A smart rail transit line in Shaanxi’s Xixian New Area — once promoted as a flagship urban transport upgrade — was shut down after just 33 months of operation. Despite a 705-million-yuan (US$102 million) investment, ridership remained well below break-even levels and operating losses continued to grow, prompting authorities to terminate service and dismantle the infrastructure. The case reflects a broader national pattern in which newly built rail systems in several cities have been suspended, left idle, or halted due to weak demand.
Zhuhai Tram Line 1 in Guangdong Province illustrates the challenge. Built at a cost of about 1.5 billion yuan, it operated for fewer than four years before closing and is now being dismantled. Average daily ridership reached only a small fraction of projections, requiring significant public subsidies. A similar situation occurred in Tianshui, Gansu Province, where inspectors criticized a tram project as unrealistic and debt-driven after revenues failed to cover operating costs. Several BYD SkyRail projects have likewise stalled amid tighter regulations and financing constraints.
Many of these projects share underlying weaknesses: routes often disconnected from major residential and employment centers, and planning prioritized funding opportunities and development branding over practical transportation needs. When measured against real travel demand, these systems have struggled to justify their costs, resulting in financial strain and early shutdowns.
Source: NetEase, January 30, 2026
https://www.163.com/dy/article/KKI9GL7H0556818Z.html