Why can Wuhan Metro make a profit?

The reason why Wuhan Metro can make a profit is that its operation mode is different from that of subways in other regions.

Wuhan Metro adopts TOD (bus-oriented development) mode. Through the combination of rail transit and urban construction, the population and resource elements of different cities will be connected, and the population scale and consumption scale will be increased, thereby increasing fiscal revenue and land value. The operation mode adopts the state-owned private mode, makes full use of the financial strength of state-owned enterprises and government support, undertakes larger-scale investment and risks, and pays attention to public interests and social responsibilities.

Wuhan Metro gives full play to the advantages of land, and gains additional benefits by developing surrounding commercial and property projects. Moreover, Wuhan Metro can reduce its dependence on a single income source and improve its profitability through diversified income sources, including fare income, commercial rental income and property development income.

Characteristics of Wuhan metro operation mode;

1. Reasonable fare formulation: Wuhan Metro has adopted a more reasonable fare strategy, which can not only cover the operating costs, but also have little impact on passengers' travel. For example, by lowering the starting price, increasing the mileage price, reducing the travel cost of low-frequency passengers and saving the expenses of high-frequency passengers.

2. Scientific management: Wuhan Metro adopts scientific operation and management methods, introduces advanced equipment and technology, improves operational efficiency and reduces operating costs. At the same time, pay attention to the training and management of employees to improve work efficiency and service quality.

3. Drawing lessons from Hong Kong's charter mode: Wuhan Metro adopts the resource-level development mode, and by operating the properties above and near the subway, it applies the "track+property" mode to make full use of the subway's passenger flow advantage and obtain additional benefits.