Official: China-US hyperloop project will not raise gov't debt risk

An official with the Tongren government on Saturday responded to public concerns about China's first commercial hyperloop to be jointly built by the Tongren government in Guizhou Province and Hyperloop Transportation Technologies (HTT) in the US, stating that it will not be a financial burden on the people and government, reports cnr.cn.

A signing ceremony between Tongren government of Guizhou Province and the Hyperloop Transportation Technologies was held on July 19. [Photo: cnr.cn]

On July 19, the Tongren municipal government and HTT signed a cooperation framework agreement for the hyperloop experience line, agreeing to jointly build China's first commercial hyperloop in the city of Tongren in southwest China's Guizhou Province.

Located in an extremely remote area of Guizhou, the underdeveloped city of Tongren is taking the lead in building China's first hyperloop through cooperation with HTT. Some people have expressed that it may be a vanity project which will not only raise a debt risk for the local government, but also may leave the public footing the bill.

A screenshot of a hyperloop from a website about Hyperloop Transportation Technologies. [Photo: China Plus]

"China's bullet trains are awesome in the world, but different from traditional high-speed and electrically powered rail transportation, hyperloop is powered by maglev technologies in an evacuated tube environment with super high speed, low energy consumption and noise, and high security", explains Zhou Fuzong, deputy director of Commission of Industry and Information Technology of Tongren.

HTT has signed construction agreements with over ten countries worldwide. Because Tongren is a complicated geological area, the project will require optimal design.

Zhou believes it's win-win cooperation. Tongren municipal government and HTT will set up a joint venture with an investment ratio of 1:1, and a hyperloop R&D industrial park. The project will not be a fiscal burden, and it also will raise capital and advance the development of technologies, bring in new equipment, and promote tourism in Tongren city and Guizhou Province.

The concept of a hyperloop was initially put forward by Elon Musk, founder of SpaceX in the U.S. He conceived that a train can run in a rail resistance-free and low air-resistance mode, with a speed ranging from 600 to 1200 kilometers per hour.