Latest News:  
Beijing   Sunny    20 / 5   City Forecast

People's Daily Online>>China Business

Overheated transport construction brings financial risks (2)

(Beijing News)

15:47, March 27, 2012

Because of the high investment and operational cost, most of the subway lines in China are losing money.

Competition between high-speed railway and airline is getting fiercer.

“Wherever the high-speed railway goes, the price of airline ticket falls,” Jin Fengjun said, “Now the competition between high-speed railway and airline is very intense and it is expected to be fiercer in the future.”

Reflections and suggestions

In some western and central provinces the excessive transport construction brings little economic returns, which are suspected to be “administrative achievement projects”. Some regions are heavily indebted and the loans are the money the local people saved in banks, said Lu Dadao, academician of Chinese Academy of Sciences.

In sharp contrast to the overheated growth of high-speed transport is the insufficient construction of basic transport. At present more than 100 towns and 40,000 villages have no roads. In 2009, the unpaved and simply paved roads account for 55 percent of all roads in China; there are 95,742 unsafe bridges too, Lu said.

Lu suggested that China should make a medium- and long-term plan for transport construction according to the national conditions and coordinate the development of different means of transportation.

In the future it is proper to reduce the national investment in transportation to 3 or 4 percent of GDP and to improve the basic transport construction as well as enhance the transport organization, Lu said.

【1】 【2】


Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. Porcelain tower in Jingdezhen

  2. Blood collected from panda

  3. Moon, Venus and Jupiter conjunction

  4. China's escort fleet successfully expels suspected pirates

Most Popular


  1. South China Sea mapping underway
  2. Safer world, safer energy
  3. Keep talking, Hu urges
  4. US' human rights violations
  5. Leung wins Hong Kong election by wide margin
  6. China yet to be a sea power
  7. Prevent nuclear terrorism
  8. Conditions needed for Annan's peace mission
  9. Will Syria crisis be transformed into an opportunity?
  10. Chinese economy will not suffer a hard landing

What's happening in China

Website helps ex-convicts find jobs

  1. China's urbanization leaves rural land unattended
  2. 3 students dead, 14 injured in China road accident
  3. China's Forbidden City robber appeals jail term
  4. China regulates funeral ahead of Qingming
  5. Relief funds allocated for quake-hit Xinjiang

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai