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Ministry of Railways Speeds Up Investment

  • Wednesday, September 12, 2012
  • Source:

  • Keywords:Railways Investment
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[Ferro-Alloys.com] The Ministry of Railways invested RMB39.33 billion (USD6.21 billion) in infrastructure construction in August, up nearly 20 percent year-on-year, as China speeds up infrastructure investment in a bid to boost economic growth.
 
Total fixed-asset investment by the ministry in August was RMB45.78 billion, according to a statement from the ministry.
 
A deadly high-speed railway accident in 2011 halted the previous aggressive expansion of China’s railway infrastructure.
 
From January to August, total fixed-asset investment was RMB271.5 billion, 24.1 percent less than at the same period last year. But the decline is narrower than a 30 percent contraction from January to July, indicating a rebound.
 
The investment growth follows a slew of recent announcements by the government allowing the construction of new roads, railways and urban infrastructure projects that industry insiders estimate will have a combined value of about RMB1 trillion.
 
However, the growth has also sparked concerns. By the end of August, the ministry reported a debt ratio of 61 percent, which may increase with additional investment.
 
Construction on Hongliuhe Bridge, a high-speed railway bridge on Lanzhou-Xinjiang Railway Line II, was completed on Sept 9, 2012. Work on the 1,652-meter bridge started on July 1, 2010, and cost more than RMB100 million (USD15.79 million).
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