The railway network possesses the properties of public products and is featured by large construction investment and long payback period. Compared with the general commercial investment, the investment in railway construction brings a strong radiation effect on national economic progress, with obvious external effects. Therefore, it is specified that governments are liable for the investment of railway infrastructure in many countries through the railway reform, while the railway enterprises assume appropriate investment responsibilities merely for the income from the usage of infrastructure. In generally, the investment in new railway line projects in such countries as Germany, France and Japan is mainly undertaken by the governments at all levels, while the proportion of investment undertaken by the enterprises is relatively low. For the existing line renewal projects, the proportion undertaken by the enterprises is relatively high (even full investment in some projects). However, the investment in renewal projects is still mainly undertaken by the governments in such countries such as Germany and France.
In Germany, the investment in railway construction and renewal projects is mainly undertaken by the government. Since the railway reform, the operating railway mileage of DB AG has decreased from 40,355 km to 33,488 km, and 1,184 km of HSRs have been put into operation, including 753 km of new HSRs. From 1994 to 2015, the federal government and DB AG in Germany invested a total of EUR 119.2 billion in infrastructure (including new projects, expansion projects, renewal projects and overhaul projects), of which the government at all levels in Germany and the EU provided the non-reimbursable construction investment subsidies of EUR 84.2 billion, accounting for 71%, and DB AG invested EUR 34.98 billion (including interest-free loans with principals to be repaid), taking up 29%.
France undertakes partial investment in the railway infrastructure projects. France has basically maintained a total railway mileage of 30,000 km since the railway reform. At present, France has 2,814km HSRs in operation, of which 1,524km was built after 1997. The French government has set up a special fund-raising institution for transport infrastructure projects to provide financial support for railway construction. Since 2006, the former French Rail Network (RFF) has actively applied the market mechanism to introduce the PPP mode and further expand the financing channels, while the proportion of investment undertaken by the government is relatively limited. It is roughly estimated that the total investment undertaken by the French government in the new HSRs built after the reform is about EUR 7.4 billion, accounting for about 27% of the total.
Spain provides substantial financial support for the construction of HSRs. It has provided significant investment in HSR construction in the form of national budgetary appropriation, and the European Regional Development Fund has also provided financial assistance for the development of HSRs in Spain. For example, the total investment of the Madrid-Barcelona-Figueres HSR is EUR 14.267 billion, where the government investment, the EU-aided fund and the enterprise investment takes up 58.4%, 24.1% and 17.5% respectively.