On the right track

Investment in railway construction is the most important part of China's RMB 4-trillion economic stimulus plan, which was carried out in response to the global financial crisis. In 2008, China's investment in railway construction jumped 88.6% year-on-year to RMB 337.6 billion. It further i...

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Bibliographic Details
Published in:Malaysian Business 2010-04, p.54
Main Authors: Tian, Grace, Wang, Tony
Format: Article
Language:English
Subjects:
Airlines
Construction
High speed
High speed rail
Infrastructure
Investments
Railway networks
Trains
Travel
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Summary:Investment in railway construction is the most important part of China's RMB 4-trillion economic stimulus plan, which was carried out in response to the global financial crisis. In 2008, China's investment in railway construction jumped 88.6% year-on-year to RMB 337.6 billion. It further increased by 77.9% to RMB 600.6 billion in 2009. According to the latest plan of the Ministry of Railways, total investment in this sector will reach RMB 2 trillion by the end of 2010. Over 180 listed companies related to the rail sector will benefit from China's ambitious rail projects. Key players include China Railway Group, China Railway Construction Corp, Shanghai Tunnel Engineering, XCMG Construction Machinery, Sany Heavy Industry, China South Locomotive & Rolling Stock Corp, and China Northern Locomotive & Rolling Stock Industry Corp. In the first nine months of 2009, China Railway Group's revenue grew 56.8% year-on-year to RMB 241.4 billion. Like Japan Airlines Corp, which was defeated by Japan's railways, China's major airlines have felt pressure from the emerging high-speed network. In March 2009, Spring Airlines cancelled its flights from Shanghai to Zhengzhou, 17 months after the high-speed railway between the two cities commenced operations. In November that year, Sichuan Airlines stopped flying its route between Chongqing and Chengdu, a route it had flown for 20 years.
ISSN:0126-5504