China Is Getting On Track With Public Transportation
Friday, January 05, 2007SUZANNE PRATT: The number of people in China who own cars these days is growing rapidly. So it`s no surprise that traffic on the roads is growing rapidly as well, causing the government to focus on public transport. Urban light railways are now in vogue with 15 cities expected to have about a thousand miles of track in the next three years. As Nick Mackie reports from Chongqing, the challenge for local governments is to find a way to help pay for those railways.
NICK MACKIE, NIGHTLY BUSINESS REPORT CORRESPONDENT: This is Ai Li`s morning crush, a downside to Chongqing`s booming economy. With 400,000 workers moving to this city annually, commuters like Ai Li find that public transport often strains to cope.
AI LI, CHONGQING COMMUTER: It`s not the best way to start the day, is it. MACKIE: And on many of the roads, it`s not as if there`s space for more services. (INAUDIBLE) is up an estimated 40 percent on 2005.
TRANSLATION OF: LI SHUQING, PROFESSOR, CHONGQING TRANSPORT UNIVERSITY: We calculate, that by 2015, the centre of Chongqing will have 3 million cars, the same as Beijing has now. That means a 10-fold increase on today`s number of 300,000.
MACKIE: Faced with potential gridlock and its impact on the GDP, Chongqing has embarked on a 10-year program to construct 215 miles of urban light railways that will carry almost 2 million people per day. Ai Li can now complete her journey to work by track, by catching one of the 21 trains that service first 18 kilometer line, $0.5 billion investment, she can shave 40 minutes off her morning commute.
LI: At least this part of the way, from my home to the office, has no traffic jam.
MACKIE: Eighty thousand commuters agree that the $0.30 ticket is worth it, even though this is double the bus fare. To keep the economies moving, nine Chinese cities have begun constructing urban rail networks. Over 250 miles of track are now operational, three quarters are subways. Over the next five years, 15 cities are expected to collectively have over a thousand miles of urban track. The total investment should exceed $30 billion and China`s city authorities are looking for a financial model that would shoulder some of the burden.
TRANSLATION OF: WU BO, MANAGING ENGINEER, CHONGQING MUNICIPALITY CONSTRUCTION COMMISSION: At present we haven`t found a satisfactory way. Normally we use "BT." Once the investor has built it, the government buys. This lowers the investor`s risk and it also mitigates the pressure on the government for a period.
MACKIE: The cities hope to follow the national rail network which is attracting foreign and private capital to build and operate new routes as well as provide equipment and technology. Since 2004, General Electric has inked over $750 million in supply deals with China`s ministry of railways. But investors are hesitant as the urban payoff period is long. Nonetheless, one shouldn`t underestimate the determination of this country`s authorities to lure investment with promises of a bounty tomorrow in return for supporting a much needed, developing industry, today. Nick Mackie, NIGHTLY BUSINESS REPORT, Chongqing.
