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Old May 21st, 2012, 09:31 PM   #4821
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Quote:
Originally Posted by big-dog View Post
Railway ministry obtained a tentative credit line of more than 2 trillion yuan ($316 billion) from banks, more rail projects will start.



sina news
Any more details on this? It is almost as big as the extra budget released during stimulus.
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Old May 22nd, 2012, 12:19 AM   #4822
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Originally Posted by XAN_ View Post
Well, they haven't poped-up on 1520 railfan web-sites/communities, so I suppose they haven't arrived yet
So they must have stopped along the way because it was first reported in post #4649, and I posted in #4653 a picture showing the two units leaving Chinese border.
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Old May 22nd, 2012, 08:33 AM   #4823
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Fair treatment for private capital in railway investment
(Shanghai Daily, May 22)


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BEIJING, May 21 (Xinhua) -- China's recent move to give private capital equal treatment in investing in the country's railway projects is expected to inject new vitality into the long-monopolized railway sector amid concerns of an economic slowdown.

According to a guideline issued by the Ministry of Railways (MOR) on Friday, equal market entry access will be created for all investors and private capital will be exempt from additional requirements. The implementation of favorable policies will be transparent.

The guideline stated that private investors are allowed to participate in almost every category of railway projects, including the construction of backbone lines, passenger lines, inter-city lines and regional lines.

Eligible investors will also be allowed to participate in the design, construction, supervision, consultation, equipment purchasing and bidding processes.

The guideline, which is by far the most open and detailed regulation in terms of the railway industry's market entrance to date, is expected to diversify investment channels to help ease the sector's debt that has brought some construction projects to a halt.

After years of torrid growth, construction and investment in China's railways cooled remarkably, as the government tightened credit to cap inflation and a train crash last July that killed 40 people exposed the sector's weaknesses.

In contrast to a target investment of 500 billion yuan (79.37 billion U.S. dollars) this year, investment dropped 48.3 percent from a year earlier to 89.6 billion yuan in the first four months, official data show.

Meanwhile, the sector recorded 7 billion yuan in losses in the first quarter, with the current asset-liability ratio staying around 60 percent.

Yang Zhongmin, head of the ministry's department of development and planning, said the government, as the major investor, approved more than 4 trillion yuan in railway investment from 2003 to 2010.

According to the guideline, the MOR should separate its government functions from enterprise management and reform its administration mechanism to let enterprises be the principal market player.

The guideline also underlined the need to reform the investment and fundraising systems for railway projects. Railway-related companies are encouraged to go public, and insurance funds are welcome to invest more in railways.

It also encouraged financial innovations in creating more kinds of fundraising platforms to provide private investors with better access to capital.

Private investors are also welcome to make innovations in advanced and environmentally-friendly technologies and facilities, it said.

The government has repeatedly vowed to break the state monopoly and encourage private investors to participate in domains such as the railway and financial sectors -- a move aiming to push market-oriented reforms and tap inner growth potential.

With signs of a worse-than-expected slowdown in China indicated by weak economic data for April, CITIC Securities said more policies may be introduced to maintain reasonable growth in infrastructure investment.

Huang Junjie, an analyst with China Investment Securities, expected railway investment to return to a normal level in the coming months.

During an inspection tour last week, Premier Wen Jiabao said the government will focus its energy on expanding domestic demand to increase the stability of the economy, reiterating support for private capital in investing in the railway and several other sectors.

http://www.shanghaidaily.com/article...a.asp?id=72174
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Old May 23rd, 2012, 05:49 AM   #4824
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Closer Look: Unanswered Questions for Private Investment in Railways

Thank you everywhere for your post. Business magazine Caixin has a bit different view on the above news.

Quote:
By staff reporter Gu Yongqiang 05.22.2012 19:00
Closer Look: Unanswered Questions for Private Investment in Railways
Ministry says the sector is opening up, but recently released guidelines are short on details



(Beijing) – On May 18, the Ministry of Railways announced guidelines to encourage private capital to invest in the sector. The guidelines said a variety of investment entities would be treated fairly as they entered the sector, but didn't set out any limits on amounts of private capital.

The guidelines say private capital will be allowed to invest in new railway lines and bid for equipment procurement, construction and engineering design contracts.

The ministry also said that it will reduce the steps involved for approving new projects. If a new project can be handled by the market, the government can play a management or supervisory role.

The ministry issued this guideline as its debts increase and at the request of the State Council. It intends to use private capital to relieve financial strains in the building of new railway infrastructure, but investors say the guidelines are ambiguous and do not dispel several concerns.

The first involves train dispatching. Similar to the aviation industry, railway passenger flow has a direct impact on revenue. But the ministry is the only body that compiles train timetables and is responsible for dispatching trains.

For joint-venture railways, the rate of traffic flow and the division of traffic are incorporated into the daily transportation schedule of local railway bureaus under the ministry. They have to submit to the ministry. This means there is no guarantee that the joint-venture railway operators can profit. If investors don't anticipate profitability, none will be interested.

The second concern involves prices and the public. The government tightly controls transportation prices. The National Development and Reform Commission must approve rate increases for passengers or freight. Investors naturally wonder where their profits will come from if their costs increase but they are not allowed to charge more.

Also, transport on domestic railways is linked to the public welfare. However, the ministry did not say how railways might be compensated if they are forced to keep ticket prices down.

The third and final problem involves geography. The ministry uses profits made by railway bureaus in eastern regions to make up for losses in other areas. If private capital enters the railway sector, how to make revenue distribution fair and transparent and how to ensure investors make a profit are open questions.

http://english.caixin.com/2012-05-22/100392855_all.html
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Old May 25th, 2012, 06:13 AM   #4825
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China moves faster in approving infrastructure projects
(Shanghai Daily, May 25)


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AS reported in JRJ.com, the central government has requested local governments to report their all infrastructure project investment for this year before end-June for faster appraisal and approval, and related central government subsidies for these projects will likely be appropriated earlier than expected.

This likely represents the central government's endeavor to boost the slowing economy, which highly depends on real estate fixed-asset investment. China's commodity property FAI growth fell from the peak of 63 percent in November 2010 to 9 percent in April 2012.

As reported by the China Securities Journal, since end-February, China has tremendously accelerated the appraisal and approval process for major infrastructure projects, such as highway networks, airport and railway lines. For example, the airport projects in Fuyuan of Heilongjiang, Shihezi of Xinjiang, Qingyang of Gansu and Jiangbei of Chongqing have recently received approval from the National Development and Reform Commission.

Observers said these are strong evidence of infrastructure FAI acceleration, adding that the central government's focus should be relaunching and completing the suspended major projects, most of which are in central/western China and some of them were suspended since last August.

Earlier, the central government also said to allocate more capital for the development of social housing, with the Ministry of Finance and Ministry of Housing and Urban-Rural Development jointly allocated 10.5 billion yuan (US$1.67 billion) subsidy for low-rental housing projects, of which Eastern China accounts for 5.1 percent (540 million yuan), Central China accounts for 40.2 percent (4.22 billion yuan), and Western China accounts for 40.2 percent (4.22 billion yuan). This amount can also be used for public rental housing if the needs for low-rental housing have be satisfied.

In our view, the implications of these are: 1) With signs of a slowing economy, there will be more government stimulus; 2) Government's economic stimulus would focus more on infrastructure investment and social housing; 3) Basic tone of government tightening on the property market would remain unchanged with housing purchase restrictions to continue; and 4) There, however, would be more support on mortgages to first-time home buyers and genuine upgraders. We believe that companies focus on infrastructure and social housing would benefit directly.

http://www.shanghaidaily.com/nsp/Opi...re%2Bprojects/
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Old May 28th, 2012, 01:12 PM   #4826
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Breaking News: ex-railways minister expelled for corruption


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BEIJING, May 28 (Xinhua) -- China's former Railways Minister Liu Zhijun was expelled from the Communist Party of China (CPC) due to severe disciplinary violations, the CPC disciplinary watchdog said Monday.
http://www.shanghaidaily.com/article...a.asp?id=73455
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Old May 31st, 2012, 08:44 AM   #4827
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Schenker Continues To Deliver Auto Parts To BMW In China By Rail

Schenker Continues To Deliver Auto Parts To BMW In China By Rail
Schenker Continues To Deliver Auto Parts To BMW In China By Rail
By Anuja Abraham

Schenker Rail Automotive, the Deutsche Bahn automobile specialist in rail freight transport, has already managed some 200 container trains filled with automobile parts on their way from Leipzig and Wackersdorf in Germany to Shenyang in northeast China for BMW. More than 4,700 containers on 126 trains have rolled from Leipzig to the BMW plant in Shenyang since commencement of the contract in September 2011. Since November 2010, one train a week has travelled from Wackersdorf to the site in China. By May 20, 72 trains loaded with 2,600 containers had been transported from Bavaria to Shenyang in Liaoning province.

The trains take a total of 23 days to cover the stretch of just under 11,000 kilometers. “With this attractive transit time, the direct trains are more than twice as fast as transport via ocean-going ship and into the Chinese hinterland. This is creating important momentum for the Eurasian land bridge. Together with our partners, we will continue promoting the land transport alternative,” says Dr. Karl-Friedrich Rausch, Member of the Management Board responsible for Transportation and Logistics at DB Mobility Logistics AG.

The route extends across Poland, Belarus and Russia into China. DB Schenker Rail manages the trains in cooperation with TransContainer, the freight subsidiary of the Russian Railways (RZD), and the Far East Landbridge company (FELB). The containers are moved by crane to different gauges twice during the trip – onto broad gauge on the border between Poland and Belarus and onto standard gauge at the border between Russia and China in Manzhouli.

DB Schenker Logistics, the logistics division of DB, has established a logistics center in the north of Leipzig. Approximately 8,000 various parts from BMW supplier plants are received here, packed and stored as needed in the containers on the center’s 63,000 square meters of space. The containers are placed on carrier cars on a siding activated specifically for this purpose at a neighboring site that once belonged to Quelle and then sent on their way.

http://logisticsweek.com/rail/2012/0...china-by-rail/
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Old May 31st, 2012, 08:46 AM   #4828
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China raises railway freight rate to relieve high fuel and labour costs

China raises railway freight rate to relieve high fuel and labour costs



CHINA'S Ministry of Railway and National Development and Reform Commission have announced an increase of domestic railway freight rate by CNY0.01 (US$0.0016) per tonne per kilometre, namely an average growth of 9.5 per cent, to CNY11.51, in order to relieve pressure from higher fuel and labour cost, Xinhua reports.

The increase this time covers coal, grain, fertiliser, iron ore and many other kinds of cargo. Industry opinions pointed out that the raise will pass the pressure on to the industries that are heavily reliant on railway transportation, like steel plants.

Shanghai Steel Service Trade Industry Association Secretary Ye Liming said the increase will have severe negative effect on the steel trade industry which is already gloomy. Though the industry has expected a rate increase, the timing and extent of the increase will put "unbearable" pressure on some companies, Mr Ye said.

Steel, cement, timber, coke and iron ore are the types of product that takes up the largest percentage in railway transported freight. Now the rates of these cargoes have gone up by 13 to 14 per cent. Experts from the industry said the increase of raw material transportation cost will push up the prices of final products.

But estimation shows that even after the increase, railway freight rate is still one fourth to one third of road cargo rate.

Sun Zhang, a professor of railway from Shanghai's Tongji University, said that the railway cargo capacity is still to be expanded in order to lower transportation cost. The building of more high-speed railway can release capacity from current railways for cargo transportation.

But some experts points out that railway departments should think of more ways to optimise their operating results instead of only levying rate increases.

http://www.china.scmtimes.com/
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Old May 31st, 2012, 10:14 PM   #4829
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Freight traffic is the bread and butter of MOR. As more and more passenger trains are moved to dedicated HSR lines the freight operation will become more efficient, netting MOR more profit to subsidize HSR construction.
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Old June 1st, 2012, 02:18 AM   #4830
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Quote:
Originally Posted by hmmwv View Post
Freight traffic is the bread and butter of MOR. As more and more passenger trains are moved to dedicated HSR lines the freight operation will become more efficient, netting MOR more profit to subsidize HSR construction.
But the government will face a backlash from passengers who are forced to take high speed trains, which is essentially a subsidy to freight customers. China's rail density is still only a fraction of that of Europe or Japan, and even the six tracks on the Shanghai-Nanjing corridor is insufficient. China simply can't build too much infrastructure now.
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Old June 1st, 2012, 05:12 AM   #4831
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CNR Changchun aims to double exports to $1B
(China Daily USA, May 31)

Quote:
CNR Changchun Railway Vehicles Co Ltd, China's largest producer of rolling stock and urban rail cars, aims to double its annual export revenue to $1 billion within five years, General Manager Lu Xiwei told China Daily on Wednesday.

