Chinese railway expansion continues

China plans to invest US$ 22 billion constructing new railways in the coal-rich northern province of Shanxi in an effort to ease congestion and promote economic growth, according to state-funded Xinhua News Agency.

With economic growth expected to slow to about +9% this year, down from +11.9% in 2007, construction of new railway lines in the country is expected to create thousands of jobs and stimulate economic growth, particularly in Shanxi, said the report.

Expanding the rail system will also alleviate transport and trade bottlenecks, especially for the transportation of the coal from Shanxi. Coal is used to generate about 75% of China's electricity supply.

Shanxi, which accounts for about 33% of the country's coal output, will get 2000 km of new line by 2015, said Xinhua.

Construction of several new railway lines is expected to start in early 2009 and the construction of a new railway network in Shanxi means the province will be able to transport coal directly to coastal ports in eastern Shandong province, added the report.