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View Full Version : China Needs Railcars in $62 Bln Plan to Build Metros



oneman28
12 Nov 05,, 16:54
http://www.bloomberg.com/apps/news?pid=10000080&sid=aEufDrvIBBLQ&refer=asia

Nov. 12 (Bloomberg) -- China needs 6,000 railcars in the next five years in a 500 billion yuan ($62 billion) plan to build 50 metro networks in major cities, as the country expands public transport to cater for a growing urban population.

The government plans to build 1,500 kilometers of city metro lines by 2010, according to research presented at a National Development and Reform Commission conference today in Beijing. Another 100 billion yuan is needed annually to expand the rail network by 35 percent to 100,000 kilometers by 2010, making China the world's largest market for rail equipment in the period.

The investment plan in the world's most populous nation comes amid a move to relax migration rules to allow more people to move to cities in search of work. Up to 15 million people, more than Germany's population, will migrate every year to major cities from China's villages, according to government estimates.

``Investments in the railway industry still lags development of highways and the automotive industry,'' said Ma Liqiang, deputy secretary general of the National Development and Reform Commission, the Chinese government's top planning agencies.

China's economy, which expanded 9.4 percent in the third quarter, is boosting demand for products ranging from iron ore and cotton to electrical equipment and aircraft.

The government has been working since 2000 to tap the capital market to upgrade and expand its railways. Overseas investors including Siemens AG and Bombardier Inc. may be allowed to use cash or rail equipment to exchange for stakes while private Chinese companies can also invest, today's research paper said, without giving details.

Bombardier, the world's largest maker of railway equipment, announced a plan in May to manufacture undercarriages in eastern China's Qingdao city to fulfill more than $800 million of contracts.

The Montreal-based company sold 367 train cars in February for $329 million for a new railway line to the Tibetan capital of Lhasa from Qinghai province. The company won another 2.58 billion yuan contract in August to supply 20 electric trains by the end of 2007 to Guangshen Railway Co. to use in southern China.



To contact the reporter on this story:
Tian Ying in Beijing on ytian@bloomberg.net
Last Updated: November 12, 2005 03:28 EST

Neo
12 Nov 05,, 17:21
One thing I've always admired in China is that if the government wants something, she delivers!
Huge economic growth is partly to be credited to good infrastructure.
Good job!