China plans US$ 127 billion rail investment
06 September 2012
The Chinese government plans to spend CNY 800 billion (US$ 127 billion) on the development of 25 new urban rail projects, according to state media.
The Chinese National Development & Reform Commission is said to have announced the plans and feasibility reports for projects in cities such as Suzhou, Hangzhou, Chengdu, Shenzhen, Changchun and Tianjin.
The timescale for the projects is between three and eight years, with the bulk of the investment coming from local governments.
The planned metro and urban rail networks would increase connectivity and the capacity of transport systems in China's growing cities.
News of the planned investment comes amid a slowdown in the Chinese economy after a period of rapid growth. China's economy grew +7.6% year-on-year in the second quarter of 2012 - its slowest pace in three years.
The construction equipment market in China is expected to fall -30% in total this year to 343,190 machines, compared to 2011's record volume of 487,800 pieces of equipment, according to Off-Highway Research.
But the forecaster said it expected the market to return to growth in 2013, with a +10% rebound.