years, for less than a tenth of the cost.
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The main reason they can build so quickly is that the Chinese government routinely kicks huge numbers of its citizens out of the areas where they want to build their infrastructure. That's not something to envy.
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Why do I hear so many cases of eminent domain being used to build malls and WalMarts, or indeed to *block* Walmarts?
http://abcnews.go.com/WNT/Indu... [go.com]
http://www.huffingtonpost.com/... [huffingtonpost.com]
http://www.denverpost.com/head... [denverpost.com]
http://bizwest.com/eminent-dom... [bizwest.com]
Not so sure the US is all that different to China in that regard...
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Their high speed rail doesn't have a great safety record though. It's still impressive, but also old technology. Japan is taking a couple of decades to build a new maglev line, which will eventually reach speeds in excess of 900 KPH. Just as the rest of the world is catching up with high speed rail, they are ditching the rails.
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It's easy for us in the US to decry China building massive projects...
Somebody was decrying? Slight terminology skew, perhaps you meant "deride", which does seem to be the intent of mischaracterizing infrastructure projects as showcases. Any American who feels the urge to to deride other country's showcases should just mutter "Mount Rushmore" to themselves.
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Mt. Rushmore wasn't built by the U.S. government. It wouldn't be allowed in China unless it depicted one of their dickless leaders.
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All of these finished years ago before NIMBYs and lawyers stifled everything. Good for China on its new mega-projects. The value returned to their economy will more than pay the debt associated with construction, contrary to the New York Times weenie's assertions.
Re:Infrastructure (Score:5, Insightful)
Communism gets projects moving. In the U.S., everyone on the path of an infrastructure project will file a lawsuit to block it.
This has nothing to do with communism vs capitalism. The only reason it's hard in the US is because we've made the laws in a way that allow a lot of lawsuits. If you go back 50 or 100 years, it was a lot easier to push people of their land (and the government did so).
Re:Infrastructure (Score:5, Insightful)
Although true, I think the increase in civil rights does play a big role in this. Without rights to fight, lawsuits wouldn't be a common occurrence.
Sometimes I find the fighting pointless and often the parties fighting are ignorant but in other cases it's the exact opposite. I think our justice system is still very immature and it will eventually evolve to better serve both sides (society as a whole and people as individuals).
Call me naïve if you want but I have faith in human kind and our ability to redirect our efforts towards bettering our society.
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Although true, I think the increase in civil rights does play a big role in this. Without rights to fight, lawsuits wouldn't be a common occurrence.
Civil rights are orthogonal to the economic system. You can have civil rights in a communist country. You can have private property. You just can't have private ownership of the production facilities.
Call me naïve if you want but I have faith in human kind and our ability to redirect our efforts towards bettering our society.
Our ability is there. It's whether we want to apply our effort in that direction.
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Civil rights are orthogonal to the economic system. You can have civil rights in a communist country. You can have private property. You just can't have private ownership of the production facilities.
I wouldn't claim them not to be but I doubt each Chinese person's right to argue with the government is as strong as one of an American, Canadian or European. I would even be willing to suggest that most wouldn't defy the government without strong backing from a large portion of the population.
Re:Infrastructure (Score:4, Insightful)
Re:Infrastructure (Score:5, Interesting)
Had a Chinese friend that said the exact same thing. On that note, another friend explained to me why civil unrest in China is not going to happen any time soon.
The people love their government. Every year the quality of life for the average Chinese increases significantly. As long as this continues there will be no unrest. Say something bad about the Chinese government and the older generation will actually get mad.
The newest generation is different. They have not been without and have much higher expectations of their government. When this generation constitutes the majority and the older generation has died out you will have the potential for civil unrest.
In time China will become more like the Western world. And there is nothing wrong with taking some time. Force Democracy on a populous that is not ready for it and the results are not pretty.
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1) The Mao (older) group, who generally think Mao was great but also understand the pain of the era.
2) The group that grew up around 1989, and they are still somewhat bitter because they know what happened
3) The younger generation, that grew up watching the propaganda channel with patriotic songs. They generally consider their government to be the same as their country.
