Rail Accidents Lead to a Host of Negative Consequences

Following the rear-end collision of two bullet trains near Wenzhou city on July 23, several other break-downs have also occurred along high-speed railway lines; all of which have combined to produce a ripple effect on China's travel industry.

Fewer passengers are choosing to travel by 'bullet' or high-speed trains; flight tickets have seen prices surge, and high-speed rail related stocks have plummeted.

Let's take a closer look with our reporter Liu Min.

In the wake of the tragic bullet train collision on the 23rd of this month, one more breakdown of power supply occurred along the Beijing-Shanghai High-Speed line. More than 20 trains were delayed.　

Anxious passengers recorded the situation inside the carriage using their mobile phones, and uploaded the videos online. Here is part of the conversation between some of the passengers.

"High-Speed Rail has become a joke!"

"I've been sweating the whole time!

"Now, all of us are shut inside an airtight carriage! It's completely dark in here. None of the attendants has come to provide any services, we were just told that the train is out of power."

"It's been two hours! Two hours! I can't take it any more. I'm so dizzy!"

The trains finally arrived at their destination two to three hours late.　Many passengers said they received no explanation for the delays, and no apology. One elderly passenger stated that he is exhausted following the journey and disappointed with the standard of China's Railway service.

"I just came back from overseas, and have come here to visit my family. That's why I wanted to experience the domestic high-speed rail. But I've been left feeling very disappointed. So many break-downs have shown that the current high-speed rail is not suitable for commercial operation. Continuing its operation in this state is irresponsible and jeopardizes passengers' safety."

Such disappointment has driven more passengers back to the airlines, which have seized the opportunity, dropping discounts in response. Immediately following the launch of the Beijing to Shanghai High-Speed Rail, airline companies offered discounts in the hope of luring customers away from the cheaper alternative. But, as the amount of accidents and faults on the high-speed line increased, airline companies have changed the rules of the game. Customers witnessed declines in the discounts offered, from 60 percent off to 20 percent off, until they disappeared completely with today's tickets only available at full price.

Manager Luo Yun from Shanghai Airlines says Passengers hoping to fly now have to pay more than they would have before.

"Air tickets have seen a sharp increase in prices, especially for those routes with cities along the Beijing-Shanghai high-speed rail. Most of the tickets are now near full price without any of the previous lower offers available."

At the same time, stocks related to high-speed rail construction have experienced a sharp decline. Liu Haijie is a financial commentator.

"Investors have started to question the safety of those stocks, as they've always been profitable in the past. But, now many think the railways will no longer be safe, which will probably result in a slump for those stocks' performance."

Yet another negative consequence of the recent accidents is the cancellation by many tour companies of their newly launched bullet train or high-speed train tour packages. Most tourists who had previously signed up for such packages are now withdrawing and seeking refunds. Following recent events, tourists and everyday commuters will need to be reassured over a long period of time before they regain any confidence in China's high-speed rail.

For CRI, I'm Liu Min.