Stimulating domestic demand "a rapid march": 2 trillion investment in the railway "to clear the way"

"If the 1998 Asian financial crisis the country is to take the road infrastructure investments stimulating domestic demand, and that this will be the main railway investment।" October 27, chief engineer of the Ministry of Railways Mr WU in an exclusive interview with this reporter's case Said. The judge on October 21 from the State Council executive meeting. At the meeting approved the package of infrastructure projects, the Ministry of Railways spokesman Wang Yong said, "The new railway project investment and stimulate economic growth is an important bright spot." According to Wang Yong, so far, the State Council approved railway investment has reached 2 trillion yuan, of which projects the size of the investment of more than 1.2 trillion. "With the Ministry of Railways and the governments around the strategic cooperation to jointly push forward the continuous development and construction, some of the figures will increase further." National Development and Reform Commission, former director of the Institute of Comprehensive Transportation, the incumbent party secretary Yan Dong, the country has been previously approved by the Ministry of Railways, "11th Five-Year" plan, for a total investment of 1.25 trillion, now comply with the new demands of railway construction, the size of funds Adjusted for 2,000,000,000,000. WU He explained that the country's railway investment, not only to accelerate the improvement of the railway network, but also on the iron and steel, cement, machinery, nonferrous metal, electrical and electronic industries play a powerful role in driving. In addition, "the railway construction will also provide direct more than 150 million jobs, this does not include employees of the railway system." Ho said WU. 1,250,000,000,000 change 2,000,000,000,000 In accordance with previously approved by the State Ministry of Railways, "11th Five-Year Plan", the state plans to invest between 2006-2010 in 1,250,000,000,000 yuan for railway infrastructure. Planning, "New Line," "Separation of passenger" and "transformation of line" for the main ideas put forward will be operating the railway mileage in 2005 from 70,000 km in 2010 to 90,000 km in 2010 to reach 100,000 kilometers. In 2010 before the 7000 km of new passenger line, and in 2020 built before 12,000 kilometers passenger line, the backbone to achieve the separation of passengers and cargo. However, from the United States to China, from the financial sector to the real economy, the economy of the roaring sound of winter is the more aggravated scratch. How to expand domestic demand and maintain steady economic growth has become the primary decision-makers faced with the problem. October 21, Chinese Premier Wen Jiabao chaired a State Council executive meeting, including the approval of the railways, highways, airports, nuclear power, pumped storage power station and other infrastructure construction projects, speed up decision-north water diversion project at the same time, the east - Progress of the construction phase of the project. This series of measures to stimulate the economy, investment in railway is considered to be stimulating domestic demand, "the locomotive." Dong Yan, said the move with the 1998 Asian financial crisis, the country start a large-scale highway construction in order to stimulate the economy fairly. It is reported that in 1998 in response to the Asian financial crisis, the state implemented a proactive fiscal policy, highway construction has entered a period of rapid growth, with an average annual traffic mileage of more than 4000 kilometers, with an average annual investment 140,000,000,000 yuan. At present, and, as a result of the uncertainty of future trends, the people have a purse Wu Jin, by the people to start spending money, basically unrealistic; in the field of infrastructure, real estate market is entering a new period of adjustment, people buy Housing sluggish consumption; railway is the people's livelihood strategies of the great works of funds through the financial input, you can better attract social capital to participate. The railway construction is also strong in the investment cycle. According to Wang Zhiguo, vice minister of Ministry of Railways previously disclosed to reporters, in 2003, start accumulated mileage of railway construction reached 12,902 kilometers, the size of the total investment reached 868,200,000,000 yuan, a new production line of 6210 kilometers. The reporter was a few days ago from the Ministry of Railways statistics indicate that in October this year, the Beijing-Shijiazhuang and Dan Wu passenger-only lanes, rail Yu-lan, your Canton Railway, the Southern Xinjiang Railway line cua key projects such as a large number of railway projects have started, only The eight railway projects with a total investment reached 405,180,000,000 yuan, equivalent to over the past four years, half the size of the investment. "So far, the national railway projects approved a total investment of over 2 trillion." WU He explained to reporters, referring to two trillion yuan into the railway is a long-term program of the size of the total investment. The initial investment in the development of the country for 1.25 trillion, but the economic situation, as well as the development of the local railway network of strong demand, making the railway and long-term planning has been adjusted, the total investment has risen. "There are probably over the next two years to add new projects, will certainly more than the original investment."
