China plans massive expansion

International Railway Journal, April, 2004

CHINA's Slate Council (cabinet) has approved the expansion of the rail network from about 72,000km today to 100,000km by 2020. In addition, 13,000km of existing lines will be upgraded to double track and 16,000km of lines electrified. This will increase the proportion of double-track and electrification to more than 50%.

The Ministry of Railways (MOR) estimates this will cost a staggering Yuan 2 trillion ($US 241.6 billion). This compares with the Yuan 243.8 billion invested during the last five years when 5944km of new lines were built. According to Mr Yu Chuan, MOR's chief economist, the plan will be funded through borrowing or capital from independent investors. Yu says domestic and foreign investors will be allowed to invest in the construction of intercity passenger lines.

China's minister of railways, Mr Liu Zhijun, says the Chinese rail network is failing to meet the ever-increasing demand for both passenger and freight transport, and this is holding back the growth of the country's booming economy. Chinese Railways is only able to satisfy about 40% of freight demand, and it is struggling to cope with seasonal demand for passenger traffic. Hence the need for a "leapfrog development," as Liu put it.

There are three main objectives of the expansion plan:

* the creation of 12,000km of express passenger lines focused on the areas around Beijing, Shanghai, and Guangzhou.

* construction of 16,000km of new lines in western China, a relatively underdeveloped region that has been given priority by the government, and

* increasing the capacity of existing lines through track doubling and electrification, as well as through introducing new technology and reforming the way the railway is operated.

Already, the government has decided to double the annual rate of investment for the next four years. Last year, Yuan 53.3 billion was invested in the railway. This will now be stepped up to about Yuan 100 billion a year. By the end of next year another 3000km of new lines will have been added to the network. The amount of double-track will have increased to 25,000km and the electrified network will total 20,000km.