China railways fast-tracks massive 124 billion yuan in December
December's capital expenditure was 10 times larger than 12.3b yuan of January 2012, as the nation strives to meet ambitious 630b yuan target
The mainland massively accelerated its rail spending in December, enabling the nation to meet its ambitious target of 630 billion yuan (HK$778 billion) of capital expenditure on railways last year. Rail spending has recovered from a severe cutback after the arrest of former railways minister Liu Zhijun for alleged corruption in February 2011 and the fatal high-speed-train crash in July 2011.
December's capital expenditure was 10 times larger than the 12.3 billion yuan in January 2012, which saw a 69.6 per cent year-on-year decline. Rail capital expenditure for the whole of last year rose 7 per cent to 630.98 billion yuan.
Last year, the ministry raised its capital expenditure target for 2012 three times from 516 billion yuan to 630 billion yuan, according to a Masterlink Securities report. By the end of last year, China's high-speed-rail network reached 9,356 kilometres, the world's longest, while its total rail length was 98,000 kilometres, second only to America, Railways Minister Sheng Guangzu said at a recent press conference in Beijing.
"The Ministry of Railways is implementing an unprecedented programme of high-speed-rail investment whose effects are only just beginning to be felt. Early evidence highlights wider economic benefits," a recent World Bank report said.
The World Bank said the mainland's high-speed railway was creating substantial economic benefits not captured in conventional cost-benefit analyses. While traditional cost-benefit analysis focuses on passenger time savings and cost savings, wider economic benefits include increased business activity facilitated by faster travel.