Xi'an plans to build an integrated transport equipment industrial base, aiming at an annual output of more than 5 billion yuan ($805 million).

The Xi'an Yanliang National Aviation Hi-tech Industrial Base Management Committee, CSR Zhuzhou Electric Locomotive Co Ltd and Shaanxi Coal and Chemical Industry Group Co Ltd signed a cooperation agreement in Xi'an, Shaanxi province, on Tuesday to build the base in a national hi-tech aviation industrial base in Yanliang district.

Construction of the base, with investment of 2 billion yuan from the three parties, will start in June.

Upon its completion in 2015, its annual output is expected to be 5 billion yuan.

The project will provide assembly, repair, alterations, service and sales of urban rail vehicles and equipment, and the manufacture and repair of rail trams and trolleybuses, as well as undertake turnkey rail projects, said Zhou Qing, chairman of CSR Zhuzhou Electric Locomotive Co Ltd, at the signing ceremony held on Tuesday in Xi'an.

The project will not only fill a need for rail transportation vehicles and equipment production in Shaanxi province, but also provide strong industrial support for the development of a modern integrated transport system in West China, Zhou said.