China's railway minister maps expansion plans - plans for modernization of China's rail system - Brief Article

Railway Age, August, 2001

The Chinese Ministry of Railways gave an informational presentation to a group of industry executives last month in Washington, D.C., outlining the nation's extensive plans for modernization over the next five years and allowing for introductions between American suppliers and Chinese rail constituents.

Through a translator, Minister of Railways Eu Zhihuan detailed several different facets of the MOR's plans to improve a rail system that currently bandies 36% of the country's total passenger service and 51% of the total freight shipments. The aggressive program of advancement and expansion will develop the passenger and freight systems at the same time, and the MOR is eager to get involved with American suppliers for equipment and consultation.

The MOR's two main goals, according to Fu, are to create a railway that functions in a communications and transportation capacity and to make great progress in the separation of government functions from enterprise management to break the monopoly currently in effect.

"With a majority of our manufacturers located in eastern China, and most natural resources in the west, we need to greatly improve the capacity of our lines running west to east," said Fu. He added that high speed rail between major cities is also a priority, whether constructing new lines or upgrading existing corridors.

World Bank Director of Rural Development Louis Thompson spoke toward the end of the presentation and summarized the nature of loans it granted the MOR. Those loans are in excess of $3 billion.