China plans US$ 292 billion rail investment

China's State Council has approved a new CNY 2 trillion (US$ 292 billion) railway investment plan to take it up to 2020. The scheme extends China's previously announced railway building programme, which was allocated CNY 1.25 trillion (US$ 182 billion) in the 11th five-year plan for 2006 to 2010.

As a result of the increased investment, the country's railway network is expected to grow from 78000 km at the end of 2007 to 100000 km by the end of 2010 and ultimately 120000 km by 2020. As these figures imply, the peak in construction activity is expected to come in the next two years.

China has previously had a heavy focus on building its inter-city highway network, but according to unnamed sources cited by state news agency Xinhua, coming years will see a shift towards railway construction. Growth in freight transport is thought to be one of the drivers behind the increased focus on rail, and the need to increase capacity to meet rising demand.