I don't think anyone wants to force democracy on China. There are
can you own a power drill? Fix your neighbor's car (Score:3, Interesting)
>. Civil rights are orthogonal to the economic system. You can have civil rights in a communist country. You can have private property. You just can't have private ownership of the production facilities
You can have private property, you say. Can an individual own a cordless drill? Well, a cordless drill can be used to produce a table, so it's a means of production. In pure communism, that wouldn't be allowed.
Suppose I own a drill, and enjoy making tables. My neighbor enjoys working on cars. Can he b
Re:can you own a power drill? Fix your neighbor's (Score:4, Informative)
(See any communist country in all of history for confirmation.).
There has never been one. Even the soviet union was merely socialist (and they never claimed to be communist).
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You should maybe look into that a bit more.... (Score:2, Informative)
What you are describing is some caricature of socialism.
One of the primary concerns of Marx was that while in the past the workers owned tools of their trade (such as the drill you mention), industrialization changed that dynamic (why would your neighbour buy a table from you when he could buy one from factory for half the prize... and the profits go to the person who owns the factory while pre-unionization workers toil without ever earning enought to buy one of those increasingly expensive factory machines
The reason being, the need to hide the truth (Score:2)
> (Note: I do not use the word "government" for a reason) owns the means of production.
And that reason is, if you were to admit that the method by which an entire country is forced to do something all together is called "government", you'd be admitting that full government control of people's lives is a precondition to communism.
"The whole of society does ____" means, in practice, "government does ____". To pretend otherwise is to lie to yourself, to _choose_ to believe falsely.
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I'm not aware of any interpretation of communism that matches your description. Socialism is about providing workers with the means of production, which will typically be owned by the workers (individually or collectively) or the government. There's no problem with people running their own little businesses. There is a problem if they try to hire employees, as that allows "exploitation", and hiring people to work with employer-provided machines is anathema. There is typically nothing between one-person
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By definition, communism is government control of productive capacity - the ability to create anything.
It means worker control of productive capacity.
Further, there is no one in a position to seriously question the government.
This is definitely not true, sometimes it happens in communism, but it doesn't need to be (and shouldn't be, freedom of speech is extremely important).
USSR, China, Cuba, Cambodia. Counter-example? (Score:2)
>> Further, there is no one in a position to seriously question the government.
> This is definitely not true, sometimes it happens in communism, but it doesn't need to be (and shouldn't be, freedom of speech is extremely important).
ALWAYS. Look at the USSR, communist China, Coba, Cambodia under communism - anywhere and everywhere that communism has gained a foothold in government. Care to name a counter-example? You can't, because there is none.
In THEORY, some being other than humans could have c
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San Marino, the oldest republic in the world. The problem with all your examples is they were authoritarian states that became communist, not democracies with a history of personal freedoms. As Russia and China show, becoming a democracy in Russia's case or a corporatist in China's place didn't change the authoritarian aspect of their governments. Lots of authoritarian governments have been right wing as well, look at the middle east and at various times most of Central and South America. Was the common Cub
?!?!? San Marino half as communist as the US (Score:3)
WTH are you talking about. San marino isn't communist - nowhere near.
In a capitalist system, businesses are owned by private investors (in modern times, mostly people saving for retirement), and those private owners therefore get any profit the business produces.
In a communist system, the collective (government) owns the businesses and therefore gets any profit made by an enterprise.
Capitalist: private owners get the profit.
Communist: government is the owner, gets the profit.
All real-world countries fall so
Re:Communism requires strict govt control by defin (Score:4, Insightful)
By definition, communism is government control of productive capacity
Are people this uninformed? by definition communism does not have a government. As others have pointed out, there has never been a communist nation state, just socialist and socialism comes in many varieties form authoritarian to libertarian, government ownership to things like co-ops and credit unions.
The problem is the huge amount of successful propaganda that has been used on the people of America and that it has leaked to the rest of the world. Propaganda like Obama empowering the insurance industry even more by implementing a right wing medical system is socialist or communist.
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by definition communism does not have a government.
By definition [merriam-webster.com]:
a way of organizing a society in which the government owns the things that are used to make and transport products (such as land, oil, factories, ships, etc.) and there is no privately owned property
So no.
