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Old May 30th, 2005, 06:04 PM   #1
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CHINA | Railway Development

Key project completed for China's first high-speed, electrified trunk railway
30 May 2005
Xinhua's China Economic Information Service

NANCHANG, May 30 (CEIS) -- Construction of a bridge, a key project for the upgrading program of the trunk railway between Zhejiang and Jiangxi provinces in east China, was completed over the weekend.

The railway is China's first trunk railroad that is being upgraded for electrified trains with a running speed of 200 kilometers per hour, according to Cai Guoqiang, deputy director ofthe rail road construction headquarters in Jiangxi.

Named Fuhe, the bridge is located in Jinxian County of Nanchang City, provincial capital of Jiangxi, with a total length of 1,380.59 meters. It is a double-line railway bridge designed to accommodate 200-km/hr cargo and passenger trains, the official said.

The Zhejiang-Jiangxi railway upgrading program started May 2004 and plans to have its mainstream project completed at the end of August 2005, he said.

The railway, from Hangzhou, capital of Zhejiang Province, to Zhuzhou, a city in central China's Hunan Province, is 942 km long, including a 564.1-km section in Jiangxi Province.
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Old May 31st, 2005, 05:24 PM   #2
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Shanghai mulling subway fare increase to reduce overcrowding
May 31, 2005

AP - Subways in China's largest city are so jam-packed that officials have proposed boosting fares to help reduce crowding, setting off an outcry among residents who rely on the train lines to get to work.

Similar to Tokyo, subway employees now have to shove passengers in to get the doors closed. The most crowded line carries about 42 percent more passengers than it is designed to handle, and overall the system of two underground and one light-rail routes is running at 25 percent above capacity, the state-run newspaper Shanghai Daily reported Tuesday.

The city is holding public hearings on a plan that would raise fares to as much as 6 yuan (73 U.S. cents; 58 euro cents) from the current 4 yuan (50 U.S. cents; 40 euro cents). But consumer groups and residents are opposed, arguing that higher commuting costs would hurt middle-income families living in distant suburban areas.

Shanghai, a city of more than 20 million, now has only 82 kilometers (50 miles) of subway lines. By 2010, the number of lines is expected to rise from three to 11, and the total length of subway routes to 400 kilometers (250 miles).

But in the meantime, commuting options for the millions of city dwellers who have been forced by urban renewal projects to move to distant suburbs are limited. Buses, which cost as little as 1 yuan (12 U.S. cents; 9 euro cents) are also crammed full - and often stuck in massive traffic jams.

About one in four residents bicycle to work, but cycling from newly built suburbs 15 kilometers (9 miles) or more outside town is not a practical option.
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Old June 9th, 2005, 08:06 AM   #3
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China's Rail Freight And Passenger Volume Hits Record in May

BEIJING, June 8 Asia Pulse - Chinese railways carried 92.947 million passengers in May, 4.423 million more than in the same period of last year, including 30.792 million passengers by through trains, up 2.898 million year on year, according to statistics from the Ministry of Railways.

The daily loading capacity averaged 104,364 wagons and daily unloading capacity averaged 108,171 wagons, 5,206 and 5,751, respectively, more than in the same time of last year. The amount of freight dispatched reached 194.343 million tons, up 11.895 million tons over the same time of 2004.

The total amount of coal carried reached 89.521 million tons in the month of May, rising 6.08 million tons; that of petroleum was 10.671 million tons, growing 372,000 tons; that of cereals was 9.163 million tons, up 1.112 million tons; that of fertilizers and pesticides, 6.044 million tons, increasing by 1.301 million tons.
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Old June 15th, 2005, 07:05 AM   #4
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China begins construction of 1.5 billion dollar northern railway

BEIJING, June 12 (AFP) - Construction on a 1.5 billion dollar railway line between northern China's leading coal-producing Shanxi region and neighboring Hebei province began this weekend and is expected to alleviate transport bottlenecks in the area, state press said Sunday.

