China to Invest More in Railway Constuction in the Span of Five Years
In line of the 13th five year plan period (2016-2020), China is planning to invest around 2.8 trillion yuan for railway construction and building no less than 23,000 kilometers of new rail lines. Called the medium and long term railway network plan, is to further expand the country’s rail network and was approved during the State Council meeting that was presided by Premier Li Keqiang.
The new plan targets a more balanced national rail construction and bring greater accessibility to more parts of China. Also the new railways is aimed to build a comprehensive network to cover rail, water, air and road transportation. China experienced a railway boom on the 12th five year plan period that had a fixed asset investment of 3.58 trillion yuan and placed around 30,500 kilometers of new rail lines in operation.
Based on the new plan, China will construction an additional 23,000 kilometers of new railway in the span of five years with the an investment of 2.8 trillion yuan. railway construction is speeding up and also driving related industries such as machinery, building, computers, metallurgy and precision instruments. Furthermore by building new railways creates more job opportunities and has a sound economic growth and structural adjustment and a best option in deterring economic downward pressure.