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Do you know what a dictionary is? Hint: they describe the meaning of words as they are used in general language. In other words they give the common meanings of words in the language in question - and hence reflect he successful propaganda mentioned.
Try an economics reference, if you want the actual meaning of the term rather than the common non-technical usage.
You'll also find incorrect definitions in the dictionary for technical terms in other fields, because surprise surprise, common usage of words doesn
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Communism was really described as a process, the inevitable result of the industrial revolution and capitalism.
In the real world, it was not by definition.
The end of which was a society without a State.
Whithering of the state has never been observed in the real world. Lenin didn't even try when he had the chance. To assume it happens as part of your definition just makes your definition deeply flawed.
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I didn't "complain" of propaganda.
And yes as defined by the early communist theorists communism a process made inevitable by capitalism. Wikipedia manages to get it right, it really can't be that hard...
What has been observed in the real world is irrelevant. Communism is a theory, that is has been proven bunk doesn't change the details of the theory.
The Copernican model of the solar system is also wrong, that doesn't make definitions about it "deeply flawed" - they're just clearly incorrect models of the r
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China is "communist" only nominally. Their advantage is their oligarchy.
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No, this is just the effort of the Commies in China to make their dicks look bigger. It is the sole reason they want Taiwan back, the thought of an independent country of Chinese makes their dicks look smaller. It is the reason they are shoving Han Chinese into Tibet and into Xinjiang province. It is also the reason they go apeshit at the thought of Hong Kong freely electing their leaders. Penis envy is also behind the problems they had with the Falun Gong doing calisthenics on their front lawn.
It is all ab
Enormous debt? (Score:5, Interesting)
At least they'll have something built to show for it, unlike spending that money to bail out banks (and if anyone wants to protest that the banks paid back TARP, I'm well aware of that, and also aware they got their government money through other channels).
Re:Enormous debt? (Score:5, Insightful)
China learns how to use the tech over decades. Then China leans how to build the tech. China can then export their version of the same heavy civil engineering services.
China can now bid for huge projects. China can now offer aid packages to other nations with large scale nation building civil engineering projects at a lower cost.
Thats great news for China and the optics of project branding around the world. A quality project or aid package is delivered on budget and on time by China.
China has understood the value of aid projects around the world since the 1960's.
Re:Enormous debt? (Score:5, Interesting)
The human race (at our favored levels of population density) has evolved past the point where a natural state of good health can be maintained without access to bulk electricity, which equates to drinkable tap water. This is a greater factor than access to doctors or medicine. We pledge 'aid' to help to help countries around the world but so much of that help is NOT building infrastructure.
What China is doing is building a modern China from scratch in record time. They have the blueprints in hand. They even know that they are making mistakes (eg, coal) but they're focused on the prize. Cuba trades doctors for useful things. China will be able to trade everything for things.
To me it seems our major export these days are Financial Instruments and Financial Middlemen, and the structured debt that arises in their wake. But not to worry, the principal of these loans do not tap your hard-earned taxpayer dollars, many of which go toward repayment of interest on our own national debt. This is magical unicorn money that will come from World Investment Funds and Bank perpetual money machines that are backed by International Corporate Banks that bought shitloads of worthless paper and were bailed out by Bushobama with the Fed minting virtual money that saved the banks' balance sheets from ruin, and Treasury Bonds purchased by the Chinese who have said fuck-it and have decided to decouple and give Africa (for example) their time and especially their money directly, some of which would ultimately come from us as repayment on debt to China with China becoming Africa's direct partner in infrastructure instead. This does not make sense on so many levels.
The United States has shown the world what it means to have access to so much energy and surplus income: property, personal transportation, washing machines, treated water and sewage, road trips, stocked supermarkets.
And yet, nothing presently "made in America" could prevent its decline. Not only have most of its factories closed, the basic blueprint for every consumer item and industrial process which supports the modern lifestyle is shared throughout the world. This is a done deal.
For a price --- China is now fully equipped to build an 'America' anywhere in the world it chooses. From surveying to road building to farm machinery to industrial process and infrastructure, electricity plants and grids, telecommunications, water distribution and treatment. Everything from rivets to houses, the mailbox, the picket fence and the white paint. Everything.
