Empire Rising: Spain

Although tram systems only need to be established in the cities of Madrid and Barcelona, due to the size of both cities, a significant amount of investment is still required.

According to the joint plan of the Spanish Government and the municipal governments of the two cities, Madrid will construct at least six tram lines, four of which will be in Madrid City, which is also the core urban area of Madrid.

The remaining two lines include one directly connecting the industrial zone on the outskirts of Madrid, which houses the majority of factories and other enterprises around Madrid.

The other remaining tram line is responsible for connecting the Madrid University City, the Royal Academy of Sciences, and the large experimental area, specifically designed for students and researchers.

Carlo also reviewed the tram track plan for Madrid and found it generally meets Madrid’s public transportation needs.

As for residents not on the tramline, they will have to make do by walking a certain distance before taking the tram.

Once the tram tracks are completed, the operating company will arrange the number of trams according to specific needs.

Tram lines with higher passenger volumes will dispatch more trams, and those with less will dispatch fewer. Although trams are part of urban public transport, profits still need to be made.

Only when these capital investors make the money they deserve will they be satisfied and willing to invest in future urban developments in Spain.

If the first collaboration fails, these investors may not be as optimistic about investing in Spain’s development next time.

In the absence of domestic capital in Spain, collaborating with these foreign capitals is indeed necessary. National development cannot be a solo effort, and appropriately introducing foreign investment is only beneficial to Spain’s growth.

Compared to Madrid, which requires the construction of six tram lines, Barcelona only needs four.

Among these, three are for the urban area of Barcelona, and a longer tram line will connect the industrial zone located at the outskirts of Barcelona City.

The main reason Barcelona has two fewer tram lines than Madrid is because Barcelona lacks the dense university city and is not the capital of Spain, leading to less government support.

However, the tram line connecting the industrial zone in Barcelona is longer and will pass through and encircle most of the Barcelona Industrial Zone.

If Madrid has the largest number of tram lines, then Barcelona boasts the longest mileage of tram lines. After all, as Spain’s largest industrial zone, the emphasis must be placed accordingly.

To build and operate the tram systems in the two cities, Spain will establish the Madrid Tram Company and the Barcelona Tram Company.

The Madrid Tram Company will invest a total of over 62 million Pesetas, with the Spanish Government investing 10 million Pesetas, the Spanish Royal Family investing 5 million Pesetas, the Madrid City Government investing 7 million Pesetas, and the Spanish National Power Company contributing technical shares equivalent to 15 million Pesetas. The remaining 25 million Pesetas will be open to tender, inviting domestic and foreign capital to join.

The Barcelona Tram Company investment will exceed 75 million Pesetas, with the Spanish Government similarly investing 10 million Pesetas, the Royal Family still investing 5 million Pesetas, the Barcelona City Government investing 10 million Pesetas, and the power company also contributing technical shares worth 15 million Pesetas.

The remaining 35 million Pesetas in investment will also rely on domestic and foreign capital to fill the gap, aiming to reduce government fiscal expenditures.

The total investment in tram tracks for the two cities amounts to 137 million Pesetas, which is by no means a small sum.

The capital involved in the investment reaches 60 million Pesetas, nearly half of the total investment.

If relying solely on the efforts of the Spanish Government, although the government could raise the 60 million Pesetas, it would undoubtedly impact other areas of development.

The Spanish Government’s total fiscal revenue last year was only 932.5 million Pesetas, with a meager fiscal surplus of just 9.7 million Pesetas.

For the Spanish Government, every penny needs to be carefully calculated, so as to consider the development in all areas, not just prioritize one or a few aspects.

After all, the Spanish Government still has many outstanding foreign debts, and savings are still necessary where possible.

As long as the tram construction succeeds and becomes profitable, the initial cooperation between the Spanish Government and foreign capital can end on a positive note.

This way, in the future, when further cooperation with these foreign capitals is needed, there will be no hesitation, and the financial power that Spain can mobilize will become even stronger.

Although the combined investment from the Royal Family in the tram technology for the two cities is only 10 million Pesetas, the shares actually controlled by the Royal Family are more than this.

Most of the shares of the Spanish National Power Company are controlled by the Royal Family, which through technical shares has obtained an investment share equivalent to 30 million Pesetas.

In other words, the Royal Family’s direct or indirect investment in tram construction amounts to 40 million Pesetas, accounting for about one-third of the total investment.

Together with the investment from the Spanish Government and the two city governments, this can ensure that the Spanish authorities have sufficient clout in the tram sector.

This is also the reason Carlo is confident in introducing foreign capital. As long as the total Spanish investment predominates, there is no need to worry about foreign capital gaining a controlling influence.