The Ministry of Railways intends to decentralize the intercity railroads but it is "without money"

The Ministry of Railways intends to decentralize the intercity railroads but it is "without money"
Diesel Generator | Diesel Generator Price / 2012-03-05

Although local governments have always had a high degree of enthusiasm for the construction of inter-city railways, they are subject to funding issues and the construction of inter-city railways in our country is going downhill. “Not many inter-city railway plans submitted by local governments have been reported this year. We have not yet approved new intercity railway plans so far,” said Cui Peng, deputy director of the Department of Basic Industries of the National Development and Reform Commission, told the Economic Information Daily that although it is still There is no clear document, but the construction of the inter-city railway was mainly reported jointly by the Ministry of Railways and local governments. Now it is mainly reported by the local government.
Wang Mengshu, an academician of the Chinese Academy of Engineering and deputy chief engineer of China Railway Tunnel Group, said that at present all provinces and cities have the impulse to build inter-city railways, and the Ministry of Railways also intends to decentralize the construction of inter-city railways, that is, no longer seeks a controlling position in the construction of inter-city railways. However, this gap will not be fully opened because some local governments do not currently have the capital capacity to start construction. According to report, the Ministry of Railways is basically in a controlling position among the intercity railways that have started construction and have been opened to traffic. For example, in the Ning An intercity railway, the Ministry of Railways accounts for 50%, and the Sui and Su provinces together account for 50% of the total. In the construction of Qingrong Intercity Railway, the Ministry of Railways contributed 70%.
The reality is that even if the Ministry of Railways decentralizes the construction of intercity railways, the local government wants to build intercity railways is also "hearted and moneyless."
On the one hand, some local governments are still actively planning the construction of intercity railways. The Chengzi-Chengdu Intercity Railway and Fujian Coastal Intercity Railway are still under active planning. The Xi'an Quanlong Intercity Rail has also entered the demonstration phase of the line network planning, line selection and interchange hub program. The "Twelfth Five-Year Plan for Comprehensive Transportation Construction in Sichuan Province" proposes that during the "Twelfth Five-Year Plan" Sichuan will be built into the Mianle City Intercity Railway, and the Inner Mongolian Intercity Railway will be built in Mian County, starting from Leshan to Zigong to Zhangzhou and Yibin. Luzhou Intercity Railway.
On the other hand, most local governments that plan to build inter-city railways face financial bottlenecks. According to the reporter's understanding, several provinces failed to complete the annual plan for railway infrastructure last year, and this year, local government investment in railway infrastructure has further declined.
According to reports from the media, last year, the railway construction plan of Jiangsu Province invested 40 billion yuan, and actually completed 9.6 billion yuan, accounting for only 24% of the plan. Railway investment in Jiangsu Province in 2012 was 15 billion yuan, an annual reduction of 40 percent from the previous year’s 40 billion yuan plan. Fujian's railways under construction in 2011 will complete a project investment of 23 billion yuan, while in 2012 Fujian Province will invest 21 billion yuan in railway construction investment arrangements. The Chengmengcheng Intercity Railway, which was originally planned to be opened in 2012, is currently undergoing construction work on some road sections.
In addition, due to difficulties in financing, the pace of construction of some inter-city railways has slowed down. The scheduled opening of the Wuhuang Intercity Railway and the Wuxi Intercity Railway in 2011 will be completed by the end of this year.
“In the construction of inter-city railways, the Ministry of Railways took a controlling position and invested heavily, and the speed of follow-up by local governments was also relatively fast. Now that intercity railway construction is 'down,' many local governments are unwilling even if they allow local control. Follow-up.” Guo Wenlong, director of the Transportation Technology Development Research Center of the Institute of Integrated Transport Development and Reform Commission, told the “Economic Information Daily” reporter that high-speed rail and inter-city railways are the focus of railway infrastructure of the Ministry of Railways. Now the Ministry of Railways has very tight funding and can only guarantee the focus. The project, so the Ministry of Railways has decentralized the inter-city railways, and does not require holding, although the current issue of construction dominance and operational dominance in inter-city railways is not yet clear, and if there is funding protection, local governments can be allowed to build intercity railways. But now it seems that the local government is "hearted and moneyless."
Cui Peng said that since last year, the funds of local provinces and municipalities and the Ministry of Railways are very tight. If the construction of inter-city railways is mainly local, local governments will face great pressure. In order to solve the funding problem, Guangdong is exploring new ways of financing the intercity railway. The "Opinions on Perfecting the Comprehensive Development Mechanism of Land along the Intercity Rail Transit in the Pearl River Delta" issued by the Guangdong Province on January 19 stated that the scale of development along the inter-city railway line should be divided into the scale of development land within the red line and the scale of alternative development land outside the red line. Implementation of the "land maintenance strategy" will use the development income along the inter-city railway to offset construction and operating losses.
“After the Ministry of Railways has let go of the intercity railway construction initiative, the construction of intercity railways must find a solution to the capital. It does not solve the capital problem. The intercity railway cannot develop. The local government must also find a way to solve the capital problem. There are some groping on it.” Cui Peng said that for the construction and development of the intercity railroad, it is currently looking for a new direction. Apart from government investment, it still needs to attract private investment, although there are still some obstacles in attracting private capital.
The obstacle to rating is the poor profitability of the intercity railway, which discourages private capital. Guo Wenlong stated that many of the intercity railways currently in operation do not make money, inter-city railways have large investments and poor profitability, which makes it difficult to attract private capital. In addition, the inter-city railway has a problem of high construction specifications. The main characteristics of the intercity railway are its high capacity and multi-stops. Currently, the planned inter-city railways are basically planned and constructed according to the high-speed rail standards. They are long distances and stop short, which is not conducive to the advantages of intercity railways. .
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