Investment in high-speed rail picks up pace
Source: Xinhua |
December 13, 2012, Thursday
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Print Edition
Print Edition
SHI is among millions of Chinese eagerly awaiting the launch of a high-speed railway linking the cities of Beijing and Wuhan.
"The new line will cut travel time from Beijing to Shijiazhuang, my hometown, to just 50 minutes from two-and-a-half hours," the white-collar worker said.
The railway, which is expected to start operation at the end of the month, is part of broader government efforts to build a high-speed passenger rail network by 2015 to tackle gridlock and drive economic growth.
Government-led investment has proven an effective way to bolster the economy amid slowdowns. In 2009, in the midst of the financial crisis, the government succeeded in prompting instant and rapid economic growth by introducing massive investment projects.
"The country intends to boost economic growth by stepping up investment amid the current slowdown and the rail sector is worth investing in," said Zhao Jian, an economics professor at Peking University.
The Ministry of Railways says that during the first 11 months of the year, fixed-asset investment in railways, including railway infrastructure investment and train purchases, totaled 506.97 billion yuan (US$81.1 billion), up 3.1 percent year on year.
After years of explosive growth, railway construction stagnated following a train crash in the city of Wenzhou that left 40 people dead and hundreds injured in July 2011.
But the government has picked up the pace in recent months, with railway infrastructure spending surging 142 percent year-on-year to reach 70.1 billion yuan in November.
"Approvals of several inter-city rail projects were the main reason behind the large amount of rail infrastructure investment seen in recent months," said Shen Zhengyuan, an analyst at CIConsulting.
The government has approved a series of infrastructure projects worth more than 1 trillion yuan since September to reinvigorate economic growth, which slowed for a seventh straight quarter to 7.4 percent from July to September.
Wang Mengshu, an academic at the Chinese Academy of Engineering, said he expects the rail investment boom to continue in 2013.
"The government may keep its railway investment target unchanged at 630 billion yuan next year," he said.
According to the 12th five-year plan for railway development, China will invest 2.3 trillion yuan in railway infrastructure during the 2011-2015 period.
"The new line will cut travel time from Beijing to Shijiazhuang, my hometown, to just 50 minutes from two-and-a-half hours," the white-collar worker said.
The railway, which is expected to start operation at the end of the month, is part of broader government efforts to build a high-speed passenger rail network by 2015 to tackle gridlock and drive economic growth.
Government-led investment has proven an effective way to bolster the economy amid slowdowns. In 2009, in the midst of the financial crisis, the government succeeded in prompting instant and rapid economic growth by introducing massive investment projects.
"The country intends to boost economic growth by stepping up investment amid the current slowdown and the rail sector is worth investing in," said Zhao Jian, an economics professor at Peking University.
The Ministry of Railways says that during the first 11 months of the year, fixed-asset investment in railways, including railway infrastructure investment and train purchases, totaled 506.97 billion yuan (US$81.1 billion), up 3.1 percent year on year.
After years of explosive growth, railway construction stagnated following a train crash in the city of Wenzhou that left 40 people dead and hundreds injured in July 2011.
But the government has picked up the pace in recent months, with railway infrastructure spending surging 142 percent year-on-year to reach 70.1 billion yuan in November.
"Approvals of several inter-city rail projects were the main reason behind the large amount of rail infrastructure investment seen in recent months," said Shen Zhengyuan, an analyst at CIConsulting.
The government has approved a series of infrastructure projects worth more than 1 trillion yuan since September to reinvigorate economic growth, which slowed for a seventh straight quarter to 7.4 percent from July to September.
Wang Mengshu, an academic at the Chinese Academy of Engineering, said he expects the rail investment boom to continue in 2013.
"The government may keep its railway investment target unchanged at 630 billion yuan next year," he said.
According to the 12th five-year plan for railway development, China will invest 2.3 trillion yuan in railway infrastructure during the 2011-2015 period.
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