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China to Almost Double Railway Investment in 2009

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Amid a surge in planned infrastructure projects in 2009 aimed at boosting domestic demand, China plans to almost double its investment in railways to about 600 billion yuan (US$87.9 billion).

The money is part of the 4-trillion-yuan stimulus package announced by the government earlier 2008.

In 2008, China spent 330 billion yuan on railways, according to a national conference on railway construction held in Beijing on Wednesday.

Part of 2009's 600 billion yuan would be used to build a total of 5,148 km of new rails, said Minister of Railways Liu Zhijun at the meeting.

The money will also help put five passenger-dedicated, high-speed lines into operation in 2009, according to Liu. These rails will link the central city of Wuhan to the southern city of Guangzhou; Zhengzhou in central Henan Province to Xi'an in northwest Shaanxi Province; Ningbo to Wenzhou, both in east China's Zhejiang Province; Wenzhou to Fuzhou in southern Fujian Province; and Fuzhou to Xiamen, also in Fujian.

The ministry also planned to start 70 new projects in 2009 with part of the money. Those projects will need a total investment of 1.5 trillion yuan to be completed, Liu said.

Rail transport strain to be eased

Liu also predicted railway travel would be much easier by 2012. Currently, there are not enough seats for all the people who want to travel, especially during the Spring Festival every year, when millions are on the move.

"There could be a historical change in the country's railway transport by 2012. The bottle-neck restraints both in passenger and cargo transportation could be removed," he said.

Railways inside the country would reach 110,000 km by 2012. About 13,000 km of passenger lines, which allow trains to travel between 200 to 350 km per hour, would be put into use.

"Such coverage of passenger rails should be able to ensure that passenger needs are satisfied," he said

Rail lines across the country added up to 78,000 km at the end of 2007.

The ministry also plans to add more rails to busy routes and to provide separate rails for passenger and cargo transport. This should also help boost transport capacity and efficiency by 2012.

Liu envisioned inter-city rail systems would be put into place by 2012 in populous regions, such as the Shanghai-led Yangtze River Delta, Guangzhou-centered Pearl River Delta and Beijing-led Bohai areas.

Construction on railways began to boom in China after the country initiated a mid- and long-term plan in 2004. Liu said the country revised the plan in 2008 so the distance of rail lines would increase to 120,000 km by 2020, from the original goal of 100,000 km.

The country also raised rail speeds to help with passenger flow. The latest change came in April 2007.

About 1.46 billion people traveled by rail last year, up 10.9 percent from 2007. Both transport capacity and efficiency had improved after train speeds increased, Liu said.

In addition, 3.3 billion tonnes of cargo had been delivered by rail, up 4.9 percent year on year.

(Xinhua News Agency January 1, 2009)