7.7.2. Economic Benefits

In terms of economic benefits, the project boasts good financial and economic benefits. The PDL has contributed to the regional GDP, optimized resource allocation and utilization, accelerated industrial restructuring, and motivated tourism and other tertiary industries along its route.

However, due to high investment and heavy loans, the early phase of operation is overshadowed by huge pressure of repayment, resulting in poor financial performance. The financial dilemma is partially attributable to the outdated managemen<sup>t</sup> mode. In Harbin-Dalian PDL, the railway network infrastructure (network) and the passenger/freight transportation (transportation) are still managed by the same entity. This goes against the more efficient and rational managemen<sup>t</sup> mode of "separation between network and transportation" [56]. The new mode encourages competition and yields more profits.
