According to?a Wednesday's report?in Economic Observer, China's Ministry of Transport is planning to invest 5 trillion yuan over the next 3 to 5 years. The news comes just one month after the State Council approved a 2 trillion yuan investment plan submitted by the Ministry of Railways.
According to previous medium and long-term plans, state investment in road construction was expected to total 2.1 trillion yuan with an average spend of 140 billion yuan per year before 2010 and 100 billion yuan per year from 2010 to 2020.
Zhang Wenjie, Professor at the School of Economics and Management of the Northern Jiaotong University, said the huge capital spending plan was partly related to this year's Super-Ministries reform which established the Ministry of Transport, incorporating the former ministries of Communications, Civil Aviation (CAAC), Construction, and the State Postal Bureau. Reporters were told that none of the 5 trillion yuan will be spent on aviation or postal services, but Zhang said given the consolidation of ministries the increase in investment was reasonable.
The Ministry of Railways had previously planned to invest 1.25 trillion yuan but in late October, the State Council approved an additional 2 trillion yuan. Officials from the Ministry of Railways said the investment will fuel economic growth and create jobs, especially in the steel, cement, electronics, electrical appliances, rubber and glass industries. The Beijing-Shanghai high-speed railway line alone will need more than 100,000 construction workers over and above the workers actually laying the tracks.
For more details, please read the complete story in Chinese:
(http://www.eeo.com.cn/Politics/beijing_news/2008/11/05/119099.html)
(China.org.cn by Jessica Zhang, November 6, 2008)
