Although it massively invests in the expansion and modernisation of domestic rail infrastructure, China holds a “pro-rail” campaign outside the country’s borders as well. The country implements and finances projects in the area on the one hand, or it supplies new specific technologies on the other hand. The Chinese authorities and companies involve in railway projects, thus helping different countries in different corners of the world to improve their rail transport system. In the past couple of years, China’s economic growth has mostly relied on railway investments. Consequently, the economic prospects for 2010 show a 9.5% growth against 8.7% (in 2009), a growth determined by investment stimulation effort. Expanding activities in the railway sector to Europe, Asia and even America propel China through the first countries in the world that invest and get involved in railway infrastructure projects, both at national and international level.
Asia, the region with contracts of billions of euros
In Central Asia, China is about to develop a railway line that connects 3 countries, Afghanistan, Pakistan and Uzbekistan. “This railway line is part of our plan to expand the railway network in Afghanistan to get connections to the ports in Iran and Pakistan. The railway is essential for the transport of ferrous and copper ores”, declared the Minister of Mines in Afghanistan, Wahidullah Shahrani. Consequently, China Metallurgical Group Corporation will elaborate the feasibility studies and the construction schedule studies for the development of the 700-km long line. The company has estimated the project at USD 5 Billion. The project is due in five years, two and a half of which are dedicated to studies so that investment risks will be eliminated when the project is initiated. Another large project for China consists on the development of a railway line in Iran, for which China has already signed the EUR 2 Billion contract. This project is the first step in the development plan of the railway system that connects Middle East and Central Asia to Beijing. The new 570-km long line will link Tehran to Khosravi, at the Iraq border. The Iranian Government said it was possible for the route to connect Iran and Iraq, up to Syria, as it is part of a Middle East Corridor. Nicklas Swanstrom, General Manager of the Central Asia-Caucasus Institute, said this contract was the first step for China in what concerns the construction of an entire railway network for Central Asia. “If you develop railway lines in Iran, than you sign several contracts to develop line sections in Asia”, declared Swanstrom, speaking about a “very practical” plan that implies the construction of a line to link Iran to Tajikistan, Kyrgyzstan and perhaps, Kashgar, in China. Also in Asia, this time on domestic territory, China works on the extension of the railway link to Tibet by building a 253-km long line. The project has a budget that exceeds USD 1.95 Billion and is currently underway. The line is due in 2014. “The line extension is part of the network’s key projects that will rapidly help the economy grow. The line will have a capacity of 8.3 million tonnes of freight a year”, Minister of Railways, Liu Zhijun, said. Moreover, China and Kazakhstan have signed a cooperation agreement in the railway sector to boost the freight traffic capacity and expand the railway network.
Europe comes next
Due to the lack of capital in Europe, Chinese investors have accessed the community market in different kinds of sectors, not only railways. China pays special attention to the Croatian port of Rijeka, which has all chances to become the largest Adriatic seaport and brings Croatia profits of billions of euros. Taking over the Rijeka seaport is one of China’s many future investments in infrastructure projects. According to sources quoted by the online newspaper nacional.hr, the details about China and Croatia’s plan have not yet been revealed, but estimates amount to over EUR 10 Billion. Such projects bring forth China’s increasing interest in expanding investments in South-Eastern Europe. During a meeting in March 2010, the Minister of Foreign Affairs in Croatia, Gordon Jandrokovic, discussed with representatives of the Chinese Government the feasibility of future investments in Croatian ports, in the new terminal of the Zagreb Airport and in rail infrastructure construction. Ukraine has also relied on the financial support of China for infrastructure development. In September, the two countries signed an agreement for financing the railway line that connects Kiev to the Airport. The credit is worth USD 950 Million and will be used to build the 30-km line and auxiliary constructions. According to China’s People’s Daily, construction works are due to begin next year and last 3 years. “This loan is enough to finance the whole project”, declared Vladyslav Kaskiv, in charge with the line project. Although not specified in the contract, the press says Ukraine has hired a Chinese company to develop the project.
by Pamela Luică
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