Located in Changchun, the capital of Jilin province, CNR Changchun is a subsidiary of China CNR Corp Ltd, the country's second-largest train producer.

Its product range includes high-speed rail cars and subways.
Exports will generate 30 percent of revenue in the next five years, according to the company.

CNR Changchun "is now strongly competitive in production and manufacturing technology in the international market, and our next step is to make greater efforts to explore foreign markets to maintain good momentum for exports," Lu said.

In April, the company signed a contract with Bangladesh to supply traction inverters and network control systems for diesel railcar trains.

The deal is seen as a signal of China's progress in exporting core rail technology.

Amid a weak world economy, many countries are eager to attract foreign investment to establish joint ventures in their local markets. These ventures are especially attractive when recipient countries can obtain advanced technology and promote local employment.



Lu said the company is researching the feasibility of exporting technology to, and localizing production in, South America, South Africa and Southeast Asia.

"Exports of intangible assets, including capital and technology, could yield higher profits than just exporting finished products, Lu said.

"We have realized that it's very difficult to develop in foreign markets only through product exports, so the trend will be a shift from product exports to technology and capital," Lu said.

Establishing joint ventures in foreign markets helps obtain orders in those markets, Lu said.


CNR Changchun has joint ventures in Iran and Australia that design and produce rail and subway cars.

Taking into consideration the operating risks, locally manufactured products "will be priced higher than those exported", Lu said.

Zhou Chuanhe, deputy general manager for overseas operations, said the company's market share in the industry will grow significantly as it establishes factories overseas.

"We will gradually tap into the high-end markets, as we mature in terms of technology, output and management in foreign markets," Zhou said.

"As China's rolling stock industry develops, Chinese products will account for 30 percent of the global market, competing with other industrial giants including Siemens and Alstom," Lu said.

CNR Changchun's exports now account for 65 percent of the nation's rolling stock exports, with more than 4,000 rail cars so far shipped to countries including Brazil, Australia and Thailand.
http://usa.chinadaily.com.cn/busines...t_15431375.htm
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Old June 1st, 2012, 01:59 PM   #4832
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NE China rail construction halted over environmental violations
(Shanghai Daily/Xinhua, June 1)


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HARBIN, June 1 (Xinhua) -- The Ministry of Environmental Protection has brought construction on a railway in northeast China's Heilongjiang province to a halt due to environmental violations, local authorities said Friday.

Further inspections will be conducted for the Harbin-Qiqihar passenger railway, the Heilongjiang provincial environmental protection bureau said.

Construction on the railway has violated several parts of the Environmental Impact Assessment Law, with some areas under construction lacking proper impact assessment approval, according to the bureau's investigation.

Several construction sites have been moved without authorization, threatening the Zhalong Sate Nature Reserve, a major habitat for cranes, according to the investigation.

The ministry has asked the builders to submit all environmental impact assessment paperwork before Aug. 1.

Construction on the 286-km-long railway began on July 5, 2009.

http://www.shanghaidaily.com/article...a.asp?id=74507
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Old June 2nd, 2012, 05:16 AM   #4833
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Quote:
Originally Posted by urbanfan89 View Post
But the government will face a backlash from passengers who are forced to take high speed trains, which is essentially a subsidy to freight customers. China's rail density is still only a fraction of that of Europe or Japan, and even the six tracks on the Shanghai-Nanjing corridor is insufficient. China simply can't build too much infrastructure now.
It's all about seeking the balance point. Move passenger to HSR means more freight traffic which translates to more money for the MOR, that way HSR tickets can be kept at a reasonable level. On the other hand there are simply people who can't afford travelling on HSR so some conventional services need to be retained, how much do each service share the track is key. I for one think CRH ticket prices are very reasonable, it's way lower than what MOR needs to charge to make money, but that's okay because it should be a public service. I think the current pace of infrastructure construction is appropriate, now the focus should be on how to make the operation more efficient. They have the potential to add a lot more capacity on existing lines while improving service quality.
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Old June 2nd, 2012, 05:28 AM   #4834
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Russia-China cooperation on railways has huge potential: Russian official
(Shanghai Daily/Xinhua, June 2)


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SOCHI, Russia, June 2 (Xinhua) -- Russia-China cooperation on development of high-speed rail and a trans-Eurasian rail corridor has "huge potential, the president of Russian Railways (RZD) said here Friday.

