China's railway industry will open wider to global investment,
including private investment from Chinese enterprises, top railway
officials said.
The Ministry of Railways is drafting a series of investment
policies to secure fair market conditions for healthy
competition.
Rail minister Fu Zhihuan told the industry's annual working
conference in Beijing at the weekend: "All the fields that the
Chinese Government promised to open to foreign investors in its
commitments to the World Trade Organization will allow the entry of
international companies, using various forms of co-operation."
He
said major parts of the railway construction and transportation
market could open up to international investors but he did not give
details.
The ministry is expected to recommend some profitable railway
construction projects for global bidding early next year.
Fu
said all the areas to be open to foreign investment would also be
open to Chinese enterprises, as long as they are suitably
qualified.
Vice-Premier Wu Bangguo has urged the ministry to speed up reform
to better meet the growing demands of the market economy and
guarantee a safe transport system, Xinhua News Agency reported
yesterday.
China's international transportation and construction business also
saw apparent progress in the past few years.
Between 1998 and 2001, 86 million tons of international cargo were
transported, mainly through the Asia-Europe railroad. The average
annual increase during that period was 20 per cent.
China's railway design and construction companies have gained US$3
billion worth of international contracts since 1998. These
businesses still have been establishing an ever stronger market
presence in Asian and African markets.
Domestically, the railway industry managed to keep its momentum of
the past few years, and the passenger and cargo businesses have
both created new records this year.
The railway industry has transported 1.9 billion tons of cargo so
far this year, a 4.1 per cent increase over last year. Passenger
journeys rose 4.2 per cent to 483 million.
Fu
told the weekend conference that China's rail sector must develop
more high-speed trains through technical innovation to meet the
intense competition from the fast-growing road and air
transportation sectors.
He
said the rail sector will begin producing two types of high-speed
train next year. One model will be able to travel at 270 kilometres
per hour while the top speed of the other will be 200 kilometres
per hour. The new trains are expected to operate on the
Qinhuangdao-Shenyang passenger express line in northern China.
Currently, China's passenger trains are 25 per cent faster overall
than they were in 1997, with some express trains running at 140 or
160 kilometres per hour, compared to 120 kilometres per hour
before.
The minister said China would develop a high-speed railway within
20 years. This would let trains run at speeds of more than 300
kilometres per hour, and all big cities and transport centres will
be linked with high-speed trains.
In
addition, China will continue research into railway construction
for maglev trains and improve the industry's technical level by
adopting more advanced technology.
(China Daily December 30, 2002)