As investment in the mainland's railway sector balloons, Beijing is encouraging more private and foreign participation.
For the past five years, railway spending totalled 750 billion yuan (HK$851 billion). For the next three years to 2011, this will rise to about 3.5 trillion yuan, according to the Ministry of Railways.
The ministry said this year alone, rail spending would double from last year's level to more than 700 billion yuan, including rail construction and purchase of trains.
The government announced this huge rise in railway spending recently as part of its 4 trillion-yuan stimulus package to fight the global economic crisis, and a McKinsey expert believes foreign and private investors will play a growing role in the sector.
'The figures are staggering, comparing the past five years with the next five years. With that kind of big spending, there is likely going to be diversification of funds into private investors,' said Evan Auyang, an associate partner in McKinsey & Co, an international consultancy.
Deputy Railways Minister Lu Dongfu was quoted by state media on November 27 as saying: 'We actively encourage companies to invest in the construction and operation of railroads. As long as the state maintains control, we encourage foreign investors to invest in rail construction, and passenger and cargo rail businesses.'