And why wouldn't they? They have begun taking steps to decouple their economy from our own [bloomberg.com] [bloomberg.com]. At this point in time the US cannot afford to be parlaying with Malthusian governance artists who seize on theories of environmental catastrophe and leverage 'affluence guilt' to tax everyone (YOU first). The ONLY thing that can save us is to do something extraordinary, something that changes the game. Something made in America (first) that changes the world.
Such as some form of base load energy that is cheaper than coal [youtube.com].
At this point anything else the United States could offer the world, or China, is worth less than a fart in a high wind.
Re:Enormous debt? (Score:4, Interesting)
China can now offer a project as a bid against other traditional US, UK or EU consortium offers. China can offer a project as a loan, soft loan or as an aid project.
Once the project using parts, equipment, planning and staff from China is completed the long term maintenance is also included.
The next local mining, gas, oil land release can then see a China bid in play. Direct aid flows in and cheaper geographically bound raw materials flow back to China.
China can then value add on any exported consumer or high end product with lower raw material costs.
China wins from the branding and humanitarian side and then gets direct prices for much needed raw materials to build its own manufacturing brands.
The only way for the West and old colonial powers to counter this is a huge propaganda campaign to try and secure the Wests role in telco, aid, engineering and raw material contracts.
China now has several generations of trust and project completion around the world going back decades.
Re:Enormous debt? (Score:4, Insightful)
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Japan hit the ceiling once their GDP/capita got to the level of the rest of the Western economies. China is a long way from getting there in GDP/capita.
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Japan would have recovered by now if it wasn't for the earthquake/tsunami and closing down all the nuclear power plants.
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The GDP/capita kept growing until much after that.
http://www.google.com/publicda... [google.com]
Until 1995. Guess what happened in 1995? Kobe earthquake.
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To the guy who downmodded me. Sorry for insulting your envirowacko perspective but not surprisingly Japan's GDP goes down after they have large earthquakes and when they need to spend more money importing fuel like coal.
Don't believe me? Look at the GDP/capita chart for Japan fall down a cliff in 1995 and 2011.
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No. I can't agree with this at all. I have been to both countries and there is too big a cultural difference.
You can horribly sum it up by saying the Japanese are all about the group and the Chinese are more about themselves (ie closer to the west).
The Japanese have their problems because their culture is incredibly strict. They could almost immediately solve their shrinking population problem by opening themselves to immigration but it simply isn't going to happen.
You noted that the debt is held domesti
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I believe that culture and economics are inextricably linked. The culture of a country determines the type of government that it builds and the type of government it builds effects its economy. A very simple example is the difference between the US and Europe. Both are "western" yet the European system has leant towards a more socialist model which is definitely reflected in their economy.
Japan and China are incredibly different culturally. Japan carries deep in its psyche the fact that it is an isolate
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China can explode its population overnight by abolishing the One-Child policy
Wrong, the policy is essentially already gone. You can have more than one child if you want by paying a relatively affordable fee. Still, people choose to have one kid, like most of the rest of the semi- and fully developed world nowadays.
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I certainly don't claim to know, but during the Clinton era, demand for US bonds decreased, and the interest paid by the government began to increase accordingly. It got bad enough that congress and the president began to worry (and insult those 'bond vultures'), and cut deficit spending to a degree.
Rail line (Score:2)
In November, for example, the powerful National Development and Reform Commission approved plans to spend nearly $115 billion on 21 supersize infrastructure projects,
There is an estimate [theday.co.uk] that the China-Russia-Canada-US line may cost $2T or almost 17 times the budget for those projects. I doubt it will ever be built. I love one of the quotes from the article;
Who would ever take a two-day train journey from Beijing to San Francisco when they could fly there in 12 hours?
There may be a few but I doubt enough to pay for and support 13,000km of track through some very harsh terrain which gets worse in winter and a 200km tunnel under water.
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There may be a few but I doubt enough to pay for and support 13,000km of track through some very harsh terrain which gets worse in winter and a 200km tunnel under water.
My thought was cargo. Though it's a tough, tough sell up against cargo ships.
