Investment in China's railways to top US$12 billion in 2005
SHANGHAI : Investment in China's overloaded railway network is expected to top 100 billion yuan (12 billion dollars) in 2005 as the government pushes forward with plans to overhaul the creaking network, state press reported Monday.
The National Development and Reform Commission, China's top economic planning body, said that 58 new railroad projects would begin in 2005 while the 48 initiated last year would be continued, Xinhua news agency reported.
The State Council, China's cabinet, has said it wants to add 100,000 kilometres (62,000 miles) to the existing 74,000 kilometres (46,000 miles) by 2020.
Such ambitions, however, are likely to come with a 240-billion-dollar price tag, it said.
China's fast paced economy has placed tremendous pressure on many parts of an antiquated infrastructure with the need for greater supply of energy resources to run the country's factories causing the greatest strain on the rail network and power generators.
Investment has poured into the country's network of roads and aviation hubs but its laggard railway system has not kept pace, causing massive delays when transporting important commodities such as coal.
In addition, while China is at the start of a growing love affair with the automobile, the majority of the country's 1.3 billion citizens are still dependent on the rail system for travel.
Investment in the 48 projects announced last year for 3,220 kilometres (2,000 miles) of track amounted to 500 billion yuan, the report said
- AFP
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