China slashes railway budget, slows rail speeds

Beijing has lowered its budget for railway construction in its latest five-year plan, indicating closer government scrutiny following the sacking of railways minister Liu Zhijun for corruption in February, the South China Morning Post reported. China currently plans to spend US$428.6 billion on railway network expansion from now until 2015, the new railways minister Sheng Guangzu told Xinhua. That figure is below previous estimates of between US$459.1 billion and US$612.2 billion given by State Council officials at a world congress on high-speed railways in Beijing last year, but still 41% higher than spending on railways in the previous five-year plan. Sheng also said that high-speed trains on the country’s four east-west and four north-south artery lines would run at 300 kilometers per hour starting from July 1, slower than the previously announced 350 km/h, state media reported. Inter-city lines would be operated at 200-250 km/h, while most railways in central and western China will run at less than 200 km/h, Sheng said. Liu stepped down in February due to a government-led investigation into “severe violations of discipline.”