Under a government strategic plan, Russia will build by 2030 some 20,000 km of new railways, including 5,000 high-speed lines, Vladimir Yakunin told Xinhua on the sidelines of an international railway forum.

"Russia is expected to develop a railway network, including high-speed rail lines, from Kazan and Yekaterinburg (in central Russia) to Khabarovsk and Vladivostok (in the Far East region)," Yakunin said.

"In this field, we are willing to cooperate with China's railways and financial institutions," he added.

"China has rich experience in high-speed rail construction, which creates rooms for further cooperation between the two countries in this field," he added.

Meanwhile, Yakunin admitted that there are some delays in implementing a memorandum of understanding signed by Russia and China in 2009 on joint development of high-speed railway system in Russia.

There is no change in Russia's stance on the construction of high-speed rail, but the state-owned RZD is still seeking suitable finance and profit modes, he explained.

Yakunin, who will soon visit China with a Russian delegation led by President Vladimir Putin next week, said that he would meet with China's railway authorities on further bilateral cooperation.

On the development of a rail corridor from the southwest Chinese city of Chongqing to Germany's Duisburg, Yakunin said that China and Russia have signed cooperation documents and formed joint ventures.

Last July, the new route was officially launched in Chongqing. It offers a major shortcut to traditional sea trade routes and shorten travel time to Europe from about 36 days by container ship to just 13 days by freight train.

"This is the first step of the corridor construction," Yakunin said.

The train services are expected to be increased to once per day in the future as Chongqing's exports to Europe increase. Currently the train leaves Chongqing for Duisburg once a month.

Russia is now pondering the future transit fee policy following the development of the route and will later coordinate with the Chinese side, he said.

Besides, Yakunin said the new trans-Eurasian rail corridor is taking shape, thanks to the joint efforts of Russia, China and Kazakhstan.

Amid global economic uncertainties, such a corridor will boost the global and regional economy and enhance the competitiveness of countries of the railway routes, he said.

http://www.shanghaidaily.com/article...a.asp?id=74624
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Old June 8th, 2012, 05:57 AM   #4835
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Another Railway Official Held For Graft Inquiry

More on the alleged corruption in Chinese railway and a follow-up on everywhere's post from May 28th.

Quote:
By staff reporters He Xin, Wang Chen and Yu Ning 06.07.2012 15:47
Another Railway Official Held For Graft Inquiry
The general manager of the contractor that built most of the country's high-speed network detained by police



(Beijing)–A senior executive at the contractor that built most of China's high-speed rail network has been detained on suspicion of taking bribes, the latest railway official to be hit by a corruption scandal.

Liu Zhiyuan, the general manager of China CREC Railway Electrification Bureau Group Co. (EEB), a subsidiary of state-owned China Railway Engineering Corp, was detained by police on May 21, a source closed to the situation said. Liu was taken into custody after a ceremony at a construction site for the Beijing-Shijiazhuang passenger line.

The Standing Committee of the Beijing Municipal People's Congress announced on May 31 it suspended Liu as deputy member.

Liu, 58, started his career in the Ministry of Railways' Electrification Bureau in 1971 and became deputy bureau chief in 1997. In August 2001, he was named general manager of China CREC Railway Electrification Bureau Group, which builds the electric systems for the country's high-speed trains.

A source at EEB said Liu's case was related to a scandal in a subsidiary in Wuhan. Chen Deqin, general manager of Wuhan No. 2 Engineering Co., is under investigation for economic crimes.

Another source said Liu is close to Zhang Shuguang, the former deputy chief engineer at the Ministry of Railways. Zhang was suspended in February 2011 and investigated for corruption. Zhang was also the director of the ministry's Transport Bureau, which is in charge of bidding for high-speed railway projects.

The EEB has participated in the building of about 80 percent of country's high-speed railway lines, including the Beijing-Tianjin, Wuhan-Guangzhou, Nanjing-Shanghai and Shanghai-Hangzhou lines, its website said.

The second source said that Zhang and Liu used their positions to manipulate bidding for projects.

An executive at a railway engineering company said EEB controlled many projects during the recent boom in high-speed railway building in China and "not everything follows the rules."

