In my previous blog, I talked about China’s $585 billion stimulus plan and its earmark of $118 billion committed to building waterborne transport infrastructure I talked about China’s plan to expand existing ports and build one ones in 2009 and 2010.
$90 billion of the stimulus will be pumped into China’s rail services, 70% of which will be used to build high-speed passenger lines, while $50 billion was budgeted for rail services in 2008.
Railroad had been the major transportation for Chinese besides buses and bicycles about 20 years ago. Starting from mid 90s, with the increase of vehicles both commercial and non-commercial China started to invest in highways. The next wave was airport expansion and construction to meet the needs of Chinese’ business and leisure travels. Trains had lost its favor and become the least desired means of transportation, packed, dirty and slow.
Until recently China starts to embrace rail products again, esp. high-speed trains and subways. Only Beijing and Shanghai and a very few large cities develop subway systems. By 2015 more than 250 cities in China will have subways. It is a very smart move.
Railways and subways can help China reduce its consumption of oil and reduce pollution caused by vehicles’ emission. Most of the towns and villages are still isolated from the most active regions of China’s economy-the east coast. Railways, as well as waterborne transport, will help integrate the inland with the east coast, preparing for China’s further development of those less developed regions.
The plan for railways and subway, as well as waterborne transport, looks ambitious. However, I know the government can make it happen, thanks to the fact that it is a centrally governed country. Such a massive infrastructure construction can only happen in China.
