Industry Analysis & Industry Trends
The Chinese Government allocated $160 billion for railway construction between 2006 and 2010 to expand the length of rail network to over 90,000 kilometers. By 2020, further investments are expected to increase this number to 120,000 kilometers. Although a large proportion of those investments are dedicated to railways for passenger traffic, freight transport will benefit as more current railways are freed up for freight traffic.
According to the statistics released by the Ministry of Railways, in the first half of 2011, freight volume of rail transport totaled 1942.7 million tons, including 1130.3 million tons of coal. ACMR-IBISWorld estimates that the Railway Transportation of Freight industry is expected to generate total revenue of $30.1 billion in 2011, up 10.1% from 2010.... purchase to read more
Industry Report - Starting a New Business Chapter
Extensive sources of capital are required to establish new rail networks, purchase cars and locomotives. Maintenance of existing facilities is also costly.
The railway sector has long been considered to be of strategic importance to the whole country. Aside from its role in the national economy, the rail industry in China also serves the public, military, emergency services and disaster relief. Therefore, the railway sector is closely regulated by the government. Instead of fluctuating with market demand and supply, railway transportation prices in China are set by the State Council. To adjust transportation price, the Ministry of Railway must submit a request to the State Council for a decision... purchase to read more