Chinese authorities have completed the constitution of the 13th Five-Year (2016-2020) Plan for Railway Industry, under which the country is to construct railroads of at least 23,000 kilometers with an overall investment of no less than 2.8 trillion yuan, according to an Economic Information Daily report on Friday.
An industry insider said that railroads in central and west China and intercity railroads will be the priorities for construction in the future. During 2016-2020, northwest China's Shaanxi province plans to invest some 250 billion yuan to improve railway transport networks, constructing some 4,600 kilometers and increasing the mileage of operating railways to 7,000 kilometers.
East China's Fujian province made an initial plan to invest nearly 160 billion yuan to construct railways of 1,374 kilometers, more than the existing length of all the express railways in the province. Beijing plans to build more than 800 kilometers of subways, more than 900 kilometers of urban railways, and more than 1,300 kilometers of intercity railways that connects Beijing with neighboring Tianjin municipality and Hebei province by 2020.
An industry insider disclosed that during the 2016-2020 period, the central government will enhance the support of budgetary funds on transportation infrastructure and give priority to railway construction in the central and west China as well as intercity railway construction.
Among A-share listed companies, China Railway Group Ltd. (601390.SH), CRRC Corp. Ltd. (601766.SH) and China Railway construction Corp. Ltd. (601186.SH; 01186.HK) have engaged in railway construction business and are expected to benefit from the industry trend.
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