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Even cargo is an issue as the line is designed to be high speed. The average speed of US for freight trains is 29 kmh. To go 13,000km it would take about 18 days. That is about the same as ship transit time. I agree, I doubt it can compete on freight either.
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I wonder if gigantic coal trains are included in that average, and the US is known for having many freight-only tracks. If you care about throughput but less so about speed, and don't want to spend more billions in maintenance then you run the freight trains slow, especially if you're not obstructing passenger trains (or hardly have them).
Regarding ships there's the time and expense wasted in loading/unloading and warehousing (sort of the equivalent of your TSA and checking luggages). It should be a lot eas
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Regarding ships there's the time and expense wasted in loading/unloading and warehousing (sort of the equivalent of your TSA and checking luggages). It should be a lot easier to drive your container to a freight rail station and have it loaded on a train.
Ships take containers too so no warehousing is involved. Most sipt transport is now either bulk or containerized now.
Especially, the train would allow a "get this shipped under two weeks" scenario
Except that blizzards in Siberia and Alaska would close the track possibly for days. We are talking about a route through some pretty harsh territory.
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I thought about "warehousing" the containers, which is a bad choice of word (esp. considering they sit outside anyway). Containers wait ashore for the boat to come in if it isn't there already, wait for their time to be moved around in that gigantic and overlord port, wait on the boat till other containers have been loaded and till everything is ready, then it's a similar dance on the other side of the ocean.
Container on freight train would be pretty much routed towards its final destination already when th
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Containers destined for rail cars wait at the station for the train to come in, wait while to be moved around the train station, wait till the other containers are loaded on the train and till everything is ready and then a similar dance at the other train station. Loading a container onto a train is very similar to loading onto a ship.
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http://www.theguardian.com/bus... [theguardian.com]
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A major advantage of the rail route is speed. The train took just three weeks to complete a journey that takes up to six weeks by sea.
Is that compared to a huge container ship that could not pass through the Suez Canal and therefore has to go around Africa? Going around the Horn will add thousands of kilometres, and therefore time, to the trip. The China-US route is the opposite in that the rail route is 13,000km while the sea route is 7,000km.
It is also more environmentally friendly than road transport, which would produce 114 tonnes of CO2 to shift the same volume of goods, compared with the 44 tonnes produced by the train – a 62% reduction.
I find it interesting that the compare rail to truck and not ship. Ships are known to burn less fuel per ton/km.
I wonder how much it cost to pull this off. With 3 train swaps due to rail gauge dif
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That and if it ever does take off, my property in Alaska will shoot up in value. I'm holding off selling until they build a natural gas pipeline (to canada or along the oil pipeline) or connection to Russia. One of them will probably happen sometime.
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Do you have any idea the cost of keeping a rail line through Siberia, Alaska and Northern BC open during the winter?
obligatory (Score:2)
As is usual, there's always an appropriate metal song warning of the folly of man: https://www.youtube.com/watch?... [youtube.com]
Today the warning came in the flood
Architects and fools never cared for poor men's blood
Cursed to repeat the past they are
The river dragon swims upstream
They've built another wall.
Ironically based on Chinese myth to.
The weakening of America (Score:3)
In contrast in America, republican hopeful Governor Chris Christie refused to allow a new tunnel to be built linking New Jersey and New York.
Do H. Pickens & /. pay a commission to NYT? (Score:2)
Clearly the Times is doing all the work.....
Very admirable (Score:5, Interesting)
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The state of repair of US roads in general, from freeways to alleys, ought to be a major embarrassment to every American. No wonder that American cars have loose springs.
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There was a great piece about this on 60 Minutes recently (http://www.cbs.com/shows/60_minutes/video/wDHgIRBoeP_q4gHkLL0kheu_bLmCiFD9/preview-falling-apart/).
ASCE has a D+ rating on American infrastructure. Many of them are well beyond their projected life. Most telling part of it was having to build a structure to shield a highway underneath a overpass from falling concrete. That overpass is still being used even with concrete crumbling away. Everyone in the program including the politicians agree that som
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That's the one thing they were much cleverer about than the other BRICs: infrastructure. In general, it's pretty good as long as you don't look at the details. Taking a closer look still shows many problems. E.g. while there are many really good airports, the military controlled air traffic system is a joke, as pretty much every domestic flight is delayed.
