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China to invest US$503 billion in high-speed railway expansion

CHINA is to invest CNY3.5 trillion (US$503 billion) to expand its high-speed railway network by 2020 to span 30,000 and connect 80 per cent of the nation's main cities. The plan also calls for 3,000 kilometres of track to be added to its urban rail transit system.

The central government will invite private investment to finance intercity and regional railway lines, according to National Railway administrator Yang Yudong.

Further rail investments will be made in the poorer western cities despite unprofitable operations, Mr Yang said in a Bloomberg report. "We believe these railway lines will break even over time as the flow of people and goods experience fast growth."

The rail reforms, including raising ticket prices and allowing private investment, would help ease some financial burdens of state-run China Railway Corp. The rail operator incurred a loss after tax of CNY5.57 billion in the first nine months of 2016. The company spent CNY600 billion on rail-related infrastructure over the past two years.

At the end of 2015, China had 121,000 kilometres of track, including 19,000 kilometres of high-speed rail.