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Money runs short, ministry to cut Chinese railway building in 2012

Author: Posttime:2011-12-29 09:09:38

CHINA's plans to reduce spending railway building in 2012 over concerns about government debt and the Wenzhou railway collision, the Wall Street Journal reported.
Beijing will spend US$65 billion for 2012 railway infrastructure, 42 per cent less than the 2010 high of $112 billion, said Railways Minister Sheng Guangzu, who acknowledged the ministry no longer has funds to spend at previous levels.
"There is still much to be done to collect sufficient funds for railway projects." he said, also conceding the ministry is facing a "severe challenge" of ensuring quality construction and safety due to rapid rail network expansion.
China has planned to build about 74,500 miles of track by 2015. The slowdown in railway outlays will be felt widely as the global rail sector is "heavily dependent" on China, according to Paris-based Unife.
The Ministry of Industry and Information Technology said demand for specialised railway steel is expected to rise only 11 per cent by 2015, to 600,000 tons from 2010 levels, while that of heavy railway steel will drop five per cent to 3.8 million tons in 2015 from four million tons in 2010.
 

source:www.schednet.com
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