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Home > China Business, China Business News, China Economy, China Finance and Banking > Rail network will be 3,000 km longer

Rail network will be 3,000 km longer

November 13th, 2008

Based on a report released by the Development Research Centre of the State Council, there are almost 40 cities in China building or planning to add 3,000 km of urban rail lines.

The projects that setting up and operating about 1,700 km in 15 cities by 2015 while other cities getting a green light will spend at least 600 billion yuan ($88 billion), according to the report.

Liu shijin, deputy chief of the centre said last Friday that the unexampled scale of urban rail construction is essential to meet domestic demand.

Insiders said in 1999, most ongoing rail transit construction projects were approved when some of China’s mega-cities were facing problems relating to rapid urbanization, a dilative population and worsening traffic.

Because of the government demanding for high population and financial revenue, several other cities with subway plans gave up starting plan, insiders added.

As deputy director of Institute of Spatial Planning and Regional Economy under the National Development and Reform Commission Xiao Jincheng’s words, which were quoted by Beiing Times, in the current situation, with urbanization continuing to accelerate and domestic demand increasing inexorably, it is possible the government will lower minimum requirements to give more cities the go ahead.

He also emphasized the importance of minimum requirements. Because now too many cities are eager to build lines which would unbalance spending and revenue.

If all the rail plans in these cities are approved, the spending will be over 1 trillion yuan. After the starting of these plans, the cost will be higher.

According to relevant report, nowadays, building 1 km subway in Beijing spends 800 million yuan, while which only spent 100 million yuan several years ago. So cities those are rich and with more than 4 million citizens should build subways or light as fast as possible to avoid the growing cost.

The report said that by the end of 2006, nine cities including Beijing, Shanghai and Guangzhou had built 20 rail transit lines, extending 545 km in length. Up to now, there are 37 other projects under construction in the whole country which are totally 1,000 km in length and involving about 300 billion yuan of investment.

 

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