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Full steam ahead for China's global rail projects

By Zhong Nan (China Daily) Updated: 2016-01-19 07:45

More high-speed investment on track

China will spend 800 billion yuan ($122 billion) in fixed-asset investment on its railway system this year, with passenger and freight capacity up 10 percent and 2 percent, respectively, according to the head of the country's railway operator.

Sheng Guangzu, general manager of China Railway Corp, said China will maintain railway investment and improve railway construction in central and western regions, as well as enhance its capability of multi-modal logistics services to further cooperate with road and water transportation system to create more market growth points from fast-growing logistics industry.

China's total fixed-asset investment reached 823.8 billion yuan in 2015, with 9,531 kilometers of new railways, including 3,306 km high-speed rail lines, being put into use, according to the CRC annual conference held on Sunday.

China took the top spot with high-speed rail extending more than 19,000 kilometers by the end of last year, accounting for 60 percent of global high-speed rail lines.

The central government increased railway spending from the original 630 billion yuan to 800 billion yuan last year as a part of its measures to cushion the downward pressure of the economy.

Luo Renjian, a researcher at the Institute of Transport Research at the National Development and Reform Commission, said the reform of funding methods in rail construction is the most vital part of the entire reform of the rail system as governments can no longer work alone in funding rail construction projects and paying the railway maintenance bill forever.

China reformed the funding of railway construction and called for accelerated rail construction in central and western regions in 2014. Since then, multiple fundraising for railway construction has been pledged, including a greater role for private capital and the establishment of a railway development fund, which is expected to bring billions of yuan in funding from private investors.

"We will continue to open it up to the market and take practical measures to attract private funds with profitable projects while continuing the less-profitable construction of railways in central and western areas," said Sheng.

The CRC said about 2.5 billion trips by train were made in 2015, up 10 percent for the third year running, Non-container cargo transportation increased 18.7 percent in 2015 from the previous year and container cargo transportation rose 20.2 percent year-on-year.

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