[photopress:train_in_China_rounding_curve.jpg,full,alignright]China’s railway system could be seen as important as the veins and artery of the body. The government recognizes this. The Ministry of Railways has decided to have multiple investors in all its new sections as part of its financial reforms.
Speaking at a national conference recently, Minister of Railways Liu Zhijun invited local governments, State-owned and private enterprises, social investment institutions and overseas funds to invest in the railways.
The ministry will urge the three listed railway companies to get refinance, seek investors for State-owned railway transport companies, and raise the amount of construction bonds to be issued this year.
This is the first time that financial reforms have been listed among the ministry’s annual working priorities, the Economic Observer has reported.
Several firms are eager to invest in the railways and have already contacted China Railway Special Cargo Service and China Railway Express. Some foreign firms will also probably invest in China Railway Container Transport although this has not yet been confirmed.
Last year, Datong Qinhuangdao Railway and Guangzhou Shenzhen Railway raised RMB15 billion ($1.9 billion) and RMB10.3 billion ($1.3 billion) from the stock market. The ministry also raised RMB40 billion ($5.1 billion) through railway construction bonds.
At least 70 social investment institutions and enterprises have signed deals with 26 jointly funded railway companies, creating RMB44 billion ($5.7 billion) in social equity funds, including RMB2.5 billion ($321.5 million) in private capital.
According to the ministry’s 11th Five-Year Plan (2006-10), 17,000 km of new tracks will be laid across the country at a cost of RMB1.5 trillion ($193 billion), double the amount spent during the previous five-year plan.
Source: China.org.cn