The Trans-Siberian Railway is still perfect for freight, so this new rail line is not competing with that. High-speed rail (HSR) is for passengers.
- This may provide more business opportunities between Russians and Chinese, since Beijing and Moscow are important political, cultural and financial centres for both nations. Business is conducted by face-to-face meetings. Details may be negotiated remotely, but deals are made in person. With HSR, co-operation could increase and move faster: more stuff that Chinese want, and more cash that Russia needs. Win-win-win.
- This will provide Russians with unprecedented mobility. Most people that live outside of big cities are very isolated. And major cities are very far apart and thus also isolated from each other: Nizhny Novgorod, Kazan, Yekaterinburg, Omsk, Novosibirsk. Flights between them are very long and sometimes due to the weather, flying is not even possible (civilian runways freeze over). The vast cold distances in Russia is a barrier to growth. With HSR, Russians will no longer be isolated. Even if this particular HSR line does not link up all of the above mentioned cities, spin-off lines could be built within Russia in the future.
- Russia reasserts its power in Central Asia. Since this planned HSR line is supposed to run through Kazakhstan, this will bring it even closer to Russia. Of all its foreign relationships, this is arguably one of the most important.
- And China will invade Russia... with tourists, armed with cash. Lots of it. It would boost the economies of these isolated cities east of Moscow.
∴ Russia wins
The big uncertainty is whether passenger volume would be high enough for the HSR line to turn profit. This is a big challenge, especially given that Russia has very low population density. But on the big scheme of things, it could operate as a loss leader for the bigger picture.
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