Core Viewpoint - The article discusses the recent fare adjustment proposal for Chongqing's rail transit, marking the end of the "2 yuan era" after nearly 20 years, which has sparked public debate about rising subway fares and the financial sustainability of urban transit systems across China [3][4]. Summary by Sections Fare Adjustment Proposal - Chongqing's fare adjustment includes two options: shortening the initial travel distance or increasing the base fare, potentially raising the average monthly travel cost for citizens by over 24 yuan [3][5][6]. Financial Performance - In 2023, Chongqing's rail transit reported operating costs exceeding 111 billion yuan, with revenues of only around 30 billion yuan, relying heavily on government subsidies to break even [8][12]. - For 2024, projected revenues are 29.35 billion yuan against total operating costs of 72.73 billion yuan, resulting in a net profit of only 11 million yuan [8]. Operational Challenges - The rapid expansion of Chongqing's rail network has led to uneven passenger distribution, with significant disparities in daily ridership across different lines, impacting overall profitability [10][12]. - The construction costs for subways are high, ranging from 5 to over 10 billion yuan per kilometer, with labor costs being the largest expense, accounting for over 50% of total operating costs [13]. Broader Industry Context - Chongqing is not an isolated case; many cities face similar challenges in achieving profitability for their subway systems, with only 12 subway companies projected to exceed a net profit of 100 million yuan in 2024 [16]. - A significant number of cities rely on government subsidies for operational viability, with 28 cities receiving substantial financial support in 2024 [17][21]. - The government has set strict criteria for new subway projects, requiring cities to meet specific economic and demographic thresholds to avoid financial strain [21].

Core Viewpoint - The article discusses the impending fare increase for Chongqing's metro system, which marks the end of the "2 yuan era" that has lasted nearly 20 years, reflecting broader financial pressures faced by metro systems across China due to high operational costs and reduced government subsidies [3][4][9]. Summary by Sections Fare Adjustment Proposals - Chongqing's fare adjustment includes two proposals: shortening the initial travel distance from 6 kilometers to 4 kilometers for the same fare of 2 yuan, or increasing the starting fare to 3 yuan for distances up to 8 kilometers [6][7]. - The average monthly travel cost for citizens could increase by over 24 yuan under these proposals [7]. Financial Performance of Chongqing Metro - In 2023, Chongqing's metro system reported operational costs exceeding 111 billion yuan, while revenues were only around 30 billion yuan, necessitating government subsidies to avoid losses [9][25]. - For 2024, projected revenues are 29.35 billion yuan against total costs of 72.73 billion yuan, resulting in a net profit of only 110 million yuan [9]. Challenges in Metro Operations - The rapid expansion of Chongqing's metro network has led to uneven passenger distribution, with some lines experiencing high traffic while others remain underutilized [11][14]. - The construction costs for metro lines are substantial, ranging from 5 to over 10 billion yuan per kilometer, and operational costs are primarily driven by labor, energy, and maintenance expenses [13][14]. Broader Context of Metro Systems in China - Many metro systems across China are struggling to achieve financial sustainability, with only 12 out of numerous metro companies projected to have net profits exceeding 1 billion yuan in 2024 [20][25]. - Government subsidies are crucial for the operation of metro systems, with 28 cities receiving significant financial support, including 248.52 billion yuan for Beijing's metro [26][28]. Regulatory and Economic Factors - The Chinese government has set standards for new metro projects, requiring cities to meet specific economic and demographic criteria, which has implications for future metro expansions [38][39]. - The reduction in land fiscal revenue has prompted metro systems to reconsider their fare structures to alleviate operational pressures [16].

Core Viewpoint - The proposed fare adjustment in Chongqing marks the end of the "2 yuan era" for metro services, reflecting the financial pressures faced by urban transit systems across China due to high operational costs and reduced government subsidies [1][3][4]. Group 1: Fare Adjustment Details - Chongqing's fare adjustment includes two options: shortening the initial travel distance from 6 kilometers to 4 kilometers for the same fare of 2 yuan, or increasing the starting fare to 3 yuan for distances up to 8 kilometers [5][6]. - The average monthly travel cost for citizens is expected to increase by over 24 yuan under the new fare structure [6]. Group 2: Financial Performance of Chongqing Metro - In 2023, Chongqing's metro system reported operational costs exceeding 111 billion yuan, with revenues of only around 30 billion yuan, necessitating government subsidies to avoid losses [2][9]. - The projected revenue for 2024 is 29.35 billion yuan against operational costs of 72.73 billion yuan, resulting in a net profit of only 11 million yuan [9]. Group 3: Challenges in Metro Operations - The rapid expansion of Chongqing's metro network has led to uneven passenger distribution, with some lines experiencing high traffic while others remain underutilized, impacting overall profitability [12][16]. - The structural imbalance in passenger flow has created a cycle of increasing costs and persistent losses, as new lines are built without sufficient ridership to support them [17]. Group 4: Broader Industry Context - Many cities across China face similar challenges, with only 12 metro companies projected to achieve net profits exceeding 100 million yuan in 2024, while others report losses [22][23]. - The reliance on government subsidies is widespread, with 28 cities receiving financial support, highlighting the unsustainable nature of current metro operations without adequate fare revenue [27][28].