A Caixin investigation found that Liu was close to Ding Shumiao, also known as Ding Yuxin. Ding's company monopolized the industry responsible for sound barriers needed on high-speed rail lines by bribing officials.

On May 28, state media reported that former railway minister Liu Zhijun had been expelled from the Communist Party for serious disciplinary violations. Liu was accused of using his power to help Ding gain huge illegal profits that resulted in serious losses for the ministry. The party's anti-corruption watchdog, the Central Commission for Discipline Inspection, has passed Liu's case to judicial authorities.

http://english.caixin.com/2012-06-07/100398141.html
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Old June 9th, 2012, 03:36 AM   #4836
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Rail line promises to be 'new Silk Road'

Rail line promises to be 'new Silk Road'
Updated: 2012-06-09 07:58 By Alexis Hooi and Ma Wei ( China Daily)

Legend has it that Chinese Emperor Wudi of the Han Dynasty (156-87 BC) once looked to the lands west of his vast empire and proclaimed them to have people who placed "great value on the rich produce of China".



That regal observation soon spurred exploration of those foreign lands, leading to a network of trading routes between the East and West that came to be known as the Silk Road.

The historic route declined in the centuries that followed as maritime trade increased, but there are now renewed efforts to revive the continental link - this time through the latest addition to the Eurasian land bridge rail.



Connecting Lianyungang port in East China's Jiangsu province to distant Belgium, the railway is being promoted as a shorter, more efficient way to transport goods between China and Europe. Lianyungang lies near the center of China's eastern coastline, where the country's southern economic and manufacturing hubs have helped enrich cities in provinces like Jiangsu and Zhejiang.

The land bridge traverses more than 10,000 km through China, Central Asia and Eastern Europe before arriving at European trading hubs like Rotterdam and Antwerp in about two weeks. The route is expected to benefit more than 40 countries and regions by taking less than half the time and enjoying a similar reduction in costs compared with transporting goods by sea.

Other routes under the Eurasian land bridge concept include an earlier one that consists of the Trans-Siberian Railway and the Russian seaport of Vladivostok. Yet another rail link considers connecting the southern Chinese city of Shenzhen with Rotterdam, through a 15,000-km route across 17 countries and regions - via Guangdong and Yunnan provinces as well as the Guangxi Zhuang autonomous region in China - before entering Myanmar, Bangladesh, India, Pakistan, Iran and Turkey toward its western destination.

Faced with higher production costs, maturing manufacturing industries and changing economic modes in eastern China's more economically developed coastal areas, Chinese authorities are now stepping up efforts to promote the benefits of the latest working route of the land bridge for Chinese goods to reach markets in the West as they look for ways to stay competitive.

[...] cut, more under this link: http://www.chinadaily.com.cn/china/2...t_15490137.htm
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Old June 10th, 2012, 06:27 AM   #4837
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NE China rail construction halted over environmental violations

HARBIN, June 1 (Xinhua) -- The Ministry of Environmental Protection has brought construction on a railway in northeast China's Heilongjiang province to a halt due to environmental violations, local authorities said Friday.

Further inspections will be conducted for the Harbin-Qiqihar passenger railway, the Heilongjiang provincial environmental protection bureau said.

Construction on the railway has violated several parts of the Environmental Impact Assessment Law, with some areas under construction lacking proper impact assessment approval, according to the bureau's investigation.

Several construction sites have been moved without authorization, threatening the Zhalong Sate Nature Reserve, a major habitat for cranes, according to the investigation.

The ministry has asked the builders to submit all environmental impact assessment paperwork before Aug. 1.

Construction on the 286-km-long railway began on July 5, 2009.
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Old June 10th, 2012, 09:15 AM   #4838
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The suspension of Harbin-Qiqihar PDL has already been posted in the HSR thread.

In addition the construction of Xiping Railway was suspended due to damage to Jingchuan Old Town of the Jingchuan County.
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Old June 11th, 2012, 02:37 PM   #4839
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Quote:
Despite territorial tensions between Beijing and Manila, China Railway Construction Corp. (CRCC), China’s second-biggest state-owned construction company, has signified its interest in taking on the Light Trail Transit (LRT) South Extension project to be bid out this year.


But instead of participating in the bidding process for the project, the Chinese company’s partner, Reghis Romero II-led Ecorail Transport Services Inc., has proposed a joint venture with the government.