High speed trains are awesome, and they're great for prestige and getting customers to buy that technology. Yet they're out of price range for the majorit
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High speed trains are awesome, and they're great for prestige and getting customers to buy that technology. Yet they're out of price range for the majority of customers.
Maybe not? This from a recent World Bank report: [worldbank.org]
"As of October 1, 2014, over 2.9 billion passengers are estimated to have taken a trip in a China Rail - High Speed train (called CRH services), with traffic growing from 128 million in 2008 to 672 million in 2013, or about 39 percent growth per annum since 2008. In 2013, 530 million of those CRH trips took place on passenger dedicated HSR lines. In 2013, China HSR lines carried slightly more HSR passenger-km (214 billion) than the rest of the world combined
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High speed trains are awesome, and they're great for prestige and getting customers to buy that technology. Yet they're out of price range for the majority of customers.
Yet they are only a fraction of the price of European high speed rail tickets. I would guestimate that the costs per traveled kilometer on Chinese high speed rail is only 25% of that in Germany or France.
So, yes, it is relatively expensive to travel by high speed rail for the Chinese and many cannot afford it, but it is not ridiculously expensive either. Their economy is growing fast, and every year millions more people enter the income range where they can afford the high speed rail, so it makes a lot of s
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Another thing they do is they mix zinc into the steel they use for the rails. This means it is much much harder to work with but is essentially stainless and will last forever.
The solution to their debt is to just not pay it (Score:2)
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Not pay the debt? When a few hundred million Chinese citizens see their life saving evaporate, how secure do you think the Party is going to feel?
Really, what is any other country going to do about it?
What do other countries have to do with this?
Great wall a showcase? (Score:2)
I hardly think so. For one thing, it is wrong to talk about "a" great wall, it is actually a sprawling agglomeration of many walls built over hundreds of years. [wikipedia.org] Its primary function was a matter of survival, a military means of countering attacks from various upstarts in the north.
$115 billion (Score:2)
Think of the possibilities. That could fill 230 potholes in California!
How are we any different? (Score:2)
American *has* to have the biggest military on Earth.
We spend more on "defense" than the next 10 countries combined. We have spent more on a single fighter plane program (the F-35, which still doesn't work), than the entire defense programs of most other nations on the planet.
We just have our 'infrastructure" in a different way. Instead of building, we're looking to destroy. So when other countries make roads and dams, we make bombs.
Re:China, get into debt? (Score:5, Informative)
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They buy US treasury bonds, but issue their own bonds to pay for them. So yes, in fact, the Chinese government is borrowing from the Chinese people.
Before marking this down as a problem for China, you'd have to factor in the economic benefits of keeping the Yuan mostly pegged to the dollar.
If the Yuan really floated free, China's exports would get get much more expensive and their status as a manufacturing hub could evaporate.
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And eventually manufacturing will return to the US, just performed by robots.
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China's debt is 62% of its GPD. The US is at 104%, and the UK is at 96%. China is actually going pretty well, especially since its economy is still rapidly expanding.
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Exactly. Australian imports from China $49 Billion. Australian exports to China $101 Billion. Of those minerals made up a significant percentage but so did food stuffs, wine, services, and education. I mean $7 billion of that was for services not even products.
When you consider that Japan is our next biggest market at $50 billion, the Korea $21B, US $16B and India $11B. We really would be up the creak without China.
Take the next logical step though is that the US is our second largest importer at $39 B
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China is not going to collapse that quickly. The word "collapse" gets thrown around a heck of a lot as though these are things which can happen literally overnight, when really we're talking about multi-year declines which would hurt, but are not nearly the same thing.
Australia is fucked on it's present trajectory though because successive governments have had no interest in trying to diversity, and the population keeps buying the weird "we must be specialized for mining!" BS from both the politicians and m
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Yeah, my scotch budget is busted because the Chinese get first dibs.
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Are you thinking of the New South China Mall? According to Wikipedia [wikipedia.org], "Unlike other "dead malls", which have been characterized by the departure of tenants, the New South China Mall has been 99% vacant since its 2005 opening as very few merchants have ever signed up."
