It's Official: Beijing Subway Fares to Change to Distance-Based Pricing

Michael Wester | Mar 21, 2014 9:00 am | 15 comments | 12771 reads

Headlines in Friday's Chinese newspapers make it official: The Beijing Subway network will switch to distance-based pricing at an unspecified point in the second half of this year.

No indication was given as to what the price increase would be, but city planning officials seem committed to basing the fare on some interpretation of "international standards" in which approximately 10% of an urban dweller's income typically goes towards commuting. We extrapolated that to hint that fares could rise to somewhere around an average of RMB 25 per day (round trip) for an average Beijing commuter, which could mean an increase of about 600 percent for people traveling the farthest.

Planners also hinted that they would develop weekly, monthly and seasonal discount passes to reduce the cost burden on daily commuters. This will be a blessing given that Beijing is one of the few major subway networks that lacks any sort of time-based discount pass.

The announcement clarifies a discussion point that has been a hot topic since late last year when the goverment first began hinting the that a fare increase was in the works due to the estimated RMB 18 billion in annual subsidies the city is providing the network. At first city officials were considering five different pricing systems, but this morning's announcement indicates that the distance pricing is the way forward.

Officials also indicated that bus fares – many currently at RMB 1 per trip – would rise at the same time. No indication of future pricing for buses was given, either.

In related news, the first section of Line 14 is due to open at the end of December. This long-awaited line will connect a previously neglected northeastern corner of Chaoyang district, tying the eastern portion of the CBD northwards towards Shunyi. This phase will finally put Chaoyang Park onto the subway network, as well as the 798 area, with stops right outside the Indigo Mall, and connections to current Line 15 at Wangjing Station and Line 6 at Jintai Lu.

Images: Michael Wester, Wikipedia

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ohdjango's picture ohdjango Submitted by Guest on Fri, 04/18/2014 - 09:30

Thank God. In southern cities that I have visited they have more expensive subway networks, and as a result the subway is not over-crowded with migrant workers who shove and otherwise offend the senses. Their networks are less crowded and much more orderly.

Plus, this is still going to be pretty damn cheap. A single day pass in London will set you back 100RMB. Stop whining.

mtnerror's picture mtnerror Submitted by Guest on Wed, 03/26/2014 - 12:58

Squid,

The city is looking at their finite budget and all the other issues which need attention to, and they're devising a system which makes so much practical sense yet seems to have eluded you.

You seemed to have fallen in the trap that A) the western media's obsession with Beijing's air makes it seem it's the worst on the planet and that it's the only issue out there,

B ) air pollution can't be fought by any other means than a highly-subsidized subway network,

C) the new fare will be astronomical, when I've pointed out countless examples (both within China and beyond) to the contrary.

If you are so convinced AQI is the #1 issue in Beijing, then do yourself and Mother Nature a favor and start taking the subway (as you mentioned you reportedly DRIVE to work every day, thereby emmitting more toxins into the air (thru sourcing materials which to build your car, roads, petrol purchases, etc.) and contributing to the very problem you seem so falsely commited to eradicate, which makes you either a liar or a hypocrite).

Check previous threads where I detailed the subject matter at length. I'm not going to waste my time attempting to explain for the upteenth time why a system where a 60% subsidty for every subway ride is not sustainable. Is AQI important? Yes. Is it the only thing Beijing citizens and residents are in need of? No. Get over it.

admin's picture admin Submitted by Guest on Wed, 03/26/2014 - 10:19

squid wrote:
There are two problems with this rationale.  First off, people travel on days they don't work.

sure, but they are calcuating it based on commuting costs, which is the cost to get to and from work, not total transportation costs for your entire life.

squid wrote:
Second, an average income is in no way an average income of the people who ride subways.  Some people run real estate companies and earn 10 million rmb a year.  They don't ride the subway.  But they do raise the average monthly income figures to make it seem as if this is what most people earn.  That's completely inaccurate.

Though I agree with you that there are very few millionaires on the subway, I'd guess from my personal experiences that subway ridership is broadly representative of the city in general -- i see plenty of people who look middle class or even wealthy riding the subway.

Remember as well that every car owner in town cannot drive on 1 out of every 5 days -- and I doubt that all of them end up in taxis, buses and carpools.

And besides, take into account that the 'very few millionaires on the subway' rule is applicable to every transportation system in the world, so when they are calculating their "10% of income on commuting costs" figures, the same restrictions/distortions apply to them as well.

