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chinese rail and need for speed

  1. ape
    409 Posts.
    to build a rail network you need to own CFE iron ore apparently


    China to invest in rail network as stimulus measure
    25th October 2008, 15:30 WST

    China will invest nearly $US300 billion ($A445 billion) in its overburdened rail system as a stimulus measure aimed at blunting the impact of the global financial crisis, state press said today.

    The investment is part of plans to extend the country's railway network from the current roughly 125,502km to nearly 160,900km by 2010, Shanghai's Oriental Morning Post reported.

    The Beijing News quoted a rail official as saying that, while the network needed extending, the massive investment of $US292 billion ($A433 billion) was also intended to help lift the nation's economy as it suffers amid the global woes.

    “New rail investment will become a shining light in efforts to push forward economic growth,” railway ministry spokesman Wang Yongping was quoted saying.

    China's economy recorded its slowest growth in five years at 9.0 per cent in the third quarter of 2008.

    The situation has looked increasingly dire in recent days with export-dependent factories closing and laying off thousands of workers, with warnings from industry heads of much worse to come.

    The China Daily newspaper said the rail investment plan had been approved by the State Council.

    About 1.2 trillion yuan ($A252 billion) had already been allocated, it said.

    The paper quoted a government policy adviser saying the plan was similar to China's successful strategy for warding off the Asian financial crisis of the late 1990s.

    “In 1997, we dealt with the Asian financial crisis by stimulating domestic economic growth through investment in the construction of highways,” Zheng Xinli was quoted as saying.

    "This time the money will go to improving the rail network.”

    China's railway network is one of the most extensive in the world, but has come under pressure as the nation's economy has boomed, giving millions more the opportunity to travel.

    Among them, more than 200 million migrant workers are estimated to have left their homes in the countryside for work in urban or coastal areas.

    The vulnerability of the rail network was laid bare last winter when fierce snowstorms crippled China's transport systems, stranding millions of passengers trying to return to their homes during the peak Chinese New Year travel period.

    AFP
    BEIJING
 
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