Location: Suzhou
 
Project Background: 1. Since the Jin-Pu Railway Line is now being under much pressure of transportation and the Xin-Chang Railway is now open to traffic, the construction of the proposed Suzhou-Huai'an Railway Line will connect the Jin-Pu Railway Line with the Xin-Chang Railway Line and it will greatly improve the flexibility of the railway networks. Moreover, it will complete the railway networks in the north of Jiangsu province and in the north of Anhui province. It will of great benefit to the whole country.

2. In the north of Jiangsu province, power industry has made a rapid development, which leads to a great shortage of coal, while the Huaibei region in Anhui province is a large coal base. So a large amount of coal can be transported from Huaibei of Anhui province to the north of Jiangsu by the proposed Suzhou-Huai'an Railway Line and the transportation of coal from Shanxi province and North China to the north of Jiangsu is also made possible.

3. The proposed Suzhou-Huai'an Railway Line is located in the north of Anhui province and the north of Jiangsu Province, where the economic structures are complementary to each other and the advantage and competitiveness has emerged. So the construction of the proposed Suzhou-Huai'an Railway Line will strengthen the links and infiltration of the interregional economy, promote the economic development in the cities and counties along the railway line and play a major role in building a moderately prosperous society in all respects.
 
Project Content and Scale: The proposed Suzhou-Huai'an Railway Line is in the territory of Suzhou city of Anhui province and Suqian city and Huai'an city of Jiangsu province, and it is between the Xin-Chang Railway Line and Jin-Pu Railway Line. The line starts in the west from Fuliji station of Jin-Pu Railway Line and runs eastwards through Linbi, Sixian, Sihong, Suqian, Siyang and finally joins up with Yuanbei station of Xin-Chang Railway Line. The has a total length of 203.1km, of which 112.1km is in Anhui Province and 91km in Jiangsu Province.
 
Market Forecast Analysis: The anticipated freight volume: In the near future (2010) 9 million tons/year; in the long future (2015) 14 million tons/year.

The anticipated passenger volume: In the near future one pair per day; in the long future two pairs per day.
 
Analysis on Social and Economic Benefits:

1. Social benefit
Since the Suzhou-Huai'an Railway Line is between Jing-Hu Railway Line and Xin-Chang Railway Line the construction of the proposed railway line will open a convenient passage for the communication between the north of Jiangsu and Huaibei area. The proposed railway line will play an important role in completing the regional railway network and strengthening the regional communication network. It will strengthen the connection between the north of Jiangsu and Huaibei area, improve the unbalanced economic development between the Huaihai Economic Zone, the north of Anhui and the north of Jiangsu.

2. Economic benefit
50% of the investment sources come from capital fund and the remaining fund from bank loan. The price of the goods transportation is 0.16 yuan per km per ton and the price of passenger transportation is 0.12 yuan per km per capita. The total investment Financial Internal Returns Ratio of the project is 7.2% (excluding tax). The recovery period of investment is 11 years (including the construction period) and the pay-back period of the loan is 8 years (including construction period). The Economic Internal Returns Ratio is 16%. So the project is feasible according to the financial evaluation and macro-economic analysis. 
 
Investment Estimation: The total investment required will be RMB2.997 billion (approximately equal to US$374 million).  

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