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Doubts cast over high-speed rail building programme

23 February 2011
The removal last week of China’s Ministry of Railways, Liu Zhijun, due to an investigation of possible corruption, has prompted some commentators to predict a slowdown in the country’s fast-expanding high-speed railway construction programme.

The Global Times, citing a report from the National Audit Office, said that the ministry was Rmb1,300bn in debt in 2009, of which nearly two-thirds was short-term debt. The paper quoted Zhao Jian, a researcher at Beijing Jiaotong University, as saying that the interest on this debt may have become too large for the government to afford.

China’s high-speed rail network stretched 7,531km as of last November and is set to expand to 16,000km by 2020. However, a senior Beijing-based executive for a foreign high-speed train producer said it was unclear whether sufficient demand exists to justify this investment. He said that on many high-speed rail routes, such as the one linking the Guangzhou and Wuhan, some trains run “nearly empty” because of high ticket prices. A single journey on the high-speed Wuhan-Guangzhou line currently costs Rmb469, about the same price as an airline ticket booked a week in advance and twice as much as a ‘soft sleeper’ ticket on regular-speed trains .

     
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