Here's what might ease China's congested roads and reduce pollution: a new type of electric-powered public transport. While the new light rail system in Shenzhen could be a major boon to China's public transport industry, can it really help reduce the number of cars on the streets?
As the name indicates the Sky Rail is built high above the ground. The manufacturer says elevated monorail takes less space and only one third the production time of traditional subways, and since it runs on electricity and above street level, it can help reduce both air pollution and ground traffic congestion.
"The annual growth rate for automobiles in urban areas is about 15%, but the expansion rate of roads is just about 1%. That means despite building more roads, traffic will continue to get worse. We hope our Cloud Rail will help cities reduce ground traffic," said Zhang Yue, director of Brand Communication, BYD Co., LTD.
It cost BYD 5 billion yuan and 5 years to develop and build the first 4.4 kilometers of Sky Rail in Shenzhen, the company says some 20 other cities in China are also interested in bringing the new rail home.
If that happens, the size of Sky Rail's market could reach many trillions of yuan. That wouldn't necessarily prevent China's growing middle class from buying their own cars, however -- which will continue to be stuck in traffic.
According to Morgan Stanley, 84% of of all cars bought in the world during the third quarter, were bought in China.
Experts believe the growth in the number of cars on China's roads will continue to rise, and that new modes of public transport will just be an addition to private cars.
"The growth rate for car sales is definitely not as fast as it was previously," said Zheng Yun, Exec. Director, Roland Berger Strategy Consultants.
"It will continue to slow over the next five to ten years but it will stay positive, despite car sharing platforms and regional restrictions on car purchases. Cloud Rail or even bike sharing platforms are just supplementary, modern ways to travel, and will not directly affect auto sales."
So while the number of cars running on China's roads doesn't seem likely to decline anytime soon, the makers of Sky Rail hope their system will be there to help stem the tide. And they're not alone. BYD has now signed an agreement with China Development Bank, worth a total of 60 billion yuan, in the project to bring Sky Rail to more cities.