The 190 kilometer (114 mile) line between the Hebei provincial capital of Shijiazhuang and Shanxi's capital of Taiyuan is expected to be mainly used for passenger traffic and will be completed by 2008, Xinhua news agency said.

Completion of the railway will allow existing transport lines between the two regions to concentrate on moving coal out of the region, the report said.

China is facing serious energy shortages this year, with bottlenecks in coal transport partially responsible for electricity blackouts nationwide.

Construction of the railway will include the building of 94 bridges and 32 tunnels, including a 28 kilometer long tunnel, which will be China's longest railway tunnel upon completion, it said.

Train speeds on the new line are expected to reach 200 kilometers per hour, with the trip between the two cities expected to only take one hour, it said.

China is expected to build nine new railway passenger lines this year as part of a plan to construct some 120,000 kilometers of passenger lines by 2020, the report said.
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Old June 15th, 2005, 05:26 PM   #5
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China paves way for first foreign-owned rail track
By MURE DICKIE
15 June 2005
Financial Times

China's eastern province of Shandong has called for overseas investment in up to six new local railway lines, opening the way for what analysts say would be the first wholly foreign-owned track to be laid since the 1949 communist revolution.

The Shandong lines are among several railway projects around China opened to foreign investors in recent months. In February, the central government backed overseas involvement in strategic sectors of the economy ranging from aviation to oil.

Foreign railway ownership has been a sensitive issue in China since colonial powers outraged many by building lines deep into the interior during the 19th century decline of the Qing dynasty.

Now Beijing sees foreign investment as an important way of accelerating construction of the nearly 30,000km of track China plans to build before 2020.

But the enthusiasm of international investors for what is one of the world's biggest railway construction booms may be undermined by a lack of regulatory clarity and vulnerability to bureaucratic whim.

Wen Lei, a railway expert at Beijing Normal University's school of management, said: "There are no legal guarantees and the Railway Ministry stresses centralised control, which makes things very uncertain for foreign investment."

It remains unclear under what rules Shandong is allowing complete foreign ownership of at least three of its six planned lines, which are expected to cost a total of over Rmb5bn (Dollars 600m, Euros 498m, Pounds 332m).

Provincial and railway system officials this week cited a number of sometimes contradictory regulations, including an order issued by Beijing's top economic planners late last year that said total ownership would be possible after December 2007.

Other Chinese provinces have in recent months offered foreign investors minority roles in railway construction projects, including a line between the capital Beijing and Shijiazhuang in neighbouring Hebei province and between southern Guangzhou and eastern Wuhan.

Railway officials in the central province of Henan say a US-invested Hong Kong company has agreed to take a 30 per cent stake in a Rmb2.5bn line to neighbouring Anhui. The joint venture was established in February, but no money has yet been put into the project.

Attempts in earlier years to attract foreign investment for Chinese railways foundered. Offshore investors in a line from the eastern city of Wenzhou pulled out after interference from railway authorities.

Endemic corruption in the railway system remains another potential obstacle. This week Caijing Magazine, one of China's most respected business publications, reported that more than Rmb6bn had been illegally misappropriated by staff of western China's Lanzhou Railway Bureau.
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Old June 23rd, 2005, 05:41 PM   #6
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Social capital sought for Wuhan-Guangzhou express railway
22 June 2005
Xinhua's China Economic Information Service

WUHAN, June 22 (CEIS) – Social capital from at home and abroad will be sought for the construction of an express railway from Wuhan, capital city of Central China’s Hubei Province, to Guangzhou, capital city of Guangdong Province in South China.

This is the first time for China to open a trunkline railway to social investment.

The railway with a total length of 989 km will require a total investment of 116.6 billion yuan, of which 24 billion yuan will be raised from social investors. Construction of the railway will start on June 23 and be completed by the end of 2010.

China Railway Construction and Investment Company will be the controlling shareholder representing the Ministry of Finance, taking a 51% stake in the project. The three provinces of Guangdong, Hunan and Hubei will also hold interests by contributing the fees for land requisition. The rest totaling 24 billion yuan will be raised from domestic and overseas investors.

