The railway industry is an important part of China’s economy. The key investment point of China’s railway is the railway construction. 60% of the fixed asset investments are used to the constructions of railway lines. From 2008 to 2020, China will newly construct 40-thousand-kilometer railways with the total investments breaking through 5 trillion Yuan (730 billion USD). According to Chinese government’s plans, the approved railway construction will be about 10 thousand kilometers with the investment scale of 1 trillion Yuan (146 billion USD) in 2009 and another 10 thousand kilometers with the investment scale of 1 trillion Yuan (146 billion USD) in 2010. The railway projects in the plan can be divided into three big categories: One is the Beijing-Shanghai railway express, the passenger railway lines and interurban railways from Beijing to Guangzhou, Harbin to Dalian, Tianjin to Qinghuangdao, Ningbo to Wenzhou, Wenzhou to Fuzhou, Fuzhou to Xiamen and Nanjing to Shanghai etc. By 2010, the construction scale will reach to more than 16 thousand kilometers. The other is the coal transportation railways, including Baotou to Xi’an, Taiyuan to Zhongwei (Yinchuan) and Zhungeer to Shuozhou etc. by 2010, the construction scale will be near 10 thousand kilometers. After the completion of the coal transportation railways, Chinese coal transportation capacity will be enhanced greatly and the coal transportation tension especially the coal for electricity will be eased. Another is the western main line railway projects for the resource exploitation, including Guizhou to Guangzhou, Nanning to Guangzhou, Lanzhou to Chongqing and Hetian to Kashi with the construction scale exceeding 15 thousand kilometers in 2010. Through these projects and the technology reforms of the present railways in the central, western and northeastern regions, the railways will be covered more Chinese lands and strengthened the transportation infrastructure in the central and western regions. The investments in Chinese railways are characterized as large investment amounts and long industry chains. In 2009, the investments in the railway infrastructure are planning to finish 600 billion Yuan (87.6 billion USD). The investments will create 20-million-ton steel product demands, 120 million tons of cements and 6 million employments. It is predicted that the investments in Chinese locomotive purchase are about 300 billion Yuan (43.8 billion USD) in 2009 and 2010.
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