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China earmarks US$104.08 billion on central, western railways in 2014

CENTRAL and western Chinese rail development will be the focus of CNY630 billion (US$104.08 billion) expenditure by the China Railway Corporation (CRC) as it completes 6,600 kilometres' new lines, Xinhua reports.

This was revealed at the recent first annual work conference of CRC since it was founded to replace the disgraced and disbanded Ministry of Railways. It was disclosed on the conference that the quoting a source from China Securities Journal.

Experts predict the actual expenditure will actually reach CNY700 billion as the actual sum spent most often exceeds estimates, according to the China Securities Journal.

This year, China will launch 44 new railway projects and initiate the study on the plan for railway development in the 13th Five Year Plan period which runs from 2016 to 2020.

In 2014, China expects a two per cent growth in the national railway cargo traffic to 3.28 billion tonnes and a 10 per cent increase in passenger traffic to 2.27 billion. Revenues from state-owned railways are expected to increase 8.1 per cent to CNY654.2 billion from transport services and rise 4.7 per cent to CNY1.09 trillion from other sources.

CRC general manager Sheng Guangzu also reported the operation results of China's railways in 2013. Last year, China spent CNY663.8 billion on railway infrastructure, initiated 49 new projects, completed 5,586 kilometre's new routes. China's railway mileage in operation topped 100,000 kilometres, 10,000 kilometres were in the high-speed category. Freight volume reached 3.2 billion tonnes and passenger traffic came to two billion.

In 2013, China made crucial progress in the reform of its railway business by successfully separating the administrative role and the commercial role of the railway department.

Last year, the newly founded China Railway Corporation, which undertakes the commercial role of railway department, recorded a revenue of CNY1.04 trillion, up seven per cent. Revenue from transport service grew 14 per cent to CNY605.12 billion.

This year, China will further open railway investment to private sources, offering more support to local government and private rail investment in the form of buying stakes, assets reorganisation and franchising. Besides, the railway authority is preparing for setting up fund for railway development and awaiting the approval from the state government.

Overseas railway investment will also be a major task in 2014. China will ensure smooth progress of a number of railway projects in foreign countries, like the Laos railway, Hungary-Serbia railway and Thailand's high-speed railway. The railway authority will also propose supporting policies in intellectual property and finance so as to secure overseas railway investors.