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...of one of the world's most vibrant economies is proving difficult despite some truly heroic and ongoing efforts both in the provision of new capacity and in embracing advanced technology.
The tell-tale statistics are that while business has been increasing steadily for years, market share has been slipping. In the early 1980s, for example, CR handled almost 60% of the nation's freight and passenger traffic. This had dropped to less than 40% by 2001, partly because annual investment has historically failed to keep pace with accelerating demands for rail transport, and partly because of a massive increase in road infrastructure and greater competition from internal air services.
CR is about half way through its 10th five-year plan involving annual investment of about SUS 8.5 billion, and is in better shape than ever to raise funds thanks to a liberalisation programme that is cautiously loosening the iron grip of the state. Of the total plan value of Yuan 350 billion ($US 42.3 billion), Yuan 270 billion is for infrastructure works and the balance of Yuan 80 billion is for new and upgraded locomotives and rolling stock.
The money will be used to add 7000km of new lines to the network, to double 3000km of existing lines, and to electrify 6000km. This means that by 2005, the Chinese rail network will be 75,000km long with 25,000km of double or multiple tracks (compared with 21,500km in 2000), and more than 20,000km will be electrified (compared with 14,600km in 2000).
But despite the dizzy level of investment, it is still not enough to help CR get over the finishing line in its catch-up race with the national economy.
As Mr Cao Jing, a senior CR strategist, told me in Beijing, "Inadequate finance is still a problem area Despite its high level, we need more. There is also still a gap in our technology levels compared with advanced railways.
"We are also confronted with fierce and growing competition from road and air, But we remain confident of meeting the challenge because the size of our country works very much in our favour, and we believe that rail transport meets the needs of sustained and sustainable development."
The 11th five-year plan will essentially...
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