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Some economists worry that China might eventually be mired in enormous debt
copycat
Nothing Exceeds Like Excess!
Re:this is getting old (Score:5, Insightful)
Some economists worry that China might eventually be mired in enormous debt
While any country can over stretch itself and find itself mired in unsustainable debt, it is hard not to roll one's eyes when one reads the report's really, really, really, remote scenarios for how China could get itself into such a situation. Given the current global geo-economic reality, spending as much time as the report does on the likelihood of this scenario coming to pass almost discredits the rest of what is actually a great report.
Chinese foreign reserves are almost US$4 trillion (as at September 2014) - more than the combined total foreign reserves held by the next 7 largest holders of foreign reserves (i.e.Japan, Saudi Arabia, Switzerland, Taiwan, Russia, Brazil and Republic of Korea). The United States foreign reserves, by comparison, are a paltry US$134 billion
At the other end of the scale, United States foreign debt stands at a staggering US$18 trillion - about US1 trillion of that borrowed from the Chinese - more than that of the United Kingdom and Germany combined.
The report then nonchalantly skims over the distinction between the mega-, giga-, tera- projects around the world and lumps them together as if they all pose the same systemic risks to each respective economy. This may serve the purpose of highlighting the manic pace of development taking place in China, but the author's US corollary to China's mega airports, rail infrastructure, city expansion, ports, malls, urban housing (albeit many of which still lie empty), are what I would call vanity mega-projects, such as the Joint Strike Fighter aircraft program, the International Space Station, etc.
If I were worried about a major global economy (and the US and China now the two largest economies in the world, by a long shot) "eventually being mired in enormous debt", it would be the one that is spending trillions of dollars on projects that cannot be used to further grow the country's economy in future. Spending billions on improving the county's economic efficiency (such as rail infrastructure, ports, airports, housing for migrant workers, renewable energy, manufacturing, education, etc.) cannot be equated to spending billions on improving the efficiency with which one can obliterate one's adversaries from the sky.
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The US is already mired in enormous debt, and everyone knows that so it's hardly news. It's certainly irrelevant to the question of whether China is making bad infrastructure investments.
Say the US goes bust tomorrow. And either renegs on all it's bonds or instantly prints virtual dollars to pay them of. What does China's foreign reserves look like then?
And which do you think is more useful when the shit does hit the fan and the country is bankrupt. A big tunnel to transport the stuff you no longer have? O
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Chinese foreign reserves are almost US$4 trillion
That is irrelevant. Are you unaware of the Japanese economic disaster of the 1990s?
Large foreign reserves did not save them from bad internal debts. And many think China is heading for much worse.
Jealous (Score:5, Interesting)
Yeah, the article reads as if written out of jealousy.
Infrastructure is a good thing to build, as long as it is necessary. When it will be used, infrastructure is an economic multiplier. The article suggests that China is building far too much infrastructure, and then gives examples of unused infrastructure. But looking at their map (picture in article), they are building mostly subways in megacities (good idea), container terminals (good idea, the Dutch do the same), high speed rail (good idea), canals for irrigation (debatable, but hopefully low maintenance and long lifetime once completed), and a few crazy projects which may eventually flop.
The funny thing is that China does not care if a handful of multi-billion dollar projects fail to deliver, and fail to have an economic payback. As long as the majority of the projects perform, they win.
The Western economies are stuck somewhere between economic conservatism and economic fear. Corporations do not dare to invest this big, because for a corporation this can be a make or break, and that risk is too big. Also, corporations require a 3-5 year economic payback, whereas infrastructure typically has a much longer lifetime, and is only an enabler, causing economic growth, not immediate profit. Western governments do not dare to invest this big, because every dollar spent is analysed and they must win the next elections.
Basically, we cannot do these kinds of projects, because we all fear for our pension and fear that we lose what we have. And we are jealous of the Chinese who can do this, and we talk ourselves to sleep with articles like this that predict that the Chinese got it wrong after all.
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Maybe they'll start selling off their haul of USD$ that they acquired bailing out the profligate US government.