On Wednesday, China started to raise train speed for the sixth time. In order to realize this goal, China had added 29.6 billion yuan of investment. According to China's Mid- and Long-term Railway Development Plan, by 2020 the total mileage of China's railway system will reach 100,000 kilometers. This means that 2 trillion yuan of construction capital will be needed to reach the goal. In the 13 years to come, China will need 153.8 billion yuan of financing input every year in railway construction—a lucrative market that will attract many foreign companies.

In face of this great opportunities, Bombardier Transportation, a global company headquartered in Canada, recently said that they regarded China as their long-term strategic partner.

Early in 2004, Bombardier Transportation had signed a strategic partnership agreement with Chinese Ministry of Railways and the company had made a long-term development plan for China.

Earlier this year, Bombardier won the first round of bid for locomotives held by the Ministry of Railways. The Ministry of Railways signed a purchase agreement for 500 large-power electric locomotives with Dalian Locomotive and Rolling Stock Co.,Ltd, that introduced Bombardier’s technologies. The agreement involved a total capital of 11.3 billion yuan.

Statistics show that last year, Chinese railway departments put 160 billion yuan into railway construction and 100 billion yuan was collected through other financing channels. This year, China plans to put 256 billion yuan into railway construction and there will be 200 billion yuan of capital shortage.

This year, Chinese railway departments intend to undertake railway construction with foreign funds. More railways will be built with foreign funds and finance from society. The government intends to diversify investment sources for railway construction. Railway departments are making efforts to introduce more strategic investors and change some transportation companies into stock companirailway construction with foreign funds. More railways will be built with foreign funds and finance from society. The government intends to diversify investment sources for railway construction. Railway departments are making efforts to introduce more strategic investors and change some transportation companies into stock companies. In addition, the government will issue more railway treasury bonds, and improve the financing scheme for social investment so that it can gather more funds from society.

Source:佚名