Beijing reviews high-speed rail plans
By Jamil Anderlini in Beijing
Published: November 7 2010 19:56 | Last updated: November 7 2010 19:56
China’s Ministry of Railways is conducting a review of the country’s ambitious high-speed rail proposals after an influential state-backed think-tank raised questions about the affordability and practicality of the planned network.
In a report submitted by the China Academy of Science to the State Council, experts urged a rethink of the emphasis on massive infrastructure investment, particularly the bullet train expansion programme.
One of the concerns expressed in the report is the unsustainable level of debt that has propelled rail building projects across the country, particularly since the government launched its stimulus package in late 2008 to combat the effects of the global economic crisis.
[[snip)
But with dozens of new lines scheduled to open in the next two years, the high-speed connections already in operation are being carefully scrutinised.
Critics point out that bullet train services, such as the 1,000km Wuhan to Guangzhou connection that opened this year, are operating at less than half their full capacity and will never make enough money to repay the large bank loans used to build them.