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China transit investment reaches 1.23tn yuan
May 24, 2013, 8:11 am

[Getty Images]

Urban transit investment has now reached 1.23 trillion yuan in China [Getty Images]

China’s top economic planner, NDRC, has revealed an urban transit plan for many new cities, including Kunming, capital of Yunnan Province, with a total investment of 63.49 billion yuan ($10.34 billion).

China Railways has announced ambitious plans of laying about 30,000 km of new tracks over the next decade.

Booming demand for urban rail transit from an increasing number of Chinese cities would reignite the railway equipment industry, the China Securities Journal reported Friday.

Urban transit investment has now reached 1.23 trillion yuan in China.

The National Development and Reform Commission said that the increased input has accelerated the expansion of China’s rail equipment industry.

China CSR and China CNR, China’s two biggest train manufacturers are the biggest beneficiaries of the increased investment.

The increasing development of intercity railways will also benefit the rail equipment industry. The Pearl River Delta, one of China’s most developed areas, will spend 118 billion yuan on intercity railways from 2012 to 2020.

China CSR and China CNR have produced new trains that specifically cater to intercity railway networks.

China Railway has budgeted a total of 650 billion yuan for investment this year.

China has suspended bidding for bullet trains in 2010 which had adversely affected train manufacturers.

However, the gloomy trend is likely to be reversed in 2013 due to the looming resumption of bullet train bidding, the journal reported.

The China Railway Corporation (CRC), newly formed in March 2013 after the breakup of the ministry of railways, has finished preparing for restarting the bidding, which is expected to begin within a few weeks.

With inputs from Xinhua