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CHINA / National

China building US$27-billion railway from Beijing to Shenzhen
(AFP)
Updated: 2006-08-04 21:30

BEIJING - China is building a US$27-billion train line from Beijing to the southern economic hub of Shenzhen and foreign investors will be invited to join the project, state press reported.

The new 2,300-kilometer (1,420-mile) railway will cut travel time between the capital and Shenzhen, which borders Hong Kong, from 24 hours to 10, the China Daily said, citing the National Development and Reform Commission.

The track will be designed to allow trains to travel at speeds of at least 200 kilometers an hour, more than twice as fast as the current line, it said.

Work on some sections of the railway has already begun and the entire project is expected to be completed by 2010.

The newspaper, citing government officials, said the entire project was expected to cost around 220 billion yuan (US$27.5 billion), with foreign investment welcomed.

"We encourage investors from home and abroad and we think it will be a profitable railway," a railways ministry official surnamed Huang said in the report.

The total investment will be recovered within six years of services on the line starting, Huang said.

Construction of a section of the line between Wuhan, the capital of China's central Hubei province, and Guangzhou, the capital of southern Guangdong province in which Shenzhen also lies, began in 2004.

However the National Development and Reform Commission, the government's main economic planning body, only released the blueprint for the entire project on Wednesday, the China Daily said.

The commission said the new railway would be solely for passengers, leaving the old track to carry cargo.

The project is separate from another multi-billion-dollar railway to be built between Beijing and Shanghai, which is also expected to be completed by 2010 and be open to foreign investment.

The Beijing-Shanghai line is epected to cut travel time between China's two most important cities from around 13 hours to five, with the trains expected to reach speeds of 350 kilometers an hour.

The investment costs for that project have not been announced although reports have suggested as much as 25 billion dollars will be ploughed into it.

China announced last year an ambitious plan to spend 250 billion dollars by 2020 to renovate and expand the nation's rail network, one of the largest in the world.

 
 

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