The suspension of the Gaoming Modern Tram Demonstration Line in Foshan, China, highlights challenges faced by infrastructure projects in some third- and fourth-tier cities. While the line was recognized for its innovative approach as the world’s first hydrogen-powered tram, operational issues have led to its sudden halt. Similar tram projects in various Chinese cities have faced suspension or closure due to low passenger traffic and high maintenance costs, posing financial burdens on local governments.The enthusiasm for tram projects in the past decade has waned as challenges in project sustainability have emerged. Urban rail transit, including trams, was initially viewed as a cost-effective alternative to subways, with lower construction costs and greater flexibility in approval processes. However, inadequate passenger traffic and escalating operational subsidies have undermined the viability of tram projects across China.Local governments, eager to showcase infrastructure development and boost transportation options, have faced the reality of inefficient tram lines with limited ridership. The failure to match operational costs with revenue generation has resulted in significant financial strains, with local finances bearing the burden of subsidies to sustain tram operations. The overestimation of passenger flow and inadequate network planning have compounded the challenges faced by tram projects, rendering many lines underutilized and financially unsustainable.The dilemma experienced by tram projects underscores the need for prudent infrastructure investment and long-term planning to ensure financial viability and operational sustainability. The shift towards cost-effective alternatives must be balanced with considerations for ongoing maintenance and operational costs to prevent infrastructure projects from becoming financial liabilities in the future. As China navigates the complexities of infrastructure development and maintenance, strategic and sustainable approaches are essential to ensure the long-term success of urban transit projects and mitigate financial risks associated with infrastructure support.