The Wuhan-Guangzhou express railway is a section of the planned Beijing-Guangzhou express railway. The Beijing-Wuhan section is now also under preparation. The whole railway will have a speed allowance of 200 km per hour. It will take only four hours from Wuhan to Guangzhou by train, seven hours less than the current voyage.

According to China’s railway network development plan, China will need 2 trillion yuan for railway construction in the coming 15 years, or an average of 130 billion yuan annually. The country’s annual investment in railways is now only about 50 billion yuan.
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Old June 24th, 2005, 06:51 AM   #7
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Global warming poses threat to Tibet rail link
Reuters
June 24, 2005

Rising temperatures on the "roof the world'' threaten China's controversial railway link across the snow-covered Tibetan plateau, the China Daily said Thursday.

The pan-Himalayan rail project, which began in 1958, eight years after mainland troops invaded Tibet, is expected to be finished by the end of this year.

"By 2050, safe operation of the Qinghai-Tibet railway will be affected if temperatures keep rising steadily as observed over past decades,'' Luo Yong, deputy director of the National Climate Center, was quoted as saying.

Winter and summer temperatures on the Tibetan plateau could jump as much as 3.4 degrees Celsius by 2050, causing normally frozen ground under the rail line to melt, the China Daily said. Many climatologists consider the plateau a "magnifier'' of global climate change and an indicator of warming trends across East Asia, it said.

The railway will span 2,040 kilometers from Xining in Qinghai province, to the capital of Tibet, Lhasa.

China says the rail link will promote development and help raise living standards in the impoverished region, while Tibet activists say it will speed up the pace of Chinese migration to the area and dilute Tibetan culture.

Luo issued his warning at a symposium on climate change in Beijing, which has been simmering under temperatures as high as 40C in a heat wave that has struck northern China.
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Old June 24th, 2005, 07:32 AM   #8
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China starts new round of railway construction in Yangtze River Delta
23 June 2005
Xinhua's China Economic Information Service

BEIJING, June 23 (CEIS) – A 50-billion-yuan new round of railway construction has started in the Yangtze River Delta.

At present, more than ten projects are going on simultaneously.

They include two state first class double-track railways, allowing a train to travel at a maximum speed of 200km/hr. The two railways will shorten the distance from Hefei (Anhui) to Nanjing from the original 312km to 166km and the distance from Hefei to Wuhan from the original 565km to 351km. When put into service, it would take only three hours to travel from Shanghai to Hefei, four hours less than at present, and only about five hours to travel from Shanghai to Wuhan.

The construction of the Shanghai South railway station with a floor space of 600,000 square meters will be completed toward the end of this year. The Shanghai-Hangzhou electrified railway will be the first of its kind in the Yangtze River Delta. Running 202 km, the line connects the Beijing-Shanghai line in the north, the Hangzhou- Zhuzhou and other railways in the south, carrying one third of the passengers and a quarter of cargo in the Yangtze River Delta.
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Old June 27th, 2005, 11:16 PM   #9
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Guangzhou-Zhuhai rail link to boost regions west of Delta
Alice Yan
28 June 2005
South China Morning Post

A new multibillion-yuan railway system is to be built between Guangzhou and Zhuhai in the latest attempt to improve the economies of regions located west of the Pearl River Delta.

Construction of the 114km project, which will cost 19.5 billion yuan, will start next month and be completed in 2008, according to details of the programme reported yesterday by Guangzhou-based Nanfang Daily.

The project will include the building of tracks, 30 bridges and three tunnels for both express and regular train services.

Trains would run every two minutes between 6am and midnight, the paper reported.

There will also be branch lines to Zhongshan and Jiangmen .

Trains on the slower line will stop at 14 stations between the New Guangzhou Railway Station in Panyu district and Zhuhai station. This trip will cost 40 yuan and take 86 minutes.

The project is a joint investment between the Ministry of Railways and the Guangdong Railway Group Company.

Guan Zhisheng , from the economics department of Sun Yat-sen University in Guangzhou, said the rail link would strengthen infrastructure connections between the two cities, as well as with neighbouring cities.

