China has plans to spend at least US$1.3 trillion over the next five years to solve transport and freight supply bottlenecks, Bloomberg reported. Rising land and labor costs in coastal provinces have forced manufacturers to look inland for new production sites, placing greater strain on the country’s transport infrastructure. China has already allocated US$569 billion to fixed-asset investment in railways and roads in the last two years. But in order to meet expected demand, Macquarie (MQG.ASX) predicts that, over the next five years, China will spend around US$530 billion on railway construction, US$115 billion on rail rolling stock, US$530-605 billion on highways, US$50 billion on airports and US$135 billion on ports. The country has over 7,000 kilometers of high-speed rail track with an additional 6,000 km are scheduled for completion by 2012.
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