Chapter 481 Sense of Oppression
Railroads do make money, but the way they make money is not in passenger transport, but in freight.
Population mobility is not high nowadays. Many people live within a radius of a hundred miles throughout their lives. Even if they travel, they will not choose trains.
The profits generated from freight alone are not enough to maintain railway operations, so the management rights of the land along the railway must be added before anyone is willing to build the railway.
When George was building the Middle East Railway, he used the survey to control all the valuable mineral resources along the Middle East Railway in advance. Even most of the ice city belonged to George.
There's nothing we can do about it.
George is also responsible for building the Ice City. Others don't know where the Ice City is yet. George has already started in advance, and the first to get the most is the building near the water.
What makes Cotuno most helpless is that although George controls the mineral resources along the railway, he is not eager to develop them. As a result, the China Eastern Railway Company cannot even make money from freight.
With all the factors added together, it is surprising that the China Eastern Railway can make money.
After listening to Cotunno's introduction, Joao Lyon and Rotstein looked at each other with a solemn expression.
Joao Leone and Rotstein took a Siberian Railway train from St. Petersburg to Chita.
Arrived in Chita, João Leon and Rotstein were going to transfer to the China Eastern Railway Company train to go to Ice City.
Joao Leone and Rotstein felt something different even before they saw the train.
Chita Railway Station has a total of four platforms. The platform where the China Eastern Railway Company train stops is the 4th platform farthest from the waiting room.
Chita Railway Station is very large, with 4 waiting rooms, each of which can accommodate hundreds of passengers.
Joao Lyon and Rotstein were waiting in the VIP waiting room. When they passed by the ordinary waiting room, the passengers waiting for the bus were all the same.
When we arrived at the platform, there were only a dozen or so passengers who boarded the train with Joao Lyon and Rotstein.
In order to better understand the situation, João Lyon and Rotstein did not go to the first-class carriage, but entered the third-class carriage with other passengers.
All first-class carriages are independent compartments, equipped with beds and bathrooms. They are spacious and clean. Each carriage is equipped with dedicated service personnel, and the service is very attentive.
The second-class carriage is also a sleeper, but it is not an independent box. It needs to be shared by several people. There is no independent bathroom and the privacy is not as good as that of the first-class box.
The third-class carriage has row seats and no sleepers. In theory, passengers cannot sleep.
But if there are fewer people on the train and there are free seats, passengers can sleep on the joint chairs.
Although the joint chair is not as comfortable as the bed, it is cheaper!
“If it weren’t for the chance to sleep, no one would take the China Eastern Railway Company’s train. This damn train can’t even provide hot water, you can’t order food, and it’s often late. Sooner or later, this company will go bankrupt. !”
Grant, who got on the bus in Chita at the same time as João Lyon and Rotstein, chattered non-stop as soon as he sat down.
Grant is a fur trader who often travels between Chita and Vladivostok and is a VIP customer of the China Eastern Railway.
“Why can’t you order food?”
Rotstein was curious. The trains of the Siberian Railways have dining cars, and the taste is pretty good. Along the way, Joao Lyon and Rot Standu was full of praise for the meals served in the food truck.
Rotstein thought that even if the China Eastern Railway Company was not as good as the Siberian Railway Administration, it would not be too far behind.
I never expected that the China Eastern Railway doesn’t even have a dining car.
This is not a big difference, but there is no comparison at all.
"Just these two or three kittens and puppies, even if there is a food truck, to whom will they be sold?"
Grant's laughter was like a slap in the face.
Cotuno smiled bitterly, that was indeed the case.
Without consumption, there is no profit, without profit there is no way to provide better services, a vicious cycle. The problem with the China Eastern Railway is not whether it can provide perfect services. Even the most basic operation cannot be guaranteed.
Due to heavy rains this spring, the Hulunbuir section of the China Eastern Railway was washed away by spring floods in April, causing the China Eastern Railway to be interrupted for 20 days.
Just a few days after the railway was restored, the Mudanfeng section was damaged by falling rocks. Only a dozen rails were damaged, and it took the China Eastern Railway Company 15 days to repair them.
The reason is still insufficient profits and the inability to hire enough railway maintenance workers.
As the general manager of Dowson Bank in the Far East, Cotuno should be responsible for the poor management of the China Eastern Railway.
But it is not that simple to hold Cotunno accountable. Cotunno's father is the imperial minister Count Vrontsov.
The train passes through Manzhouli Station and enters the Qing Empire.
After leaving Manzhouli, Grant was surprised that the staff who checked the passengers' luggage did not take the opportunity to blackmail them.
“Because there is no profit, these staff only have basic salary and no bonus.”
Cotuno told the truth, the staff also need to eat.
"So, what's the problem?"
Joao Leone asked Cotunno.
“The problem is in St. Petersburg——”
Cotunno doesn’t think there is a problem with his ability.
The Middle East Railway is part of the eastward expansion of the Russian Empire. Based on the Siberian Railway, the Middle East Railway existed.
After the Russo-Japanese War, St. Petersburg's ambitions in the Far East were completely extinguished, and the Russian Empire's eastward expansion plan was completely bankrupt. The Far East completely became the Far East of Grand Duke Yuriev. Without George's cooperation, even if Joao Lyon was personally responsible for the Eastern Railway The general manager is useless.
Now the China Eastern Railway is not only unable to contribute profits to Dowson Bank, but has become the heaviest financial burden for Dowson Bank.
If this part of the expenditure is reduced, Dowson Bank may be able to pack lightly and start over.
Joao Lyon and Rotstein got off the bus at Ice City. This was their first time in this Far Eastern city, which was modeled after St. Petersburg.
Although Ice City is located within the Qing Empire, most of the buildings are in Russian style, making people feel like they are in St. Petersburg.
The Hagia Sophia Cathedral located in the center of Ice City is one of the earliest buildings built in Ice City.
Except for Hagia Sophia, most of the buildings that can be seen in Ice City are owned by Amur Enterprises.
Although Hagia Sophia has "big" in its name, its scale is actually not large. It was originally a military church built by the China Eastern Railway garrison. When George handed over the management of the China Eastern Railway to the China Eastern Railway Company, the Saint Sophia Cathedral was Sophia Cathedral, as an affiliated property of the China Eastern Railway, was also handed over to the China Eastern Railway Company.
To thank George for his cooperation, Daosheng Bank also paid George 1 million rubles for Hagia Sophia.
Looking at it now, this 1 million rubles is particularly ironic.
The most magnificent building in Ice City is the Ice City Branch of the Bank of Siberia.
Hagia Sophia was built in a hurry in 2 years, so the scale is definitely not big.
The construction of the Ice City branch of the Bank of Siberia took a full 10 years and was just completed last year.
The Ice City Branch of the Bank of Siberia has three floors, with a total height of 45 meters including the bell tower on the roof.
The headquarters of Daosheng Bank in Bingcheng has only two floors, with a total height of about 10 meters. Compared with the Siberian Bank branch, it looks like a toy built with building blocks.
In front of the Bank of Siberia, there are two knight statues made of steel. The statues are about 10 meters high and fully dressed in military uniforms. One knight holds the flag of the Amur Military District, and the flag in the other knight's hand is embroidered with Yuriev. Family crest.
Standing under the statue, Joao Leon truly felt the oppression from Yuriev Palace.
(End of this chapter)