 

 

Books by current and former Beijinger staffers

http://astore.amazon.com/truerunmedia-20

squid's picture squid Submitted by Guest on Sat, 03/22/2014 - 21:35

admin wrote:
squid wrote:

25 Rmb per day works out to 750 per month. In what alternate universe of Bejing is the average local subway riders salary 7500 per month? That's completely ridiculous.

most commuters work 5 days a week, not 7 so the calculation is 25x20 working days a month = 500

from 2011:

The 2011 average annual income in Beijing was RMB56,061 and the monthly average was RMB4,672.

http://www.china-briefing.com/news/2012/04/13/beijing-releases-2011-average-income-and-2012-social-insurance-wage-base.html

The 2011 average annual income in Beijing was RMB56,061 and the monthly average was RMB4,672. - See more at: http://www.china-briefing.com/news/2012/04/13/beijing-releases-2011-average-income-and-2012-social-insurance-wage-base.html#sthash.juHr6UmQ.dpuf The 2011 average annual income in Beijing was RMB56,061 and the monthly average was RMB4,672. - See more at: http://www.china-briefing.com/news/2012/04/13/beijing-releases-2011-average-income-and-2012-social-insurance-wage-base.html#sthash.juHr6UmQ.dpuf

I'm sure it's risen to over 5000 since then

There are two problems with this rationale. First off, people travel on days they don't work. Second, an average income is in no way an average income of the people who ride subways. Some people run real estate companies and earn 10 million rmb a year. They don't ride the subway. But they do raise the average monthly income figures to make it seem as if this is what most people earn. That's completely inaccurate.

mtnerror's picture mtnerror Submitted by Guest on Fri, 03/21/2014 - 22:21

Squid,

Relax. 1) the pricing scheme is not yet finalized, 2) even once it is, it wouldn't be odd if it was to change before finally being implemented. "..In which approximately 10% of an urban dweller's income typically goes towards commuting" -- there are multiple ways one in Beijing commutes. Does 'commuting' in this instance refer to subway only, or does it also incorporate all the other ways people get to work in this city and elsewhere? SH Metro charges 3 kuai for first 6 km, and then an additional kuai for each 10-km distance. You may recall when I stated a while back Line 1 in their system, from end to end, costs only 7 kuai -- that's a long-a** haul on the cheap. I doubt very much even the longest Beijing Subway fare would be 12 kuai (25 round-trip).

admin's picture admin Submitted by Guest on Fri, 03/21/2014 - 14:45

squid wrote:

25 Rmb per day works out to 750 per month.  In what alternate universe of Bejing is the average local subway riders salary 7500 per month?  That's completely ridiculous.

most commuters work 5 days a week, not 7 so the calculation is 25x20 working days a month = 500

 

from 2011: 

The 2011 average annual income in Beijing was RMB56,061 and the monthly average was RMB4,672.

http://www.china-briefing.com/news/2012/04/13/beijing-releases-2011-average-income-and-2012-social-insurance-wage-base.html

The 2011 average annual income in Beijing was RMB56,061 and the monthly average was RMB4,672. - See more at: http://www.china-briefing.com/news/2012/04/13/beijing-releases-2011-average-income-and-2012-social-insurance-wage-base.html#sthash.juHr6UmQ.dpuf
The 2011 average annual income in Beijing was RMB56,061 and the monthly average was RMB4,672. - See more at: http://www.china-briefing.com/news/2012/04/13/beijing-releases-2011-average-income-and-2012-social-insurance-wage-base.html#sthash.juHr6UmQ.dpuf

I'm sure it's risen to over 5000 since then

 

 

 
 
 

 

Books by current and former Beijinger staffers

http://astore.amazon.com/truerunmedia-20

squid's picture squid Submitted by Guest on Fri, 03/21/2014 - 14:37

25 Rmb per day works out to 750 per month. In what alternate universe of Bejing is the average local subway riders salary 7500 per month? That's completely ridiculous.

And for the migrant workers living in Tongzhou, I would guess their salaries are the lowest of any of the subsets, so they are truly going to be hit the hardest. This is a policy made by someone with either no brains or not heart.

What are these subsidies going to be used for instead? Considering Beijing's most pressing problem is pollution and traffic, I can't imagine anything better for the government to be spending their massive revenues on.

charlesliu's picture charlesliu Submitted by Guest on Fri, 03/21/2014 - 13:22

Quote:
"an increase of about 600 percent for people traveling the farthest"

Don't know what any uproar over this could be about. Once the backlash sets in, there will be yet another policy announcement that reverses the previous policy announcement.

In short, its not a policy announcement unless everyone is paying attention.

 

mtnerror's picture mtnerror Submitted by Guest on Fri, 03/21/2014 - 12:39

I hear ya, Badr. Cost of living in bigger cities is typically greater. The operating costs, the staff, the real estate...all of it commands a higher price. Beijing is not unique in this regard. And now riders will be paying for what they use, rather than passing off their costs to other riders and the taxpayers. There will always be "some folks can't afford to pay more" no matter where one lives, no matter what is considered. And now a lesser portion of 18mil in subsidies can perhaps be used towards other things.

badr's picture badr Submitted by Guest on Fri, 03/21/2014 - 11:17

Wondering about ramifications on Beijing's population and cost of life! 

some folks can't afford to pay more and will be forced to find alternatives which might not be viablein terms of transportation/lodging. 

Bicycles are fine but not to go from Tongzhou to pingguoyuan.. I can see more folks getting out of here in favor of cheaper cities

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