In particular, it will link the two cities with the proposed Hong Kong-Zhuhai-Macau bridge, which would help ease heavy traffic between Hong Kong and other cities in Guangdong.

The 28km cross-delta link, estimated to cost US$3.8 billion, could be opened by 2010 and would make Zhuhai and Macau a 30-minute drive from Hong Kong.

"The traffic between Hong Kong and Guangdong via Shenzhen is crowded and has almost hit saturation levels," Professor Guan said. "Therefore, the new railway would make travel easier."

Work started on the 13 billion yuan New Guangzhou Railway Station last December.

The building of the station forms part of a blueprint for Guangzhou aimed at improving transport links between the city and other hubs, according to Professor Guan.
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Old June 28th, 2005, 07:09 PM   #10
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-So in five years it will be possible to get from HK to Shanghai in ten hours!

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Old June 29th, 2005, 04:43 AM   #11
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China signs 20-year pact for Bombardier trains
High-speed rail order may reach 400 units

BERTRAND MAROTTE
28 June 2005
The Globe and Mail

MONTREAL -- Bombardier Inc. is cementing its presence in the booming Chinese market with an exclusive 20-year agreement to supply high-speed trains to its Ministry of Railways.

Montreal-based Bombardier said yesterday that the deal will provide the company with a significant long-term opportunity in China as the country moves to upgrade 2,000 kilometres of track and expand its capacity for passenger and cargo rail transport.

No value was put on the agreement and no actual orders were announced yesterday.

The accord also calls for the creation of a high-speed train maintenance centre in Guangzhou by 2007. Bombardier will design the centre and provide the equipment, while the China Ministry of Railways will supply the land and the building. The centre will have a capacity of 250 train sets.

Bombardier will also supply spare parts, maintenance management services, technical support and staff training.

Bombardier chairman and chief executive officer Laurent Beaudoin and Bombardier Transportation president André Navarri signed the agreement with China Ministry of Railways vice-minister Hu Yadong in a ceremony yesterday in Beijing.

One analyst played down the announcement.

“Bombardier has been expanding its presence in China, but there's nothing concrete out of this signing ceremony,” said Cameron Doerksen of Versant Partners Inc. in Montreal.

So far, Bombardier has won orders for 40 high-speed trains in China, a country whose fast-growing economy is a crucial one for Bombardier's long-term growth.

China had previously said it wanted 200 new high-speed trains, but changed that forecast to 400 last fall.

The initial order for 20 eight-car trains able to reach speeds of 200 kilometres an hour was worth $424-million (U.S.) to Bombardier and its Chinese joint venture partner. Bombardier's share is valued at about $263-million.

Bombardier also recently won an $89-million contract to build an automated train system at the new terminal of Beijing's international airport, part of the city's infrastructure expansion for the 2008 Olympic Games.

“This agreement is another testimony of Bombardier's long-standing commitment to the Chinese market,” Mr. Navarri said in a statement yesterday.

“Our aim has always been to be a full-fledged partner and contributor to the development of the railway network in China. We want to support this development not only in supplying products, but also in providing value-added services and know-how that will ensure long-term efficiency and success to the operator.”

Bombardier Transportation spokeswoman Hélène Gagnon said the company is already recognized in China as the only manufacturer of rolling stock that participates in joint ventures with Chinese partners.

This latest agreement makes Bombardier the only foreign rolling-stock supplier to enter into an exclusive long-term agreement, she added.

“This positions us as a preferred supplier,” she said.

Bombardier shares fell 2 cents (Canadian) or 0.74 per cent to $2.69 on the Toronto Stock Exchange yesterday.
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Old June 30th, 2005, 03:26 PM   #12
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Railway investment group inaugurated in S. China city
29 June 2005
Xinhua's China Economic Information Service

GUANGZHOU, June 29 (CEIS) -- The Guangdong Railway Construction Investment Group has gone into business on June 29 in this capital of south China's Guangdong province, which plans to develop 2,164 km of railways and inter-city rail systems in 15 years.

