The order books of China Railway Group and China Railway Construction Corp, the mainland's two leading rail construction firms, are bulging, thanks to Beijing's infrastructure spending spree.
However, some analysts fear they may have taken on too much. While the flood of new work will boost revenue, it also brings challenges such as controlling runaway costs.
'We are stuffed full from so many orders,' said Xing Changcai, the general manager of China Railway Construction's mining and rail unit.
Last year, Mr Xing's company completed the construction of one billion yuan (HK$1.13 billion) worth of rail projects and this year will complete projects worth two billion yuan.
'Next year, we hope to tender for three billion yuan of orders,' he said. 'The Ministry of Railways will spend more on rail next year, so we will get more orders. China is driving domestic demand with its stimulus.'
The four trillion yuan stimulus package, unveiled by Beijing late last year to combat the economic crisis, has added 1.2 trillion yuan of spending on transport infrastructure, according to a Macquarie report. Most of it is being spent on expanding the nation's rail network.
