CHINA RAILWAY INVESTMENT

No matter how the yuan and stock devalue, how the economy is slowing down, for China, investment must go on! China is quite well known for its transportation and infrastructure sector. Many countries have agreed to cooperate with China to improve their infrastructure and public transport, moreover for the railway transport. Let’s see what has been China planning for the upcoming year…

Domestic Count

China’s national railway has set the full year fixed assets investment target at an amount of 800 billion yuan (121.6 billion U.S. dollars) for a third consecutive year. It also targets to increase the passenger capacity up to 10% and freight capacity up to 2%. China itself, still has to maintain the railway investment and improve the railway construction of central and western regions.

Wuhan Railway Station

Last year, total fixed-asset investment reached 823.8 billion yuan, with 9,531 kilometers of new railways, including 3,306 km high-speed rail lines, putting into use.

China took the top place with its high speed railway extending over 19,000 kilometers by the end of last year, accounting for over 60 percent of global high-speed rail lines.

Global Count

In 2016, the company will speed up the going global strategy, strengthen its international competitive edge and achieve new breakthroughs.

As I mentioned earlier, many countries favor China’s bid to help them to improve their domestic infrastructure. Not only because it’s cheaper, but the offer also seems to be more profitable.

Let’s say the Jakarta-Bandung high-speed train project. At the time, Indonesia had 2 choices between the “Shinkansen” original country Japan, or the “Giant Panda” China. Both has an excellent railway system. But at the end, Indonesia chose China, as the price is cheaper and the loan offer is more profitable. In this term, yes, China’s price can be cheaper, but the quality is also very good. I, myself, many times enjoy riding the train from city to city in China. It’s very convinient… Their subway system is also very good! Not only Indonesia, but many Latin America countries also had closed the deal with China to build their domestic subway system.

Chinese Railway Show at Indonesia’s Senayan City Plaza

Fresh from the oven train from China arrived at Rio de Janeiro

Premier Li with other Brazilian officials did a “test drive” for the currently finished China made MRT system at Rio de Janeiro

The construction of the Indonesia’s first high-speed railway is awaiting the approval of its detailed engineering design and Environmental Impact Analysis. When the two documents are approved, the ground-breaking for the high-speed railway project will be carried out on Jan 21.