According to the State Assets Supervision and Administration Commission of Guangdong Province, the group has a total investment of 120 billion yuan (14.45 billion US dollars) and is the largest railway investment company in mainland China.

The group is the first wholly-owned company set up by the State Assets Supervision and Administration Commission of Guangdong Province since it was established. It is an attempt to make the state assets profitable, the commission source said.

In collection of funds for railway construction, the Guangdong provincial government will put 31.8 billion yuan (3.83 billion US dollars) into the group. And other funds totaling 90 billion yuan (10. 84 billion US dollars) will be collected through bank loans, bond issuance, fund rising through BOT projects and sales of property rights, the commission said.

In accordance with the summary of stepping up railway development in Guangdong signed between the Ministry of Railway and the Guangdong provincial government, the province will build nine railways and urban rail systems by 2020.
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Old July 7th, 2005, 12:21 AM   #13
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Completion of Qinghai-Tibet Railway in sight
4 July 2005
Xinhua's China Economic Information Service

LHASA, July 4 (CEIS) -- More than 1,000 kilometers of tracks have been laid on the Qinghai-Tibet Railway, the world's most elevated railroad, and the track laying work is expected to complete within this year, the headquarters of the railway construction said.

The railway from Gelmud in Qinghai Province to Lhasa, capital of the Tibet Autonomous Region, runs 1,142 kilometers on the Qinghai- Tibet Plateau, dubbed "roof of the world".

Construction workers are now busy laying tracks at two critical sections of the longest plateau railroad in the world, the headquarters said on July 2.

A team is now heading for a location of 5,072 meters in elevation on the Tanggula Mountain, the highest point of the railway.

Another team is laying tracks in the area between Yangbajain and Lhasa, where a long and extremely slopy section that streches about 40 kilometers poses a challenge to the construction workers, the headquarters said.

But the headquarters said it had made detailed plans to deal with all possible problems that might emerge in the course of construction.

The construction of the Qinghai-Tibet Railway started in late June, 2001, and it is scheduled to start trial operation in the second half of 2006.
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Old July 10th, 2005, 03:54 AM   #14
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China begins construction of 12.3 billion yuan Beijing-Tianjin rail link

BEIJING, July 5 (AFP) - China has begun construction of a 12.3 billion yuan (1.48 billion dollar) rail link between Beijing and the northern city of Tianjin aimed at boosting the regional economy, state press said Tuesday.

The 115 kilometre (69 mile) high-speed line, which is due to be completed before June 2008 in time for the Olympic Games, will half the travel time between the two cities to 30 minutes, the China Daily said.

The project, backed by the Ministry of Railways and the Beijing and Tianjin local governments, is aimed at helping economic development in the region, it said.

The project is one of a number of high-speed railways that are expected to be built throughout China as the nation upgrades its railway system.

Construction on a 1.5 billion dollar railway line between the leading coal-producing Shanxi region and neighboring Hebei province began in early June and is expected to alleviate transport bottlenecks in the area.

The 190 kilometre (114 mile) line between the Hebei provincial capital of Shijiazhuang and Shanxi's capital of Taiyuan is expected to be mainly used for passenger traffic and will also be completed by 2008, Xinhua news agency said.

China is expected to build nine new railway passenger lines this year as part of a plan to construct some 120,000 kilometres of lines by 2020, it said.

Meanwhile, the construction of a 22 kilometre (14 mile) subway line has begun in the northeastern city of Shenyang, which is expected to cost the provincial capital of Liaoning some 9.48 billion yuan (1.14 billion dollars).

"The project will not only ease urban transport congestion but also play a positive role in renovating the old industrial base," Zhao Jincheng, a leading city politician told Xinhua.
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Old July 11th, 2005, 03:46 PM   #15
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China's Railway Passenger Transport Volume Edges Down in June

BEIJING, July 11 Asia Pulse - China's passenger transport volume by railway reached 86.49 million person times (or 2.883 million person times daily) in June, 0.3 per cent less than in the same period last year, according to statistics from the Ministry of Railways.

