Western regions to enhance links with train system

China's western regions will count on an enhanced railroad network to stimulate trade with neighboring countries to gain an edge over coastal provinces competing for infrastructure, labor and export deals.

About 78 percent of China's 800 billion yuan ($130 billion) in investment will be spent in its western and central regions this year, or 86 percent of the country's new rail facilities in 2014.

Luo Renjian, a researcher at the Institute of Transportation Research of the National Development and Reform Commission, said that with Asian countries aiming to boost exports, many have realized that better rail connections could have meaningful economic and political implications.

Many of these countries have China as their biggest market and business partner in the region.

"That strategy meets China's demand for further trade development with its neighbors. The nation is constructing new railways to build an infrastructure foundation in its border provinces and autonomous regions to pursue robust growth," Luo said.

Luo said joint effort between China and members of the Association of Southeast Asian Nations to promote regional connectivity and the fast development of building the Silk Road economic belt mean central and western regions need more railways.

Singapore and Malaysia's ongoing plan to build a high-speed rail link provides hope that Southeast Asia could one day have a European-style train system connected to China's Yunnan province or Guangxi Zhuang autonomous region.

Yunnan plans to build 1,500 kilometers of railroad, taking its train network to 4,000 km by 2015. Guangxi will add 955 km of rail lines this year. It opened five high-speed rail lines and two freight lines in 2013.

To promote exports, the Xinjiang Uygur autonomous region will offer two regular block train services starting in October.

The first train will depart from Urumqi to Mersin in southern Turkey via Kazakhstan, Turkmenistan and Iran in late October. Another train to Moscow will be launched by the end of this year.

"Because Xinjiang borders eight countries and is geographically much closer to Central Asia and Europe than other parts of China, the region is capable of establishing a flexible rail transportation network throughout the Silk Road economic belt," said Peng Ji, chief economist of Xinjiang's economic and information commission.

Xinjiang will invest 8.27 billion yuan to build a freight rail line and a passenger rail line in its northern region to strengthen its logistics ability in 2015.

The regional government also plans to build a new rail line to improve passenger and freight connections with Southwest China.

"From a long-term perspective, these new railroads will fully support trade, private investment, industrial productivity and the service industry in China's western region," said Peng.

Xinjiang's Hongliuhe-Naomaohu Railway, a 435-km freight line, one of the largest privately funded rail projects in China, was completed in July. Its goal is to make coal shipments easier to eastern provinces.

Fu Chengjun, a senior engineer at CSR Zhuzhou Electric Locomotive Co, a subsidiary of China South Locomotive and Rolling Stock Co, China's largest electric locomotive producer, said both China Northern Locomotive and Rolling Stock Industry Co and CSR have so far won more than 200 electric locomotive orders from China Railway Corp this year, more than in 2013.

"With more railway lines being built, the demand for electric locomotives in China's western region and Central Asia will continue to grow over the next decade," said Fu.

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