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July 2, 2010

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Intercity rail adds luster to businesses

PRIS Wu, deputy editor-in-chief at Map Magazine in Nanjing, takes two or three business trips between his home city and Shanghai every month.

"I will take the new intercity railway because it provides a better traveling experience," he said. But he said if the first class ticket is priced too high he might consider buying a standard ticket instead.

The Shanghai-Nanjing intercity railway started operations yesterday. Besides providing convenience to business travelers like Wu, it will also boost economies of surrounding small and medium-size cities.

"Intercity railways will boost retail business and food and beverage business in neighboring small and medium-sized cities," said Wang Jia, a commercial and trade analyst at Orient Securities. "It will speed up urbanization in small cities and local residents income will also rise."

Wuhan's retail sales during the Spring Festival this year boomed 21 percent from last year's to 8.4 billion yuan (US$1.24 billion) after the high-speed railway linking the southern city of Guangzhou to Wuhan was launched in December last year. The number of tourists also jumped 19.7 percent to 2.19 million, according to data provided by Orient Securities.

China plans to build 42 high-speed rail lines spanning 13,000 kilometers over the next three years.

The launch of high-speed railways will impact airlines which are seeking measures to retain their passengers.

Guangzhou-based China Southern Airlines had to reduce ticket prices and increase flight frequencies to retain their passengers after the Guangzhou-Wuhan high-speed railway started running in December.

China Eastern Airlines, which flies daily between Shanghai Pudong International Airport and Nanjing, now offers free tickets on the route to passengers who arrive on international flights and transit in Shanghai.

"The launch of the Shanghai-Nanjing Intercity Railway may affect our Shanghai-Nanjing flights, so we are talking with railway authorities about collaboration," said Ma Xulun, general manager of the airline.

He said the airline may get buses to pick up passengers from Hongqiao International Airport to Pudong airport after they arrive by high-speed railway.




 

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