Statistics also showed that railway freight transport volume totaled 219.19 million tons in June, up 6.7 per cent over the corresponding period in 2004 while freight turnover in the month hit 167.039 billion ton-kilometers, up 5.4 per cent on-year.

The railway sector loaded 104,354 trains in June, up 3.9 per cent on-year.

In June, the coal transport volume by railway totaled 106.36 million tons, up 10.9 per cent year-on-year; that of grain, 9.48 million tons, up 13.8 per cent; that of oil, 12.53 million tons, up 9.7 per cent; that of chemical fertilizer and pesticide, 5.66 million tons, up 10.2 per cent.
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Old July 12th, 2005, 04:46 PM   #16
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Guangdong to Construct Nine Railways by 2020

GUANGZHOU, July 12 Asia Pulse - South China's Guangdong Province will invest 120 billion yuan (US$14.4 billion) to construct nine railways and inter-city railroads with a total length of 2,164 kilometers by 2020, according to the Guangdong Provincial Railway Construction Investment Group Co., Ltd.

The new railways include the Wuhan-Guangzhou special passenger railway, the Guangzhou-Zhuhai railroad, the Guangzhou-Shenzhen railroad, the Guangzhou-Shenzhen-Hong Kong special passenger railway, the Xiamen-Shenzhen railroad (Guangdong section) and the Guangzhou-Maoming double-track railway.

They are scheduled for completion by 2020.

After the completion, the rail length of the province will reach about 4,000 kilometers.

(XIC)
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Old July 17th, 2005, 06:30 PM   #17
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China promotes financing system reform for railway sector
14 July 2005
Xinhua's China Economic Information Service

DALIAN, July 14 (CEIS) – Under the train of thought of “ government leading, diversification of investment and operation by market principle”, China will energetically promote reform of the investment and financing system of railway sector, said Zhang Jianping, vice director of the Planning Department of the Ministry of Railway.

An important measure of the reform is to strengthen cooperation with local governments in railway construction, said Zhang.

It is learned that since 2004, the Ministry of Railway (MOR) has signed strategic cooperation agreements with 30 provinces, municipalities and autonomous regions on speeding up construction of railway. In September 2004, MOR signed an agreement with Liaoning, Jilin and Heilongjiang provinces to jointly construct Harbin-Dalian special passenger railway line. In May this year, it signed agreement with Liaoning Provincial Government on speeding up construction of railways within the province. MOR is now negotiating with Jilin Provincial Government on railway construction within the province.

Meanwhile, China will actively introduce capital from enterprises and the society, and invite bids for such efficient projects as special passenger railway lines, coal transport railways and container hubs.

According to Zhang, MOR has already reached agreements on some projects with some State-owned and private enterprises, to launch joint-stock railway companies.

MOR is studying related policies for allocation of transportation capacity, transport fee and taxation, aiming to protect the rights and interests of and create a better investment environment for investors.

As one of the several large monopolized sectors in China, railway reform has always been a hot topic among all circles both at home and abroad. Competent department is probing to establish a multi-channel financing system for railway construction. In April 2002, for the first time in China, the Yantai-Dalian railway ferry project was opened to foreign investors, a key step for China towards the reform.
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Old July 22nd, 2005, 03:29 AM   #18
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China plans to construct 1,300 km of urban rail by 2010
21 July 2005
Xinhua's China Economic Information Service

CHONGQING, July 21 (CEIS) – According to the urban rail traffic plans of 15 Chinese cities, by 2010, China will newly construct 1,300 km of urban rail, with total investment involved estimated to reach 500 billion yuan.

China is entering the development stage of urbanization and mechanization, with urban population and urban traffic volume increasing rapidly. Pure ground roads can hardly meet the traffic demand in most cities. Urban rail, with such advantages as large transportation volume, high efficiency and low pollution, has become the first choice for many large cities to resolve their traffic problem, said Wang Tiehong, chief engineer of the Ministry of Construction.

