China plans to spend less on railway construction next year

Beijing, Dec 24 (ANI): China is planning to cut railway construction spending for next year.

The move is the latest signal that the world's second largest economy is de-emphasizing one of its most expensive programs after a year of problems highlighted by a deadly high-speed collision, The Wall Street Journal reports.

Under the new plan, spending for 2012 construction will drop 42 percent, from more than 700 billion Yuan earmarked in 2010, an investment level that initially had been expected to be maintained for a number of years, until the death of 40 people in the July crash prompted a reassessment.

China's Railways Minister Sheng Guangzu recently said 400 billion Yuan would be spent on railway infrastructure, as construction begins on approximately 3,950 miles of new track.

Sheng, whose comments were reported by the Xinhua News agency, emphasized the continued importance of railway expansion to the country's economy and social development.

He, however, acknowledged that the heavily indebted ministry no longer has a blank cheque to spend, saying, "there is still much to be done to collect sufficient funds for railway projects."

Sheng acknowledged the "severe challenge" of ensuring quality construction and safety as the railway system is being built so quickly.

According to the paper, any slowdown in outlays for Chinese Railway would be felt widely.

The government has planned to construct about 74,500 miles of track by 2015 and have more high-speed trains than the rest of the world combined by 2020.

According to the Paris-based industry group, Unife, the global rail sector is "heavily dependent" on China. (ANI)