China to Invest More in Railway Construction based in the 13th Five Year Plan
China will be investing a total of 2.8 trillion yuan in railway construction during the 13th Five Year Plan period (2016-2020). The national railway network is growing by 23,000 kilometers in the next five years as intercity projects and those in the Midwest regions are given priority and the railway construction is on the fast track ever since the country seen the annual investment surge from 580 billion in 2011 to 800 billion yuan in 2014, a growth of 11.3 percent.
During the 12th Five Year Plan period, China spent a combined total investment of 3.47 trillion yuan on new rails, which exceeded the original target of 2.8 trillion yuan by far. High speed railway still remains one of the key infrastructure projects that will be included in the 13th Five Year plans that will be released by the local government. Projects are expected to continue this including rail lines from Yinchuan to Lanzhou, Chongqing and Guiyang, Baotou to Xi’an, Xiamen to Changsha and Chongqing, then from Datong to Taiyuan and Zhanjiang. Beijing is also planning to expand the suburb rail lines by 800 kilometers and urban transits by 900 kilometers if based on the 13th Five Year Plan period.
Meanwhile the Belt and Road Initiative will be boosting exports of high speed rail technologies and other related products, as China expects its rail equipment sales to reach 650 billion yuan by 2020. As the country is fast becoming one of the leading player, exports accounts for more than 30 percent of sales, while 15 percent will be expected to come from services trades.