Up to present, 18 urban rails with combined length reaching 425 km are in operation in 10 Chinese cities. Urban rail projects are being carried out in 7 cities, with total length exceeding 400 km. Beijing, Shanghai and Guangzhou are constructing urban rail at a speed of 40 km a year.
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Old July 25th, 2005, 04:34 PM   #19
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China allows private, foreign capital in railway sector to fund expansion

BEIJING, July 25 (AFP) - China has opened the doors for foreign and private capital to enter its railway industry to help fund its much-awaited network expansion, state media reported Monday, citing the Ministry of Railways.

"Foreign and private companies are now allowed, through cash investment or technical cooperation, to take part in the construction, operation, maintenance and improvement of China's railways," Xinhua news agency quoted the ministry as saying.

The report did not detail any shareholding or investment limits.

Foreign and private companies can choose either solely or jointly to invest in the design and manufacture of railway equipment including trains, bridges, and communication and safety equipment, Xinhua added.

"The move is in accordance with China's pledges made upon entering the World Trade Organization," Xinhua said.

The ministry is trying to attract capital to meet the two trillion yuan (247 billion dollars) needed for a plan to extend the country's railway system from the existing 74,000 kilometres (46,000 miles) to 100,000 kilometres (62,000 miles) by 2020.

Zhang Jianping, vice director of the railway ministry's planning department, told the China Daily earlier that the ministry also planned to invite bids for projects on passenger lines and container stations which are profitable.

To raise capital, Zhang said his ministry was also working on reorganizing some state-owned railway companies to list them on the stock market.

Experts cautioned that policies were still not in place to boost investor confidence that they will earn a profit.

For instance, the existing rail charge system allows no price fluctuation in line with market changes.

The country is largely dependent on railways for passenger and coal transport but the system has not been able to meet the rising demand brought about by rapid economic growth.
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Old July 29th, 2005, 05:52 PM   #20
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China opens four key railway fields to non-state-owned capitals
28 July 2005
Xinhua's China Economic Information Service

BEIJING, July 28 (CEIS) – Domestic non-state-owned capitals are allowed to participate in all the four key fields of China’s railway sector that are open to foreign investment, according to the Advices on Implementation of Encouraging, Supporting and Guiding Non-state- owned Economy to Participate in Railway Construction and Operations issued by the Ministry of Railway recently.

According to a principle of equal footing and fair treatment, the restrictive terms will be softened properly for non-state-owned capital to enter the four key railway fields including railway construction, transportation, operation and manufacturing of transportation equipment.

Individual and foreign investors may set up railway passenger transport joint ventures in the future. Railway sector, which has been monopolized for tens of years, will enter the market in deed.

Specifically, the four key railway fields are:

-- Railway construction: Non-state-owned capitals are encouraged to participate in the construction and renovation of trunk line railway, feeder railway, local railway and related bridge, tunnel and ferry facilities, in the form of joint stock company, project financing, non-equity joint venture and joint operation.

-- Railway transportation: Non-state-owned capitals are allowed to participate in the railway cargo and passenger transportation in the form of equity or non-equity joint venture, joint operation, and join stock company; when conditions are satisfied, non-state-owned capitals are allowed to set up holding company or solely-invested railway cargo transportation company, and establish passenger transportation joint venture which shall be controlled by state-owned capital. In addition, non-state-owned enterprises are allowed to operate the luggage van of passenger train, special luggage train and special postal luggage train in the form of charter.

-- Manufacturing of railway transportation equipment. Non-state- owned capitals are encouraged to participate in the designing and manufacturing of railway locomotive and main parts, designing and manufacturing of railway line and bridge equipment, development of high-speed railway technology and manufacturing of related equipment, manufacturing of telecom signal and transportation security monitoring equipment, and manufacturing of electric railway equipment and apparatus. Their participation in the manufacturing of railway transportation equipment may take the form of equity or non-equity joint venture, solely-invested company, joint operation, with no limit on the proportion of holding shares.

-- Diversified operation of railway. Non-state-owned capitals including private capital are encouraged to join in the railway supplementary business, participating in the reorganization and restructuring of diversified operation business, and they are also allowed to set up holding company or solely-invested company.
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