According to Dong Yan, said the latest approval of the 2 trillion of investment funds, will use a three-part, for part of the high-speed railway construction, for part of the inter-city railway, part of the rail lines for the improvement. 2 trillion of the spillover effects In addition to the regulation, 2 trillion of investment in rail plate is driven by a more ambitious market economy. Shenyin Wanguo infrastructure analyst Kim Yi-Yan believe that the bulk of China's railway is the most important mode of transport of goods, 56% of the coal, 84 percent of the oil, 24% of the iron and steel, 22% of food and 58% of cotton through railway transport. However, lack of investment caused by car to meet the requests of the national average rate of only 54%, nearly half of the market demand can be met. In particular, the sharp contradictions large coal in Shanxi Province, to meet the car was only 33%. On the other hand, investment in railway scale than other major transport infrastructure. He WU take the Beijing-Kowloon Railway to the reporter explained that the completion of the same traffic, the road to the railway than accounted for more than 38,100 hectares of land, energy and rail transport more than 1 million tons. "Therefore, comparison should be done, fast forward the building of rail transportation, railway construction." It is in view of the case, the state approved in the past two years a large number of railway construction projects. "We feel that the National Development and Reform Commission recently approved the project to speed up the pace a lot." Propaganda Department of the Ministry of Railways, a person laughs, the situation changes, it is fermented in the financial situation. State Information Center Fan, director of economic forecasting that the 2 trillion railway investment plan is not a new thing today, it is actually related to the "11th Five-Year Plan", "Shier Wu" period of railway construction plan, have become a hot topic at present Mainly in the current enthusiasm for social investment is not high, investment-led government will affect the companies in this sector. WU He has held the same view: Railway Investment obvious role in stimulating the economy, such as the railway infrastructure on the steel, cement there is a huge demand for railway rolling stock manufacturing requires not only a lot of steel, electrical and electronic industries will lead, rubber, glass, aluminum, etc. Non-ferrous industries. "What is more important is to solve the employment problem." WU He told reporters that only a Beijing-Shanghai high-speed rail, construction on the number of 10 million people, and the entire rail infrastructure up to 1,500,000 workers, "This does not include employees of the railway system." This reporter has learned that the main railway transportation industry workers of the total number of 2,080,000. Daobi 2 trillion capital investment and financing reform At the Ministry of Railways to invest 2 trillion off the plate after the sound of the wind, rail infrastructure stocks rose by a strong stimulus, Oct. 23-27, the Second Railway Bureau in the three trading days up 19%, while the China Iron Chinese construction China Railway is because the news was partially offset by exchange rate losses of the bad news, stock prices of basic steady. However, the market for the railway industry's favor at the same time still have misgivings about 2 trillion, after all, not a small sum, the Ministry of Railways on how to raise the money? including Ho, the Ministry of Railways have repeatedly told reporters that the issue is not money, profit-making railway project is not short of money. An anonymous people within the Ministry of Railways to the reporter explained that the railway is currently owned by a bank loan financing, bond financing, the railway construction funds, insurance funds financing, local government investment as well as some direct financing of the strategic investors. China Development Bank as promised, "11th Five-Year Plan" period to 250,000,000,000 yuan in railway construction to provide policy-oriented loans, bond financing in countries with the support of sustained growth in recent years, 2006 and 2007 respectively, the total amount of bonds the Ministry of Railways 293 Million and 400 million as of October 2008, the Ministry of Railways has issued bonds 110,000,000,000. Railway investment in railway construction funds as the main channel for the past two years, respectively contributed 44,600,000,000 and 48,400,000,000 yuan. Local government investment is converted into shares demolition land, in this way in high land prices in the settlement of the situation in railway construction funds for the construction of a large demand. Insurance Fund in the financing of the Beijing-Shanghai high-speed rail project on a breakthrough, the peace, such as social security insurance fund allowed to invest in the project at the annual Total 80,000,000,000 yuan. Kim Yi-yin of the view that the country will be strong support for the Ministry of Railways, through issuing bonds to fill the funding gap. Thus by 2010, rail investment gap is not clear. हो
wever, if demand for funds in accordance with the current structure, and 2010-2020 of Railway investment demand remained at about 346,000,000,000 yuan, the Ministry of Railways an annual increase of interest-bearing liabilities 150,000,000,000 yuan, the Ministry of Railways in 2010 the rate of assets and liabilities will be more than 55 %। The liabilities of the limited space available on a large scale.
People within the Ministry of Railways told reporters that the Ministry of Railways in fact only aware of the bank loans and bond financing and risk not enough, so in 2005 and 2006, the Ministry of Railways has issued a series of breakthrough combination of boxing financing problems. In July 2005, the Ministry of Railways issued a "support and encourage and guide non-public economy to participate in the implementation of the operation of railway construction"; in June 2006, the Ministry of Railways launched "" 11th Five-Year Plan "railway investment and financing system reform to promote the program." However, the railway investment and financing system reform has been a very difficult nut to crack, Kim Yi-Yan said, "These measures only heard thunder, no rain. Now, the funding gap Daobi railway investment and financing systems must be reformed." Directors observed that, in 2,000,000,000,000 funds "platter", is bound to come up with a part of the country, and the other part of the community through financing. He disclosed that the country approved the project, the National Development and Reform Commission has also requested detailed in the specific content of the project, to increase the project finance market, and railway investment and financing system reform. Dong, a number of previous businesses, banks have expressed concern about the railway project, but suffer from non-specific pattern of investment and financing through the construction of the total funds approved, the next step is to find the key to the specific direction of the railway in the area, so banks, some of the relevant Enterprises can better participate.