Sign in Subscribe
Economic conditions

Asian Development Bank to Conduct Study on China's Railway Reform Plan

Strategic Insights

— 1 min read

The Asian Development Bank (ADB) is set to conduct a study to help China develop a policy reform plan for its railway passenger and freight transport. China's rapid growth over the last two decades has led to high annual growth rates in passenger and freight transport, with 9% and 7.4% growth rates between 1978 and 2004, respectively. However, despite this growth, China's railway system has lost ground to other modes of transport, and the government aims to remove constraints facing the railways system and expand the network.

Key Takeaways:

  • The ADB will conduct a study to help China draw up a policy reform plan for its railway passenger and freight transport through a technical assistance grant of US$400,000.
  • China's railway system has lost ground to other modes of transport despite rapid growth in passenger and freight transport, with 9% and 7.4% growth rates between 1978 and 2004, respectively.
  • The government aims to remove constraints facing the railways system and to expand the network, with plans to build 6,000 km of new lines, provide 3,000 km of double lines, electrify 5,000 km of key lines, and increase operating speeds on 5,000 km of lines.
  • Investments in capital construction for the railways sector are expected to reach CNY450 billion during 2003-2007.
  • Manmohan Parkash, an ADB Transport Specialist, notes that the PRC's railways have been unable to meet the increasing demand for passenger and freight transportation, highlighting the need for a sound administrative environment.
  • The study will examine opportunities for diversified financing sources, increased private sector involvement, and public-private partnerships to enhance the competitiveness of the railway sector and improve customer satisfaction.
  • The total cost of the study is estimated at $520,000, and the Ministry of Railways will provide about $120,000 in counterpart funding for staff and official facilities, etc.

Statistics:

  • 9% annual growth rate in passenger transport between 1978 and 2004
  • 7.4% annual growth rate in freight transport between 1978 and 2004
  • 6,000 km of new lines to be built to previously unserved areas
  • 3,000 km of double lines to be provided
  • 5,000 km of key lines to be electrified
  • 5,000 km of lines to have increased operating speeds
  • CNY450 billion investments in capital construction for the railways sector during 2003-2007
  • Total cost of the study: $520,000

Sources:

  • Asian Development Bank (ADB)
  • ASIA PULSE 12-01 1653

Read more