The Prerequisite to Investment in Inter-city Railway Based on Financial Analysis

The purpose of this paper is to study the prerequisites to investments in inter-city railways. The author used a financial analysis to demonstrate the feasibility of the inter-city railway in a view of the balance between transportation revenue and expenditure, and then determined the required critical conditions that can help to avoid financial risk. With these critical conditions, the author established a model to calculate the standard passenger flow based on a back-stepping approach. Finally, the author created a recommended prerequisite to investing inter-city railways, expressed in the intensity of passenger flow.