30 Sep Chinese High-Speed Railways: Speeding Up on One Belt One Road
China’s One Belt One Road (OBOR) initiative comes with a big promise to boost economic development and cooperation among countries along the proposed routes. High-speed railways became another successful case reference of the expanding OBOR infrastructure. China has been actively exporting its technology to Turkey, Indonesia, Thailand, Russia, Hungary, Bangladesh and other countries, where distances between main cities can exceed over 700 km. The trade between China and these countries totaled $417,29bn in 2015.
China aims to expand its railway network to the most diverse geographic climate conditions. Jia Limin, who heads the Chinese programme to develop fast trains, explained South China Morning Post earlier this year: “That gives Chinese technology the unique ability to adapt to any condition anywhere in the world.”
Chinese high-speed railways exceeded 20,000 km in September with the opening of a line linking Zhengzhou in central China’s Henan province with Xuzhou in eastern Jiangsu province. The distance of 360 km can be travelled at 300 km per hour now. With the new mark of 20,000 km, China’s domestic high-speed tracks cover 60% of the world’s installed network.
The first 10,000 km took 11 years, according to Huang Xin, an official from the transportation bureau of China Railway Corp. “The network has doubled in only three years since then and is expected to nearly double again by 2025 and reach 45,000 km in 2030”, said Huang Xin in September.
According to China Railway Corp, about 4,200 bullet trains run in China each day, providing more than 4.5 million passenger trips. In 2015, China Railway Corp’s income totaled 916.3bn RMB ($1362.8bn).
Chinese companies now have high-speed rail contracts that cover about 3,000 km outside the country. The 533-km high-speed link between Ankara and Istanbul in Turkey was launched in 2014 allowing trains to reach speeds of up to 250 km per hour. The links between Jakarta and Bandung (Indonesia), Dhaka and Jessore (Bangladesh) are in the construction process and aim to cut travel between the cities by about two-thirds.
Big infrastructure projects across One Belt One Road corridors increase commercial activities and financial operations with China. We at Carlton Mansfield Capital Limited have an expertise and a full capacity to help your business benefit from the OBOR initiative through our services that include cross border payments, asset management, capital market distribution and advisory.