Should its proposal be accepted, Ecorail said it would bring to the Philippines the same cutting-edge, affordable train technology that has allowed China’s own railway system to prosper.


The Department of Transportation and Communications (DoTC) last week published its invitation for interested parties to “prequalify” to bid for the P30-billion project—currently the most expensive contract on the state’s auction block.


Ecorail executive vice president Jerome Canlas said CRCC had sent a letter signifying its willingness to pursue the project, which it first explored in 2009.


“We hereby affirm our interest to cooperate with your esteemed organization to jointly pursue the above project, which not only further underscores our mutual long-term relationship but also progression of the framework of cooperation agreement entered into by both our organizations in Tianjin in June 2009,” CRCC vice president Hu Zhenyi said in the letter to Ecorail.


The LRT South Extension will lengthen the current Baclaran-to-Roosevelt line, known as “Line 1,” to Imus, Cavite, passing through Parañaque and Las Piñas cities. The winning contractor will also be tasked to operate the entire Line 1 from Cavite to Quezon City.


The government’s plan is to split the project in half, with the private sector funding and handling the civil works costing P30 billion and the government acquiring the new trains and electromechanical systems for another P30 billion. But Ecorail said it would submit a proposal to take on the entire project on its own since it had more than enough cash for it.


“Ecorail [will] fully provide the financial requirements of the project without government subsidy unlike other propositions seeking overseas development assistance (ODA) from multilateral and bilateral funding agencies that require counterpart funds from the Philippine government,” Canlas said.


Despite giving the government access to cheap capital, the main disadvantage of ODA funding for taxpayers is the usual limitation on the participation of Filipino contractors as subcontractors, in favor of foreign contractors from sponsor countries.


Under its proposed joint venture, the government’s only part would be to provide the land to be used for the project. In return, the government would get a share in fare revenues.


Canlas said the Ecorail-CRCC partnership would complete the project in 36 months, much faster than the government’s own projection of completing it in close to four years.


CRCC is one of the biggest construction companies in the world with assets of more than $1 trillion. CRCC has already built 34,000 kilometers of railway tracks all over the world.
http://business.inquirer.net/64469/b...ension-project
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Old June 11th, 2012, 04:01 PM   #4840
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Railway Construction Damages Ancient City Ruins

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Railway Construction Damages Ancient City Ruins
2012-06-11 15:23:29 CRIENGLISH.com Web Editor: haipeng



The Jingchuan County cultural authority put posters on the damaged ancient city wall stating: "Protecting cultural heritage in unity, building a harmonious society together." [Photo: People.com.cn]

Construction work on the Xi'an to Pingliang railway in northwest China has caused serious damage to the ancient city ruins of Jingzhou, The People's Daily reports.

Liu Xingjian, a member of the executive staff of the cultural authority of Jingchuan County where the ancient ruins of Jingzhou are located, said his office notified construction workers in March and May to stop work immediately. Eventually, the cultural authority had to keep staff at the site 24 hours a day to watch over the ruins.

The city of Jingzhou in Gansu province dates back 3,000 years to the Shang Dynasty. Floods destroyed the city during the Ming Dynasty, leaving the present-day ruins which are recognized as a provincial level cultural relic and protected under China's Cultural Relics Protection Law.

The Xi'an to Pingliang railway project was approved by the National Development and Reform Commission in July 2008, and construction began in November that year to connect the city of Pingliang in Gansu province to Xi'an, capital of Shaanxi province.

Wei Haifeng, an employee at the county cultural authority, provided two documents from national cultural relic officials -- one issued in December 2009 and another in March 2012 -- stating that the railway project should not pass through the historical ruins.

But the construction company also provided a document from the provincial cultural authority issued in December 2006, which approved the railway line passing through the ancient ruins.

The company also pointed out that the railway was an important national project and that when the national cultural relic authority announced that it could not pass through the ruins, the project had already begun.

It also argued that because a huge amount of money already had been invested in the railway line, it would be impractical to change the project.

After the damage occurred, the local cultural authority blocked the road to the construction site with stones to prevent machinery from entering it.

As the dispute continues, the cultural authority and the construction company are seeking a resolution from higher authorities.



http://english.cri.cn/6909/2012/06/11/3241s705501.htm
And an article about starting this railway construction back in 2008 (with some information about the railway itself): http://english.shaanxi.gov.cn/articl...11/1732_1.html
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